Chapter 01 - Strategic Planning and the Marketing Management Process
rivet the attention of marketing managers on serving broad classes of customer
needs (customer orientation), rather than on the firm’s products (production
orientation) or on devising methods to attract customers to current products
Marketing information systems: Throughout the marketing management process,
current, reliable, and valid information is needed to make effective marketing
decisions. Providing this information is the task of the marketing information
system and marketing research.
Marketing management: Marketing management is the process of planning and
conception, pricing, promotion, and distribution of goods, services, and ideas to
create exchanges with target groups that satisfy customer and organizational
Marketing mix: The marketing mix is the set of controllable variables that must be
managed to satisfy the target market and achieve organizational objectives. The
controllable variables are usually classified according to four major decision areas:
product, price, promotion, and place (or channels of distribution).
Marketing planning: The marketing planning process produces three outputs: (1)
marketing objectives, (2) selecting the target market, and (3) developing the
Organizational mission: The mission statement, or purpose, of an organization is the description of its
reason for existence. It is the long-run vision of what the organization strives to be, the unique aim that
differentiates the organization from similar ones and the means by which this differentiation will take
place. An effective mission statement will be focused on markets rather than products, achievable,
motivating, and specific.
Organizational objectives: Organizational objectives are the end points of an
organization’s mission and are what it seeks through the ongoing, long-run
operations of the organization. The organizational mission is distilled into a finer
set of specific, measurable, action commitments by which the mission of the
organization is to be achieved.
Organizational portfolio plan: This stage of the strategic plan involves the allocation of
resources across the organization’s product lines, divisions, or businesses. It
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