2: Marketing Planning and Management
• Defining the Corporate Mission: A company's mission is a clear and enduring statement of its
reason for existence, often called its core purpose. A good mission statement focuses on a limited
number of goals, highlights major policies and values, defines the key markets the company
serves, takes a long-term view, and is short, memorable, and meaningful.
To define its mission, a company should address Peter Drucker’s classic questions:3 What is our
business? Who is the customer? What is of value to the customer? What will our business be?
What should our business be?
Google’s mission is to organize the world’s information and make it universally accessible and
useful. At IKEA our vision is to create a better everyday life for the many people.
Good mission statements have five major characteristics.
•
They focus on a limited number of specific goals.
They stress the company’s major policies and values.
They define the major markets that the company aims to serve.
They take a long-term view.
They are as short, memorable, and meaningful as possible.
• Building the Corporate Culture: This involves the shared experiences, stories, beliefs, and
norms that characterize an organization. A strong, customer-centric corporate culture is often
crucial for market success, as demonstrated by companies like Southwest Airlines. Walk into any
company and the first thing that strikes you is the corporate culture—the way people dress, talk
to one another, and greet customers.
• Defining Strategic Business Units (SBUs): Large companies often manage a portfolio of
businesses, known as SBUs. An SBU is a single business or a collection of related businesses
that can exist separately from the rest of the company, has its own competitors, and has a
manager responsible for its strategic planning and profit performance. Portfolios can be
specialized (narrow product lines) or diversified (multiple product lines).
• Allocating Resources Across Business Units: After defining SBUs, management must decide
how to allocate resources to each one. This is often done using portfolio management models
that assess factors like market attractiveness and the company’s competitive position. The BCG
matrix is one widely used, though simplified, approach.
Developing the Marketing Strategy
A company's business model is composed of its strategy and tactics. The marketing strategy
involves identifying the target market and the value proposition.
• Defining the Corporate Mission: A company's mission is a clear and enduring statement of its
reason for existence, often called its core purpose. A good mission statement focuses on a limited
number of goals, highlights major policies and values, defines the key markets the company
serves, takes a long-term view, and is short, memorable, and meaningful.
To define its mission, a company should address Peter Drucker’s classic questions:3 What is our
business? Who is the customer? What is of value to the customer? What will our business be?
What should our business be?
Google’s mission is to organize the world’s information and make it universally accessible and
useful. At IKEA our vision is to create a better everyday life for the many people.
Good mission statements have five major characteristics.
•
They focus on a limited number of specific goals.
They stress the company’s major policies and values.
They define the major markets that the company aims to serve.
They take a long-term view.
They are as short, memorable, and meaningful as possible.
• Building the Corporate Culture: This involves the shared experiences, stories, beliefs, and
norms that characterize an organization. A strong, customer-centric corporate culture is often
crucial for market success, as demonstrated by companies like Southwest Airlines. Walk into any
company and the first thing that strikes you is the corporate culture—the way people dress, talk
to one another, and greet customers.
• Defining Strategic Business Units (SBUs): Large companies often manage a portfolio of
businesses, known as SBUs. An SBU is a single business or a collection of related businesses
that can exist separately from the rest of the company, has its own competitors, and has a
manager responsible for its strategic planning and profit performance. Portfolios can be
specialized (narrow product lines) or diversified (multiple product lines).
• Allocating Resources Across Business Units: After defining SBUs, management must decide
how to allocate resources to each one. This is often done using portfolio management models
that assess factors like market attractiveness and the company’s competitive position. The BCG
matrix is one widely used, though simplified, approach.
Developing the Marketing Strategy
A company's business model is composed of its strategy and tactics. The marketing strategy
involves identifying the target market and the value proposition.
