Assignments, Resources
Use Critical Thinking Exercise 2-6 here
Use Online, Mobile, and Social Media Marketing
here
Use Marketing Ethics here
Troubleshooting Tip
Many students will have an incomplete under-
standing of the growth strategies shown in the
product/market expansion grid. Though these areas
are carefully described in the text, it is useful to
make sure that students understand the mix of
alternatives available to the strategist. One way to do
this is to pick another example besides the Under
Armour example used in the text and have the
students suggest acceptable alternatives. Remind
students to think about how the example companies
have expanded or contracted in recent years. Lastly,
make students practice using the terms from the
expansion grid in their discussions so a proper
business strategy vocabulary will be built. This
practice will really help the students when an exam
rolls around.
p. 72
PPT 2-17
p. 72
Explain marketing’s role in strategic planning and how
marketing works with its partners to create and deliver
customer value.
PLANNING MARKETING: PARTNERING TO
BUILD CUSTOMER RELATIONSHIPS
Within each business unit, more detailed planning takes
place. The major functional departments in each unit must
work together to accomplish strategic objectives.
Marketing provides a guiding philosophy—the marketing
concept—that suggests that company strategy should
revolve around building profitable relationships with
important customer groups.
Marketing provides inputs to strategic planners by helping
to identify attractive market opportunities and by assessing
the firm’s potential to take advantage of them.
Marketing designs strategies for reaching the unit’s
objectives.
Partnering with Other Company Departments
Learning Objective
3
PPT 2-18
PPT 2-19
p. 73
PPT 2-20
Each company department can be thought of as a link in the
company’s value chain.
A value chain is the series of departments that carry out
value-creating activities to design, produce, market, deliver,
and support the firm’s products.
A company’s value chain is only as strong as its weakest
link.
Success depends on how well each department performs its
work of adding customer value and on how well the
activities of various departments are coordinated.
In practice, departmental relations are full of conflicts and
misunderstandings.
Partnering with Others in the Marketing System
The firm needs to look beyond its own value chain and into
the value chains of its suppliers, distributors, and,
ultimately, its customers.
More companies today are partnering with other members
of the supply chain to improve the performance of the
customer value delivery network.
Increasingly, today’s competition no longer takes place
between individual competitors. Rather, it takes place
between the entire value-delivery networks created by these
competitors.
Review Learning Objective 3: Explain marketing’s role in
strategic planning and how marketing works with its
partners to create and deliver customer value.
p. 72
Key Term: Value
chain
p. 73
Ad: True Value
p. 74
Key Term: Value
delivery network
Assignments, Resources
Use Additional Project 2 here
Use Real Marketing 2.2 here
Use Discussion Question 2-3 here
p. 74
PPT 2-21
Describe the elements of a customer value-driven
marketing strategy and mix and the forces that influence
them.
Learning Objective
4
PPT 2-22
p. 74
PPT 2-23
PPT 2-24
MARKETING STRATEGY AND THE MARKETING
MIX
Marketing’s role and activities are shown in Figure 2.4,
which summarizes the major activities involved in
managing marketing strategy and the marketing mix.
Marketing strategy is the marketing logic by which the
company hopes to achieve profitable customer
relationships.
Customer Value-Driven Marketing Strategy
Companies know that they cannot profitably serve all
consumers in a given market—at least not all consumers in
the same way.
Market Segmentation
The process of dividing a market into distinct groups of
buyers with different needs, characteristics, or behaviors
who might require separate products or marketing programs
is called market segmentation.
A market segment consists of consumers who respond in a
similar way to a given set of marketing efforts.
p. 74
Figure 2.4:
Managing
Marketing
Strategies and the
Marketing Mix
p. 74
Key Term:
Marketing strategy
p. 75
Key Terms: Market
segmentation,
market segment
Troubleshooting Tip
Market segmentation and market targeting are
universally new concepts to students, unless they
happen to have a parent who works in marketing.
