ABM102
INTRODUCTION TO
MARKETING MANAGEMENT
Module 2
Company and Marketing Strategic planning
Module Overview:
Welcome to Module 2! This module will give you an overview of a Company and
Marketing Strategic planning – what it is about and its importance to business
organizations.
There are 4 lessons that you will take up in this module: (1) Company Wide Strategic
Planning: Defining Marketing’s Role (2) Marketing Strategy and the Marketing Mix
(3) Managing the Marketing: Analysis, Planning, Implementation and Control (4)
Measuring Marketing Return on Investment
Module Outcome:
Identify and understand companywide strategic planning and its four steps.
Discuss how to design business portfolios and develop Growth strategies.
Explain marketing’s role under strategic planning and how marketing works
with its partners to create and deliver customer value.
Discuss the elements of a customer-driven marketing strategy and mix, and
the forces that influence it.
Discuss the process of Measuring Marketing Return on Investment
Time Frame: Four (4) weeks
A Guide through This Course
These are the standard icon that prompts you to some reminders or actions:
ACTIVITY
This includes a variety of activities that you need to work on to help build the
concepts of the topic being presented.
ANALYSIS
This gives a variety of analysis questions intended draw out your reactions or
responses.
ABSTRACTION
This is where you get the inputs and some discussions about the topic.
APPLICATION
You are expected to utilize knowledge gained from this lesson.
CLOSURE
Lesson 1
Company Wide Strategic Planning: Defining Marketing’s Role
Learning Outcomes
Identify and understand companywide strategic planning and its four steps.
Activity
Kindly accomplish the following task: (Minimum of 4 sentences)
Discuss the importance of setting a plan and objectives in an organization.
Analysis
Answer the following questions:
What are your insights and realization in answering the activity?
Abstraction
Companywide Strategic Planning
Refers to the process of developing and maintaining a strategic plan that is in
line with the organization’s goals and capabilities.
It is also based on strategies that increases company growth, production
development and expansion.
Companies more than often set long term plans which help them to maintain
the work focus and achieve the company’s goals and objectives.
Steps in Strategic Planning
Step 1: Defining the company Mission
Step 2: Setting Company Objectives
Step 3: Designing the portfolio
Step 4: Planning Marketing and other Functional Strategies
Step 1: Defining the Company’s Mission Statement
The mission statement is the organization’s purpose, what it wants to
accomplish in the larger environment
Market-oriented mission statement defines the business in terms of satisfying
basic customer needs.
Questions the mission statement should answer include:
What is our business?
Who is our customer?
What should our business be?
What do customer value?
Step 2: Setting Company’s Objectives
The company needs to turn its mission into detailed supporting objectives for
each level of management. Each manager should have objectives and be
responsible for reaching them.
The mission leads to setting a hierarchy of objectives both business and
marketing objectives.
The following are some examples of company’s objectives
Build profitable customer relationships
Invest in research
Improve profits
Increase market share
Create local partnerships
Increase promotion Setting Company Objectives and Goals
Step 3: Designing the business portfolio
The business portfolio is the collection of business that makes up the
company.
The company must analyze its current business portfolio or strategic business
units (SBUs) and decide which SBUs should receive more, less or no
investment.
So in designing the business portfolio it’s either to Develop Strategies for
growth and/or downsizing that will shape the future business portfolio.
Strategic Business Unit (SBU)
A unit of the company that has a separate mission and objectives and that
can be planned independently from other company business.
An SBU can be a company division, product line within a division or
sometimes a single product or brand.
Portfolio Analysis
A process by which management evaluates the products and business
making up the company.
Resources are directed towards to the more profitable business or product
lines while weaker ones are phased out or dropped.
Standard portfolio analysis evaluates SBUs on two important dimensions the
attractiveness of SBUs market or industry and the strength of SBUs position
within that market or industry.
Boston Consulting Group or Growth Share Matrix
Market growth rate and relative market share to classify SBUs into four
groups. On the vertical axis, market growth rate provides a measure of market
attractiveness. On the horizontal axis, relative market share serves as a
measure of company strength in the market. The growth share matrix defines
four types of SBUs:
Stars: High Growth, High Market Share
Star units are leaders in the category. These products have –
A significant market share, hence they bring most cash to the business.
A high growth potential that can be used to increase further cash inflow.
With time, when the market matures, these stars become cash cows that hold huge
market shares in a low growth market. Such cows are milked to fund other innovative
products to develop new stars.
Cash Cows: Low Growth, High Market Share
Cash cows are products with significant ROI but operating in a matured market
which lacks innovation and growth. These products generate more cash than it
consumes. Usually, these products finance other activities in progress (including
stars and question marks).
