trategy Marketing Unit 2 Assignments (Developing)Marketing Strategies and Plans Marketing Strategy

Subject :- Strategy Marketing

Unit 2 Assignments

(Developing)Marketing Strategies and Plans Marketing Strategy

Complete Unit 2 Individual Written Assignment below in APA format with references.

(follow chapter 2 for answer) find attachment for E-Book

no plagiarism. page citation is must from text book chapter 2 (start from page number 32)

 

Written Assignment:

Q1. The marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at two levels: strategic and tactical. The strategic marketing plan lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. The tactical marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service. Identify and explain the elements of a tactical marketing plan for a new and unique kind of cola that claims to be good for your health. Approximate length: 3-4 paragraphs.

Q2. In the central role of strategic planning, only a handful of companies stand out as master marketers—Procter & Gamble, Southwest Airlines, Nike, Disney, Nordstrom, Wal-Mart, and McDonald’s to name a few. Look them up and explain the various reasons why they succeed in standing out to customers? Make sure and identify strategic marketing concepts from your readings. Approximate length: 3-4 paragraphs.

 

CHAPTER 2 Strategic Planning in Contemporary Marketing

Strategic Planning in
Contemporary Marketing

CHAPTER 2 Strategic Planning in Contemporary Marketing

Successful marketing means . . .
The company’s capabilities in
Understanding customer value
Creating customer value
Delivering customer value
Capturing customer value
Sustaining customer value

CHAPTER 2 Strategic Planning in Contemporary Marketing

Successful marketing requires action
in three areas . . .
1. Managing the various company’s
businesses as an investment portfolio
2. Assessing each business’s strength by
the market’s growth rate and the
company’s position in that market
3. Establishing a strategy

Master Marketers

CHAPTER 2 Strategic Planning in Contemporary Marketing

What is a Marketing Plan?
A marketing plan is the
central instrument for
directing and coordinating
the marketing effort.
It operates at a strategic and tactical
level.

CHAPTER 2 Strategic Planning in Contemporary Marketing

The Marketing Plan

Operates on two levels: strategic and tactical:

The strategic plan lays out the target markets
and the value proposition

The tactical plan specifies the product,
promotion, merchandising, pricing, sales
channels, and service

Levels of a Marketing Plan
o Strategic
o Target marketing
decisions
o Value proposition
o Analysis of
marketing
opportunities

o Tactical
o
o
o
o
o
o

Product features
Promotion
Merchandising
Pricing
Sales channels
Service

Evaluating a Marketing Plan

Is the plan simple?

Is the plan specific?

Is the plan realistic?

Is the plan complete?

Marketing Plan Contents
Executive summary
Table of contents
Company mission, vision, goals
Situation analysis
Marketing strategy
Financial projections
Implementation controls

CHAPTER 2 Strategic Planning in Contemporary Marketing

COMPANY PROFILE, MISSION, VISION, GOALS
•
•
•
•
•

•
•
•
•
•
•

What is the business’s mission & vision? (a successful business has a direction that all
staff aligns with, and a clear picture of the future)
What are its goals, objectives, strategies and tactics? (what you want to do, why you
are doing it and how will you accomplish this)
How will you measure and track your results? (Each goal should be measured and the
results recorded in order to track what is working and what is not).
Who is your target market? (focus on who is your customer and know their needs and
wants.)
What is your Positioning Statement and value proposition? (A positioning statement
sells your product or service, it sets you apart from your competitor. You must target
your customer, say what you will do for that customer, how will you do it and why you
do it better than your competitors.)
Do you have a Logo, Slogan, Colors, tag line? (an original, creative statement that tells
your customer what your business is about)
Is there a market demand for your product or service?
Have you distributed a customer needs assessment/survey relating to your product or
service? (the results guide your marketing goals)
Who are your potential customers? What are their demographics? (age, income,
interests, culture, habits, etc..)
Does your product or service keep up with the current trends?
What is the company’s initial proposed market? (local, provincial, western provinces,
national)

CHAPTER 2 Strategic Planning in Contemporary Marketing

COMPANY PROFILE, MISSION, VISION, GOALS

How does the company fit in the chain of basic markets?

consumer
industrial
government
international
supplier
manufacturer
wholesaler

What are the target market boundaries? (by consumer group, geographically, etc.)
Define the dollar value of total potential sales within the proposed target market.
Define the company’s sales level objectives and what percentage of total market share
they represent.
Describe how planned production capability compares to proposed market demand.
Buyer preferences (health food vs. junk food)
Describe when the product/service is usually purchased; on impulse or as a regular
grocery shopping item. Does the proposed marketing strategy address these trends?
Who usually does the purchasing of the product/service? Who makes the purchasing
decision? Is the marketing strategy properly directed to this group?
Describe the varieties of the product available: (by flavor, size of package, etc.)
Where is the product normally purchased? (supermarkets, grocery stores, convenience
stores, snack bars, etc.)
Are the marketing efforts properly targeted to these locations?

