BUS 348 Lecture Notes - Lecture 3: Direct Marketing, Human Capital, Wii
8 Jun 2018
School
Department
Course
Professor
BUS 348
Lecture 3
Strategic Market Planning: Take the Big Picture
• Ethics if Job One in Marketing Planning
o Marketing actions cannot establish long-term relationships if it is shown to be unethical.
• Consequences of low ethical standards can be damaging to firms and managers.
• Stockholders may lose investment.
• Jobs may be lost.
• Confidence in the economy suffers.
o Example: Wal-Mart was the target of a US DOJ investigation that alleged the company
bribed Mexican officials in order to open more stores. GlaxoSmithKline pled guilty to the
promotion of drugs for unapproved uses, failure to report safety data, and improper
marketing.
• Ethics is Up Front in Marketing Planning
o Business ethics - basic values that guide a firm's behavior
o Code of ethics - written standards of behavior to which everyone in the organization must
subscribe
• AMA (American Marketing Association) Code of Ethics
o Ethical Norms
• Do no harm
• Foster trust in the marketing system
• Embrace ethical values
o Ethical Values
• Honesty
• Responsibility
• Fairness
• Respect
• Transparency
• Citizenship
• Developing a Sustainable Marketing Mix
o Target marketing strategies
• Green customers - consumers who are most likely to actively look for and buy
products that are eco-friendly
o Product strategies
• Fair trade suppliers
o Price strategies
o Place/Distribution strategies
• Locavorism
o Promotion strategies
• Planning: Compose the Big Picture
o Business planning is an ongoing process that guides short- and long-term decisions.
• Helps identify and build on firm strengths
• Improves managerial decision making
• Develops objectives and provides a means of charting progress toward goals
• Three Levels of Business Planning
o Strategic Planning
• Planning done by top-level corporate management
find more resources at oneclass.com
find more resources at oneclass.com
▪ Define the mission
▪ Evaluate the internal and external environment
▪ Set organizational or SBU objectives
▪ Establish the business portfolio (if applicable)
▪ Develop growth strategies
o Functional (Market) Planning
• Planning done by top functional-level management such as the firm's chief marketing
officer (CMO)
▪ Perform a situation analysis
▪ Set marketing objectives
▪ Develop marketing strategies
▪ Implement and control the marketing plan
o Operational Planning
• Planning done by supervisory managers
▪ Develop action plans to implement the marketing plan
▪ Use marketing metrics to monitor how the plan is working
• Strategic Planning Step 1: Define the Mission
o Key questions in determining the mission:
• What business are we in?
• What customers should we serve?
• How do we develop firm's capabilities and focus its efforts?
o Mission Statement
• A formal document that describes the firm's overall purpose and what it hopes to
achieve in terms of its customers, products, and resources
o The ideal mission statement is not too...
• Broad
• Narrow
• Shortsighted
o Mission statements are often benefit driven rather than product specific.
• Step 2: Evaluate the Internal and External Environments
o Situational analysis - an assessment of a firm's internal and external environments
• also known as an environmental assessment or a business review
• Internal environmental assessment - identifies the firm's strengths and weaknesses
• External environmental assessment - identifies opportunities and threats
o Internal Environment
• Controllable elements inside a firm that influence how well the firm operates
▪ Key technologies, patents, financial stability, supplier relationships, reputation,
human capital
o External Environment
• Elements outside the firm that may affect it either positively or negatively.
• The external environment is global and requires consideration of:
▪ Legal/political/ethical trends
▪ Economic trends
▪ Competitive trends
▪ Technological trends
▪ Sociocultural trends
• Trends Present Opportunities
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Jobs may be lost: example: wal-mart was the target of a us doj investigation that alleged the company bribed mexican officials in order to open more stores. Foster trust in the marketing system: ethical values, honesty, responsibility. Fairness: respect, transparency, citizenship, developing a sustainable marketing mix, target marketing strategies, green customers - consumers who are most likely to actively look for and buy products that are eco-friendly, product strategies. Fair trade suppliers: price strategies, place/distribution strategies. Locavorism: promotion strategies, planning: compose the big picture, business planning is an ongoing process that guides short- and long-term decisions, helps identify and build on firm strengths, develops objectives and provides a means of charting progress toward goals. Improves managerial decision making: three levels of business planning, strategic planning, planning done by top-level corporate management, define the mission, evaluate the internal and external environment, establish the business portfolio (if applicable, develop growth strategies.
