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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
10
External
OPPORTUNITIES
Growing Market
THREATS
New competitors (McDonald’s and
Taco Bell)
2. Which growth strategies have been pursued by Starbucks and Dunkin’ Donuts in the past?
Which strategies do you believe will be most successful for the two firms in the future? Why?
Starbucks: Starbucks connects with fans through social marketing channels, including its popular
Dunkin’ Donuts: Through partnerships with sports teams (e.g., “Pats Win, You Win) Dunkin’ Donuts
promotion will continue to bring fans to its stores.
3. Which marketing metrics would be most helpful for an executive in charge of developing new
products for a coffee chain?
Students will answer with different metrics. Some commonly used metrics to assess performance include
revenues, or sales, and profits. An attempt to maximize one metric may therefore lower another. Thus,
the resources the manager controls.
Additional Teaching Tips
In this chapter, the goal is to introduce students to an overview of the marketing plan, the concept of
customer value, and the utility of the SWOT matrix. It is important to teach students that the importance of
the marketing plan is to communicate the value proposition to consumers and to provide direction on how
that will be achieved.
The utility of the marketing plan must be conveyed throughout the course. Teach students that the
marketing plan is a subset of the business plan that forms the foundational strategy of business.
Students come to realize the importance of the marketing plan when the instructor frequently makes
connections to its purpose not only on the day the concept is taught but also throughout the course.
Customer value is a difficult concept for students to grasp. Instructors may want to ask students to write
down something they find of value and what aspects lead to creating that value. The instructor can then
ask what they would trade for that value. It is important that instructors communicate that value is more
than monetary worth and can’t easily be measured. As a result, marketers must conduct target market
research in order to create the value proposition of their marketing strategy.
The SWOT matrix may be easily demonstrated by dividing your class into groups and having each group
contribute one item to each of the four quadrants using the college they are attending (common ground
for all students) or a major chain food (such as McDonald’s) so that all students are familiar with the
strengths, weaknesses, opportunities, and threats that may apply. Students can work as a group and then
each group may put their items on the whiteboard to form a collective classroom SWOT. Instructors
should then make the link that the opportunities and strengths should filter into the marketing message
delivered in advertising campaigns and other marketing tools. Online tip: Instructors may want to divide
their class by last name A-E Strengths, F-J Weaknesses, and so forth to answer a discussion board
question using the same concept. Students could then complete an individual SWOT as an assignment.
Another option would be to use the same concepts and integrate it as an online team assignment where
each team forms their respective completed SWOT.
Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
11
Connect Activities
Activity
Type
Learning Objectives 02-
01
02
03
04
05
06
07
Disney and the Strategic Marketing Planning
Process
Click & Drag
X
Staples: Implementing the Marketing Mix
Video Case
X
Home Shopping Network
Video Case
X
X
X
SWOT Analysis - Domino’s Pizza
Click & Drag
X
The Netflix Rollercoaster: How a Strategy Can
Fail
Case Analysis
X
X
X
X
X
Spirit Airlines: Home of the Bare Fare
Video Case
X
X
X
X
X
X
SWOT Analysis: Ford Motor Company & Fiat
Chrysler Automobiles
Click & Drag
X
The Coffee Wars
Case Analysis
X
X
X
iSeeIt Video Case: Marketing Strategy and the
Marketing Plan
Video Case
X
X
X
X
Disney and the Strategic Marketing Planning Process
▪ Activity Type: Click & Drag
▪ Learning Objectives: 02-02
▪ Difficulty: Medium
▪ Activity Summary: Students view a short case describing the Walt Disney Company’s use of
technology to improve the customer experience in their parks, and are asked to match excerpts from
the case description to the appropriate step in the strategic marketing planning process.
Activity
▪ Introduction: Firms like Disney plan their marketing strategies to adjust to changes in the
environment, the competition, and their customers. Effective marketing doesn’t just happen.
▪ Concept Review: The strategic marketing planning process represents a set of steps a marketer
goes through to develop and implement a strategic marketing plan. The three major phases of the
process are planning, implementation, and control.
Follow-Up Activity
Assign and discuss the following article: “At Disney Parks, a Bracelet Meant to Build Loyalty (and Sales),”
by Brooke Barnes, New York Times, published 1/7/2013:
http://www.nytimes.com/2013/01/07/business/media/at-disney-parks-a-bracelet-meant-to-build-loyalty-
and-sales.html?_r=0
This article describes the “MyMagic+” bracelet that is one key element of Disney’s technology upgrade
program. In addition to improving the customer experience, discuss how it also benefits Disney by
providing customer information that can be used both to understand customer behavior in the parks (a
form of marketing research) and also to improve service to individual customers (as part of a customer
relationship management program).
Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
12
Staples: Implementing the Marketing Mix
▪ Activity Type: Video Case
▪ Learning Objectives: 02-05
▪ Difficulty: Medium
▪ Activity Summary: This video case discusses the “Easy” retail strategy adopted by Staples, with
examples of each of the four Ps in action. After the video ends, students are asked questions about
the video and related course concepts.
