To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-1

Chapter 3 Objectives

Discuss corporate and division strategic planing.

List major steps in planning the marketing process.

Determine how a company can effectively manage the marketing process.

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-2

Some Terms to Learn...

Strategic plan Strategic plan

Let’sDiscuss

Let’sDiscuss

Describe what might happen in eachof the following steps in strategic planning:

Marketing planMarketing plan

Division planDivision plan

Business unit strategic planBusiness unit strategic plan

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-3

Planning

Corporateplanning

Divisionplanning

Businessplanning

Productplanning

Implementation

Organizing

Implementing

Measuringresults

Diagnosingresults

Takingcorrective

action

Control

Planning, Implementation, and Control Process

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-4

Why might a corporation’s mission change over time?

What can a good mission statement yield a business?

What are four different types of competitive scopes of a company?

Discuss distinct differences between vertical scope and geographical scope.

Corporate Headquarters Planning

Let’sDiscuss

Let’sDiscuss

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-5The Boston Consulting Group’s Growth-Share

Matrix20%-18%-16%-14%-12%-10%- 8%- 6%- 4%- 2%- 0M

arke

t G

row

th R

ate

10x 4x 2x 1.5x 1x Relative Market Share

.5x .4x .3x .2x .1x

Dogs 87

3 ?Question marks

? ?2

1

Cash cows

6

Stars

5

4

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-6

The General ElectricModel

Describe market attractiveness and business strength.

What would be benefits of the GE and the BCG models?

In what areas are the models weak?

QuickQuiz

QuickQuiz

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-7Three Intensive Growth Strategies: Ansoff’s Product-Market Expansion

Grid

DiversificationMarket

development

Marketpenetration

Productdevelopment

Newmarkets

Existingmarkets

Existingproducts

Newproducts

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-8

Strategy Formulation

Good strategies to think about: Overall cost leadership, differentiation, and focus.

Firms that do not produce clear strategies do not perform well.

Let’s think -- how could the internet make strategy formulation more challenging?

?

???

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-9

Steps in theMarketing Process

Describe each step in themarketing process:

Analyzing market opportunities Analyzing market opportunities

Plan a marketing programPlan a marketing program

Manage the marketing effortManage the marketing effort

Develop marketing strategiesDevelop marketing strategies

QuickQuiz

QuickQuiz

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-10

The Marketing Plan

Executive Summary & Table of ContentsExecutive Summary & Table of Contents

Current Marketing SituationCurrent Marketing Situation

Opportunity & Issue AnalysisOpportunity & Issue Analysis

ObjectivesObjectives

Marketing StrategyMarketing Strategy

Action ProgramsAction Programs

Projected Profit-and-lossProjected Profit-and-loss

ControlsControls

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-11

Organization of theMarketing Department

Geographic orientationGeographic orientation

Functional organizationFunctional organization

Product or brand organizationProduct or brand organization

© Procter & Gamble

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-12

Global Organization

Global organizationsGlobal organizations

Export departmentExport department

International divisionInternational division

Functional specialists andgeographic units

Functional specialists andgeographic units

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-13Evaluating and Controlling the Marketing

Process

Annual-plan control• Set goals• Monitor performance• Determine deviations• Take corrective action

Annual-plan control• Set goals• Monitor performance• Determine deviations• Take corrective action

Profitability control• Identify expenses• Measure expense • Prepare profit/loss

Profitability control• Identify expenses• Measure expense • Prepare profit/loss

To accompany A Framework for Marketing Management by Kotler © 2001 Prentice Hall

3-14Evaluating and Controlling the Marketing

Process

Strategic control•Review for effectiveness•Conduct marketing audit•Rates performance•Reviews for ethics and social responsibility

Strategic control•Review for effectiveness•Conduct marketing audit•Rates performance•Reviews for ethics and social responsibility

Efficiency control•Improve marketing efficiencyEfficiency control•Improve marketing efficiency