Summary

Welcome to brand you

The Value of Marketing
 Marketing is about meeting needs
 Marketing is about creating utilities
 Marketing is about Exchange Relationships
What can be marketed
The Marketing of Value
 Value from the customer’s perspective
 Value from the seller’s perspective
 Value from society’s Perspective
Marketing as a process
 Marketing planning
 Marketing tools: The marketing mix
When did Marketing Begin? The Evolution of the Concept
 The Production Era
 The selling era
 The consumer era
 The new era
 Topic II

 Strategic
Planning and the
Marketing Environment
 Topic objectives:
o To explain what is strategic, functional, and
operational planning. How does strategic
planning differ at the corporate and the SBU
levels?
o To explain what is a mission statement, SWOT
analyses, and what role do these play in the
planning process.
o To describe what is a strategic business unit
(SBU) and how do business use the Boston
Consulting Group model for portfolio analyses
in planning for their SBUs?
 Topic objectives:

o To describe the four business growth

strategies: market penetration, product
development, market development, and
diversification.
o To explain the steps in the marketing
planning process.
o To describe how does operational planning
support the marketing plan.
o To understand what are the elements of a
formal marketing plan.
 Topic objectives:

o To describe what is a corporate culture and

how does corporate culture affect marketing
decision making.
o To describe the business cycle and how
does it influence the marketing decisions.
o To explain the type of competition
marketers face: discretionary income
competition, product competition, and brand
competition. Why they all are important to
marketers.
 Topic objectives:

o To describe what is a pure competition

oligopoly, monopoly and monopolistic
competition , and why understanding these
is importing to marketers;
o To describe the legal, technological,
sociological environment, and why that is
important to marketers to understand these
environments;
 1. Business Planning: Seeing the
Big Picture
Business planning – is any ongoing process of making
decisions that guide the firms both in the short term and
in the long one.

Business plan - is a plan that includes the decisions that

guide the entire organization.

Marketing plan – is a document that describes the

marketing environment, outlines the marketing
objectives and strategy, and identifies who will be
responsible for caring out each part of the marketing
strategy.
 2. The tree levels of Business
Planning
1. Strategic planning – is a managerial decision process
that matches the organization’s resources and
capabilities to its market opportunities for long term
growth and survival.
2. Functional planning – is a decision process that
concentrates on developing detail plans for strategies
and tactics for the short term that support an
organization’s long – term strategic plan.
3. Operational planning – is a decision process that
focuses on developing detailed plans for day-to-day
activities that carry out an organization’s functional
plans.
2. The tree levels of Business
Planning
 3. Strategic Planning: Driving a
Firm’s Success
 Step One – Define the mission

Mission statement – is a formal statement in an

organization’s strategic plan that describes the
overall purpose of the organization and what it
intends to achieve in terms of its customers,
products, and resources.
 3. Strategic Planning: Driving a
Firm’s Success
 Step Two – Evaluate the internal and external
environments
Internal environment – are the controllable elements
inside the organization, including its people, its
facilities, and how it does things that influence the
operations of the organization.
External environment – are the uncontrollable
elements outside the organization that may affect its
performances either positively or negatively.
SWOT analyses – is an analyses of the organization’s
strengths and weaknesses and the opportunities and
threats in the external environment
 3. Strategic Planning: Driving a
Firm’s Success
 Step Three – Set Organizational or SBU
Objectives
 3. Strategic Planning: Driving a
Firm’s Success
 Step Four – Establish the business Portfolio

Business Portfolio – is a group of different products

or brands owned by the organization and
characterized by different income-generating and
growth capabilities.

Portfolio analyses – is a management tool for

evaluating a firm’s business mix and assessing the
potential if an organization’s strategic business
units.
 3. Strategic Planning: Driving a
Firm’s Success
 Step Four – Establish the business Portfolio
BCG growth-market share matrix – is a portfolio
analyses model developed by the Boston Consulting
Group that assesses the potential of successful
products to generate cash that a firm can then use to
invest in new products.
Elements of the BCG model:
- Stars
- Cash cows
- Question mark
- Dogs
 3. Strategic Planning: Driving a
Firm’s Success
 Step Four – Establish the business Portfolio
 3. Strategic Planning: Driving a
Firm’s Success
 Step Five – Develop Growth strategy

Market penetration strategy – is a growth strategy

designed to increase sales of existing products to
current customers, nonusers, and users of competitive
brands in served markets;
Market development strategy – is a growth strategy that
introduce existing products to new markets;
Product development strategies – is a growth strategy
that focus on selling new products in served markets;
Diversification strategy – is a growth strategy that
emphasize both new products and new markets;
 3. Strategic Planning: Driving a
Firm’s Success
 Step Five – Develop Growth strategy
4. Functional Planning From Strategic
Planning to Marketing Planning
 Step One – Develop growth strategy
 Step Two – Set marketing objectives
 Step There – Develop marketing strategies
- Selecting a target market
- Developing marketing mix:
- 1. Product strategies
- 2. Pricing strategies
- 3. Promotion strategies
- 4. Distribution strategies
 Step Four – Implement marketing strategies
 Step Five – Monitor and control marketing strategies
5. Operational Planning: Day-to-Day Execution of
Marketing Plans.
6. Analyzing the environment.
- Internal environment
Corporate culture – is the set values, norms, and
beliefs that influence the behavior of the everyone
in the organization.
- External environment
1. The economic environment
2. The competitive environment
- analyzing the market and competition
- competition in the microenvironment
Discretionary income – is the portion of
income people have left over after paying for
necessities.
 Product competition – is when firms offering
different products compete to satisfy the same
consumer needs and wants.
 Brand competition – is when firms offering
similar goods or services compete on the
basis of their brand’s reputation or perceived
benefits.
- Competition in the macroenvironment
 Monopoly
 Oligopoly
 Monopolistic competition
 Perfect competition
3. The technological environment
4. The legal environment
5. The sociocultural environment
 SUMMARY
1. Business Planning
2. The tree levels of Business Planning
3. Strategic Planning
Step One – Define the mission
Step Two – Evaluate the internal and external
environments
Internal environment
External environment
SWOT analyses
Step Three – Set Organizational or SBU Objectives
Step Four – Establish the business Portfolio
Step Five – Develop Growth strategy
Market penetration strategy
Market development strategy
Product development strategies
Diversification strategy
4. Functional Planning
Step One – Develop growth strategy
Step Two – Set marketing objectives
Step There – Develop marketing strategies
Selecting a target market
Developing marketing mix:
1. Product strategies
2. Pricing strategies
3. Promotion strategies
4. Distribution strategies
Step Four – Implement marketing strategies
Step Five – Monitor and control marketing strategies
5. Operational Planning
6. Analyzing the environment.
Internal environment
External environment
1. The economic environment
2. The competitive environment
- analyzing the market and competition
- competition in the microenvironment
- Competition in the macroenvironment
3. The technological environment
4. The legal environment
5. The sociocultural environment