Planning, Implementing, and Evaluating Marketing Strategies
Planning, Implementing, and Evaluating Marketing Strategies
Planning, Implementing, and Evaluating Marketing Strategies
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
By the end of this chapter, you should be able to:
2-1 Explain the strategic planning process.
2-2 Understand the importance of a firm’s mission statement and corporate and business-unit
strategy.
2-3 Assess how analyzing organizational resources and the marketing environment can help
identify opportunities and create competitive advantage.
2-4 Explore how a firm develops marketing objectives and strategies that contribute to overall
objectives.
2-5 Identify what is necessary to manage the effective implementation of marketing strategies.
2-6 Describe the four major elements of strategic performance evaluation.
2-7 Outline the development of a marketing plan.
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-1
The Strategic Planning Process
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-1 The Strategic Planning Process (1 of 1)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-2
Establishing Organizational Mission, Goals,
and Strategies
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-2 Establishing Organizational Mission, Goals,
and Strategies (1 of 8)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 2.2 Levels of Strategic Planning
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-2 Establishing Organizational Mission, Goals,
and Strategies (3 of 8)
CORPORATE STRATEGIES
• Corporate strategy – A strategy that determines the means for utilizing
resources in the various functional areas to reach the organization’s goals
– The broadest of the three levels of strategy (corporate, business-unit, and marketing);
should be developed with the organization’s overall mission in mind
BUSINESS-UNIT STRATEGIES
• Business-unit strategy should be consistent with the corporate strategy while
also serving the unit’s needs
– Strategic business unit (SBU) – A division, product line, or other profit center within the
parent company
– Each of these units sells a distinct set of products to an identifiable group of customers,
and each competes with a well-defined set of competitors.
– The revenues, costs, investments, and strategic plans of each SBU can be separated from
those of the parent company and evaluated.
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-2 Establishing Organizational Mission, Goals,
and Strategies (5 of 8)
• Product quality, order of entry into the market, and market share have been
associated with SBU success.
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-2 Establishing Organizational Mission, Goals,
and Strategies (6 of 8)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-2 Establishing Organizational Mission, Goals,
and Strategies (7 of 8)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-2 Establishing Organizational Mission, Goals,
and Strategies (8 of 8)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 2.4 Competitive Growth Strategies
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-3
Assessing Organizational Resources
and Opportunities
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-3 Assessing Organizational Resources
and Opportunities (1 of 4)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 2.5 The Four-Cell SWOT Matrix
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-3 Assessing Organizational Resources
and Opportunities (3 of 4)
First-Mover and Late-Mover Advantage
• First-mover advantage – The ability of a company to achieve long-term
competitive advantages by being the first to offer an innovative product in the
marketplace
Advantages Risks
• Helps a company build a reputation as a • High cost outlays associated with creating a
pioneer and market leader new product
• The market is free of competition • Early sales growth may not match predictions
• Helps establish customer brand loyalty where if the firm overestimates demand or fails to
switching to another may be costly or difficult target marketing efforts correctly
• The firm can protect its trade secrets and • The product could fail due to market
technology through patents uncertainty or the product might not meet
consumers’ expectations or needs
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-3 Assessing Organizational Resources
and Opportunities (4 of 4)
• Late-mover advantage – The ability of later market entrants to achieve long-
term competitive advantages by not being the first to offer a product in a
marketplace
Advantages Disadvantages
• Benefit from the first mover’s mistakes and • First mover may have patents and other
improve on the product design and marketing protections on its technology and trade secrets
strategy • Customers who have already purchased the
• Lower initial investment costs because the first first mover’s product may believe switching will
mover has already developed a distribution be expensive or time-consuming, making it
infrastructure and educated buyers difficult to gain market share
• More data and certainty about product • Timing of entry into the market is crucial and
success can determine the advantage that is possible
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-4
Developing Marketing Objectives
and Marketing Strategies
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-4 Developing Marketing Objectives
and Marketing Strategies (1 of 3)
• Marketing objective – A statement of what is to be accomplished through marketing activities
– Should:
o Be based on a careful study of the SWOT analysis
o Match strengths to opportunities
o Eliminate weaknesses
o Minimize threats
o Be stated in clear, simple terms
o Be measurable
o Specify a time frame for its accomplishment
o Be consistent with business-unit and corporate strategies
• Marketing strategy – A plan of action for identifying and analyzing a target market and
developing a marketing mix to meet the needs of that market
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-4 Developing Marketing Objectives
and Marketing Strategies (2 of 3)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-4 Developing Marketing Objectives
and Marketing Strategies (3 of 3)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-5
Managing Marketing Implementation
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-5 Managing Marketing Implementation (1 of 4)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-5 Managing Marketing Implementation (2 of 4)
Adopt a participative
Implement a flexible
management
benefits program.
approach.
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-5 Managing Marketing Implementation (4 of 4)
Separate
Assign
activities
Determine the responsibility
Identify the performed in Organize the
time required to for each activity
activities to be sequence from activities in the
complete each to employees,
performed. those proper order.
activity. teams, or
performed
managers.
simultaneously.
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-6
Evaluating Marketing Strategies
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-6 Evaluating Marketing Strategies (1 of 4)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-6 Evaluating Marketing Strategies (2 of 4)
SALES ANALYSIS
• Sales analysis – Analysis of sales figures to evaluate a firm’s performance
– A common method of evaluation because sales data are readily available and can reflect
the target market’s reactions to a marketing mix
– Current sales data must be compared with forecasted sales, industry sales, specific
competitor’s sales, and the costs incurred from marketing efforts to achieve the sales
volume.
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-6 Evaluating Marketing Strategies (3 of 4)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-6 Evaluating Marketing Strategies (4 of 4)
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-7
Creating the Marketing Plan
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be scanned,
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2-7 Creating the Marketing Plan
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Table 2.1 Components of the Marketing Plan (1 of 2)
Plan Component Component Summary Highlights
Executive Summary One- to two-page synopsis of 1. Stress key points
the entire marketing plan 2. Include one to three key points that make
the company unique
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Table 2.1 Components of the Marketing Plan (2 of 2)
Plan Component Component Summary Highlights
Marketing Objectives Specification of the company’s 1. Qualitative measures of what is to be
marketing objectives accomplished
2. Quantitative measures of what is to be
accomplished
Pride/Ferrell, Foundations of Marketing, 9th Edition. © 2022 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.