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THE STRATEGIC
MARKETING PROCESS

•Strategic Marketing Process: The Planning Phase

§Marketing plan

THE STRATEGIC
MARKETING PROCESS

The strategic marketing process is how an organization allocates its marketing mix resources to reach its target markets.

A road map for the marketing activities of an organization for a specified future period of time, such as one year or five years.

FIGURE 2-8 The strategic marketing process

THE STRATEGIC MARKETING PROCESS

•Strategic Marketing Process: The Planning Phase (cont)

•Step 1: Situation (SWOT) Analysis

Situation Analysis

Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s plans and the external factors and trends affecting it.

Situation (SWOT) Analysis

A situation analysis assesses where a firm or product has been, where it is now, and where it is headed. SWOT refers to strengths, weaknesses, opportunities, and threats.

FIGURE 2-9 Ben & Jerry’s: a
“SWOT” to get it growing again

THE STRATEGIC
MARKETING PROCESS

•Strategic Marketing Process: The Planning Phase (cont)

•Step 2: Market-Product Focus and Goal Setting

§Market segmentation
§Points of difference

Market Segmentation

Market segmentation is the process of aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.

Points of Difference

Points of difference are those characteristics of a product that make it superior to competitive substitutes.

THE STRATEGIC
MARKETING PROCESS

•Strategic Marketing Process: The Planning Phase (cont)

•Step 3: Marketing Program

FIGURE 2-10 Elements of the marketing
mix . . . a cohesive marketing program

1. What is the difference between a strength and an opportunity in a SWOT analysis?

A: Both are positive factors for the organization, but a strength is an internal factor whereas an opportunity is an external one.

2. What is market segmentation?

A: This involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

3. What are “points of difference” and why are the important?

A: Points of difference are those characteristics of a product that make it superior to competitive substitutes. They are the single most important factor in the success or failure of a new product.

THE STRATEGIC
MARKETING PROCESS

•Strategic Marketing Process: The Implementation Phase

•Obtaining Resources
•Designing the Marketing Organization

FIGURE 2-11 Organization of a typical manufacturing firm

THE STRATEGIC
MARKETING PROCESS

•Strategic Marketing Process: The Implementation Phase (cont)

•Developing Schedules
•Executing the Marketing Program
§Marketing strategy
§Marketing tactics

Marketing Strategy

A marketing strategy is the means by which a marketing goal is to be achieved.

Marketing Tactics

Marketing tactics are detailed day-to-day operational decisions essential to the overall success of marketing strategies.

THE STRATEGIC
MARKETING PROCESS

•Strategic Marketing Process: The Control Phase

•Comparing Results with Plans to identify Deviations

FIGURE 2-12 Evaluation and control of Kodak’s marketing program

THE STRATEGIC
MARKETING PROCESS

•Strategic Marketing Process: The Control Phase (cont)

•Acting on Deviations

1. What is the control phase of the strategic management process?

A: This is the phase that seeks to keep the marketing program moving in the direction set for it.

2. How do the objectives set for a marketing program in the planning phase relate to the control phase of the strategic marketing program?

A: The planning phase objectives are used as the benchmark with which the actual performance results are compared in the control phase.

Chapter 2 - Summary

Today's large organizations, both business firms and nonprofit organizations, are often divided into three levels: the corporate, business unit, and functional levels.
Marketing has a role in all three levels by keeping a focus on customers and finding ways to add genuine customer value. At the lowest level, marketing serves as part of a team of functional specialists whose day-to-day actions actually involve customers and create customer value.
Organizations exist to accomplish something for someone. To give organizations focus, they continuously assess their business, mission, values and culture, and goals.
Setting strategic directions for an organization involves asking "Where are we now?" to assess the organization's customers, competencies, and competitors. It also involves asking "Where do we want to go?" that uses techniques like portfolio analysis and market-product analysis.
An organization's success rests on four building blocks: customer relationships, innovation, quality, and efficiency.
The strategic marketing process involves an organization allocating its marketing mix resources to reach its target markets using three phases: planning, implementation, and control.
The planning phase of the strategic marketing process has three steps, each with more specific elements: situation (SWOT) analysis, market-product focus and goal setting, and marketing program.
The implementation phase of the strategic marketing process has four key elements: obtaining resources, designing the marketing organization, developing schedules, and executing the marketing program.
The control phase of the strategic marketing process involves comparing results with the planned targets to identify deviations and taking actions to correct negative deviations and exploit positive ones.

Chapter 2 ( Conti...)

Marketing: Linking Marketing and Corporate Strategies

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