References

• Kotler, Philip, & Armstrong, Gary. (2016).

Principles Of Marketing. Global Edition.16th
Edition.UK: Pearson Education.
• Kotler, Philip & Armstrong, Gary. (2010)
Principles Of Marketing. NJ: Pearson

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 Outline
Company-wide Strategic Planning: Defining Marketing Role

• Steps in Strategic Planning

• 1st step: Mission statement
• 2nd step: Setting company objectives and goals
• 3rd step: Designing Business portfolio
• 4th Step: Planning marketing and other functional strategies

Marketing Strategy & Marketing Mix

• Market segmentation
• Positioning
• Marketing mix

Managing the Marketing effort

• Marketing analysis (SWOT)

• Marketing Plan
• Marketing Implementation
• Marketing Department Organization

Marketing Return on Investment

• Marketing Control
• Marketing Return and Investment (ROI)

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 Strategic Planning
• Strategic planning involves adapting the firm
to take advantage of opportunities in its
constantly changing environment.
• Strategic planning helps a firm to maintain a
strategic fit between its goals and capabilities
and its changing marketing opportunities.

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Figure 2.1 - Steps in
Strategic Planning

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 Mission Statement
• Statement of the organization’s purpose
• What it wants to accomplish in the larger
environment
• Market oriented and defined in terms of
satisfying basic customer needs
• Emphasizes the company’s strengths
• Focuses on customers and the customer
experience the company seeks to create

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 Setting Company Objectives
and Goals
• The mission should be converted to
supporting objectives at each level of
management.
• The mission leads to setting a hierarchy of
objectives.
• Business objectives
• Marketing objectives

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 Business Portfolio
• Collection of businesses and products that
make up the company
• Steps in business portfolio planning:
• Analyze the firm’s current business portfolio
• Develop strategies for growth and downsizing to
shape the future portfolio

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 Portfolio Analysis
• Evaluation of the products and businesses that
make up the company by the management
• Steps:
• Identifying the strategic business units (SBUs)
• Assessing the attractiveness of its various SBUs
and deciding the support each SBU deserves
• The purpose is to direct resources toward more
profitable businesses while phasing out or
dropping weaker ones.

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Figure 2.2 - The BCG
Growth-Share Matrix

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 Growth-Share Matrix
• Evaluates a company’s SBUs in terms of
market growth rate and relative market share
• Problems
• Difficult, time consuming, and costly to implement
• Difficult to define SBUs and measure market share
and growth
• Focuses on classifying current businesses but
provide little advice for future planning

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Figure 2.3 - The Product/Market
Expansion Grid

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 Downsizing
• Reduces the business portfolio by eliminating
products or business units that are not
profitable or that no longer fit the company’s
overall strategy
• Reasons for downsizing:
• Rapid growth of the company
• Lack of experience in a market
• Change in market environment
• Decline of a particular product

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 Role of Marketing in
Strategic Planning
• Provides a guiding philosophy
• Marketing concept—company strategy should
create customer value and build profitable
relationships with the key customers
• Provides inputs to strategic planners
• Helps identify market opportunities and assess
the firm’s potential to take advantage of them
• Designs strategies for reaching the unit’s
objectives

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 Partnering with Other
Company Departments
• Value chain: Series of internal departments
that carry out value-creating activities
• Firm’s success depends on how well the
various departments coordinate their
activities.
• Marketers should ensure all the departments
are customer-focused and develop a smooth
functioning value chain.

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 Partnering with Others in
the Marketing System
• Companies should assess:
• Their internal value chains.
• The value chains of their suppliers, distributors,
and their customers.
• Value delivery network: Made up of the
company, its suppliers, its distributors, and its
customers who partner with each other
• To improve the performance of the entire system

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 Marketing Strategy
• Marketing logic by which the company hopes
to create customer value and achieve
profitable customer relationships
• Marketing mix: Integration of product, price,
place, and promotion
• Activities for best marketing strategy and mix
involve:
• Marketing analysis
• Planning, implementation, and control
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 Market Segmentation and
Market Targeting
Market segmentation

• Dividing a market into distinct groups of buyers who have

different needs, characteristics, or behaviors, and who might
require separate products or marketing programs

Market segment

• Group of consumers who respond in a similar way to a given set

of marketing efforts

Market targeting

• Evaluating each market segment’s attractiveness and selecting

one or more segments to enter

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 Positioning
• Arranging for a product to occupy a clear,
distinctive, and desirable place relative to
competing products in the minds of target
consumers
• Begins with differentiation
• Differentiation: Differentiating the market
offering to create superior customer value
• The entire marketing program should support
the chosen positioning strategy.
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Figure 2.5 - The Four Ps of
the Marketing Mix

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 Criticisms of the Four Ps
• Omit or underemphasize service products
• Need to include packaging as a product
decision
• Does not cater to the buyer’s perspective of
the four Cs:
• Customer solution
• Customer cost
• Convenience
• Communication
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Figure 2.6 - Managing Marketing: Analysis,
Planning, Implementation, and Control

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 Figure 2.7 - SWOT Analysis: Strengths (S),
Weaknesses (W), Opportunities (O), and Threats (T)

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 Contents of a Marketing Plan
Section Purpose
Executive summary Brief summary of the main goals and
recommendations
Current marketing Gives the market description and the
situation product, competition, and distribution
review
Threats and Helps management to anticipate
opportunities analysis important positive or negative
developments
Objectives and issues States and discusses marketing
objectives and key issues

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 Contents of a Marketing Plan
Section Purpose
Marketing Outlines the broad marketing logic and the specifics of
strategy target markets, positioning, marketing expenditure levels,
and strategies for each marketing mix element
Action Spells out how marketing strategies will be turned into
programs specific action programs
Budgets Details a supporting marketing budget that is a projected
profit-and-loss statement
Controls Outlines the controls that will be used to monitor
progress, allow management to review implementation
results, and spot products that are not meeting their goals

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 Market Implementation
• Turning marketing strategies and plans into
marketing actions to accomplish strategic
marketing objectives
• Addresses the who, where, when, and how of
the marketing activities

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Marketing Department Organization

Product
Functional Geographic
management
organization organization
organization

Market or
Combination
customer
organization
organization

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 Marketing Control
• Measuring and evaluating the results of
marketing strategies and plans
• Operating control ensures that the company
achieves the sales, profits, and other goals set
out in its annual plan.
• Strategic control involves looking at whether
the company’s basic strategies are well
matched to its opportunities.

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Marketing Return on Investment (ROI)
• Net return from a marketing investment
divided by the costs of the marketing
investment
• Assessed using:
• Standard marketing performance measures
• Customer-centered measures

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 Figure 2.8 - Marketing Return
on Investment

Source: Adapted from Roland T. Rust, Katherine N. Lemon, and Valerie A. Zeithaml, “Return on Marketing: Using Consumer Equity to Focus Marketing
Strategy,” Journal of Marketing, January 2004, p. 112. Used with permission.

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