Entrepreneurship

Planning, Implementing,
and Controlling
Marketing Strategies
 Objectives
1. To describe the strategic planning process
2. To explain how organizational resources and opportunities
affect the planning process
3. To understand the role of the mission statement in
strategic planning
4. To examine corporate, business-unit, and marketing
strategies
5. To understand the process of creating the marketing plan
6. To describe the marketing implementation process and
the major approaches to marketing implementation
Chapter Outline

• Understanding the Strategic Planning Process

• Assessing Organizational Resources and Opportunities
• Establishing an Organizational Mission and Goals
• Developing Corporate, Business-Unit, and Marketing
Strategies
• Creating the Marketing Plan
• Implementing Marketing Strategies

2 | 3
Understanding the Strategic Planning Process
• Strategic Planning
– The process of establishing an organizational
mission and formulating goals
– corporate strategy
– marketing objectives
– marketing strategy
– a marketing plan

2 | 4
Components of Strategic Planning

Source: Figure adapted from Marketing Strategy, Second Edition, by O. C. Ferrell, Michael Hartline, and George Lucas, Jr.
Copyright © 2002. Reproduced with permission of South-Western, a division of Thomson Learning.
 Marketing Strategy and Marketing Plan
• Marketing Strategy
– A plan of action for identifying and analyzing a target
market and developing a marketing mix to meet the
needs of that market
• Marketing Plan
– A written document that specifies
the activities to be performed to
implement and control an
organization’s marketing activities
Assessing Organizational Resources and Opportunities

• Core Competencies
– Things a firm does extremely well (strengths),
which sometimes give it an advantage over its
competition
• Financial and human resources
• Reputation, goodwill, and brand names
Assessing Organizational Resources and Opportunities
(cont’d)

• Market Opportunity
– A combination of circumstances and timing that
permits an organization to reach a target market
• Core competencies are matched to opportunities
Strategic windows—
temporary periods of optimal
fit between the key requirements
of a market and the particular
capabilities of a firm
 Assessing Organizational Resources and Opportunities
(cont’d)

• Competitive Advantage
– The result of a company’s matching
a core competency (superior skill
or resources) to opportunities
in the marketplace
• Manufacturing skills
• Technical skills
• Marketing skills
 SWOT Analysis
• An assessment of the organization’s strengths,
weaknesses, opportunities, and threats
– Strengths—competitive advantages or core
competencies
– Weaknesses—limitations on competitive capability
– Opportunities—favorable conditions in the
environment
– Threats—conditions or barriers to reaching objectives
The Four-Cell SWOT Matrix

Source: Reproduced from Nigel F. Piercy, Market-Led Strategic Change. Copyright © 1992, p. 371, with
permission from Elsevier Science.
Establishing an Organizational Mission and Goals

• Mission Statement
– A long-term view, or vision, of
what the organization wants to
become
– Mission statement answers
two questions:
• Who are our customers?
• What is our core
competency?
 Establishing an Organizational Mission and Goals (cont’d)

• Marketing Objective
– A statement of what is to be accomplished through
marketing activities to match strengths to
opportunities, or to provide for the conversion of
weaknesses to strengths
• Should be stated in clear, simple terms
• Should be accurately measurable
• Should specify a time frame for accomplishment
• Should be consistent with business-unit and
corporate strategy
Levels of Strategic Planning
Corporate Strategy

• A strategy that determines the means for utilizing

resources in the various functional areas to reach the
organization’s goals
– Determines the scope of the business
– Guides its resource deployment
– Identifies its competitive advantages
– Provides overall coordination of functional areas
Corporate Strategy (cont’d)
• Issues Influencing Corporate Strategy
Development
– Corporate culture
– Competition
– Differentiation
– Diversification
– Interrelationships among business units
– Environment concerns and social issues
Business-Unit Strategy
• Strategic Business Unit (SBU)
– A division, product line, or other profit center
within a parent company
• Market
– A group of individuals and/or organizations
that have needs for products in a product
class and have the ability,
willingness, and authority to
purchase those products
• Market Share
– The percentage of a market that
actually buys a specific product
from a particular company
 Business-Unit Strategy (cont’d)
• Market-Growth/Market-Share Matrix
– A strategic planning tool based on the philosophy
that a product’s market growth rate and market
share are important in determining marketing
strategy
– Factors determining SBU/product’s position within a
matrix
• Product-market growth rate
• Relative market share
Growth-Share Matrix Developed by the Boston
Consulting Group

