Marketing Management
Sixteenth Edition
Chapter 2
Marketing Planning and
Management
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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.
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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
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Figure 2.1 The Strategic Planning
Process
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Four Planning Activities
• Defining the corporate
mission
• Building the corporate
culture
• Establishing strategic
business units
• Assigning resources
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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
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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
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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.”
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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
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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
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Allocating Resources
• Assess each SBU’s competitive advantage and the
attractiveness of the market in which it operates
– Grow
– Harvest
– Hold
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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
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Developing the Marketing Strategy
• Two components:
– Target market
– Value proposition
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Identifying the Target Market
• The Five Cs:
– Customers
– Competitors
– Collaborators
– Context
– Company
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Figure 2.2 Identifying the Target Market:
The 5-C Framework
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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
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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
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Developing a Value Proposition (1 of 2)
• Customer value
• Collaborator value
• Company value
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Developing a Value Proposition (2 of 2)
• An optimal value proposition balances the value for
customers, collaborators, and the company
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Figure 2.3 The 3-V Market Value Principle
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Designing the Marketing Tactics
• The market offering is the actual good that the company
deploys in order to fulfill a particular customer need
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Figure 2.4 Marketing Tactics: The Seven
Tactics (7Ts) Defining the Market Offering
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Figure 2.5 Marketing Tactics as a Process of Designing,
Communicating, and Delivering Customer Service
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Figure 2.6 The Market Value Map
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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
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Figure 2.7 The G-STIC Action-Planning
Flowchart
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Setting a Goal
• Goal focus:
– Monetary goals
– Strategic goals
• Performance benchmarks:
– Quantitative benchmarks
– Temporal benchmarks
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Developing the Strategy (1 of 2)
• Target market
– Customers
– Competitors
– Collaborators
– Company
– Context
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Developing the Strategy (2 of 2)
• Value proposition
– Customer value
– Collaborator value
– Company value
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Designing the Tactics
• Resource development
• Development of the offering
• Commercial deployment
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Identifying Controls
• Evaluate performance—use benchmarks to track
progress
• Monitor the environment—take corrective actions as
necessary
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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
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Contents of the Marketing Plan (1 of 2)
• Executive summary—the “elevator pitch”
• Situation overview—an overall evaluation of the
environment
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Contents of the Marketing Plan (2 of 2)
• G-STIC section—the core of the marketing plan
– Goal
– Strategy
– Tactics
– Implementation
– Control
• Exhibits
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Figure 2.8 The Organization of the
Marketing Plan
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Updating the Marketing Plan
• Marketing plans are not static; they need updating in
order to remain relevant
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Conducting a Marketing Audit
• An effective marketing audit should be:
– Comprehensive
– Systematic
– Unbiased
– Periodic
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Evaluating a Marketing Plan
• Is the plan simple/succinct?
• Is the plan complete?
• Is the plan specific?
• Is the plan realistic?
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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?
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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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