Although this is discussed in detail in a future
chapter, showing how a large, amorphous market
can be broken down into more and more detailed
groups of buyers will help.
p. 75
PPT 2-25
Market Targeting
Market targeting involves evaluating each market
segment’s attractiveness and selecting one or more
segments to enter.
A company should target segments in which it can
profitably generate the greatest customer value and sustain
it over time.
Market Differentiation and Positioning
p. 75
Key Term:
Market targeting
PPT 2-26
Differentiation begins the positioning process. To gain
competitive advantage, the company must offer value to
target consumers. This is accomplished through product
differentiation—actually differentiating the company’s
market offering so that it gives consumers more value.
A product’s position is the place the product occupies
relative to competitors in consumers’ minds.
Marketers want to develop unique market positions for their
products.
Positioning is arranging for a product to occupy a clear,
distinctive, and desirable place relative to competing
products in the minds of target customers.
p. 75
Key Term:
Positioning
p. 75
Ad: Southwest
p. 77
Key Term:
Differentiation
Troubleshooting Tip
Market positioning can be difficult to understand as
well. Students will normally think of a product in
terms of its features, and although positioning
includes the features, it also spans the concepts of
benefits and perceptions. Using examples of brands
at opposite ends of a price continuum, such as Rolex
and Timex watches, helps drive home what
positioning means.
p. 77
PPT 2-27
PPT 2-28
Developing an Integrated Marketing Mix
The marketing mix is the set of tactical marketing tools
that the firm blends to produce the response it wants in the
target market. This is described in Figure 2.5.
Product refers to the goods-and-services combination the
company offers to the target market.
Price is the amount of money customers must pay to obtain
the product.
Place includes company activities that make the product
available to target consumers.
Promotion refers to activities that communicate the merits
of the product and persuade target customers to buy it.
An effective marketing program blends all of the marketing
mix elements into a coordinated program designed to
achieve the company’s marketing objectives by delivering
p. 77
Key Term:
Marketing mix
p. 78
Figure 2.5: The
Four P’s of the
Marketing Mix
value to consumers.
Some critics feel that the four Ps may omit or under-
emphasize certain important activities.
From the buyer’s viewpoint, in this age of customer
relationships, the four Ps might be better described as the
four Cs:
Customer solution
Customer cost
Convenience
Communication
Review Learning Objective 4: Describe the elements of a
customer value-driven marketing strategy and mix and the
forces that influence them.
Assignments, Resources
Use Additional Project 2 here
Use Real Marketing 2.2 here
Use Discussion Question 2-4 here
Use Additional Project 3 here
Use Think-Pair-Share 2 here
Use Outside Example 1 and 2 here
p. 79
PPT 2-29
p. 79
PPT 2-30
PPT 2-31
List the marketing management functions, including the
elements of a marketing plan, and discuss the
importance of measuring and managing marketing
return on investment
MANAGING THE MARKETING EFFORT AND
MARKETING RETURN ON INVESTMENT
Managing the marketing process requires the four
marketing management functions shown in Figure 2.6.
Analysis
Planning
Implementation
Control
Marketing Analysis
Managing the marketing function begins with a complete
analysis of the company’s situation.
The company must analyze its markets and marketing
environment to find attractive opportunities and avoid
environmental threats.
Learning Objective
5
p. 79
Figure 2.6:
Managing
Marketing:
Analysis, Planning,
Implementation,
and Control
p. 79
Key Term:
SWOT analysis
p. 80
Figure 2.7: SWOT
Analysis: Strengths
(S), Weaknesses
The marketer should conduct a SWOT analysis by which it
evaluates the company’s overall strengths, weaknesses,
opportunities, and threats.
(W), Opportunities
(O), and Threats (T)
Assignments, Resources
Use Critical Thinking Exercise 2-7 here
p. 80
PPT 2-32
Marketing Planning
Marketing planning involves deciding on marketing
strategies that will help the company attain its overall
strategic objectives.
