Unit1 1

Marketing Management
Sixteenth Edition
Chapter 2
Marketing Planning and
Management
Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Learning Objectives
2.1 Identify the key tasks required for company and
business unit planning.
2.2 Describe the process of developing a market offering.
2.3 Explain the process of market planning.
2.4 Describe the key components of an actionable
marketing plan.
2.5 Explain how and when to modify the marketing plan.
Corporate and Business Unit Planning
• Three key areas:
– Managing the company’s business as an investment
portfolio
– Assessing the market’s growth rate and the
company’s position in that market
– Developing a viable business model
Figure 2.1 The Strategic Planning
Process
Four Planning Activities
• Defining the corporate
mission
• Building the corporate
culture
• Establishing strategic
business units
• Assigning resources
Defining the Corporate Mission (1 of 2)
• A mission is a clear, concise, and enduring statement of
the reasons for an organization’s existence
• Often referred to as its core purpose, a company’s
mission is a long-term goal that provides company
employees and management with a shared sense of
purpose, direction, and opportunity
Defining the Corporate Mission (2 of 2)
• Good mission statements:
– Focus on a limited number of specific goals
– Stress the company’s major policies and values
– Define the major markets that the company aims to
serve
– Take a long-term view
– Are as short, memorable, and meaningful as possible
Building the Corporate Culture
• What exactly is a
corporate culture?
– Some define it as
“the shared
experiences,
stories, beliefs, and
norms that
characterize an
organization.”
Defining Strategic Business Units (1 of 2)
• A strategic business unit (SBU):
– Is a single business, or a collection of related
businesses, that can exist separately from the rest of
the company
– Has its own set of competitors
– Has a manager responsible for strategic planning and
profit performance, who controls most of the factors
affecting profit
Defining Strategic Business Units (2 of 2)
• A specialized portfolio involves SBUs with fairly narrow
assortments consisting of one or a few product lines
• A diversified portfolio involves SBUs with fairly broad
assortments containing multiple product lines
Allocating Resources
• Assess each SBU’s competitive advantage and the
attractiveness of the market in which it operates
– Grow
– Harvest
– Hold
Developing Market Offerings
• Strategy involves choosing a well-defined market in
which the company will compete and determining the
value it intends to create in this market
• Tactics, also called the marketing mix, make the
company’s strategy come alive
Developing the Marketing Strategy
• Two components:
– Target market
– Value proposition
Identifying the Target Market
• The Five Cs:
– Customers
– Competitors
– Collaborators
– Context
– Company
Figure 2.2 Identifying the Target Market:
The 5-C Framework
The Five Cs (1 of 2)
• Target customers are the individuals or organizations
whose needs the company plans to fulfill
• Collaborators work with the company to create value for
target customers
• Competitors aim to fulfill the same needs of the same
customers that the company is targeting
The Five Cs (2 of 2)
• The company develops and manages a given market
offering
• The context is the environment in which the company
and its collaborators operate
Developing a Value Proposition (1 of 2)
• Customer value
• Collaborator value
• Company value
Developing a Value Proposition (2 of 2)
• An optimal value proposition balances the value for
customers, collaborators, and the company
Figure 2.3 The 3-V Market Value Principle
Designing the Marketing Tactics
• The market offering is the actual good that the company
deploys in order to fulfill a particular customer need
Figure 2.4 Marketing Tactics: The Seven
Tactics (7Ts) Defining the Market Offering
Figure 2.5 Marketing Tactics as a Process of Designing,
Communicating, and Delivering Customer Service
Figure 2.6 The Market Value Map
Planning and Managing Market Offerings
• G-STIC Approach
– Set a goal
– Develop a strategy
– Design the tactics
– Define an implementation plan
– Identify a set of control metrics
Figure 2.7 The G-STIC Action-Planning
Flowchart
Setting a Goal
• Goal focus:
– Monetary goals
– Strategic goals
• Performance benchmarks:
– Quantitative benchmarks
– Temporal benchmarks
Developing the Strategy (1 of 2)
• Target market
– Customers
– Competitors
– Collaborators
– Company
– Context
Developing the Strategy (2 of 2)
• Value proposition
– Customer value
– Collaborator value
– Company value
Designing the Tactics
• Resource development
• Development of the offering
• Commercial deployment
Identifying Controls
• Evaluate performance—use benchmarks to track
progress
• Monitor the environment—take corrective actions as
necessary
Developing a Marketing Plan
• Three main functions:
– Describes the company’s goal and proposed course
of action
– Informs the relevant stakeholders about the goal and
action plan
– Persuades the relevant decision makers of the
viability of the goal and the proposed course of action
Contents of the Marketing Plan (1 of 2)
• Executive summary—the “elevator pitch”
• Situation overview—an overall evaluation of the
environment
Contents of the Marketing Plan (2 of 2)
• G-STIC section—the core of the marketing plan
– Goal
– Strategy
– Tactics
– Implementation
– Control
• Exhibits
Figure 2.8 The Organization of the
Marketing Plan
Updating the Marketing Plan
• Marketing plans are not static; they need updating in
order to remain relevant
Conducting a Marketing Audit
• An effective marketing audit should be:
– Comprehensive
– Systematic
– Unbiased
– Periodic
Evaluating a Marketing Plan
• Is the plan simple/succinct?
• Is the plan complete?
• Is the plan specific?
• Is the plan realistic?
Discussion Questions (1 of 2)
• The COVID-19 pandemic caused many companies to
update their marketing plans to reflect the new
environment.
– How did companies in the tourism industry update
their marketing plans during the pandemic?
– How did companies in the grocery industry redefine
their marketing plans during the pandemic?
Discussion Questions (2 of 2)
• Holding business meetings, college classes, exercise
classes, and even social gatherings via Zoom or another
online platform, has became a way of life across the
world.
– Discuss how this rapid shift in the market has
disrupted existing value-creation processes.
– What are the implications for marketing tactics for
companies in service industries like colleges and
universities, conference and event planning, and
exercise companies?
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