Chapter 2: Developing a Marketing Plan and Marketing Strategies

marketing planning process
a set of steps a marketer goes through to develop a marketing plan
planning phase
where marketing exec and other top managers define the mission and obj of the business and evaluate the situation by assessing how various players, both inside and outside the organization, affect the firm’s potential for success
implementation phase
where marketing managers identify and evaluate different opportunities by engaging in a process known as segmentation, targeting, and positioning. That develop and implement the marketing mix by using four p’s
control phase
the part of the strategic marketing planning process where managers evaluate the performance of the marketing strategy and take any necessary corrective actions
mission statement
a broad description of a firm’s objectives and the scope of activities it plans to undertake; attempts to answer two main questions: what type of business is it? and what does it need to do to accomplish its goals and objectives
situation analysis
is the 2nd step, uses SWOT to access internal and external environment
STP
the processes of segmentation, targeting, and positioning that firms use to identify and evaluate opportunities for increasing sales and profits
market segment
a group of consumers who respond similarly to a firm’s marketing efforts
market segmentation
the process of dividing the market into distinct groups of customers where each individual group has similar needs, wants, or characteristics-who therefore might appreciate products or services geared especially for them in similar ways
target marketing
the process of evaluating the attractiveness of various segments and then deciding which to pursue as a market
market position
involves the process of defining the marketing mix variables so that target customers have a clear, distinct, desirable, understanding of what their product does or represents in comparison with competing markets
strategic business unit
a division of the company that can be managed somewhat independently from other divisions since it markets a specific set of products to a clearly defined group of customers
product line
a group of products that consumers may use together or perceive as similar in some way
relative market share
a measure of the product’s strength in a particular market, defined as the sales of the focal product divided by the largest firm in the industry
market growth share
the annual rate of growth of the specific market in which the product competes
market penetration strategy
a growth strategy that employs the existing marketing mix and focuses the firm’s efforts on existing customers
market development strategy
a growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international or segments not currently served by the firm
product development strategy
a growth strategy that offers a new product or service to a firm’s current target market
diversification strategy
a growth strategy whereby a firm introduces a new product or service to a market segment that it does not currently serve
downsizing
exiting markets reducing products portfolios, or closing certain businesses or store or plant locations
marketing strategy
identifies a firm’s target market(s), a related marketing mix- the 4 P’s, and the bases upon which the firm plans to build a sustainable comp advantage
sustainable competitive advantage
something the firm can persistently do better than its competitors that is not easily copied and thus can be maintained over a long period
customer excellence
involved a focus on retaining loyal customers and excellent customer service
operational excellence
involves a focus on efficient operations and excellent supply chain management
product excellence
involves a focus on achieving high quality products and effective branding and positioning
locational excellence
involves a focus on a good physical location and internet presence
marketing plan
written doc composed of an analysis of the current marketing situation, opp and threats for form, marketing objectives and strategy specified in terms of four Ps, action programs, and projected or proforma income. 3 major phases