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Module 2

Chapter 2 of Marketing Management focuses on marketing planning and management, outlining key tasks for corporate and business unit planning, developing market offerings, and creating actionable marketing plans. It emphasizes the importance of defining a corporate mission, building corporate culture, and developing strategic business units while also detailing the G-STIC approach for planning and managing market offerings. The chapter concludes with the necessity of updating marketing plans and conducting audits to ensure relevance and effectiveness in a changing market environment.

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2 views

Module 2

Chapter 2 of Marketing Management focuses on marketing planning and management, outlining key tasks for corporate and business unit planning, developing market offerings, and creating actionable marketing plans. It emphasizes the importance of defining a corporate mission, building corporate culture, and developing strategic business units while also detailing the G-STIC approach for planning and managing market offerings. The chapter concludes with the necessity of updating marketing plans and conducting audits to ensure relevance and effectiveness in a changing market environment.

Uploaded by

kashish26
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Marketing Management

Chapter 2

Marketing Planning and Management


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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