CHAPTER 2 Strategic Planning in Contemporary Marketing

The Value Creation and Delivery
Process
Choose the value

Segment the mkt, select target mkt, develop unique offering

Provide the value

Product features, prices, distribution channels

Communicate the value

Sales force, Internet, advertising and communication tools

CHAPTER 2 Strategic Planning in Contemporary Marketing

What is the Value Chain?
The value chain is a tool for identifying ways to
create more customer value because every firm is a
synthesis of primary and support activities
performed to design, produce, market, deliver, and
support its product.

CHAPTER 2 Strategic Planning in Contemporary Marketing

Michael Porter’s Value Chain
Identifies 9 strategically relevant activities that create value and
costs in a specific business (five primary and four support activities).
Primary activities:
o Inbound logistics (material procurement)
o Operations (turn into final product)
o Outbound logistics (shipping and warehousing)
o Marketing (marketing and sales)
o Servicing (service after the sale)
Support activities:
o Procurement
o Technology development
o Human resource management
o Firm infrastructure

CHAPTER 2 Strategic Planning in Contemporary Marketing

Core Business Processes
The firm’s task is to examine its costs and performance in each valuecreating activity and to look for ways to improve performance. Strong
companies are reengineering their work flows and building crossfunctional teams to be responsible for each process.
Many companies today have partnered with specific suppliers and
distributors to create a superior value delivery network (supply
chain).
oMarket-sensing process (marketing intelligence)
oNew-offering realization process (R&D)
oCustomer acquisition process (defining target markets and consumers)
oCustomer relationship management process (deeper understanding of
consumers)
oFulfillment management process (receiving, shipping, collecting
payments)

CHAPTER 2 Strategic Planning in Contemporary Marketing

Core Competencies
A company’s strengths reflect its core competencies—what
it does well.
Core competencies are capabilities that customers value
and competitors find difficult to duplicate.
Matching an internal strength with an external opportunity
produces a situation known as leverage.
To make the most of any opportunity, firms must make sure
to take advantage of their core competencies.

CHAPTER 2 Strategic Planning in Contemporary Marketing

Characteristics of Core
Competencies
Core competency has three characteristics:
1. It is a source of competitive advantage
2. It has applications in a wide variety of
markets
3. It is difficult for competitors to imitate
To Maximize Core Competencies

1. (Re)define the business concept
2. (Re)shape the business scope
3. (Re)position the company’s brand identity

CHAPTER 2 Strategic Planning in Contemporary Marketing

Strategic Alliances
The four major categories of strategic alliances include
1.Product or service alliances, where one company
licenses its product, or two companies jointly market
their complementary products or a new product;
2.Promotional alliances, where one company
agrees to carry a promotion for another company’s
product or service;
3.Logistics alliances, where one company offers
logistical services for another company’s product; and
4.Pricing collaboration, where one or more
companies join in an agreement on coordinated
pricing. Student examples may vary.

CHAPTER 2 Strategic Planning in Contemporary Marketing

What is Holistic Marketing?
Holistic marketing sees itself as
integrating the value exploration, value
creation, and value delivery activities with
the purpose of building long-term,
mutually satisfying relationships and coprosperity among key stakeholders.

Key Questions to Address in
Holistic Marketing
What value opportunities are available?

How can we create new value offerings efficiently?

How can we delivery the new offerings efficiently?

