Ferrell Hartline 4e CH02

7/23/2019 Ferrell Hartline 4e CH02

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marketing strategyO. C. Ferrell Michael D. Hartline

Strategic Marketing

Planning

2C H A P T E R



2-2

• GM has struggled recently due to foreign competition and a bloated benefits package for its workers. The company isresponding with cost-cutting, globalization, and new cardesigns like the aturn ky.

• !hat other strategic measures can GM consider in order tostay "iable in the market#

GM’s New Strategy

Beyond the Pages 2.1



2-3

The Strategic Planning Process

• ituation $nalysis

% $n in-depth analysis of the organization&s internal and

e'ternal en"ironments

• Marketing (lan % $ written document that pro"ides the blueprint or outline

of the organization&s marketing acti"ities, including the

implementation, e"aluation and control of those

acti"ities



2-4

The Strategic Planning Process

Exhibit 2.1



2-5

Organizational Mission vs.Organizational Vision (1 of 3)

• Mission tatement

% $nswers) *!hat business are we in#+

% lear and concise

% 'plains the organization&s reason for e'istence

• ision tatement

% $nswers) *!hat do we want to become#+

% Tends to be future oriented

% /epresents where the organization is headed



2-6


• lements of the Mission tatement % 0i"e basic 1uestions to be answered

• !ho are we#

• !ho are our customers#

• !hat is our operating philosophy#

• !hat are our core competencies or competiti"e ad"antages#

• !hat are our responsibilities with respect to being a goodsteward of our human, financial, and en"ironmentalresources#



2-7

The Best Mission Statements (1 of 2)

Exhibit 2.2 (1 of 2)



2-8

The Best Mission Statements (2 of 2)

Exhibit 2.2 (2 of 2)



2-9


• Mission !idth and tability

% !idth Too broad or too narrow#

% tability 0re1uency of modifications

• ustomer-0ocused Mission tatements

% 3en and 4erry&s 5-part Mission tatement

• (roduct Mission

• conomic Mission

• ocial Mission

% Tylenol % The $merican ross



2-10

• 3usiness-6nit trategy % The central means for

• 6tilizing and integrating the organization&s resources

•arrying out the organization&s mission• $chie"ing the organization&s desired goals and ob7ecti"es

% $ssociated with de"eloping a competitive or differentialadvantage

% 8etermines the nature and future direction of each business

unit % ssentially the same as corporate strategy in small businesses

Corporate or Business!nitStrategy



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• $ll business functions must support the organization&s

mission and goals.

• 0unctional ob7ecti"es should be e'pressed in clear,

simple terms.

• $ll functional ob7ecti"es should be reconsidered for each

planning period.

"unctional Goals an# O$%ectives



2-12

• 0unctional strategies are designed to integrate effortsfocused on achie"ing the area&s stated ob7ecti"es.

• The strategy must

% 0it the needs and purposes of the functional area % 3e realistic with the organization&s resources and en"ironment

% 3e consistent with the organization&s mission goals, andob7ecti"es.

•The effects of each functional strategy must bee"aluated.

"unctional Strategy



2-13

• 9n"ol"es acti"ities that e'ecute the functional strategy.

• 0unctional plans ha"e two target markets

% 'ternal market

% 9nternal market

• $ company must rely on its internal market for a

functional strategy to be implemented successfully.

&'ple'entation



2-14

• 8efend or contradict this statement 8e"eloping

marketing strategy is more important than

implementing marketing strategy because if thestrategy is flawed, it doesn&t matter how well it is

implemented.

(iscussion )uestion



2-15

• 8esigned to keep acti"ities on target with goals andob7ecti"es

• oordination among functional areas is a critical issue

% :pen lines of communication is the key

• "aluation and control is both an ending and beginning % :ccurs after a strategy has been implemented

% er"es as the beginning point for planning in the ne't cycle

*valuation an# Control



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• 8etailed formulation of the actions needed to carry out

the marketing program

• $n action document

% The handbook for marketing implementation, e"aluation, and

control

• ;ot the same as a business plan

• /e1uires a great deal of information from many differentsources

The Mar+eting Plan



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• hould be well organized

• $ good marketing plan outline is

% omprehensi"e

% 0le'ible

% onsistent

% <ogical

Mar+eting Plan Structure ,- o /0



2-18

• 9. 'ecuti"e ummary % ynopsis of the o"erall marketing plan

% 9ntroduces ma7or aspects of the marketing plan

• 99. ituation $nalysis % ummarizes information about 5 key en"ironments

• 9nternal en"ironment

• ustomer en"ironment

• 0irm&s e'ternal en"ironment

Mar+eting Plan Structure ,1 o /0



2-19

• 999. !:T $nalysis

% trengths

% !eaknesses

% :pportunities

% Threats

% $nalysis of the !:T matri'

