Marketing Management – chapter 2

Marketing -is an explanation of the goals needed by a company to accomplish its marketing efforts.
strategy
Marketing Plan -is how the company is going to attain those marketing goals and objectives.
Strategy -is the thinking and planning is the doing. However, most companies try to set out the achieve
the “how” (planning) without first knowing the “what” (strategy).
Strategy -is derived from the ancient Greek word ”strategos”
The practice of -in his 1955 work, ___, Peter Drucker made the distinction between tactical decisions and
management strategic decisions.
A strategy -is fundamental pattern of present and planned objectives, resource developments, and
interaction of an organization with markets, competitors, and other environmental factors.
It says that the strategy should always be able to specify;
What -objectives to be accomplished
Where -as in, on which industries and product markets to focus
How -to allocate resources and activities, so as to meet environment opportunities and treats in each
product-market and also gain a competitive advantage.
Strategy Is a design or plan for achieving a company policy goals and objectives.
HERE ARE 5 COMPONENTS OR SET OF ISSUES WITHIN A WELL-DEVELOPED STRATEGY
1. Scope -the ___ of a company is the extensiveness of its strategic sphere such as the number and types
of industries, product lines, and market segments it competes in or plans to penetrate.
Decision -about a company’s strategic scope must mirror management’s view of organizations purpose or
mission.
2. Goals and -strategies need also to specific levels of accomplishment on one or more facets to performance
Objectives such as volume growth, profit contribution, or return to investment over particular time frame
3. Resource Every organization has restricted financial and human resources.
deployment
4. identification of -one vital part of any strategy is a plan of how the company will participate of each business and
a sustainable product market within its industry.
competitive
advantage
5. Synergy -is present when the company’s businesses, product-markets, resource developments, and
competencies balance and strengthen one another.
1920s -Hierarchy in strategies originates in ___, when some of the largest companies in the United State
began to diversity strategy.
3 MAJOR LEVELS OF STRATEGY
1. Corporate -the ___ are managed by the corporate level, which is the top level in any organization
strategy
2. Business level -the ___ consists of smaller units within the whole organization that are commonly administered
strategy as self-contained business.
3. Functional -the ___ comprises all the different functional areas within a business unit.
strategies
Corporate -focuses primarily on profitability.
strategy
Corporate -include creating an organizational structure, debt reduction to improve the company’s balance
strategies sheet, diversifying the product or service line
Creating a -is the final step in this process.
company strategy
Corporate mission -traditionally acted as a way to tell potential shareholders and investors more about a company
and its purpose.
Mission -is a statement of the organization’s reason for being, its purpose or what it does.
statement
Ethics -in the broadest sense of the world, is rising to the top corporate agenda.
August 3, 1999 -on the night of ___ heavy torrential rains caused a landslide that killed 58 people and buried
over 100 housed.
Cherry Hills -was developed by Philippines-Japan Solidarity Corp. (Philjas) even early on, many buyers had
complained that developers failed to complete the project as planned.
Mines and -inspection by the ___ following the tragedy found that the project was built on very unstable
Geosciences ground and did not have sufficient drainage system.
bureau
Companies -must have to develop corporate marketing ethics policies, because not all managers have fine
moral understanding.
Philosophy -a __ od socially responsible and ethical behavior should be worked but by very company and
marketing manager.
Mintzberg -according to ___ ‘a mission statement describes to the organization’s basic function in society, in
terms of the products and services it produced for its customer”
A CLEAR BUSINESS MISSION SHOULD HAVE EACH OF THE FOLLOWING ELEMENTS;
1. A Purpose -why does the business exist? Is it to create wealth for shareholders? Does it exist to satisfy the
needs of all stakeholders including employees, and society at large?
2. A Strategy and -a company’s strategy cope defies the boundaries of its operation.
Strategic scope
3. Policies and -a mission needs to be converted into everyday actions.
Standards of
behavior
4. Values and -the values of the business are fundamental, frequently implicit, beliefs of the people who work
Cultures in the business. This would comprise;
a. Business -social policy, commitments to customers.
principle
b. Loyalty and -employees inspired to sacrifice their personal goals for the good of the business as a whole; does
commitment the business demonstrate a high level of commitment and loyalty to its staff.
c. Guidance on -a strong sense of mission helps create a work environment where there is a common purpose.
expected behavior
Organization -legitimize themselves by performing some function that is valued by society.
THE FOLLOWING CHARACTERISTIC OF MISSION STATEMENT
NEED TO BE PRESENT IN AN ORGANIZATION
1. It should be -a mission should always aim high but it should not be an impossible statement.
feasible
2. it should be -a mission statement should not be so narrow as to restrict the company’s activities.
precise
Manufacturing -for instance ___ is a narrow mission statement since it severely limits the company’s activities
motorcycle into producing such product only.
Mobility business -while ___ is too broad a term, as it does not identify the reasonable outline within which the
company could operate.
3. it should be -a mission should be clear enough to led to action. It should not be a hyperbolical set cliches
clear meant to promotion purposes.
