Chapter 1
Strategic Planning and the Marketing
Management Process
High-Level Chapter Outline
I. Introduction
II. The Marketing Concept
III. What is Marketing?
IV. What is Strategic Planning?
A. Strategic Planning and Marketing Management
B. The Strategic Planning Process
Organizational Mission
Organizational Objectives
Organizational Strategies
Choosing an Appropriate Strategy
Organizational Portfolio Plan
C. The Complete Strategic Plan
V. The Marketing Management Process
A. Situation Analysis
B. Marketing Planning
C. Implementation and Control of the Marketing Plan
D. Marketing Information Systems and Marketing Research
,VI. The Strategic Plan, the Marketing Plan, and Other Functional Area Plans
A. Marketing’s Role in Cross-Functional Strategic Planning
Detailed Chapter Outline
I. The Marketing Concept
The marketing concept means that an organization should seek to make a profit by
serving the needs of customer groups.
The purpose of the marketing concept is to rivet the attention of marketing managers
on serving broad classes of customer needs (customer orientation), rather than on the
firm’s current products (production orientation) or on devising methods to attract
customers to current products (selling orientation).
The principal task of the marketing function operating under the marketing concept is
not to manipulate customers to do what suits the interest of the firm, but rather to
find effective and efficient means of making the business do what suits the interest of
the customer.
Effective marketing requires that consumer needs come first in organizational
decision making.
One qualification to this statement deals with the question of a conflict between
consumer wants and societal needs and wants.
II. What is Marketing?
Everyone knows something about marketing because it has been a part of their lives
since they spent their first dollar.
Since everyone is involved in marketing, it seems strange that one of the persistent
problems in the field has been its definition.
The American Marketing Association defines marketing as, “the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.”
This definition takes into account all parties involved in the marketing effort:
members of the producing organization, resellers of goods and services, and
, customers or clients.
Major types of marketing includes: product, service, person, place, cause, and
organization (see Figure 1.1 for descriptions and examples).
III. What is Strategic Planning?
Before a production manager, marketing manager, and personnel manager can
develop plans for their individual departments, some larger plan or blueprint for the
organization should exist.
Senior managers must look toward the future and evaluate the ability to shape their
organization’s destiny in the years and decades to come.
o The output of this process is objectives and strategies designed to give the
organization a chance to compete effectively in the future.
The objectives and strategies established at the top level provide the context for
planning in each of the divisions and departments by divisional and departmental
managers.
A. Strategic Planning and Marketing Management
Some of the most successful business organizations are here today because many
years ago they offered the right product at the right time to a rapidly growing
market.
Over three-quarters of the 100 largest U.S. corporations of 70 years ago have
fallen from the list.
o Their managements failed to recognize that business strategies need to
reflect changing environments and emphasis must be placed on developing
business systems that allow for continuous improvement.
Present-day business managers realize that the true mission of the organization
is to provide value for three key constituencies: customers, employees, and
investors.
Strategic planning includes all the activities that lead to the development of a
clear organizational mission, organizational objectives, and appropriate
, strategies to achieve the objective for the entire organization.
Strategic planning, if performed successfully, plays a key role in achieving
equilibrium between the short and the long term by balancing acceptable
financial performance with preparation for inevitable changes in markets,
technology, and competition as well as in economic and political arenas.
The strategic planning process is depicted in Figure 1.2.
In the strategic planning process the organization gathers information about the
changing elements of its environment.
This information is useful in aiding the organization to adapt better to these
changes through the process of strategic planning.
B. The Strategic Planning Process
The output of strategic planning is the development of a strategic plan.
Figure 1.2 indicates four components of a strategic plan: mission, objectives,
strategies, and portfolio plan.
Organizational Mission
The organization’s environment provides the resources that sustain the
organization, whether it is a business, a college or university, or a
government agency.
Every organization exists to accomplish something in the larger
environment and that purpose, vision, or mission usually is clear at the
organization’s inception.