% stablishing a strategic focus




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• 9. Marketing Goals and :b7ecti"es % 0ormal statements of desired and e'pected outcomes of the

marketing plan

% Goals• 3road, simple statements of what is to be accomplished

% :b7ecti"es• More specific and essential to planning

• . Marketing trategy % (rimary target market and marketing mi'

% econdary target market and marketing mi'




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• 9. Marketing 9mplementation % !hat specific marketing acti"ities will be undertaken#

% =ow will these acti"ities be performed#

% !hen will these acti"ities be performed# % !ho is responsible for the completion of these acti"ities#

% =ow will the completion of planned acti"ities be monitored#

% =ow much will these acti"ities cost#

• 99. "aluation and ontrol % 0ormal marketing control

% 9nformal marketing control

% 0inancial assessments

Mar+eting Plan Structure ,/ o /0



2-23

• $ good marketing plan will % 'plain both the present and future situations of the

organization

% pecify the outcomes that are e'pected % 8escribe the specific actions that are to take place

% 9dentify the resources that will be needed

% (ermit the monitoring of each action and its results

• ommunicating the strategy to top e'ecuti"es is paramount.

Purposes an# Signiicanceo the Mar+eting Plan



2-24

• 9n many organizations, marketing is not gi"en a

place of importance in the organizational

hierarchy. !hy do you think this happens#!hat are the conse1uences for a firm that gi"es

little importance to marketing relati"e to other

business functions#

(iscussion )uestion



2-25

• Top managers ask two 1uestions % !ill the marketing plan achie"e the desired goals and

ob7ecti"es#

% $re there alternati"e uses of resources that would better meetthe firm&s ob7ecti"es#

• The marketing plan is most often prepared by theMarketing 8irector or ( of Marketing

• The final appro"al of the marketing plan lies with the(resident, hairman, or :

Organizational 4spects o theMar+eting Plan

M j Ob l D l i !



2-26

Major Obstacles to Develoing an!"mlementing Marketing Plans

Exhibit 2.4



2-27

• hanges in the focus and content of strategic plans o"erthe last two decades % /enewed emphasis on the customer

% $d"ent of balanced strategic planning• hanges re1uire a shift in focus

% 0rom products to the re1uirements of specific target marketsegments

% 0rom customer transactions to customer relationships % 0rom competition to collaboration

Maintaining Custo'er "ocus an#Balance in Strategic Planning



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Custo'er"ocuse#Strategic Planning

• (uts customer needs and wants first

• 0ocuses on long-term, "alue-added relationships

• 0ocuses on understanding customers in ways that

enhance sustainable competiti"e ad"antages• 9nstills a corporate culture that places customers at the

top of the organizational hierarchy

• 0inds ways to cooperate with suppliers and competitors

to ser"e customers more effecti"ely and efficiently

Tra#itional versus Mar+et Oriente#



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Tra#itional versus Mar+etOriente#Organizational Structures

Exhibit 2.5



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Balance# Strategic Planning

• 3orne out of necessity

• $d"ocated strongly by >aplan ? ;orton with theircreation of the Balanced Performance Scorecard

• onsiders traditional financial indicators plus threeadditional perspecti"es % ustomers

% 9nternal (rocesses

% <earning and Growth



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The Balance#Peror'ance Scorecar#

Exhibit 2.6



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Principles o Successul "ir's !singThe Balance# Peror'ance Scorecar#

• @A Translate the trategy into :perational Terms

• 2A $lign the :rganization to trategy

• 5A Make trategy "eryone&s "eryday 4ob

• BA Make trategy a ontinual (rocess

• CA Mobilize hange through 'ecuti"e <eadership



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• !hat are some of the potential difficulties in

approaching strategic planning from a balanced

perspecti"e# 9sn&t financial performance still themost important perspecti"e to take in planning#

'plain.

(iscussion )uestion

Ferrell Hartline 4e CH02

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