Chapter 2
1. Corporate and Business Unit Planning and Management
• The first step in marketing management is ensuring the business has a clear corporate mission
and culture.
• Corporate Mission:
o The mission defines the company’s purpose, distinguishing it from competitors.
o A well-crafted mission statement communicates the company’s values and priorities to
its employees and external stakeholders.
• Corporate Culture:
o A strong culture aligns employees around the company’s goals and improves overall
performance.
o It ensures consistency in decision-making and customer interactions.
2. Defining Strategic Business Units (SBUs)
• Large companies divide their operations into Strategic Business Units (SBUs), which are
autonomous entities responsible for a particular product line or market.
• Each SBU must:
1. Have a distinct mission and target market.
2. Be managed as a separate profit center.
3. Have its own set of competitors.
• This approach allows businesses to focus on specific markets and strategies.
3. Allocating Resources Across Business Units
• Companies must allocate resources between SBUs based on factors such as market potential,
competition, and the business's capabilities.
• Boston Consulting Group (BCG) Growth-Share Matrix:
o Stars: High-growth, high-market-share products that need investment to maintain
growth.
o Cash Cows: Low-growth, high-market-share products that generate strong cash flow.
o Question Marks: High-growth, low-market-share products that require significant
resources to gain market share.
o Dogs: Low-growth, low-market-share products that may need to be discontinued.
4. Developing Market Offerings and Marketing Strategies
• Market Offering:
o Companies must decide what they will offer to their target customers. Offerings could be
products, services, or a combination of both.
• Marketing Strategy:
o The Five Cs: Customers, Company, Competitors, Collaborators, and Context. These
factors help companies assess their position in the market.
o Porter’s Five Forces:
1. Threat of new entrants.
2. Bargaining power of suppliers.
3. Bargaining power of buyers.
4. Threat of substitute products.
5. Competitive rivalry.
o These forces help businesses understand the competitive landscape.
5. Designing Marketing Tactics
• The Seven Ts: Framework for implementing tactical elements of a marketing strategy.
o Targeting: Identifying which customers to serve.
o Tailoring: Customizing products to meet customer needs.
o Testing: Analyzing the impact of marketing actions.
o Tools: Leveraging technology for better marketing outcomes.
o Teams: Building strong, collaborative teams.
o Time: Managing time effectively to launch products or campaigns.
o Tracking: Monitoring performance continuously.
• Four Ps (Marketing Mix):
o Product: The tangible good or service offered.
o Price: Setting a price that reflects the product's value and market conditions.
o Place: Deciding where and how the product will be distributed.
o Promotion: Communicating the value of the product to customers.
6. The G-STIC Approach to Action Planning
• G-STIC Framework: This approach helps companies structure their action plans:
o Goal: Setting clear and measurable objectives (e.g., increasing market share by 10%).
o Strategy: Identifying the target market and value proposition.
o Tactics: Designing the marketing mix (product, price, place, promotion).
o Implementation: Executing the strategy and monitoring progress.
o Control: Establishing metrics to assess performance and ensure the strategy remains on
track.
7. Developing a Marketing Plan
• A marketing plan details the company’s strategies and tactics for a specific period.
• Marketing Plan Components:
1. Executive Summary: A high-level overview of the plan.
2. Situation Analysis: Analysis of the market and competitive landscape.
3. Objectives: The goals of the marketing strategy.
4. Strategy and Tactics: Detailed approach to reach objectives, including target market and
marketing mix.
5. Budget and Financial Projections: Forecasting expected costs and revenue.
6. Monitoring and Control: Establishing methods to measure success and make
adjustments if needed.
8. Conducting a Marketing Audit
• A marketing audit is a comprehensive review of the company’s marketing environment,
objectives, strategies, and activities.
• Why it’s important: Helps businesses identify strengths, weaknesses, opportunities, and threats
(SWOT), and determine whether they are on the right path.
Summary:
This chapter introduces key aspects of marketing planning and management, emphasizing the
importance of setting clear corporate missions, developing structured strategies, and ensuring effective
allocation of resources across business units. The G-STIC framework provides a structured approach to
designing and implementing a marketing plan, while the BCG Matrix and Porter’s Five Forces help
companies assess their market position and competition.
