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.

2. Some Terms to Learn... Describe what might happen in each
Let’s
Discuss
Some Terms to Learn...
Describe what might happen in each
of the following steps in strategic planning:
Strategic plan
Division plan
1. Strategic plan - GM Corporate Detroit. Saturn Division in Springfield TN. Business Units may be Saturn North America versus International Operations. Marketing plan will be for Saturn station wagon in Mexico.
Business unit strategic plan
Marketing plan

3. Planning, Implementation, and Control Process
Corporate
planning
Division
Business
Product
Implementation
Organizing
Implementing
Control
Measuring
results
Diagnosing
Taking
corrective
action

4. Corporate Headquarters Planning
Let’s
Discuss
Corporate Headquarters Planning
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.
Might become irrelevant, needs to be adapted to the environment.
Direction.
Page 41.
Vertically integrated companies like McDonald’s, Boeing which do a lot of inhouse manufacturing. At the other end, are Levis, Nike, which have less vertical scope. They are essentially design and marketing companies.

5. The Boston Consulting Group’s Growth-Share Matrix
20%-
18%-
16%-
14%-
12%-
10%-
8%-
6%-
4%-
2%-
Market Growth Rate
10x 4x 2x 1.5x 1x
Relative Market Share
.5x .4x .3x .2x .1x
Stars 5 4 3 ?
Question marks 2 1
Cash cows 6
Dogs 8 7
SBUs, axes.
Build question marks into stars (require investment). Hold cash cows (generate cash). Dogs can be harvested slowly (tobacco) or divested.

6. The General Electric Model
Quick
Quiz
The General Electric Model
Describe market attractiveness and business strength.
What would be benefits of the GE and the BCG models?
In what areas are the models weak?
Market attractiveness is a generalization of market growth, business strength is a generalization of relative market share. 9 cells, more fine-tuned classification.
Benefits - good planning tool, helps develop priorities and guide resource allocation.
Problems - too much emphasis on growth may compromise the attention paid to current businesses, doesn’t lend itself to exploit synergies between SBUs.

7. Three Intensive Growth Strategies: Ansoff’s Product-Market Expansion Grid
New
markets
Existing
products
Market
penetration
Product
development
1. Intensive growth comes from market penetration McDonald’s opening more stores in the US), product development (new menu items yogurt parfait), market development (McDonalds opening in new countries).
Market
development
Diversification

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?
Cost leadership - Costco, Southwest airlines.
Differentiation - Intel (power), IBM (service), Sharper image (innovative, entertaining products). Some companies do both (Saturn low-cost & differentiation, Southwest low-cost, differentiation (fun), focus (short-haul routes).
Focus (product line or geography) - Harley Davidson high-powered bikes. Peets. Southwest, Walmart started this way then expanded.
Internet - compressed time frames. Greater availability of competitive intelligence. ?

9. Steps in the Marketing Process
Quick
Quiz
Steps in the Marketing Process
Describe each step in the
marketing process:
Analyzing market opportunities
Develop marketing strategies
Figure 3.4 is for business unit, page 50 has marketing planning process.
Plan a marketing program
Manage the marketing effort

10. The Marketing Plan Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
1. Current marketing situation and opportunity & issue analysis also called SWOT.
Action Programs
Projected Profit-and-loss
Controls

11. Organization of the Marketing Department
Functional organization
Geographic orientation
Product or brand organization
© Procter & Gamble

12. International division Functional specialists and
Global Organization
Export department
International division
Functional specialists and
geographic units
Global organizations

13. Evaluating and Controlling the Marketing Process
Annual-plan control
Set goals
Monitor performance
Determine deviations
Take corrective action
Profitability control
Identify expenses
Measure expense
Prepare profit/loss
1. Plans reviewed every quarter.

14. Evaluating and Controlling the Marketing Process
Efficiency control
Improve marketing efficiency
Strategic control
Review for effectiveness
Conduct marketing audit
Rates performance
Reviews for ethics and social responsibility
1. With automation e.g. call center CRM, give laptops to the salesforce.