CHAPTER 2
Planning, Implementing, and Evaluating
Marketing Strategies
TEACHING RESOURCES QUICK REFERENCE GUIDE
Resource
Location
Purpose and Perspective
IRM, p. 21
Lecture Outline
IRM, p. 22
Discussion Starters
IRM, p. 30
Class Exercise
IRM, p. 32
Semester Project
IRM, p. 34
Chapter Quiz
IRM, p. 35
Answers to Discussion and Review Questions
IRM, p. 36
Answers to Application Questions
IRM, p. 39
Answers to Internet Exercise
IRM, p. 40
Answers to Developing Your Marketing Plan
IRM, p. 41
Comments on the Cases
IRM, p. 42
Case 2.1
IRM, p. 42
Strategic Case 1
IRM, p. 44
Instructions for Role-Play Team Case
IRM, p. 45
Examination Questions: Essay
Testing CD
Examination Questions: Multiple-Choice
Testing CD
Examination Questions: True-False
Testing CD
PowerPoint Slides
PURPOSE AND PERSPECTIVE
This chapter focuses on strategic planning. We begin this chapter with an overview of the strategic
planning process. Next, we examine the process of strategic planning and the importance of missions and
goals, corporate and business-unit strategies, and resources and opportunities to an organization’s
strategy. We then explore how to implement the marketing strategy and the creation of the marketing
plan. These elements provide a framework for the development and implementation of marketing
strategies, as we will see throughout the remainder of this book.
22 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
LECTURE OUTLINE
I. Introduction
A. Strategic marketing management is the process of planning, implementing, and evaluating the
performance of marketing activities and strategies based on both effectiveness and efficiency.
II. The Strategic Planning Process
A. With competition increasing, firms must spend more time planning—determining how to use
resources and capabilities to achieve objectives and satisfy customers.
B. The process of strategic planning helps a firm establish an organizational mission and goals,
corporate strategy, marketing objectives, marketing strategy, and a marketing plan.
1. The process begins with an organization establishing or revising its mission and goals, and
C. Establishing an Organizational Mission and Goals
1. The goals of any organization derive from its mission statement, which is a long-term view,
or vision, of what the organization wants to become. An organization’s mission really
answers two questions:
a. Who are our customers?
D. Developing Corporate and Business-Unit Strategies
1. Strategic planning often begins at the corporate level and proceeds from there to the business-
unit and marketing levels, although some firms are developing strategy from the top-down
and from the bottom-up to seek expertise from multiple levels.
2. Corporate strategy should be developed with the organization’s overall mission in mind,
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 23
4. Business-Unit Strategy
a. A strategic business unit (SBU) is a division, product line, or other profit center within
the parent company. Strategic planners should recognize the strategic performance
capabilities of each SBU and carefully allocate resources among the divisions.
(1) All the organization’s SBUs and products should be integrated into a single, overall
matrix and evaluated to determine appropriate strategies for individual products and
overall portfolio strategies.
(2) Managers can use this model to determine and classify each product’s expected
future cash contributions and future cash requirements.
(3) This model classifies an organization’s products into four basic types:
(a) Stars have a dominant share of the market and good prospects for growth; they
use more cash than they generate to finance growth, add capacity, and increase
market share. Example: Apple’s iPod
E. Assessing Organizational Resources and Opportunities
1. The strategic planning process begins with an analysis of the marketing environment, which
can influence an organization’s goals, resources, and opportunities.
24 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
3. Analysis of the marketing environment also involves identification of opportunities in the
marketplace.
4. A company is said to have a competitive advantage when it matches a core competency to
opportunities in the marketplace.
5. A SWOT Analysis is one tool marketers use to assess an organization’s strengths,
weaknesses, opportunities, and threats in the marketing environment (see Figure 2.4).
a. Strengths and weaknesses are internal factors that can influence an organization’s
ability to satisfy its target markets.
(1) Strengths refer to competitive advantages or core competencies that give the
b. Opportunities and threats exist independently of the organization and therefore
represent issues to be considered by all organizations in an industry, even those that
are not competitors.
(1) Opportunities refer to favorable conditions in the environment that could produce
6. First-Mover and Late-Mover Advantage
a. A first-mover advantage is the ability to achieve long-term competitive advantages
by being the first to offer a certain product in the marketplace.
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 25
b. A late-mover advantage is the ability to achieve long-term competitive advantages
by not being the first to offer a certain product in a marketplace.
(1) Benefits include learning from first–movers’ mistakes, improved products and
F. Developing Marketing Objectives and Marketing Strategies
1. A marketing objective states what is to be accomplished through marketing activities.
a. Objectives can be stated in terms of product introduction, product improvement or
innovation, sales volume, profitability, market share, pricing, distribution,
advertising, or employee training activities.
2. A marketing strategy is the selection of a target market and the creation of a marketing mix
that will satisfy the needs of target market members.
a. Selecting the Target Market
(1) Selecting a target market is the most important decision a company makes in the
strategic planning process.
b. Creating Marketing Mixes
(1) The decisions made in creating a marketing mix are only as good as the
organization’s understandings of the target market.
26 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
III. Managing Marketing Implementation
A. Marketing implementation is the process of putting marketing strategies into action.
B. Organizing the Marketing Unit
1. The structure and relationships of a marketing unit strongly affect marketing activities.
2. Companies that truly adopt the marketing concept develop an organizational culture based on
decisions about strategy and operations.
