CHAPTER TWO

Marketing Strategy
Planning

Mastering Marketing
When we finish this lecture you should

1. Understand what a marketing manager

does.
2. Know what marketing strategy planning
is--and why it will be the focus of the
book.
3. Understand target marketing.
4. Be familiar with the four Ps in a
marketing mix.
5. Know the difference between a marketing
strategy, a marketing plan, and a
marketing program.

Mastering Marketing
When we finish this lecture you should

6. Be familiar with the text’s framework for

marketing strategy planning—and why it
involves a process of narrowing down
from broad opportunities to the most
attractive marketing strategy.
7. Know four broad types of marketing
opportunities that help in identifying new
strategies.
8. Understand why strategies for
opportunities in international markets
should be considered.

Mastering Marketing
The Management Job in Marketing

Whole-Company
Marketing Strategic
Management
Planning Planning

Control Marketing Plan(s) Implement Marketing

and Program Plan(s) and Program

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Exhibit 2-2
What is Marketing Strategy Planning?

The
marketing mix

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 Exhibit 2-3
Selecting a Market-Oriented Strategy Is Target Marketing

Production-oriented manager sees Marketing-oriented manager sees

everyone as basically similar and everyone as different and
practices “mass marketing” practices “target marketing”

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An Application of Target Marketing

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Exhibit 2-4
Developing Marketing Mixes for Target Markets

Product Place

Price Promotion

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The Product Element of the Marketing Mix

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Exhibit 2-6
The Place Element of the Marketing Mix

Examples of Channels of Distribution

Del Procter &

AOL Nissan Monte Gamble

Wholesaler Wholesaler

Wholesaler

Retailer Retailer Retailer

Consumer
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The Promotion Element of the Marketing Mix

Personal
Personal Advertising
Advertising
Selling
Selling

Telling
Telling and
and
Selling
Selling
the
the Customer
Customer

Sales
Sales Publicity
Publicity
Promotion
Promotion

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The Price Element of the Marketing Mix

Price
Price of
of Other
Other Pricing
Pricing
Objectives Price
Price
Products
Products In In Objectives
Flexibility
Flexibility
the
the Line
Line
Competition
Competition Price
Price Changes
Changes
and
and Over
Over the
the Life
Life
Substitutes
Substitutes Price Cycle
Cycle
Price
Setting
Setting Discounts
Discounts
Price
Price and
and
Sensitivity
Sensitivity Allowances
Allowances
Geographic
Geographic
Cost
Cost and
and Legal
Legal Pricing
Pricing
Demand
Demand Environment
Environment Terms
Terms
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Interactive Exercise: Marketing Mix

Product Place

Price Promotion

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 All Four Ps Contribute to the Whole

Product
Product

Place
Place Selection
Selection
of
of Target
Target
Promotion Market
Market
Promotion

Price
Price

Understanding the Target Market Leads to Good Strategies!

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The Marketing Plan Guides
Implementation and Control

Target
Target
Market
Market
+ Marketing
Marketing
= Strategy
Strategy
Marketing
Marketing Marketing
+ Marketing
Mix
Mix = Plan
Plan
Time-
Time- AA Firm’s
Firm’s
Related
Related + = Marketing
Marketing
Details
Details Other
Other Program
Program
Marketing
Marketing
Plans
Plans

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The Importance of Marketing Strategy Planning

Strategy
Strategy Decisions
Decisions Usually
Usually Determine
Determine
Success
Success and
and Failure
Failure

• Timex had captured a large

market share
• Low price, dependability, good
ads, unconventional channels
• Stiff competition arose
• New product refinements

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 Creative Strategy Planning Needed for Survival

Death-wish Best-practices
marketing marketing

(Below (Above
average) average)
68%
(Well below (Average (Well above
average) Marketing average)
Program)
2% 14% 14% 2%
Failure Poor Fair Good Exceptional

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What Are Attractive Opportunities?

Breakthrough
Opportunities

Avoid Hit-or-Miss Competitive

Marketing Advantage

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Exhibit 2-10
Marketing Strategy Planning Process Highlights Opportunities

External Market Environment

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Exhibit 2-11
Types of Opportunities to Pursue

Present products New products

Present Market Product

markets penetration development

New Market Diversification

markets development

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Market Penetration

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Product Development

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 Interactive Exercise: Marketing Strategy

Present products New products

Present Market Product

markets penetration development

New Market Diversification

markets development

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International Opportunities Should Be Considered

Smaller
Smaller
World
World

Competitive
Competitive
Early
Early Start
Start Advantage
Advantage

Better
Better
Trends?
Trends?
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Global Competitive Advantage

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Key Terms
• Marketing • Personal selling
management process
• Mass selling
• Strategic • Advertising
(management) • Publicity
planning
• Sales promotion
• Marketing strategy
• Marketing plan
• Target market
• Implementation
• Marketing mix
• Operational decisions
• Target marketing
• Marketing program
• Mass marketing
• Breakthrough
• Channel of opportunities
distribution
• Competitive advantage
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Key Terms

• Differentiation
• S.W.O.T. analysis
• Market penetration
• Market development
• Product development
• Diversification

Mastering Marketing