Dogs: Low Growth, Low Market Share
Dogs hold low market share and operate in a market with a low growth rate. Neither
do they generate cash nor do they require huge cash. In general, they are not
worth investing in because they generate low or negative cash returns and may
require large sums of money to support. Due to low market share, these products
face cost disadvantages.
Question Marks: High Growth, Low Market Share
Question marks have a high growth potential but a low market share which makes
their future potential to be doubtful.
Since the growth rate is high here, with the right strategies and investments, they
can become cash cows and ultimately xstars. But they have low market share so
wrong investments can downgrade them to Dogs even after lots of investment.
Step 4: Planning Marketing and other Functional Strategies
Planning Marketing: Partnering to build customer Relationships
Marketing can’t go it alone in creating customer value. Under the
companywide strategic plan, marketing must work closely with other departments to
form an effective internal company value chain and with other companies in the
marketing system to create an external value delivery network that jointly serves
customers.
Marketing plays a key role in strategic marketing planning, it provides a
guiding philosophy through marketing concept, and it provides input to strategic
planners and designs strategies to reach objectives.
Partnering with other Company Departments
Each company’s department can be thought as a link in the company’s
internal value chain. Creating customer value, marketers must practice partner
relationship management to enhance customer value through working with partners
internally within the company which can create an effective value chain and working
with external partners in the marketing system that helps form a superior value
delivery network.
More companies today are partnering with other member of the supply chain
to improve the performance of customer value delivery network.
Value Chain
The series of internal departments that carry out value creating activities to
design, produce, market, deliver and support firm’s product
Application
Kindly accomplish the following task:
Select a company that has multiple product lines.
Evaluate their product line using the BCG or Boston Consulting Group Matrix
Closure
Congratulations! You just have finished the Lesson 1. Now continue your
learning experience by proceeding to Lesson 2!
Lesson 2
Marketing Strategy and the Marketing Mix
Learning Outcomes
Discuss the elements of a customer-driven marketing strategy and mix, and
the forces that influence it.
Activity
Kindly accomplish the following task: (Minimum of 4 Sentences)
Discuss the Importance of strategy in marketing.
Analysis
Answer the following questions:
What are your insights and realization in answering the activity?
Abstraction
Marketing Strategy
A process that can allow an organization to concentrate its limited resources
on the greatest opportunities to increase sales and achieve a sustainable
advantage.
Marketing strategy decisions include:
Market segmentation,
Market Targeting,
Market Differentiation
Market Positioning
Marketing Segmentations
Dividing a market into distinct groups of buyers who have different needs,
characteristics or behaviours and who might require separate products or
marketing program.
Market Segment
A group of consumers who respond in a similar way to a given set of
marketing efforts
Market Targeting
The process of evaluating each market segment’s attractiveness and
selecting one or more segments to enter.
Market Differentiation
After a company has decided which market segments to enter, it must
determine how to differentiate its market offering for each targeted segment. A
process of distinguishing a product or service from others to mae it more
attractive to a particular target market.
Market Positioning
Is arranging for a product to occupy a clear, distinctive and desirable place
relative to competing to products in the minds of target consumers.
Establishing the image of a brand by providing company’s product uniqueness
and creating a brand positioning statement in the consumer’s mind.
High price – High Quality
Low Price – Low Quality
Low price – High quality
High price – Low quality
Developing an Integrated Marketing Mix
After determining its overall marketing strategy, the company is ready to begin
planning the details of the marketing mix. The marketing mix consists of
everything the firm can do to influence the demand for its product. The many
possibilities can be collected into four group of variables – the four P’s
Marketing Mix
The set of tactical marketing tools like products, price, place and promotion
that the firm blends to produce the response it wants in the target market.
Below shows the marketing tools under each P.
Product - means 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.
Table 1. 4P’s & 4C’s
4 P’s 4C’S
Seller’s View Buyer’s View
Product Customer Solution
Price Customer Cost
Place Convenience
Promotion Communication
Application
Kindly accomplish the following task:
Select a readily available product in the market and evaluate using the
4P’s and 4C’s in a tabular form. Refer to table 1.
Discuss it briefly (Minimum of 3 Sentences)
Closure
Congratulations! You just have finished the Lesson 2. Now continue your
learning experience by proceeding to Lesson 3!
Lesson 3
Managing the Marketing: Analysis, Planning, Implementation and Control
Learning Outcomes
Explained and identified the functions in managing marketing efforts.
