1. MARKETING STRATEGY O.C. FERRELL • MICHAEL D. HARTLINE2
Strategic Marketing
Planning

2. The Strategic Planning Process
Marketing Plan
“…a written document that provides the blueprint or outline of the organization’s marketing activities, including the implementation, evaluation, and control of those activities.”

3. Discussion Question
What role, if any, should customers play in the strategic planning process? Should they have a voice in developing the organizational mission, marketing goals, or the marketing strategy?

4. Exhibit 2.1

5. Organizational Mission vs. Organizational Vision (1 of 2)
Elements of the Mission Statement
Five basic questions to be answered:
Who are we?
Who are our customers?
What is our operating philosophy?
What are our core competencies or competitive advantages?
What are our concerns and interests related to our employees, our community, society in general and our environment?

6. Organizational Mission vs. Organizational Vision (2 of 2)
Mission Width and Stability
Width: Too broad or too narrow?
Stability: Frequency of modifications
Customer-Focused Mission Statements
Ben and Jerry’s 3-part Mission Statement
Product Mission
Economic Mission
Social Mission
Tylenol

7. Marketing Strategy in Action
As this 1946 ad demonstrates, railways were once a prominent way to travel across the country.
How did narrow mission statements lead to missed opportunities for the railroad industry?

8. Ben & Jerry’s 3 Part Mission

9. Corporate or Business-Unit Strategy
The central means for:
Utilizing and integrating the organization’s resources
Carrying out the organization’s mission
Achieving the organization’s desired goals and objectives
Associated with developing a competitive advantage
Determines the nature and future direction of each business unit
Essentially the same as corporate strategy in small businesses

10. Functional Goals and Objectives
All business functions must support the organization’s mission and goals.
Functional objectives should be expressed in clear, simple terms.
All functional objectives should be reconsidered for each planning period.

11. Functional Strategy
Functional strategies are designed to integrate efforts focused on achieving the area’s stated objectives.
The strategy must:
(1) Fit the needs and purposes of the functional area
(2) Be realistic with the organization’s resources and
environment
(3) Be consistent with the organization’s mission
goals, and objectives.
The effects of each functional strategy must be evaluated.

12. Implementation
Involves activities that execute the functional strategy.
Functional plans have two target markets:
(1) External market
(2) Internal market
A company must rely on its internal market for a functional strategy to be implemented successfully.

13. Discussion Question
Defend or contradict this statement: Developing marketing strategy is more important than implementing marketing strategy because if the strategy is flawed, it doesn’t matter how well it is implemented.

14. Evaluation and Control
Designed to keep activities on target with goals and objectives
Coordination among functional areas is a critical issue
Open lines of communication is the key
Evaluation and control is both an ending and beginning:
Occurs after a strategy has been implemented
Serves as the beginning point for planning in the next cycle

15. The Marketing Plan
Detailed formulation of the actions needed to carry out the marketing program
An action document:
The handbook for marketing implementation, evaluation and control
Not the same as a business plan
Requires a great deal of information from many different sources

16. Marketing Plan Structure (1 of 5)
Should be well organized
A good marketing plan outline is:
Comprehensive
Flexible
Consistent
Logical

17. Marketing Plan Structure
Exhibit 2.3

18. Marketing Plan Structure (2 of 5)
I. Executive Summary
Synopsis of the overall marketing plan
Introduces major aspects of the marketing plan
II. Situation Analysis
Summarizes information about 3 key environments:
Internal environment
Customer environment
Firm’s external environment

19. Marketing Plan Structure (3 of 5)
III. SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Analysis of the SWOT matrix
Establishing a strategic focus

20. Marketing Plan Structure (4 of 5)
IV. Marketing Goals and Objectives:
Formal statements of desired and expected outcomes of the marketing plan
Goals:
Broad, simple statements of what is to be accomplished
Objectives
More specific and essential to planning
V. Marketing Strategy:
Primary target market and marketing mix
Secondary target market and marketing mix

21. Marketing Plan Structure (5 of 5)
VI. Marketing Implementation
1. What specific marketing activities will be undertaken?
2. How will these activities be performed?
3. When will these activities be performed?
4. Who is responsible for the completion of these activities?
5. How will the completion of planned activities be monitored?
6. How much will these activities cost?
VII. Evaluation and Control
Formal marketing control
Informal marketing control
Financial assessments

22. Using the Marketing Plan Structure
Tips for using the marketing plan framework to develop a marketing plan:
Plan ahead
Revise, revise, revise
Be creative
Use common sense and judgment
Think ahead to implementation
Update regularly
Communicate with others

23. Purposes and Significance of the Marketing Plan
A good marketing plan will:
(1) Explain both the present and future situations of
the organization
(2) Specify the outcomes that are expected
(3) Describe the specific actions that are to take place
(4) Identify the resources that will be needed
(5) Permit the monitoring of each action and its
results
Communicating the strategy to top executives is paramount.

24. Organizational Aspects of the Marketing Plan
Top managers ask two questions:
(1) Will the marketing plan achieve the desired
goals and objectives?
(2) Are there alternative uses of resources that
would better meet objectives?
The marketing plan is most often prepared by the Marketing Director or VP of Marketing
The final approval lies with the President, Chairman or CEO

25. Major Problems in Developing and Implementing the Marketing Plan
Exhibit 2.4

26. Apple’s Changing Strategic Focus

27. Strategic Planning in the Market-Oriented Organization
A Market-Oriented Organization:
Shifts its focus:
From products to the requirements of market segments
From transactions to relationships
From competition to collaboration
Puts customer’s needs and wants first
Focuses on long-term, value-added relationships
Instills a corporate culture that puts customers at the top of the organizational hierarchy
Cooperates with suppliers and competitors to serve customers better

28. Traditional Organizations
Customers
Frontline Employees
Middle
Managers
CEO
Competition
Exhibit 2.5 – Part One

29. Market-Oriented Organizations
Customers
Frontline Employees
Middle
Managers
CEO
Cooperation
Exhibit 2.5 – Part Two

30. Discussion Question
In many organizations marketing is not given a place of importance in the organizational hierarchy. Why do you think this happens? What other business functions get more importance? Why?