As time passes, the organization expands, and the environment and
managerial personnel change. As a result, one or more things are likely to
occur:
o The organization’s original purpose may become irrelevant as the
organization expands into new products, new markets, and even new
industries.
o The original mission may remain relevant, but managers begin to lose
Strategic Planning and the Marketing
Management Process
High-Level Chapter Outline
I. Introduction
II. The Marketing Concept
III. What is Marketing?
IV. What is Strategic Planning?
A. Strategic Planning and Marketing Management
B. The Strategic Planning Process
Organizational Mission
Organizational Objectives
Organizational Strategies
Choosing an Appropriate Strategy
Organizational Portfolio Plan
C. The Complete Strategic Plan
V. The Marketing Management Process
A. Situation Analysis
B. Marketing Planning
C. Implementation and Control of the Marketing Plan
D. Marketing Information Systems and Marketing Research
,VI. The Strategic Plan, the Marketing Plan, and Other Functional Area Plans
A. Marketing’s Role in Cross-Functional Strategic Planning
Detailed Chapter Outline
I. The Marketing Concept
The marketing concept means that an organization should seek to make a profit by
serving the needs of customer groups.
The purpose of the marketing concept is to rivet the attention of marketing managers
on serving broad classes of customer needs (customer orientation), rather than on the
firm’s current products (production orientation) or on devising methods to attract
customers to current products (selling orientation).
The principal task of the marketing function operating under the marketing concept is
not to manipulate customers to do what suits the interest of the firm, but rather to
find effective and efficient means of making the business do what suits the interest of
the customer.
Effective marketing requires that consumer needs come first in organizational
decision making.
One qualification to this statement deals with the question of a conflict between
consumer wants and societal needs and wants.
II. What is Marketing?
Everyone knows something about marketing because it has been a part of their lives
since they spent their first dollar.
Since everyone is involved in marketing, it seems strange that one of the persistent
problems in the field has been its definition.
The American Marketing Association defines marketing as, “the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large.”
This definition takes into account all parties involved in the marketing effort:
members of the producing organization, resellers of goods and services, and
, customers or clients.
Major types of marketing includes: product, service, person, place, cause, and
organization (see Figure 1.1 for descriptions and examples).
III. What is Strategic Planning?
Before a production manager, marketing manager, and personnel manager can
develop plans for their individual departments, some larger plan or blueprint for the
organization should exist.
Senior managers must look toward the future and evaluate the ability to shape their
organization’s destiny in the years and decades to come.
o The output of this process is objectives and strategies designed to give the
organization a chance to compete effectively in the future.
The objectives and strategies established at the top level provide the context for
planning in each of the divisions and departments by divisional and departmental
managers.
A. Strategic Planning and Marketing Management
Some of the most successful business organizations are here today because many
years ago they offered the right product at the right time to a rapidly growing
market.
Over three-quarters of the 100 largest U.S. corporations of 70 years ago have
fallen from the list.
o Their managements failed to recognize that business strategies need to
reflect changing environments and emphasis must be placed on developing
business systems that allow for continuous improvement.
Present-day business managers realize that the true mission of the organization
is to provide value for three key constituencies: customers, employees, and
investors.
Strategic planning includes all the activities that lead to the development of a
clear organizational mission, organizational objectives, and appropriate
, strategies to achieve the objective for the entire organization.
Strategic planning, if performed successfully, plays a key role in achieving
equilibrium between the short and the long term by balancing acceptable
financial performance with preparation for inevitable changes in markets,
technology, and competition as well as in economic and political arenas.
The strategic planning process is depicted in Figure 1.2.
In the strategic planning process the organization gathers information about the
changing elements of its environment.
This information is useful in aiding the organization to adapt better to these
changes through the process of strategic planning.
B. The Strategic Planning Process
The output of strategic planning is the development of a strategic plan.
Figure 1.2 indicates four components of a strategic plan: mission, objectives,
strategies, and portfolio plan.
Organizational Mission
The organization’s environment provides the resources that sustain the
organization, whether it is a business, a college or university, or a
government agency.
Every organization exists to accomplish something in the larger
environment and that purpose, vision, or mission usually is clear at the
organization’s inception.
As time passes, the organization expands, and the environment and
managerial personnel change. As a result, one or more things are likely to
occur:
o The organization’s original purpose may become irrelevant as the
organization expands into new products, new markets, and even new
industries.
o The original mission may remain relevant, but managers begin to lose