Activity
▪ Introduction: The 4 Ps—product, price, promotion, and place—are functions retailers use to create
value for their customers. Staples, Inc. successfully integrates the 4 Ps with its “easy” brand promise.
Its ability to execute the 4 Ps seamlessly within the parameters of this brand promise helps to make
Staples successful.
▪ Concept Review: The marketing mix consists of the four Ps—product, price, promotion, and place—
and each P contributes to customer value. To provide value, the firm must offer a mix of goods and
services at fair prices in the eyes of its target market. Firms make trade-offs between product and
price, help customers to form a positive image about the firm and its products, and get the
appropriate goods and services to customers when they want them and in the quantities they need.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activities
▪ Discuss how the Staples “Easy” brand promise helps the company to compete with online-only sellers
of office supplies like Amazon.com. Examples: the Staples branded products help Staples to stock
lower-priced products; making products like paper and toner easily available at the front of
conveniently located stores with plenty of parking offers convenience.
▪ Choose a successful restaurant chain (Chipotle or Chick-fil-A would be good selections in the U.S. as
they tend to be popular with students) and ask for examples of each of the four Ps in the chain’s
strategy.
Home Shopping Network
▪ Activity Type: Video Case
▪ Learning Objectives: 02-01, 02-04, 02-05
▪ Difficulty: Medium
▪ Activity Summary: This video case focuses on changes HSN made to its strategy starting in 2006 to
better understand and serve its target market. After the video ends, students are asked questions
about the video and related course concepts.
Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
13
Activity
▪ Introduction: HSN (Home Shopping Network) is a $2.8 billion multichannel retailer, using television,
e-commerce, m-commerce, catalogs, and brick and mortar stores. They have recently launched apps
for all major smartphones. HSN currently reaches 90 million homes, 24 hours a day, 7 days a week,
365 days a year. Managing their marketing efforts and staying on top of the competition requires
careful and ongoing strategic planning and implementation.
▪ Concept Review: A marketing strategy is the actions a firm intends to implement to appeal to
potential customers. A successful strategy identifies (1) a firm’s target markets; (2) a related
marketing mix—its 4 Ps; and (3) the basis on which the firm plans to build a sustainable competitive
advantage. HSN (Home Shopping Network) is one example of a firm that has very successfully
implemented its strategy using multichannel marketing efforts. Understanding how HSN has
implemented a successful marketing strategy helps us identify the different components of that
strategy. HSN continually monitors opportunities and threats and reevaluates their strategies in
response to these.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activities
• Students can research some of HSN’s recent initiatives to see how the company is currently using
lifestyle programming to attract attention to its products. As of this writing, there are two initiatives that
are very much consistent with HSN’s lifestyle strategy:
o A multi-film agreement with Disney to hold shopping events promoting films of interest to HSN’s
target market: http://www.hollywoodreporter.com/news/disney-strikes-multi-film-partnership-
694720
o HSN’s “Live in Concert” series, featuring various artists in conjunction with sales of their music.
• Suppose that HSN decided to launch a second channel with men who are sports fans as the target
market. How would its strategy be different from the current HSN channel’s strategy?
Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
14
SWOT Analysis: Domino’s Pizza
▪ Activity Type: Click & Drag
▪ Learning Objectives: 02-03
▪ Difficulty: Medium
▪ Activity Summary: This activity presents information about Domino’s franchise stores possibly
staying open 24 hours. Eight factors are presented related to this proposed change, and students are
asked to classify them using the SWOT analysis framework.
Activity
▪ Introduction: Recently, a Domino’s pizza franchise in southwest Ohio made the strategic decision to
stay open 24 hours a day. The manager, Steve Martin, made this decision about a month ago in
response to increased demand for Domino’s pizza. Other Domino’s franchise owners are now
considering adopting a similar strategy. In this activity, you will categorize a set of statements
regarding activities in the internal and external environments as they relate to Domino’s pizza, and a
potential initiative of staying open 24 hours a day. These statements will identify either a Strength,
Weakness, Opportunity, or Threat.
▪ Concept Review: Developing a marketing plan consists of five steps. The second step in the
process, after developing a mission statement, is to conduct a situation analysis, using the SWOT
framework. This tool allows firms to assess both the internal environment (strengths and
weaknesses) and the external environment (opportunities and threats).
The Netflix Rollercoaster: How a Strategy Can Fail
▪ Activity Type: Case Analysis
▪ Learning Objectives: 02-01, 02-02, 02-05, 02-06, 02-07
▪ Difficulty: Medium
▪ Activity Summary: This case deals with Netflix’s 2011 decision to split its service into DVD rental
and streaming subscriptions, resulting in a significant price increase for current customers. Students
answer questions relating the case to chapter concepts.
Activity
▪ Introduction: The letter arrived in millions of e-mail boxes simultaneously in November of 2010.
Reed Hastings, the CEO of Netflix, announced in excited tones the latest innovation by the company
that had revolutionized the movie rental industry. But the response was not quite what he, or Netflix
shareholders, had expected. Since that time, Netflix has recovered and gone on to renewed success
and new challenges; however, the series of events, before and after, offers a clear lesson in how a
failure to sufficiently plan for marketing strategy changes can backfire on even the most successful of
companies.