CHAPTER 2 Strategic Planning in Contemporary Marketing

Marketing Planning:
The Basis for Strategy and Tactics
Planning = Anticipating future events and
conditions and determining the best way to
achieve organizational objectives
It is a continuous process; creates a blueprint for
everyone in the organization

Marketing Planning = Implementing planning
activities devoted to achieving marketing
objectives
Many planning activities take place over the
Internet with virtual conferences
An important trend in marketing planning centers
on relationship marketing
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

CHAPTER 2 Strategic Planning in Contemporary Marketing

Strategic vs Tactical Mktg Plan
• The marketing plan is the central instrument for
directing and coordinating the marketing effort.
• It operates at two levels: strategic and tactical.
• The strategic marketing plan lays out the target
markets and the value proposition that will be
offered, based on an analysis of the best market
opportunities.
• The tactical marketing plan specifies the
marketing tactics, including product features,
promotion, merchandising, pricing, sales
channels, and service.
Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

CHAPTER 2 Strategic Planning in Contemporary Marketing

Strategic Planning Versus
Tactical Planning
Strategic Planning

Tactical Planning

• Determining an

• Guides the

organization’s
primary objectives
• Adopting courses of
action that will
achieve these
objectives
• Addresses long-term
actions

implementation of
activities specified in
the strategic plan
• Addresses shorterterm actions

Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

CHAPTER 2 Strategic Planning in Contemporary Marketing

Example
Give an example of strategic planning
and tactical planning.
To survive in a challenging environment of soaring
fuel costs, several airlines have decided to merge as
part of their strategic planning. Tactical plans
include cutting the number of flights and charging
passengers extra for checked baggage.

CHAPTER 2 Strategic Planning in Contemporary Marketing

CHAPTER 2 Strategic Planning in Contemporary Marketing

CHAPTER 2 Strategic Planning in Contemporary Marketing

Four Organizational Levels of
Planning

1.Corporate level
2.Division level
3.Business Unit level
4.Product level

CHAPTER 2 Strategic Planning in Contemporary Marketing

Corporate Level Planning
1. Defines the corporate mission
2. Establishes the strategic business
units (SBUs)
3. Assigns resources to each SBU
4. Assesses growth opportunities

CHAPTER 2 Strategic Planning in Contemporary Marketing

Steps in the Marketing Planning
Process
Define the mission
Determine objectives
Assess resources
Evaluate environmental risks and
opportunities
5. Formulate a marketing strategy
6. Implement the strategy through operating
plans
7. Gather feedback to monitor and adapt
strategies when necessary
1.
2.
3.
4.

CHAPTER 2 Strategic Planning in Contemporary Marketing

The Mission Statement
Good mission statements reflect a vision that provides
direction for the organization.
Mission statements should:
(1) focus on a limited number of goals
(2) highlight the company’s major policies and values
(3) define the major competitive spheres within which the
company will operate (e.g., industry, products and
applications, competence, market segment, vertical, and
geographical)
(4) provide a long-term view
(5) be as short, memorable, and meaningful as possible.

CHAPTER 2 Strategic Planning in Contemporary Marketing

Questions to Ask in
Defining the Corporate Mission

What is our business?
Who is the customer?
What is of value to the customer?
What will our business be?
What should our business be?

Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

CHAPTER 2 Strategic Planning in Contemporary Marketing

Defining the Competitive
Boundaries in Mission
o Industry: Some companies operate in only one industry; some
only in a set of related industries; some only in industrial goods,
consumer goods, or services; and some in any industry.
o Products and applications: Firms define the range of products
and applications they will supply.
o Competence: The firm identifies the range of technological and
other core competencies it will master and leverage.
o Market segment: The type of market or customers a company
will serve is the market segment.
o Vertical: The vertical sphere is the number of channel levels, from
raw material to final product and distribution, in which a company
will participate.
o Geographical: The range of regions, countries, or country groups
in which a company will operate defines its geographical sphere.

Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

CHAPTER 2 Strategic Planning in Contemporary Marketing

Defining the organization’s
objectives
Objectives guide the development of
marketing objectives and plans
o Examples:
o Generate a 15 percent profit over the next 24
months
o Add 25 new outlets within the next year
o Cut manufacturing costs by 10 percent

CHAPTER 2 Strategic Planning in Contemporary Marketing

Assessing Organizational Resources
and Evaluating Environmental Risks
and Opportunities
o Resources include: o Strengths help
Production
planners:
Marketing
Finance
Technology
Employees

Set objectives
Develop plans
Take advantage of
marketing
opportunities

CHAPTER 2 Strategic Planning in Contemporary Marketing

Formulating, Implementing, and Monitoring a
Marketing Strategy

o Marketing strategy = Selecting and
satisfying target consumers through the
marketing mix elements
o The final steps of the planning process:
o Marketers put the marketing strategy into
action
o Marketers monitor performance to ensure
that
objectives are achieved

CHAPTER 2 Strategic Planning in Contemporary Marketing

Elements of a Marketing
Strategy
A marketing strategy is an overall, companywide
program for selecting a target market and
satisfying customers in that market through the
elements in the marketing mix—product,
distribution, promotion, and price

