Textbook Notes (368,326)
Canada (161,799)
Business (358)
BUSI 2208 (16)
Chapter 2

Chapter 2.docx

5 Pages
Unlock Document

BUSI 2208
Irfan Butt

Marketing-Chapter 2 Levels of Strategic Planning in Corporations : Effective marketing doesn’t just happen. Firms carefully plan their marketing strategy to react to changes in the environment, the competition, and their customers. Occurs on 3 levels...  Corporate level: Done by the company’s top management and focuses on the overall direction of the entire company. Senior managers decide on the business of the company, set its mission/vision, objectives and goals for the company. Focuses on long- term and adapts to the changing business environment.  Functional level: Various functions within the organization such as marketing, finance, human resources etc.. Each of these functions usually undertakes some form of planning (Marketing function develops plans for company’s various products, brands, markets etc.). Annual or three to five years.  Strategic Business Units (SBU): An SBU is a division of the company that can be managed somewhat independently from other divisions since it markets a specific set of products to a clearly defined group of customers. Disney has 4 business units – media networks, parks and resorts, studio entertainment, and consumer products. Each of these units develops plans for the products and markets under their control. Marketing function may also be involved in both corporate and SBU-level planning. Focuses on creating value for customers and the company, advises management of possible threats and of changing consumer trends. Strategic Marketing Planning Process: Represents a set of steps a marketer goes through to develop a strategic marketing plan. Marketing plan is a written document composed of analysis of the current marketing situation, opportunities threats, marketing objectives in terms of 4p’s, and pro form projected financial statements. Planning Phase  Define Mission/ Vission of the business  Situational analysis o SWOT Analysis o Environmental Trend Analysis o Market Trend Analysis o Competitive analysis  Identify and evaluate Opportunities. o Engaging in Segmentation, targeting and positioning, Develop the marketing mix – 4p’s Implementation Phase  Implement marketing mix, design the Marketing organization, develop budgets, schedules and put a plan into action Control Phase  Managers eveluate the performance of the marketing strategy and take necessary corrective actions. Step 1: Define Business Mission/Vision Mission statement is a broad description of a firms objectives and the scope of the activities it plans to undertake. Answers 2 questions... oWhat type of business is it? oWhat does it need to do to accomplish its goals and objectives?  These must be answered at the highest corporate levels before marketing executives can get involved.  Most firms want to maximize stockholder wealth by increasing value of firms stock, some smaller firms have other objectives such as achieving a specific level of income.  Sustainable competitive advantage: Something that the firm can persistently do better than the competitor. Some competitive advantages are duplicated by competitors immediately such as low prices but some are sustainable over a long period of time such as providing top quality customer service Step 2: Conduct a Situational Analysis Using SWOT: Situational analysis assess both the internal environment with regards to its Strengths and Weaknesses and the external environment in terms of its Opportunities and threats Environment Evaluation Positive Negative Internal Strengths: Positive internal Weaknesses: Negative attributes attributes of the firm. Such as of the firm. For example well known brand image seasonal fluctuations External Opportunities:Positive aspects of Threats: negative aspects of the the external environment. Such external environment. Such as as the ability to expand into increasing competitive pressure. international markets Step 3: Identify and Evaluate Opportunities Using STP: process of segmentation, targeting and positioning that firms use to identify and evaluate opportunities.  Segmentation: Many types of customers appear in any market, and most firms can not satisfy everyone’s need. o Market Segment: A group of consumers who respond similarly to a firms marketing efforts o Market Segmentation: The process of dividing the market into groups of customers with different needs, wants, or characteristics- who therefore might appreciate products or services geared especially for them. Firms may segment on the basis of...  Demographic variables such as age, gender and income  Psychological and Behavioural factors such those who like to party or go dancing  Socio-cultural factors  Targeting :Evaluates each segments attractiveness and decides which to pursue using a process known as target marketing  Positioning: The process of defining the marketing mix variables so that target customers have clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products. o What consumers think of and feel about a brand or product o All marketers would like consumers to think of their brand or product the way the company wants to present it to them but few are able to do so effectively  Set Marketing Objectives: Marketing manager is responsible for setting the marketing specific objectives for the product or brand over the life of the plan Develop Marketing Mix: Marketers develop their marketing mix of product, price, promotion, and place for each product or service on the basis of what they believe their customer will value. Product and Value Creation: They key to the success of any marketing program is the creation of value, firms attempt to develop products and services that customers perceive as valuable to buy. This includes offering service plans and customizability etc. Price and Value for Money: As part of the exchange proce
More Less

Related notes for BUSI 2208

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.