▪ Concept Review: A marketing strategy identifies (1) a firm's target market(s), (2) a related marketing
mix—its four Ps, and (3) the bases on which a firm plans to build a sustainable competitive
advantage. Firms develop marketing plans to formalize their marketing strategies. One important
element in formulating a marketing plan is to do a situation analysis, also known as a SWOT analysis.
Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
15
Following the analysis, firms need to segment their market, target which segments they will serve,
and develop a position that communicates a clear understanding of the market offering. They should
then implement the marketing mix; the four Ps. Finally, they should use various marketing metrics to
evaluate the results of their strategies. There are also four growth strategies firms can implement to
increase their market share.
Follow-Up Activity
Netflix recovered quickly from its misstep; it’s worth reviewing what has happened since the end of the
case write-up, and then discussing the challenges Netflix faces in the future. Students could be asked to
research this topic themselves, or you can use these articles:
▪ “How Netflix Reinvented Itself,” by Peter Cohan, Forbes, 4/23/13.
http://www.forbes.com/sites/petercohan/2013/04/23/how-netflix-reinvented-itself/
▪ “Netflix Ends Huge Year with Price Shift and Executive Raises,” by Nick Summers, Business Week,
12/31/2013. http://www.businessweek.com/articles/2013-12-31/netflix-ends-huge-year-with-price-
shift-and-executive-raises
Spirit Airlines: Home of the Bare Fare
▪ Activity Type: Video Case
▪ Learning Objectives: 02-01, 02-02, 02-03, 2-04, 2-05, 2-07
▪ Difficulty: Medium
▪ Activity Summary: This video case explains the marketing strategy pursued by Spirit Airlines. After
the video ends, students are asked questions about the video and related course concepts.
Activity
▪ Introduction: Spirit Airlines competes as an ultra-low-cost carrier (ULCC), and does so by
“unbundling” extra services from its basic fare. As a result, things that other airlines include in their
prices (for example, carry-on bags) cost extra on a Spirit flight. This approach allows Spirit Airlines to
keep prices low, attracting a different type of customer who values price above comfort and
amenities.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
▪ Review a section of the Spirit Airlines website to learn more about their strategy and how the website
reflects it. Two suggestions based on the website as it exists when I’m writing this:
o https://www.spirit.com/OptionalServices - shows the extras they charge for
o http://marketing.spirit.com/how-to-fly-spirit-airlines/en/ - “Spirit 101,” where they explain their
approach to pricing
Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
16
SWOT Analysis:
Ford Motor Company & Fiat Chrysler Automobiles
▪ Activity Type: Click & Drag
▪ Learning Objectives: 02-03
▪ Difficulty: Medium
▪ Activity Summary: This activity presents information about Ford Motor Company, focusing on F-
series trucks, and on Fiat Chrysler’s array of brands. Students are asked to classify the information
provided about each firm using the SWOT analysis framework.
Activity
▪ Introduction: SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT analysis
evaluates what a firm is good at, where it could improve, where in the marketplace it might excel, and
what events in the marketplace could potentially harm the firm. This activity is important because it
demonstrates how integral SWOT analysis is to the strategic planning process.
The Coffee Wars
▪ Activity Type: Case Analysis
▪ Learning Objectives: 02-01, 02-03, 02-07
▪ Difficulty: Medium
▪ Activity Summary: This case compares and contrasts the marketing strategies Starbucks and
Dunkin’ Donuts in the coffee market. After reading the case, students answer questions applying
chapter concepts to the case information.
Activity
▪ Introduction: Starbucks and Dunkin’ Donuts are the two largest competitors in the coffee and
breakfast retail market. Their approaches to competing in this market are described in the case. This
activity is important because a strong marketing strategy—one that helps to build a sustainable
competitive advantage—is the basis for all marketing activities.
Follow-Up Activity
Look at the Dunkin’ Donuts and Starbucks websites in class. Consider their active promotions; are they
consistent with the strategies discussed in the case?
iSeeIt Video Case:
Marketing Strategy and the Marketing Plan
▪ Activity Type: Video Case
▪ Learning Objectives: 02-02, 02-03, 2-04, 2-06
Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
17
▪ Difficulty: Easy
▪ Activity Summary: This video case views marketing strategy from the perspective of the owner of an
independent coffee shop, as she considers working through the different phases of a marketing plan
for her shop.
Activity
▪ Introduction: Strategic marketing is an approach where an organization effectively leverages its
resources to reach its target market. The marketing plan is how organizations operationalize their
strategies by planning how to reach their markets, implementing their marketing activities, and
measuring marketing performance. Take for instance the Coffee Collective and how it has
successfully marketed its unique coffee experience. Martha, the owner, knows that the 4 P’s are only
one key aspect of effective marketing—the implementation phase. She realizes that before she can
implement a marketing strategy, she must first understand the environment in which her coffee shop
exists. She also understands the importance of evaluating marketing effectiveness as the final
component of the marketing plan. Success, after all, is more than selling just one cup of coffee and
can be measured using a range of outcomes from revenue to customer loyalty.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