An effective marketing strategy does several
things:
It reaches the right buyers at the right time
It persuades them to buy the product
It develops a strong relationship with them
over time

CHAPTER 2 Strategic Planning in Contemporary Marketing

Two Basic Elements of a
Marketing Strategy
The basic elements of a marketing strategy consist of two concepts:

the target market
2. the marketing mix variables that combine to satisfy the
needs of the target market
The target market:
• The target market is a group of consumers toward whom the firm
aims its marketing efforts, and ultimately its goods and services
• Diversity plays an ever-increasing role in targeting markets
1.

o
o

The Hispanic population in the United States has surpassed African
Americans as the largest minority group
Targeting consumers in specific global markets also represents a
challenge—and an opportunity

Marketing mix variables
• Marketing decisions can be divided into several variables or
strategies which form the total package, called the marketing mix
• The four marketing mix variables are product, distribution,
promotion, and pricing strategies
• The marketing mix consists of a blend of these four variables to
fit the needs and preferences of a specific target market

CHAPTER 2 Strategic Planning in Contemporary Marketing

Successful Strategies: Tools and
Techniques

Four tools for marketing planning include
Porter’s Five Forces model, first and second
mover strategies, SWOT analysis, and the
strategic window.
Porter’s Five Forces Model
1.The threat of new entrants
2.The bargaining power of buyers
3.The bargaining power of suppliers
4.The threat of substitute products
5.Rivalry among competitors

CHAPTER 2 Strategic Planning in Contemporary Marketing

Source: Adapted with permission of The Free Press,
a division of Simon and Schuster Adult Publishing
Group. From Competitive Strategy: Techniques for
Analyzing Industries and Competitors by Michael E.
Porter. Copyright ©1980, 1998 by The Free Press.
All rights reserved.

CHAPTER 2 Strategic Planning in Contemporary Marketing

Porter’s Generic Strategies
Overall cost leadership

Differentiation

Focus

CHAPTER 2 Strategic Planning in Contemporary Marketing

First Mover and Second Mover
Strategies
o First mover strategy – Advocates that a
company that is first to offer a product will be the
long-term market winner. Being first may also
refer to entering new markets with existing
products or creating significant innovations that
effectively turn an old product into a new one
o Second mover strategy –Advocates close
observation of the innovations of first movers and
then improving on them to gain market
advantage

CHAPTER 2 Strategic Planning in Contemporary Marketing

First Mover Drawbacks &
Benefits
o Q. What are the benefits and drawbacks of
a first mover strategy?
The benefits of a first mover strategy include
capturing the greatest market share and developing
long-term relationships with customers.
Disadvantages include the possibility that companies
that follow can learn from mistakes by first movers.
Apple has been a first mover with its iPod products.

CHAPTER 2 Strategic Planning in Contemporary Marketing

SWOT Analysis
Helps planners compare internal
organizational strengths and weaknesses with
external opportunities and threats

Strengths

Weaknesses

Opportunities

Threats

CHAPTER 2 Strategic Planning in Contemporary Marketing

Opportunity and Threat Matrices

CHAPTER 2 Strategic Planning in Contemporary Marketing

Market Opportunity Analysis
(MOA)

Can the benefits involved in the opportunity be
articulated convincingly to a defined target
market?
Can the target market be located and reached
with cost-effective media and trade channels?
Does the company possess or have access to
the critical capabilities and resources needed to
deliver the customer benefits?
Can the company deliver the benefits better
than any actual or potential competitors?
Will the financial rate of return meet or exceed
the company’s required threshold for
investment?

CHAPTER 2 Strategic Planning in Contemporary Marketing

The Strategic Window
• Limited periods when key requirements of
a market and a firm’s particular
competencies best fit together
• Requires a thorough analysis of:

Current and projected external
environmental conditions
Current and projected internal company
capabilities
How, whether, and when the firm can
reconcile environmental conditions and
company capabilities

Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

CHAPTER 2 Strategic Planning in Contemporary Marketing

The Target Market
o The group of people toward whom the firm
directs its marketing efforts and
merchandise
o Example: Boeing markets most of their
products to business buyers

o Diversity plays a critical role
o Example: Growing Hispanic population in
United States

Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

CHAPTER 2 Strategic Planning in Contemporary Marketing

The Target Market
o Targeting consumers in specific global
markets represents a challenge and an
opportunity
o Example: In India, Walmart has made a
successful entry into retailing with smaller
shops in urban areas and low prices

CHAPTER 2 Strategic Planning in Contemporary Marketing

Marketing Mix Variables
o Marketing mix – Blending of the four
strategy elements to fit the needs and
preferences of a specific target market
1.
2.
3.
4.