Activity
Kindly accomplish the following task: (Minimum of 4 Sentences)
Discuss the importance of identifying the company’s Strength and Weakness
before coming up with a Marketing Efforts for the organization?
Analysis
Answer the following questions:
What are your insights and realization in answering the activity?
Abstraction
Managing the Marketing Effort
In addition to being good at the marketing in marketing management,
companies also need to pay attention to the management.
Managing the marketing process requires five marketing management
functions.
Marketing Analysis
Managing the marketing function begins with a complete analysis of the
company’s situation.
The marketer should conduct a SWOT analysis, by which it evaluates the
company’s overall strength (S), weaknesses (W), opportunities (O) and
threats (T).
SWOT Analysis
An overall evaluation of the company’s overall strength (S), weaknesses (W),
opportunities (O) and threats (T)
Internal factors are your Strength and Weaknesses
External factors are the Threats and Opportunities
Marketing Planning
Through strategic planning, the company decides what it wants to do with
each business unit.
Marketing planning involves choosing marketing strategies that will help the
company attain its overall strategic objectives.
A detailed marketing plan is needed for each business, product or brand. We
will focus on product or brand marketing plans.
Below is an outline of the major sections of a typical product or brand
marketing plan.
Marketing Implementation
Marketing implementation is the process that turns marketing plans into
marketing actions to accomplish strategic marketing objectives.
Whereas marketing planning addresses the what and why of marketing
activities, implementation addresses the who, where, when and how.
Marketing Department Organization
The company must design a marketing organization that can carry out
marketing strategies and plans.
If the company is very small, one person might do all the research, selling,
advertising, customer service and other marketing work.
As company expands, however a marketing department emerges to plan and
carry out marketing activities.
In large companies, this department contains many specialists product and
market managers, sales managers and sales people, market research's and
advertising and social media experts among others.
Marketing Control
Refers to the measuring and evaluating the result of marketing strategies and
plans.
Operating controls ensures that the company achieves the sales, profits, and
other goals set out in its annual plan.
Strategic control involves looking at whether the company’s basic strategies
are well matched to its opportunities.
Operating control involves checking on-going performance against the annual
plan and taking corrective action when necessary.
Application
Kindly accomplish the following task:
Select a business enterprise within the Municipality of Santo Tomas
Conduct a SWOT analysis with the business enterprise that you have
selected.
Identify at least 3 variables per aspect in the SWOT analysis.
Closure
Congratulations! You just have finished the Lesson 3. Now continue your
learning experience by proceeding to Lesson 4!
Lesson 4
Measuring Marketing Return on Investment
Learning Outcomes
Discussed and evaluated the process of Measuring Marketing Return on
Investment
Activity
Kindly accomplish the following task: (Minimum of 4 Sentences)
How would you assess specific consequences in every action you do in your
life?
Cite an actual scenario in your life.
Analysis
Answer the following questions:
What are your insights and realization in answering the activity?
Abstraction
Marketing Return on Investment (ROI)
Net return from a marketing investment divided by the cost of the marketing
investment
ROI = Net Income from Marketing Investment / Cost of Marketing Investment
Below views the marketing expenditures as investments that produce returns
in the form of more profitable customer relationships. Marketing investments result in
improved customer value, engagement, satisfaction, increase in customer attraction
and retention. This increases individual customer lifetime values and the firms overall
customer equity. Increased customer equity, in relation to the cost of the marketing
investment, determines return on marketing investment
Application
Kindly accomplish the following task: (Please refer to your selected business
enterprise within Santo Tomas from Module 2, lesson 3)
Provide at least 3 specific Marketing efforts that they currently implementing
and evaluate the return of these marketing efforts done by the (selected
business enterprise) in a tabular form.
If the business enterprise doesn’t have a marketing efforts, kindly recommend
at least 3 and discuss how we can evaluate the positive return of these
marketing efforts.
MARKETING EFFORTS MARKETING RETURN
Closure
Congratulations! You just have finished the Lesson 4. Now continue your
learning experience by proceeding to Lesson Module Assessment!
Module Summary
In Module 2, you were introduced to the overview of a Company and
Marketing Strategic planning – what it is about and its importance to business
organizations.
Before you proceed to Module 3 – Decision Making and Planning, you need to
take the Module 2 Assessment.
Module Assessment
ESSAY/DISCUSSION: Answer the following Questions.
Minimum of (8) Eight Sentences
1. Discuss the importance of measuring and managing marketing return in
investment.
2. Discuss the company-wide strategic planning and its four steps in your own
words.
3. Discuss the importance of conducting a business portfolio analysis.