Source: “The BCG Portfolio Matrix” from the Product Portfolio Matrix, © 1970, The Boston Consulting
Group. Reproduced by permission.
 Business-Unit Strategy (cont’d)
• Market-Growth/Market-Share Matrix (cont’d)
– BCG Classification
• Star—high growth market, dominant market share
– requires additional resources for continued growth
• Cash cow—low growth, dominant market share
– generates surplus resources for allocation to other SBUs
• Dog—low/declining market, subordinate market share
– has diminished prospects and represents a drain on the portfolio
• Question mark—high growth market, low market share
– represents a high-risk/cost opportunity requiring a large commitment
of resources to build market share
Marketing Strategy
• Target Market Selection
– Defining/understanding the target market by
• focusing on specific profitable customer groups/market
segments.
• recognizing changes occurring in the market.
• Creating the Marketing Mix
• Analyze customer needs, preferences, and behavior
• Have the skills and resources required for product design, pricing,
distribution, and promotion
• Maintain strategic consistency and flexibility in marketing mix
decisions
 Net Sights
 Corporate executives and
marketing managers must
stay informed to develop
successful strategies.
 CEO Express (
www.ceoexpress.com)
provides access to
newspapers, business
journals, special-interest
publications, and
syndicated news services
Creating the Marketing Plan

• Marketing Planning
– The systematic process of assessing opportunities
and resources, determining objectives, defining
strategies, and establishing guidelines for
implementation and control of the marketing
program
Creating the Marketing Plan (cont’d)
• Benefits of Planning
– Provides the basis for internal communication among
employees
– Defines the assignment of responsibilities and tasks
and sets the schedules for implementation
– Presents objectives and specifies resource allocations
– Helps in monitoring and evaluating the performance of
the marketing strategy
Implementing Marketing Strategies
• Marketing Implementation
– The process of putting marketing strategies into action
• Intended Strategy
– The strategy that the company decides on during the
planning phase
• Realized Strategy
– The strategy that actually takes place

Intended Realized
Implementation
Strategy Strategy
Approaches to Marketing Implementation

• Internal Marketing
– Coordinating internal exchanges between the firm
and its employees to achieve successful external
exchanges between the firm and its customers
– Helping employees understand and accept their
roles in the marketing strategy
– External customers
• Individuals who patronize a business
– Internal customers
• A company’s employees
Total Quality Management

• Total Quality Management (TQM)

– A philosophy that uniform commitment to quality in all areas
of the organization will promote a culture that meets
customers’ perceptions of quality
• Benchmarking
– Comparing the quality of the firm’s goods, services, or
processes with that of the best-performing competitors
• Empowerment
– Giving customer-contact employees authority and
responsibility to make marketing decisions on their own
Components of Total Quality Management

Total
Total Quality
Quality
Management
Management

Continuous
ContinuousQuality
Quality Empowered
Empowered
Improvement
Improvement Employees
Employees
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rights reserved.
Organizing Marketing Activities
• The Role of Marketing in an Organization

Organizational goals for

Understanding customer
customer value and firm
needs and desires
profitability

Marketing Concept

Close coordination of organizational units

Organizing Marketing Activities (cont’d)

• Centralized Organization
– A structure in which top management delegates
little authority to levels below it
• Decentralized Organization
– A structure in which decision-making authority is
delegated as far down the chain of command as
possible
 Organizing the Marketing Unit

Alternatives
Alternativesfor
forOrganizing
Organizing
the
theMarketing
Marketing Unit
Unit

Centralized
Centralized Marketing
Marketing Product
Product Geographic
Geographic Customer
Customer
or
or Functions
Functions Groups
Groups Regions
Regions Types
Types
Decentralized
Decentralized
 The Marketing Control Process

 There is no planning without control.

 Marketing control is the process of monitoring the
proposed plans as they proceed and adjusting where
necessary.
 If an objective states where you want to be and the 
plan sets out a road map to your destination, then
control tells you if you are on the right route or if you
have arrived at your destination

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rights reserved.
 The Marketing Control Process

 Market share analysis

 Sales analysis
 Quality controls
 Budgets
 Ratio analysis
 Marketing research
 Marketing information systems (MkIS)
 Feedback from customers satisfaction surveys
 Cash flow statements

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rights reserved.
 The Marketing Control Process

 Customer Relationship Management (CRM) systems.

 Sales per thousand customers, per factory, by segment.
 Location of buyers and potential buyers.
 Activities of competitors to aspects of your plan.
 Distributor support.
 Performance of any promotional activities.
 Market reaction/acceptance to pricing polices.
 Service levels.

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rights reserved.
The Marketing Control Process
 Controlling Marketing Activities

• Marketing Control Process

– Establishing performance standards and trying to match actual
performance to those standards
• Establishing Performance Standards
– Expected levels of performance
• Taking Corrective Action
– Improve actual performance
– Reduce or change the performance standards
– Do both
Controlling Marketing Activities (cont’d)

• Problems in Controlling
Marketing Activities
– Lack of the information
required to control activities
– Uncontrollable influence of market environment
changes on marketing activities
– Time lag that occurs between marketing
campaigns and their results delays corrective
actions
After reviewing this chapter you should:
• Be able to describe the strategic planning
process.
• Know how organizational resources and
opportunities affect the planning process.
• Understand the role of the mission statement
in strategic planning.
After reviewing this chapter you should:
• Be familiar with corporate, business-unit, and
marketing strategies.
• Understand the process of creating a
marketing plan.
• Be able to describe the marketing
implementation process and the major
approaches to marketing implementation.