Product
Distribution
Promotion
Pricing

Copyright © 2013 by South Western, a division of Cengage Learning. All rights reserved.

CHAPTER 2 Strategic Planning in Contemporary Marketing

CHAPTER 2 Strategic Planning in Contemporary Marketing

Product Strategy
Deciding what goods or services the firm should offer
to a group of consumers
1. Customer service
2. Package design
3. Brand names, trademarks, patents, and
warranties
4. Lifecycle of a product
5. Product positioning
6. New-product development

CHAPTER 2 Strategic Planning in Contemporary Marketing

Distribution Strategy
Consumers find their products in the
proper quantities at the right times and
places
Involves modes of transportation,
warehousing, inventory control, order
processing, and selection of marketing
channels
Technology has opened new channels of
distribution in many industries

CHAPTER 2 Strategic Planning in Contemporary Marketing

Promotion Strategy
•
•

Communication link between sellers and buyers
Firms may communicate messages:
o Directly through salespeople
o Indirectly through advertisements and promotions

•

Many companies use integrated marketing
communications (IMC)

CHAPTER 2 Strategic Planning in Contemporary Marketing

Pricing Strategy
Methods of setting profitable and justifiable

prices
Subject to regulation and public scrutiny
A good pricing strategy:
o Creates value for customers
o Builds and strengthens customer
relationships with a firm and its products

CHAPTER 2 Strategic Planning in Contemporary Marketing

The Marketing Environment
Five external dimensions that affect the
marketing mix variables:
1. Competitive
2. Political-legal
3. Economic
4. Technological
5. Social-cultural

CHAPTER 2 Strategic Planning in Contemporary Marketing

The Marketing Environment
o Technology continually changes the
marketing environment
o Rule of three – The three strongest, most
efficient companies dominate 70 and 90
percent of a market
o Example: Cereal manufacturers – General
Mills, Kellogg’s, and Post

CHAPTER 2 Strategic Planning in Contemporary Marketing

Method for Marketing Planning

o Business portfolio analysis is
an evaluation of a company’s
products and divisions to
determine the strongest and
weakest

CHAPTER 2 Strategic Planning in Contemporary Marketing

Strategic Business Unit (SBU)
• It is a single business, or a collection of related
businesses, that can be planned separately from
the rest of the company.
• It has its own set of competitors
• Once it has defined SBUs, management must
decide how to allocate corporate resources to
each. Several portfolio-planning models provide
ways to make investment decisions.
It has a leader/manager responsible for strategic
planning and profitability
Divisions, products lines, or even a single product
may constitute a strategic business unit
An SBU, also called a category, focus attention of
company managers so that they can respond
effectively to changes within limited markets

The Business Unit Strategic
Planning Process

CHAPTER 2 Strategic Planning in Contemporary Marketing

Strategic Business Units
Key business units within diversified firms
Each strategic business unit (SBU):
o Has its own managers, resources,
objectives, and competitors
o Pursues its own distinct mission and
develops its own plans independently

SBUs help focus the attention of company
managers
Companies may have to redefine their
SBUs as market conditions dictate

CHAPTER 2 Strategic Planning in Contemporary Marketing

BCG ANALYSIS

stars-cash cows-question marks-dogs
•
•
•
•

Developed by the Boston Consulting Group
A market share/market growth matrix that plots market share against market growth potential
The quadrants are labeled stars, cash cows, question marks, and dogs
Each of the four quadrants requires a unique marketing strategy
Stars:

Stars represent units with high market shares in high-growth markets
They generate considerable income, but require even more cash to finance further growth

Cash cows:
Cash cows have high market shares in low-growth markets
Focus is to maintain this status for as long as possible
The business produces strong cash flows, which could be used to finance growth of other SBUs
with high potential
Question marks:
Question marks achieve low market shares in high-growth markets
Marketers must decide whether to continue supporting these products or businesses
They require more investment than they generate in cash
If a question mark cannot become a star, the firm should pull out of the market and target other
markets with greater potential
Dogs:
Dogs manage low market shares in low-growth markets
Since they promise poor future, marketers should consider withdrawing from these markets as
quickly as…