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Chapter 2 & 3

This document discusses key marketing concepts like the marketing concept, customer lifetime value, and classifying customers based on their profitability. It also outlines the 4 steps in strategic planning: 1) developing a company mission, 2) setting objectives and goals, 3) choosing a growth strategy, and 4) creating a company portfolio plan. Finally, it lists the 7 steps in developing a marketing strategy in strategic planning: 1) an executive summary, 2) a situation analysis, 3) objectives and goals, 4) the marketing strategy, 5) an action program, 6) budgets, and 7) controls.

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23 views

Chapter 2 & 3

This document discusses key marketing concepts like the marketing concept, customer lifetime value, and classifying customers based on their profitability. It also outlines the 4 steps in strategic planning: 1) developing a company mission, 2) setting objectives and goals, 3) choosing a growth strategy, and 4) creating a company portfolio plan. Finally, it lists the 7 steps in developing a marketing strategy in strategic planning: 1) an executive summary, 2) a situation analysis, 3) objectives and goals, 4) the marketing strategy, 5) an action program, 6) budgets, and 7) controls.

Uploaded by

Baraa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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- Marketing concept: knowing the needs and wants of target market and delivering

desired value and satisfaction better than the competition


- Societal marketing concept: Questions if marketing concept overlooks possible
conflicts between customer short-run wants and long-term welfare

- Customer lifetime value: the entire stream of purchases a customer makes from one
company over a lifetime of patronage
- Share of customer: the share a company gets of customer’s purchasing in their
product categories
- Customer equity: the total combined lifetime values of all the company’s current
and potential customers

Companies can classify customers according to their potential profitability and manage
relationships accordingly:
- True friends: long term customers and highest profitability
- Butterflies: short term customers yet high profit potential
- Barnacles: long term customers yet low profitability
- Strangers: short term customers and very little profitability

Chapter 2 & 3 – company and marketing strategy & the marketing environment
4 steps in strategic planning
Strategic planning – is the managerial process of developing and maintaining a strategic fit
between the organization and its changing marketing opportunities. It relies on
1. Company mission – an organization exists to accomplish something in the larger
environment, and its specific purpose is usually stated clearly at the beginning but over
time factors change. In order to keep all employees working towards one-goal
companies form mission statements, which provide the employees with opportunity,
direction significance and achievement.
2. Company objectives and goals – each manager should know their responsibilities and
objectives for accomplishment. You must develop strategies to support these objectives,
and by doing so can broaden the marketing strategies. The objectives and goals must
also be quantitative and specific.
3. Company Growth strategy – the want to grow in sales and profits give companies an
opportunity to establish a growth rate to which they will pursue. Three different growth
strategies are a) intensive b) integrative c) diversification
4. Company portfolio plan – the business must evaluate so that it can decide to build,
maintain, phase out or down. The portfolios withdraw from poor companies and add to
the promising.

Marketing in Strategic Planning


1. Executive summary - permits higher management to quickly grasp the major thrust of
the plan and then read further in search of the information that is critical in evaluating
the plan.
2. Situation analysis – the manager describes the major features affecting his or her
operation. They comprise of strengths and weaknesses and opportunities and threats.
3. Objectives and goals – the goal is to set relatively specific goals and objectives and
present them to higher management. They must be seen as attainable and attractive to
the higher management.
4. Marketing strategy – outline a marketing strategy for attaining its objectives. This is seen
as the “game plan” for the business to follow. It has three major aspects: target
markets, marketing mix and marketing expenditure level.
5. Action program – the strategy must be turned into specific set actions for accomplishing
the marketing goal.
6. Budgets – the goals, strategies, and planned actions allow the manager to formulate a
supporting budget statement for the operation.
7. Controls – this is applied to monitor the plans progress after the fact.

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