978-0136074892 Solution Manual Chapter 01 Part 2

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·Provides customer and competitor orientations

·Helps ensure any marketing strategies are not developed without customer,

competitor, or environmental analyses.

·Market-focused decisions are more likely to emerge versus a more random

approach.

Hierarchy and Sequence of Marketing Planning

·Marketing planning can occur at various levels of the organization. It is

important to understand where marketing planning generally occurs. (Figure

1.8)

·More strategic planning occurs at corporate and group levels. These generally

focus on broad objectives.

·Marketing plans generally constructed at the strategic business unit (SBU)

level and product levels.

·The hierarchy of planning is illustrated in Figure 1.8

·The sequence of marketing planning is illustrated in Figure 1.9

Components of the Marketing Plan

A summary of common elements included in a marketing plan is illustrated in

Table 1.3. This is a basic outline. Forecasts, estimates of market potential, other

assumptions about the environment are included. A strategy section contains the

marketing strategy itself and details of implementation. Finally, the plan includes

financial data, monitors, controls, and contingency plans. These help ensure

success. The basic elements include:

I. Executive Summary

II. Background Assessment

A. Historical appraisal

B. Situation analysis

C. Planning assumptions

III. Marketing Objectives

IV. Marketing Strategy

V. Marketing Programs

VI. Financial Documents

VII: Monitors and Controls

VIII. Contingency Plans

Changing Nature of Marketing

Key Terms:

·Mobile Technology

·Alternative Media

·Interactive Marketing

·Globalization

·ROI (Return on Investment)

·Sustainable Marketing Practices

There have been major changes in the business environment that have

significantly affected the practice of marketing. Some of the changes are related to a

particular aspect of strategy and program development.

Eight Key Issues that Are Representative of the Changes:

1. Diffusion of mobile technology.

2. New era of customer power.

3. Increased adoption of interactive marketing.

4. Globalization and the impact of the two largest countries, China and India, on

business and marketing.

5. Importance of customer relationship-building and maintaining of customer

databases.

6. The challenge of communicating in an environment characterized by decreased

use of mass media (such as television) and the increased use of alternative media.

7. The increased pressure on senior marketing management to establish the return

on investment (ROI) of marketing activities.

8. Significant corporate interest in sustainable marketing practices.

Teaching Tips and Strategies from Barbara S. Faries, MBA

This chapter lays the fundamental groundwork for the practice of marketing. It

examines key terms and concepts routinely encountered by marketing managers on a

daily basis.

Key terms and concepts introduced include:

2. Organizational philosophies of varying types of corporate structures and the

characteristics of each.

3. The meaning of customer orientation and how to create a customer-oriented

organization.

4. The traditional value chain and the alternative or reverse marketing value chain.

5. Marketing as a valued-added activity in a corporate setting.

6. The marketing manager’s role and the types of interactions a typical marketing

manager might expect.

7. The marketing plan and the various components of the typical or basic plan.

8. The changing nature of marketing in the era of new technologies and

globalization.

Suggestions:

·Instructors are encouraged to link theory to practice by finding current

examples in the corporate environment that demonstrate the key concepts

above.

·If your class contains those already working in the field, have them describe

how the concepts in theory match those in the actual workplace.

·It is useful to find and discuss the companies who succeeded by asking

students to carefully examine how each successful company adhered to the

concepts discussed.

·Compare and contrast those who succeeded and those who did not do as well

or failed. (Ask students to find examples of success and those who could have

done better.) What went right? What went wrong? What alternative strategies

would they suggest in either instance?

·Instructors should emphasize that there are many gray areas and multiple paths

in the marketing process.

·The marketing planning process should be emphasized, as that is a common

responsibility of marketing managers. Review of each element and what is

contained in each is valuable to the student’s practical knowledge.

·Alternative formats for marketing plans can be introduced to demonstrate that

there are many types of marketing plans in addition to the example furnished

by the author. (Dr. Philip Kotler’s basic format is often a useful to demonstrate

this.)

Review Questions

1. Describe the marketing concept. What companies in the marketplace might be

described as “customer-focused?”

2. Describe why marketing is a value-added activity in organizations.

3. Marketing planning is an activity that should involve the entire organization.

Why?

4. Think about some changes in the marketing environment in the last few years.

What are some examples of the changing environment that we have experienced?

The business environment has seen dramatic shifts away from mass media to

more select and specific alternative media such as social networking, emarketing, smart

phone applications, and interactive media. Many long-standing media vehicles such as

newspapers, traditional television formats, and radio have been replaced by Internet

options. Even traditional paper catalogs have been replaced by online shopping.

Marketers are forced to market in new and emerging markets and are feeling the

pressure from countries like China and India with immense competitive strength and

demand.