Dr. Close
STRATEGIC PLANNING OF
MARKETING MANAGEMENT
Some Ideas of Marketing
 Traditional Approach
 Selling & Advertising (one part)
 What else?
 Customer Satisfaction
 What do you think it means? Are there any examples
where you were really satisfied or not satisfied?
 Examples: Nordstrom, Southwest Air
 Marketing requires 2 or more capable parties to trade items
of value. Each party may deal with the other…either accept
or reject the exchange offer
 Marketing’s job is NOT to get rid of things produced by the
firm, it is to build relationships

History of Marketing:
Management Philosophies
Evolution of marketing orientations:
1. Simple trade orientation (trading of simple goods)
2. Production orientation (Industrial evolution)
3. Sales orientation (emphasis on selling because of
competition)
4. Marketing department orientation (when all
marketing activities are under the control of one
department)
5. Marketing company orientation (involves short and
long run planning)
~Apple, Nike, Coke, BMW, VW, Wynn, Palms
Marketing Defined
 “An organizational function and a set of processes
for creating, communicating, and delivering value to
customers and for managing customer relationships
in ways that benefit the organization and its
stakeholders” (AMA)
 Everything we do to get and keep a customer
 Begins with the customer
 Series of sales or exchanges….a relationship
What is Marketing?
Major Types of Marketing
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Importance of Marketing
 Everyone needs it! (politicians, churches, resumes)
 What if marketing (e.g., ads, brands) did not exist? How
would your life be different in these ways?
 Your favorite (and not so favorite) local and global businesses
that you depend on? (my crackberry…)
 Your shopping?
 Your events/social life?
 Your education in this (fabulous) class?
 Your career?
 Your every day life?
…what if we lived like Thoreau’s character in Walden Pond…
Marketing & Society
 What about society/ our well-being?
(Google Prof. Joe Sirgy for research on this…)
 Micro-macro dilemma: “What is good for the
individual (or company) may not be good for
society.”
 Difficult questions (health care,
marketing to children, tobacco, fast food)
 My student’s dilema…
 Be true to yourself.
Marketing & Society
 Meet Terrance. (my cat in Georgia; in Vegas)
 Vices are marketed and distributed everywhere (ok,
so we live in Vegas…)
Should they not be? (does marketing and business
make you do/buy unwanted things?
Questions about Marketing
Let’s debate the “Quality” issues of the system…
 Another side…Marketing enhances our lives
 Issues scholars or market proponents raise:
 Connects people (American Idol, Iraqi Idol)
 Innovation
 Efficiency (imagine grocery shopping without brands)
 Helps build relationships
 Provides entertainment, escape
 Enhances competition
 Provides choice/individualism opportunities
 What other good things do you see with marketing?
What is Strategic Planning?
 True mission of an organization is to provide value
for three key constituencies
 Customers
 Employees
 Investors
 Objectives and strategies established at the top
level provide context for planning in each of the
divisions and departments
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The Strategic Planning Process
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Strategic Planning and Marketing
Management
 Includes all activities that lead to development of a
clear organizational mission, objectives, and
appropriate strategies
 Plays a key role in achieving an equilibrium
between short and long term, by balancing
acceptable financial performance
 Prepares for inevitable changes in markets,
technology, and competition, as well as in
economic and political arenas
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The Strategic Planning Process
 Mission statement – In developing a mission
statement, management must take into account
 Organization’s history
 Organization’s distinctive competitiveness
 Organization’s environment
 Mission statement should be
 Focused on markets rather than products
 Achievable
 Motivational
 Specific
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The Strategic Planning Process
 Organizational objectives
 End-points of an organization’s mission and are what it
seeks through on-going, long-run operations
 Organizational strategies
 Involves choice of major directions organization will take
in pursuing its objectives
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The Strategic Planning Process
Sample Organizational Objectives (Manufacturing Firm)
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The Strategic Planning Process
 Organizational growth based on products and markets
 Market penetration strategies
 Market development strategies
 Product development strategies
 Diversification
 Organizational strategies based on competitive
advantage
 Ability to outperform competitors in providing something
that the market values
 Porter suggests strategies based on cost leadership and
differentiation
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The Strategic Planning Process
Organizational Growth Strategies
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The Strategic Planning Process
 Organizational strategies based on value
 “Customer value” has become critical for marketers as
well as customers
 Firms must seek to build long-term relationships with their
customers by offering unique value
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The Strategic Planning Process
 Choosing an appropriate strategy
 Management should select those strategies consistent
with its mission and capitalize on the organization’s
distinctive competencies
 Sustainable competitive advantage can be based on
either the assets or skills of the organization
 Key to sustaining a competitive advantage is to
continually focus and build on the assets and skills that
will lead to long-term performance gains
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The Strategic Planning Process
 Organizational portfolio plan
 Organizations at a particular time are a portfolio of
businesses – product lines, divisions, schools
 Management must decide which businesses to build,
maintain, or eliminate, or which new businesses to add
 Organizations can create strategic business units
(SBUs) which could be a single product, product line, or
division
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The Marketing Management Process
 Complete Strategic Plan
 Facilitates development of marketing plans for each
product, product line, or division of the organization
 Marketing plan serves as a subset of strategic plan
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The Marketing Management Process
 Defined as “the process of planning and executing the
conception, pricing, promotion, and distribution of
goods, services, and ideas to create exchanges with
target groups that satisfy customer and organizational
objectives”
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The Marketing Management Process
Strategic Planning and Marketing Planning
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The Marketing Management Process
 Situation analysis
 Cooperative environment
 Competitive environment
 Economic environment
 Social environment
 Political environment
 Legal environment
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The Marketing Management Process
 Marketing planning
 Establishing marketing objectives
 Selecting the target market
 Developing the marketing mix
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The Marketing Management Process
 Implementation and control of marketing plan
 Implementation involves putting the plan into action and
performing marketing tasks according to the predefined
schedule
 Controlling involves three basic steps
 Measuring results of implemented marketing plan
 Comparing results with objectives
 Making decisions on whether plan is achieving objectives
 Marketing information systems and marketing
research
 Need for current, reliable, and valid information
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The Strategic Plan, The Marketing Plan,
and Other Functional Area Plans
 Strategic planning is a top-management responsibility
 All strategic planning has marketing implications
 Marketing objectives and strategies must be derived
from the strategic plan
 Planning done in all functional areas of the
organization should be derived from strategic plan
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The Strategic Plan, The Marketing Plan,
and Other Functional Area Plans
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Appendix – Portfolio Models
Portfolio Theory – Experience Curve and Resulting Profit
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Portfolio Models – BCG Model
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Portfolio Models – The General
Electric Model
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Portfolio Models – The General
Electric Model
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