4. it should be -a mission statement should be motivating for members of the organization and society, and they
motivating should feel it meaningful working for such a company or being its customers.
5. it should be -a mission statement, which is indiscriminate, is likely to have little impact.
distinctive
6. it should -a mission statement along with the organizational purpose ____ to be adopted.
indicate major
components of
strategy.
7. it should -a mission statement should indicate the broad strategies to be adopted. It must also provide
indicate how clues concerning the approach in which the objectives are to be attained.
objectives are to
be accomplished
Company vision -seek to outline where the company Is headed and what values are guiding that journey.
Vision statement -A __ can be written as simple as a single sentence or can be lengthy as a short paragraph.
Setting up the -is the first task done by the marketing manager.
objective
Marketing -set out what a business wants to achieve from its marketing activities.
objectives
SMART OBJECTIVES
Specific -details exactly what need to be done.
Measurable -achievement or progress can do measure.
Achievable -objective is accepted by those responsible for achieving it.
Realistic -objective is possible to attain (important for motivational effect)
Timed -time is important for achievement is clearly stated.
Competitive -is a gain over competitors achieving by offering consumers greater value, either by means of
advantage lower prices or by providing greater benefit and service that justifies higher prices.
TYPES OF COMPETETIVE ADVANTAGES THAT COMPANIES CAN ACTUALLY USE
1. Cost -it is when a company is able to utilize its skilled workforce, inexpensive raw materials, controlled
competitive cost, and efficient operations to create maximum value to consumers.
advantage
a. product design -This is important to companies that utilize advanced technology.
b. reengineering -this is used by companies that are capable to slash cost by means of redesigning and creating
improvements to their products, for instance Apple.
c. new delivery -this is created by someone companies for their product or services, resulting in great cost saving
method that they are able to share with their customers.
2. product/service -this is another way that companies can have a competitive advantage in the marketplace.
differentiation
SOME COMMON GROWTH STRATEGIES IN BUSINESS INCLUDE THE FOLLOWING
1. Intensive -___ is when a company grows by expanding its product line or its market research.
growth strategy
a. market -one growth strategy is market penetration. A company uses a ___ when it decides to market
penetration current product within the same market it has been using.
b. market -this strategy is to devise a way to cell more of current product to an adjacent market.
development
c. alternative -this growth strategy involves pursuing customers in a different way such as selling product
channels online.
d. product -a classic strategy, it involves developing new products to sell to both current and new customers.
development
e. diversification -intensive growth strategies in business also include diversification, where a company will sell
new products to new markets.
2. integrative -___ is used for growth in which a company acquires some other element of the chain of
growth strategies distribution of which it is a member.
a. horizontal -___ would involve buying a competing business or businesses.
b. backward -a ___ would involve buying one of the company’s suppliers as a way to better control its supply
chain.
c. forward -a company performs ___ when it merges with or purchases an organization involved in the
distribution of its products.
d. complete or -this strategy means a company controls all components from raw materials to final delivery.
balance
STRATEGIC CORPORATE RESOURCE
1. Financial -___ concern the ability to the business to finance its choose strategy.
resources
2. Human -the heart of the issue with ___ is the skills base of the business.
resources
3. Physical -the category of ___ covers wide range of operational resources concerned with the physical
resources capability to deliver a strategy.
Business-level -the decisions a company makes on its way to creating, maintaining and using its competitive
strategies advantage are ___
COMPETITIVE ADVANTAGE
1. Cost leadership -using the ___ as strategy, the objective is to become the lowest-cost producer in the industry.
2. cost focus -___ exploits differences in cost behavior in some segments.
3. differentiation -using the __, the business targets much larger markets and aims to attain competitive advantage
leadership across the whole of an industry.
4. differentiation -is about changing a premium price that more than covers the additional product cost and about
providing customers obvious reasons to desire the product over other, less differentiated
product.
Defender strategy -organization applying a ___ endeavor to shield their market from new competitors.
Defenders -__ are less pro-active, and can be seen as being protection oriented, seeking stability by
maintaining current marketing positions and defending against disturbance by other companies.
Prospector -organization implementing ___ are innovative, seek out new opportunities, take risks and grow.
strategy
Prospectors -maintain as entrepreneurial attitude, and explore their competitive environment with the aim of
developing new product and marketing opportunities.
Analyzer strategy -organization implementing analyzer strategy attempt to maintain their current business and to
be somewhat innovative in new business.
Analyzers -are corporations that operate in at least two different product-market areas one stable and one
variable.
Reactor strategy -while the strategies of prospectors, defenders, and analyzers are to some extent proactive the
strategies used by reactors are characterized by inconsistence and a reactionary response to
environmental change.
The marketing -can serve as the foundation of marketing plan.
strategy
THE BARRIERS FALL GENERALLY INTO THREE INDEPENDENT CATEGORY
