1. The Marketing Management Process
Chapter 1
The Marketing Management Process

2. Marketing Management—A Definition
The process of analyzing, planning, implementing, coordinating, and controlling programs
Involves the conception, pricing, promotion, and distribution of products, services, and ideas designed to create and maintain beneficial exchanges with target markets for the purpose of achieving organizational objectives

3. Marketing Management—A Definition
Basic focus of and the sequence of events within marketing management
A decision-making focus
Analyzing the 4Cs

4. Integrating Marketing Plans with the Company’s Strategies and Resources
Corporate strategy: Reflects the company’s mission and provides direction for decisions about what businesses it should pursue, how it should allocate its available resources, and its growth policies
Business-level strategy: Addresses how the business intends to compete in its industry
Marketing strategy: Reflect a firm’s interrelated decisions about market segments, product line, advertising appeals and media, prices, and partnerships with suppliers, distributors, retailers, and other agencies

5. Market Opportunity Analysis
Understanding market opportunities
Customer analysis
Marketing research and forecasting
Market segmentation, targeting, and positioning decisions
Market segments: Distinct subsets of people with similar needs, circumstances, and characteristics that lead them to respond in a similar way to a particular product or service offering or to a particular strategic marketing program

6. Formulating Strategic Marketing Programs
Specifying marketing objectives and strategies
Marketing program components
4 Ps: Product offering, price, promotion, place
Marketing mix: The combination of controllable marketing variables that a manager uses to carry out a marketing strategy in pursuit of the firm’s objectives in a given target market

7. Exhibit 1.5 - Decisions within the Four Elements of the Marketing Mix

8. Formulating Strategic Marketing Programs for Specific Situations
The strategic marketing program for a product should reflect market demand and the competitive situation within the target market
Different marketing strategies are typically more appropriate and successful for different market conditions and at different life-cycle stages

9. Implementation and Control of the Marketing Program
A final critical determinant of a strategy’s success is the firm’s ability to implement it effectively
This depends on whether the strategy is consistent with the resources, the organizational structure, the coordination and control systems, and the skills and experience of company personnel

10. The Marketing Plan—A Blueprint for Action
A written document detailing the current situation with respect to customers, competitors, and the external environment and providing guidelines for objectives, marketing actions, and resource allocations over the planning period for either an existing or a proposed product or service

11. Exhibit 1.6 - Contents of a Marketing Plan

12. Exhibit 1.6 - Contents of a Marketing Plan

13. Some Recent Developments Affecting Marketing Management
Globalization
Increased importance of service
Information technology
Relationships across functions and firms

14. The Marketing Implications of Corporate and Business Strategies
Chapter 2
The Marketing Implications of Corporate and Business Strategies

15. Three Levels of Strategy: Similar Components, but Different Issues
The hierarchy of strategies
Corporate strategy
Business-level strategy
Functional strategies

16. Corporate Scope—Defining the Firm’s Mission
A good mission statement guides an organization’s managers as to which market opportunities to pursue and which fall outside the firm’s strategic domain
Market influences on the corporate mission
Criteria for defining the corporate mission
Social values and ethical principles
Ethics: Concerned with the development of moral standards by which actions and situations can be judged

17. Exhibit 2.6 - Characteristics of Effective Corporate Mission Statements

18. Corporate Objectives A performance dimension or attribute sought
A measure or index for evaluating progress
A target or hurdle level to be achieved
A time frame within which the target is to be accomplished

19. Exhibit Common Performance Criteria and Measures That Specify Corporate, Business-Unit, and Marketing Objectives

20. Exhibit Common Performance Criteria and Measures That Specify Corporate, Business-Unit, and Marketing Objectives

21. Corporate Objectives
The marketing implications of corporate objectives: Most organizations pursue multiple objectives
Trying to achieve many objectives at once leads to conflicts and trade-offs
Managers can reconcile conflicting goals by prioritizing them
Another approach is to state one of the conflicting goals as a constraint or hurdle

22. Corporate Sources of Competitive Advantage
A sustainable competitive advantage at the corporate level is based on company resources - resources that other firms do not have, that take a long time to develop, and that are hard to acquire

23. Corporate Growth Strategies
A firm can go in two major directions in seeking future growth
Expansion of its current businesses and activities
Diversification into new businesses, either through internal business development or acquisition

24. Exhibit 2.9 - Alternative Corporate Growth Strategies

25. Corporate Growth Strategies
Expansion by increasing penetration of current product-markets
Expansion by developing new products for current customers
Expansion by selling existing products to new segments or countries

26. Corporate Growth Strategies
Expansion by diversifying:
Vertical integration
Forward vertical integration occurs when a firm moves downstream in terms of the product flow
Backward integration occurs when a firm moves upstream by acquiring a supplier
Related (or concentric) diversification
Unrelated (or conglomerate) diversification

27. Allocating Corporate Resources
To exploit the advantages of diversification
Corporate managers must make intelligent decisions about how to allocate financial and human resources across the firm’s various businesses and product-markets
Two sets of analytical tools have proven useful in making such decisions
Portfolio models
Value-based planning

28. Portfolio Models
Enable managers to classify and review their current and prospective businesses by viewing them as portfolios of investment opportunities and then evaluating each business’s competitive strength and the attractiveness of the markets it serves
The Boston Consulting Group’s (BCG) growth-share matrix

29. Exhibit 2.10 - BCG’s Market Growth Relative Share Matrix

30. Exhibit 2.11 - Cash Flows across Businesses in The BCG Portfolio Model

31. The Marketing Implications of Business-unit Strategy Decisions
Strategic business units: Components of a firm engaged in multiple industries or businesses
Steps in developing business-level strategies
Deciding how to divide into SBUs
Managers must recommend:
The unit’s objectives
The scope of its target customers and offerings
Which broad competitive strategy to pursue
How resources should be allocated

32. How Should Strategic Business Units Be Designed?
Characteristics of strategic business units
A homogeneous set of markets to serve with a limited number of related technologies
A unique set of product-markets
Control over those factors necessary for successful performance
Responsibility for their own profitability

33. How Should Strategic Business Units Be Designed?
Dimensions that define the scope and mission of the entire corporation also define individual SBUs
Technical compatibility
Similarity in the customer needs
Similarity in the personal characteristics

34. The Business Unit’s Objectives
Corporate objectives typically broken down into subobjectives for each SBU
Breaking down an SBU’s objectives into subobjectives for each of its productmarket entries is often a major part of developing business-level strategy

35. The Business Unit’s Competitive Strategy
Decisions about an SBU’s scope
Allocating resources within the business unit
Gaining a competitive advantage
Marketing resources and competitive advantage

36. Exhibit Three Competitive Strategies and the Traits and Competencies of Businesses That Implement Them Effectively