Hapter 2 : Developing Marketing Strategies and Plans

*Using information from text bk Marketing Management, Kotler, Philip, 14th A© 2012 edition Upper Saddle River, New Jersey, Pearson Publications Inc.”

Opening Thoughts

One of the most challenging concepts of this chapter, to most students, is the definition of strategy. The second area of concern presented in this chapter, is the understanding of strategic versus tactical. Definitions can be confusing and are often taken for granted.





CHAPTER SUMMARY

The value delivery process involves choosing (or identifying), providing (or delivering), and communicating superior value. The value chain is a tool for identifying key activities that create value and costs in a specific business.

Strong companies develop superior capabilities in managing core business processes such as new-product realization, inventory management, and customer acquisition and retention. Managing these core processes effectively means creating a marketing network in which the company works closely with all parties in the production and distribution chain, from suppliers of raw materials to retail distributors. Companies no longer competea marketing networks do.

According to one view, holistic marketing maximizes value exploration by understanding the relationships between the customeras cognitive space, the companyas competence space, and the collaboratoras resource space; maximizes value creation by identifying new customer benefits from the customeras cognitive space, utilizing core competencies from its business domain, and selecting and managing business partners from its collaborative networks; and maximizes value delivery by becoming proficient at customer relationship management, internal resource management, and business partnership management.

Market-oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organizationas objectives, skills, and resources and its changing market opportunities. The aim of strategic planning is to shape the companyas businesses and products so that they yield target profits and growth. Strategic planning takes place at four levels: corporate, division, business unit, and product.

The corporate strategy establishes the framework within which the divisions and business units prepare their strategic plans. Setting a corporate strategy entails four activities: defining the corporate mission, establishing strategic business units (SBUs), assigning resources to each SBU based on its market attractiveness and business strength, and planning new businesses and downsizing older businesses.

Strategic planning for individual businesses entails the following activities: defining the business mission, analyzing external opportunities and threats, analyzing internal strengths and weaknesses, formulating goals, formulating strategy, formulating supporting programs, implementing the programs, and gathering feedback and exercising control.

Each product level within a business unit must develop a marketing plan for achieving its goals. The marketing plan is one of the most important outputs of the marketing process.


Assignment:
Read Chapter 2 and review the brief lecture (above); and
Respond to the a?Marketing Discussion a? page 56 in the text and formulate a 2-3 paragraph response; then
Review the Marketing Memo a?Marketing Plan Criteriaa (page 55) and evaluate the Pegasus Sports International Sample Marketing Plan at the end of the chapter giving specific examples of each of the criteria evidenced (or omitted) in the plan;
Post your response to the Chapter 2 assignment to the Chapter 2 Discussion Board Forum.