1. external -these are pressures originating from the company’s external environmental such as social, legal,
pressures of the economic, political, and technological.
company
2. internal -these are pressures from inside the company. These are:
pressures on the
marketing
function
a. leadership -the ultimate success and implementation of any strategic plan will depend on the degree to
which top management busy into the process.
b. organizational -there are many forms of organization culture in reality, few of this are customer or market
culture focused
c. organizational -in numerous organizations, the current company process are basically not intended to be able to
process convey the planned marketing strategy as is proposed.
d. functional -how the company staff manages daily business activities is determined by functional policies and
policies procedures.
e. resources -the proposed marketing strategy may necessitate either the distribution of major supplementary
resources
f. evaluation and -short of fitting monitoring and evaluation procedures in a company will be a considerable lump
control to the successful implementation of any strategy.
procedures
3. pressures -these are a number of aspect of the marketing department or function which can also work as
contained in the likely obstruction to the progress and implementation of marketing strategy such as:
marketing
function itself
a. marketing -how marketing interrelates with other functions will decide the successful implementation of the
interface with strategy.
other functions
b. the role of -the responsibility played by marketers in their company establishes the intensity of
marketers implementation of the strategy.
c. marketing -successful implementation of marketing strategy relies on how much; how applicable and how
feedback good information is and how well it is unified and acted upon.
Control -means attempting to make certain that behavior and system match and support predetermined
corporate objectives and policies.
THE CONTROL PROCESS ENTAILS THE FOLLOWING STEPS
1. Set target -ideally this is incorporated into overall marketing planning
2. predetermining -performance assessment
the method of
measurement
3. measured -result are contrasted with the predetermined targets and corrective action if necessary is carried
out
TYPICAL INPUTS INCLUDED THE FOLLOWING
1. Finance -such as investments, working capital and cash
2. operatives -such as capacity, usage, efficiency and application of machines, systems and other assets.
3. people -such as numbers, quality and skills of staff.
Performance -is from the blend of efficiency and effectiveness.
1. efficiency -this is about how well inputs are utilized
2. effectiveness -this is about doing the right thing.
a. environment -it is attained through promoting participation in the process
b. target setting -the target criteria should be objective and quantifiable
c. docus -it recognizes the disparity between the symptoms and the cause of the problem.
d. effectiveness -the tendency exists to appraise efficiency in contrast to effectiveness.
Efficiency -is the usage and productivity of assets.
Effectiveness -is about doing the right things
e. management -management interest is directed to areas of need
by exception
PROBLEMS OF CONTROL
1. the system can -the benefit control and the succeeding improvements are overshadowed by the cost of the
be expensive control mechanism.
2. control system -such system endorses consistency and conformance to pre0set targets.
repress effort and
creativity
3. control -systems frequently take care of the symptom rather than the cause of the problem
promotes an
outlook of
inspection as
opposed to
developments
Marketing plan -is a business document outlining the marketing strategy and tactics
15 KEY SECTION THAT MUST BE INCLUDED IN A MARKETING PLAN
1. executive -this section summarizes each other section of a marketing plan
summary
2. target -this section describes the customers a company is targeting \
customers
3. Unique selling -having a strong unique selling proposition (USP) is of serious importance as it distinguishes as a
proposition company from competitors.
4. pricing and -___ must be aligned.
prepositioning
strategy
5. distribution -the ___ specifies customer will purchase from a company.
plan
6. offers of the -offers are special deals a company put together to secure more new customers and drive past
company customers back to it.
7. marketing -___ are the collateral used to promote a business to current and prospective customers.
materials
8. promotion -the promotion section is one of the most key sections of a marketing plan and details how a
strategy company will reach new customers.
9. online -like it or not, most customers go online these days to find and/or apprise new product and/or
marketing service to purchase.
strategy
a. keyword -identify what keywords to optimize and website for.
strategy
b. search engine -documents updates will make ones website so it shows up more notably for top keywords.
organization
strategy
c. paid online -write down the online advertising programs that will be used to reach target customers.
advertising
strategy
d. social media -document how social media will be used as websites to attract customers.
strategy.
10. conversation -conversion strategies are the techniques a company employs to turn prospective customers into
strategy paying customers
11. join ventures -___ are agreements a company forges with the organizations to help reach new customers or
and partnership better monetize existing customers.
12. referral -a strong customer referral program could revolutionize a company’s success.
strategy
13. strategy for -while a company goal when conversing with prospective customers if often to secure the sale, it
increasing is also essential to take notice to the transaction price.
transaction prices
14. retention -too many organization spend too much time and energy trying to secure new customers versus
strategy investing in getting existing customers to buy more often.
15. financial -the concluding part of a marketing plan is to construct financial projections
projection
ENUMERATION