3. An important decision regarding structural authority is whether the marketing operation
should be centralized or decentralized.
4. Organizing marketing activities in ways that mesh with a company’s strategic marketing
approach enhances performance.
C. Motivating Marketing Personnel
1. Managers must discover their employees’ needs and then develop motivational methods that
will help employees satisfy those needs.
2. A firm can motivate its workers by directly linking pay with performance, informing workers
even a more relaxed dress code.
D. Communicating within the Marketing Unit
1. With good communication, marketing managers can motivate personnel and coordinate their
efforts.
2. Marketing managers must be able to communicate with the firm’s upper-level management to
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 27
E. Coordinating Marketing Activities
1. To achieve marketing objectives, marketing managers must coordinate actions within and
across departments, firms, and external organizations.
F. Establishing a Timetable for Implementation
1. Successful marketing implementation requires that employees know the specific activities for
which they are responsible and the timetable for completing each activity.
2. Establishing an implementation timetable involves several steps:
a. Identifying the activities to be performed
IV. Evaluating Marketing Strategies
A. Strategic performance evaluation consists of establishing performance standards,
measuring actual performance, comparing actual performance with established standards, and
modifying the marketing strategy.
B. Establishing Performance Standards
1. A performance standard is an expected level of performance against which actual
performance can be compared, such as a reduction in customer complaints, a sales quota,
C. Analyzing Actual Performance
1. Sales analysis uses sales figures to evaluate a firm’s current performance.
a. It is most common method because sales data partially reflect the target m arket’s
reactions to the marketing mix.
28 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
2. Marketing Cost Analysis
a. Marketing cost analysis breaks down and classifies costs to determine which are
associated with specific marketing efforts.
b. It can help isolate profitable or unprofitable customers, products, and geographic
areas and better allocate resources.
D. Comparing Actual Performance with Performance Standards and Making Changes, If Needed
1. Comparing actual performance with established performance standards can result in
actual performance exceeding performance standards or actual performance failing to
V. Creating the Marketing Plan
A. The marketing plan is a written document that outlines and explains all the activities necessary
to implement marketing strategies and is an outcome of the planning process.
1. It is the basis for internal communication among employees.
2. It covers the assignment of responsibilities and tasks, as well as schedules for
implementation.
a. It presents objectives and specifies how resources are to be allocated to achieve these
3. Marketing planning and implementation are closely linked in successful companies.
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 29
B. The major parts of a marketing plan include:
1. The executive summary, which provides an overview of the entire marketing plan.
2. The environmental analysis, which supplies information about the company’s current
30 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
DISCUSSION STARTERS
Discussion Starter 1: Identifying Core Competencies
ASK: What are McDonald’s core competencies?
Many students will focus on food, but the key to McDonald’s success is a focus on consistency.
ASK: How many of you have eaten in McDonald’s in other countries? What was similar to the local
McDonald’s?
McDonald’s goal is to have consistent product, service and environment throughout the world. This
Discussion Starter 2: Mission Statements
Present Ben and Jerry’s Social, Product, and Economic mission statements (available at
ASK: Can you think of any companies that are unique or different? Do you think their uniqueness is
reflected in their mission statements?
Discussion Starter 3: Entrepreneurship in Marketing: Rogers Family Company
ASK: How did the Rogers Family Company differentiate its coffee from other gourmet coffees? Do you
think it is doing enough to compete in today’s market?
ASK: What are some potential threats to the Rogers Family Company? How might the company combat
these threats?
Although the company is the largest coffee roaster in the San Francisco area, students may argue that
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 31
Discussion Starter 4: Internal Marketing
ASK: How many of you work for firms that have internal marketing efforts?
Many of the students will work for firms that offer programs and benefits designed to bond the
ASK: Why is internal marketing so important?
In order to reach the new generation of workers, many firms are turning to their own media. An
ASK: Do you think these efforts will be successful? Should other firms use this technique as part of their
internal marketing efforts?
32 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
CLASS EXERCISES
Class Exercise 1: Campus Specific University Mission Statements
Note: If computer access is not available during class, you will need to provide students the university
mission statement.
Step 1: Analyze the mission statement for your university.
Class Exercise 2: A Personal SWOT Analysis Related to Getting a Great Job After
Graduation
Ask each student at the beginning of class to silently generate a SWOT analysis of their strengths,
weaknesses, opportunities, and threats for getting a great job when they graduate. More specifically,
have them write out at least three strengths, three weaknesses, three opportunities they foresee, and
three threats that may impact their getting a job after college.
Note: After the students have handed in their work, conduct a quick a frequency count on each
of the four quadrants that students marked as most important. Then ask the students to answer
the following question:
According to the SWOT analysis data generated and discussed in class, the quadrant that was
deemed to be the most important by our class was _____________ and the quadrant deemed to
be the least important was ______________.
A)
opportunities; threats
B)
strengths; threats
strengths; weaknesses
D)
weaknesses; threats
threats; opportunities
Class Exercise 3: Class Mission Statement
A mission statement provides a long–term view, or vision, about what the organization wants to
become. It serves as the orienting point for the organization’s goals and objectives.
In this exercise you will develop a mission statement for the class.
Step 1: Begin by identifying customers’ needs and wants.
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 33
Choose one member of the group to report the group’s activities to the class.