Chapter 2
Developing Marketing Strategies and a Marketing Plan
Tools For Instructors
Brief Chapter Outline
Learning Objectives
Extended Chapter Outline with Teaching Tips
PowerPoint Slides with Teaching Notes
Additional Teaching Tips
Brief Chapter Outline
What Is a Marketing Strategy?
The Marketing Plan
Learning Objectives
LO 2-1 Define a marketing strategy.
A marketing strategy identifies (1) a firm’s target markets(s), (2) a related marketing mix (four
Ps), and (3) the bases on which the firm plans to build a sustainable competitive advantage.
branding and positioning. Finally, locational excellence entails having a good physical location
and Internet presence.
LO 2-2 Describe the elements of a marketing plan.
A marketing plan is composed of an analysis of the current marketing situation, its objectives,
and the strategy for the four Ps, and appropriate financial statements. A marketing plan represents
value? Finally, in the control phase, the firm must evaluate its performance using appropriate
future.
LO 2-3 Analyze a marketing situation using SWOT analyses.
SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis occurs
could harm the firm (its threats), managers can assess their firm’s situation accurately and plan
its strategy accordingly.
LO 2-4 Describe how a firm chooses which consumer group(s) to pursue with its marketing
efforts.
Once a firm identifies different marketing opportunities, it must determine which the best to
segments, the firm goes after, or targets, certain groups on the basis of the firm’s perceived
what the product or service does or represents relative to competing products or services.
LO 2-5 Outline the implementation of the marketing mix as a means to increase customer
value.
The marketing mix consists of the four Ps—product, price, promotion, and place—and each P
products and services. The last P, place, adds value by getting the appropriate products and
services to customers when they want them and in the quantities, they need.
LO 2-6 Summarize portfolio analysis and its use to evaluate marketing performance.
Portfolio analysis is a management tool used to evaluate the firm’s various products and
high growth markets, and have high market shares. The second, cash cows, are in low-growth
generated by the cash cows. The final category, dogs, are in low-growth markets and have
relatively low market shares. These products are often phased out.
LO 2-7 Describe how firms grow their business.
Firms use four basic growth strategies: market penetration, market development, product
development, and diversification. A market penetration strategy directs the firm’s efforts toward
firm’s current business, such as when a women’s clothing manufacturer starts making and selling
men’s clothes, but a more risky strategy is when a firm diversifies into a completely unrelated
business.
Extended Chapter Outline With Teaching Tips
I. What Is a Marketing Strategy?
A. Customer excellence (PPT slide 2-5)
1. Retaining Loyal Customers
E. Multiple Sources of Advantage
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 2-11)
1. What are the various components of a marketing strategy?
Answer: A marketing strategy includes a firm’s target market(s), a related marketing mix,
2. List the four macro strategies that can help a firm develop a sustainable competitive
advantage.
Answer: The four microstrategies that can help a firm develop a sustainable competitive
II. The Marketing Plan (PPT Slide 2-12)
A Step 1: Define the business mission. (PPT slide 2-14)
4. Positioning
H. Step 4: Implement the marketing mix and allocate resources. (PPT slide 2-20)
1 Product and Value Creation (PPT slide 2-21)
9. Financial Performance Metrics
10. Portfolio Analysis
a) Stars
J. Strategic planning is not sequential.
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 2-27)
1. What are the five steps in creating a marketing plan?
Answer: The five steps in creating a marketing plan are defining a business mission and
2. What tool helps a marketer conduct a situation analysis?
3. What is STP?
III.Growth Strategies (PPT Slide 2-28)
A Market penetration (PPT slide 2-29)
M. Diversification (PPT slide 2-33)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 2-34)
1. What are the four growth strategies?
Answer: They are market penetration strategy, market development strategy, product
2. What type of strategy is growing the business from existing customers?
penetration strategy.
3. Which strategy is the riskiest?
Answer: The diversification strategy is the riskiest, because unrelated diversifications do