It says that the strategy should always be able to specify

 What
 Were
 How

HERE ARE 5 COMPONENTS OR SET OF ISSUES

WITHIN A WELL-DEVELOPED STRATEGY
1. Scope
2. Goals and Objectives
3. Resource deployment
4. identification of a sustainable competitive advantage
5. Synergy

3 MAJOR LEVELS OF STRATEGY

1. Corporate strategy
2. Business level strategy
3. Functional strategies

ELEMENTS OF THE MISSION STATEMENT

1. Purpose
2. Strategic & scope
3. Standards & behavior
4. Values

THE FOLLOWING CHARACTERISTIC OF MISSION STATEMENT

NEED TO BE PRESENT IN AN ORGANIZATION
1. It should be feasible
2. it should be precise
3. it should be clear
4. it should be motivating
5. it should be distinctive
6. it should indicate major components of strategy.
7. it should indicate how objectives are to be accomplished

SMART OBJECTIVES
Specific
Measurable
Achievable
Realistic
Timed

HERE ARE SOME OF SETTING

MARKETING OBJECTIVES
1. Marketing objective are vital to marketing success
2. enable to company to control its marketing plan
3. provide a way to measure company’s progress
4. set out what a company wants to achieve from its marketing activities
5. help a company to develop product and services that meet
the need of target market.

TYPES OF COMPETETIVE ADVANTAGES THAT

COMPANIES CAN ACTUALLY USE
1. Cost competitive advantage
a. product design
b. reengineering
c. new delivery method
2. product/service differentiation
SOME COMMON GROWTH STRATEGIES
IN BUSINESS INCLUDE THE FOLLOWING
1. Intensive growth strategy
a. market penetration
b. market development
c. alternative channels
d. product development
e. diversification
2. integrative growth strategies
a. horizontal
b. backward
c. forward
d. complete or balance

STRATEGIC CORPORATE RESOURCES

1. Financial resources
a. existing finance fund
b. ability to race a new fund
2. Human resources
a. existing staffing resources
b. changes required to resources
3. Physical resources
a. production facilities
b. marketing facilities
c. information technology

COMPETITIVE ADVANTAGE
1. Cost leadership
2. Cost focus
3. Differentiation leadership
4. Differentiation

THE BARRIERS FALL GENERALLY INTO THREE INDEPENDENT CATEGORY

1. external pressures of the company
2. internal pressures on the marketing function
a. leadership
b. organizational culture
c. organizational process
d. functional policies
e. resources
f. evaluation and control procedures
3. pressures contained in the marketing function itself
a. marketing interface with other functions
b. the role of marketers
c. marketing feedback

THE CONTROL PROCESS ENTAILS THE FOLLOWING STEPS

1. Set target
2. predetermining the method of measurement
3. measured

PROBLEMS OF CONTROL
1. the system can be expensive
2. control system repress effort and creativity
3. control promotes an outlook of inspection as opposed to developments

15 KEY SECTION THAT MUST BE INCLUDED IN A MARKETING PLAN

1. executive summary 8. promotion strategy 15. financial projection
2. target customers 9. online marketing strategy
3. Unique selling proposition 10. conversation strategy
4. pricing and prepositioning strategy 11. join ventures and partnership
5. distribution plan 12. referral strategy
6. offers of the company 13. strategy for increasing transaction prices
7. marketing materials 14. retention strategy