A detailed marketing plan is needed for each business,
product, or brand.
Table 2.2 outlines the major sections of a typical product or
brand plan. See Appendix 1 for a sample marketing plan.
A marketing strategy consists of specific strategies: target
markets, positioning, the marketing mix, and marketing
expenditure levels.
p. 81
Table 2.2: Contents
of a Marketing Plan
p. 80
PPT 2-33
p. 82
Marketing Implementation
Marketing implementation is the process that turns
marketing plans into marketing actions in order to
accomplish strategic marketing objectives.
Implementation involves day-to-day, month-to-month
activities that effectively put the marketing plan to work.
Implementation addresses the who, where, when, and how.
In an increasingly connected world, people at all levels of
the marketing system must work together to implement
marketing strategies and plans.
Successful marketing implementation depends on how well
the company blends its people, organizational structure,
decision and reward systems, and company culture into a
cohesive action program that supports its strategies.
Marketing Department Organization
The company must design a marketing organization that can
carry out marketing strategies and plans.
p. 80
Key Term:
Marketing
implementation
p. 82
The most common form of marketing organization is the
functional organization. Under this organization, functional
specialists head the various marketing activities.
A company that sells across the country or internationally
often uses a geographic organization.
Companies with many different products or brands often
create a product management organization. A product
manager develops and implements a complete strategy and
marketing program for a specific product or brand.
For companies that sell one product line to many different
types of markets and customers that have different needs
and preferences, a market or customer management
organization might be best.
A market management organization is similar to a product
management organization.
Marketing managers are responsible for developing
marketing strategies and plans for their specific markets or
customers.
Large companies that produce many different products
flowing into many different geographic and customer
markets usually employ some combination of the
functional, geographic, product, and market organization
forms.
Many companies are finding that today’s marketing
environment calls for less focus on products, brands, and
territories and more attention on customers and customer
relationships.
More and more companies are shifting their brand
management focus toward customer management.
Marketing Control
Marketing control involves evaluating the results of
marketing strategies and plans and taking corrective action
to ensure that objectives are attained.
Operating control involves checking ongoing performance
against the annual plan and taking corrective action when
p. 82
Photo: Marketing
Planning and
Control
p. 82
Key Term:
Marketing control
p. 83
p. 83
PPT 2-34
p. 83
PPT 2-35
necessary. Its purpose is to ensure that the company
achieves the sales, profits, and goals set out in its annual
plan.
Strategic control involves determining if the company’s
basic strategies are well matched to its opportunities.
Marketing strategies and programs can quickly become
outdated, and each company should periodically reassess its
overall approach to the marketplace.
MEASURING AND MANAGING MARKETING
RETURN ON INVESTMENT
Marketing managers must ensure that their marketing
dollars are being well spent.
In the past, many marketers spent freely on expensive
programs, often without considering financial return on
spending. In today’s constrained economy, that is changing.
In response, marketers are using marketing performance
measures such as marketing return on investment
(marketing ROI)—the net return from a marketing
investment divided by the costs of the marketing
investment.
A company can assess return on marketing in terms of
standard marketing performance measures, such as brand
awareness, sales, or market share.
Some companies are combining such measures into
marketing dashboards—useful sets of marketing
performance measures in a single display.
Increasingly marketers are using customer-centered
measures of marketing impact, such as customer
acquisition, customer retention, customer lifetime value,
and customer equity.
Review Learning Objective 5: List the marketing
management functions, including the elements of a
marketing plan, and discuss the importance of measuring
and managing marketing return on investment.
p. 83
Key Term:
Marketing return on
investment
(marketing ROI)
p. 84
Figure 2.8:
Marketing Return
on Investment
Assignments, Resources
Use Discussion Question 2-5 here
Use Marketing by the Numbers here
Use Think-Pair-Share 3 here
Use Company Case here
Use Video Case here