Chapter 2
Strategic Planning
and the Marketing
Process
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What is Marketing Planning?
 Planning: Anticipating future events and
conditions and determining the courses of
action necessary to achieve organizational
objectives
Marketing planning
2-2
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 Strategic Marketing Planning Levels
Mission/Goal Statement
Corporate Strategy
SBU Strategy
Marketing Strategy
Marketing Mix Elements
2-3
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 Kraft
 Adding Products
to Increase
Market Share
2-4
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 GM Ads Strengthen Relationships With Women Car Buyers
2-5
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 Strategic Planning versus Tactical Planning
Strategic planning
Tactical planning
2-6
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Planning at Different Organizational
Levels
 Top managers
 Middle level managers
 Supervisors
2-7
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Steps in the Marketing Planning
Process
2-8
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 Defining the Organization’s Mission
Mission: the essential purpose that
differentiates one company from another
2-9
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 Crest
 Education
Programs:
Part of Procter &
Gamble’s Mission
to Improve the
Lives of
Consumers
2-10
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 Determining Organizational Objectives
An organization lays out its basic objectives,
or goals, in its mission statement
These objectives guide development of
supporting marketing objectives and plans
2-11
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 Assessing Organizational Resources and
Evaluating Environmental Risks and
Opportunities
SWOT analysis: The study of a firm’s internal
strengths and weaknesses and external
opportunities and threats
Strategic window: a limited period with an
optimal fit between the market and the firm
2-12
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 SWOT is an
acronym for
strengths,
weaknesses,
opportunities,
and threats
2-13
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 Taking Advantage of a
Strategic Window
 Growth in Internet
Creates a Strategic
Window for
HydrogenMedia
2-14
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 Formulating a Marketing Strategy
Marketing strategy: a firm’s overall
program for selecting and satisfying a
target market
Requires a careful balance of the
marketing mix elements – each of which
represents a subset of the overall
marketing strategy
2-15
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This advertisement shows the
Chrysler auto lineup including the
highly successful PT Cruiser.
Each product offering targets a
specific market segment.
2-16
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Elements of a Marketing Strategy
 Blending the four strategy elements of
marketing decision-making to satisfy chosen
target markets
Product
Price
Distribution
Promotion
2-17
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 Target Market
Group of
people
toward whom
the firm
decides to
direct its
marketing
efforts
2-18
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 Product Strategy
What goods or services to offer
Customer service
Package design
Brand names
Trademarks
Warranties
Product Life Cycle
Positioning
New-product development
2-19
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Product Strategy: The cell
phone is now positioned to
compete directly with land-lines
as shown in this AT&T
advertisement.
2-20
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Ad Stressing a New Package
Design
(Part of the Total Product)
2-21
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 Elements of the
Champion Product
Strategy
2-22
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 Distribution Strategy
Modes of transportation
Warehousing
Inventory control
Order processing
Marketing channels
2-23
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This Ad illustrates the
Challenges of Finding
Distribution for your Product.
2-24
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 Promotional Strategy
Blending together the various elements of
promotion to communicate most effectively
with the target market
advertising
sales promotion
public relations
personal selling
2-25
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This advertising campaign
communicates effectively with
its Target Market
2-26
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 Advertising As a Part
of the Pepto-Bismol
Promotional Strategy
2-27
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 Pricing Strategy
Deals with the methods of setting profitable
and justifiable prices
 The Marketing Environment
Competitive
Social – Cultural
Technological
Economic
Political – Legal
2-28
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The Competitive Environment, as
well as, changes in Technology,
has influenced the way these two
competitors differentiate their
product offerings.
2-29
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 TOYOTA
Ad Promotes a
Product Developed
for the Changing
Legal and SocialCultural
Environments
2-30
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Tools for Marketing Planning
 Strategic Business Units (SBUs) are key
business units within diversified firms
A division, product line, or single product
may define an SBU
Firms redesign their SBUs as market
conditions dictate
2-31
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 3M
 Tape Products:
A 3M Strategic
Business Unit
2-32
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 Market Share/ Market Growth Matrix:
Classifies a firm’s products according to
industry growth rates and market shares
relative to competing products
 Market Attractiveness/Business
Strength Matrix: Rates SBUs according
to the attractiveness of their markets and
their organizational strengths
2-33
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 Market Share/ Market Growth Matrix
2-34
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 Market Attractiveness/Business Strength Matrix
2-35
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 Spreadsheet analysis helps planners
anticipate marketing performance given
specified sets of circumstances
2-36
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