Professional Documents
Culture Documents
DISCUSSION
1. Definition
Marketing is defined by the American Marketing Association as "the
activity, set of institutions, and processes for creating,
communicating,delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large." The term developed from
the original meaning which referred literally to going to a market to buy or
sell goods or services. Sales process engineering views marketing as "a set of
processes that are interconnected and interdependent with other functions,
whose methods can be improved using a variety of relatively new
approaches."
The Chartered Institute of Marketing defines marketing as "the
management process responsible for identifying, anticipating and satisfying
customer requirements profitably." A similar concept is the value-based
marketing which states the role of marketing to contribute to increasing
shareholder value.
6. Marketing Planning
The area of marketing planning involves forging a plan for a firm's
marketing activities. A marketing plan can also pertain to a specific product,
as well as to an organisation's overall marketing strategy.
Generally speaking, an organisation's marketing planning process is
derived from its overall business strategy. Thus, when top management are
devising the firm's strategic direction/mission, the intended marketing
activities are incorporated into this plan.
6.1. Marketing Planning Process
Within the overall strategic marketing plan, the stages of the
process are listed as thus:
Mission Statement
Corporate Objectives
Marketing Audit
SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
Assumptions arising from the Audit and SWOT analysis
Marketing objectives derived from the assumptions
An estimation of the expected results of the objectives
Identification of alternative plans/mixes
Budgeting for the marketing plan
A first-year implementation program
6.2. Levels of marketing objectives within an organization
As stated previously, the senior management of a firm would
formulate a general business strategy for a firm. However, this general
business strategy would be interpreted and implemented in different
contexts throughout the firm.
6.2.1. Corporate
Corporate marketing objectives are typically broad-based in
nature, and pertain to the general vision of the firm in the short,
medium or long-term. As an example, if one pictures a group of
companies (or a conglomerate), top management may state that
sales for the group should increase by 25% over a ten-year period.
6.2.2. Strategic business unit
Strategic business unit (SBU), in this case, means strategic
business unit. An SBU is a subsidiary within a firm, which
participates within a given market/industry. The SBU would
embrace the corporate strategy, and attune it to its own particular
industry. For instance, an SBU may partake in the sports goods
industry. It thus would ascertain how it would attain additional
sales of sports goods, in order to satisfy the overall business
strategy.
6.2.3. Functional
The functional level relates to departments within the SBUs,
such as marketing, finance, HR, production, etc. The functional
level would adopt the SBU's strategy and determine how to
accomplish the SBU's own objectives in its market.
CHAPTER II
CONCLUSION
Hunt, Shelby D. 1976, "The nature and scope of marketing." Journal of Marketing
40.3 : 17-28.
Drucker, Peter, 1954. The practice of management. New York: Harper and Row
Publishers.