•Tutorial Groups: I assume you guys are all attending your require tutorials

Its important. Those who have missed can listen to the BB Collaborate
recording.

•Workshop: This week’s workshop laid the ground to your coursework

assignment, so those who have missed or not listening while I was talking,
please listen back to the recording from the BB Collaborate.

•Break in between the lecture today: I will try to give you guys break for 5
minutes in between the lecture delivery content. If I forget, just knock me in
and tell me to stop  (Do not tell me to stop after 10 minutes of listening)

•Lecture 2 content: Marketing Strategy and Planning (Very important for

your assignment 2, so do pay attention and ask questions)
 LET’S GET STARTED WITH
TODAY’S LECTURE CONTENT 
 CHAPTER 3:
ELEMENTS OF
MARKETING
STRATEGY AND
PLANNING
Copyright © McGraw-Hill Education.  All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

McGraw-Hill
Education Part 1: Discover Marketing Management
 Learning Objectives
6

Examine the concept of value and the elements and role of the
value chain.
Understand the conditions required for successful marketing
planning, that marketing planning is focused on the value.
proposition, and that marketing planning is a dynamic process.
Identify various types of organizational strategies.
Conduct a situation analysis.
Use the framework provided for marketing planning, along with
the content in future chapters, to build a marketing plan.

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 Value and Utility

Value is a ratio of benefits to costs, as viewed from

the eyes of the beholder (the customer).
The four major types of utility are:
1.Form utility

2.Time utility

3.Place utility

4.Ownership utility

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 Value Is at the Core
of Marketing

Value proposition is the firm’s communication of the

unique value of its products to its customers.
The value message may include the whole bundle of
benefits the company promises to deliver – not just
the benefits of the product itself.

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 The Value Proposition
A firm’s value proposition must be strong enough to
move customers past satisfaction.
Customer
Loyalty

Customer
Switching
Decreases

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 The Value Chain

The value chain serves as a means for firms

to identify ways to create, communicate, and
deliver more customer value within a firm.

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EXHIBIT 3.1 Porter’s Value Chain

Link to long alt text description

Source: Michael E. Porter, Competitive Advantage (New York: Simon & Schuster, 1985).
11
Value Creating: Primary Activities

Primary activities

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Value Creating: Support Activities

Support activities

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 Marketing Planning

Marketing planning is the ongoing process

of developing and implementing market-
driven strategies for an organization.
The resulting document that records the
marketing planning process in a useful
framework is the marketing plan.

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 Marketing Planning Is Both
Strategic and Tactical

Marketing (Big M) serves as a core driver

of business strategy.
marketing (little m) represents the specific
programs and tactics aimed at customers
and other stakeholder groups.

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 Framework for
Marketing Planning

Marketing plan is connected to the firm’s business

plan.
Conduct a situation analysis.
Perform any needed market research.
Establish marketing goals and objectives.
Develop marketing strategies.
Marketing mix strategies.
Develop implementation plans.
Provide for contingency planning.

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Connecting the Marketing Plan to the Firm’s
Business Plan

Market-driven strategic planning is often

used to describe the process at the
corporate or strategic business unit (SBU)
level of marshaling the various resource
and functional areas of the firm toward a
central purpose around the customer.

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Elements of Marketing Planning: Portfolio
Analysis

Portfolio analysis views SBUs and

sometimes even product lines as a series of
investments from which it expects
maximization of returns.
• Boston Consulting Group (BCG) Growth-
Share Matrix
• GE Business Screen

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EXHIBIT 3.3 Boston Consulting Group Growth-Share Matrix

Link to long alt text description

19
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 Serious 5-10 mins task on Blackboard Collaborate white board
AB rules to follow 

a. Think about 3 companies each and their SBU’s and place them in the
quadrant following the BCG matrix, which we just discussed

Note: NO funny answers. I want to see how many companies you

can think of?
EXHIBIT 3.4 GE Business Screen

Market Attractiveness
High Med Low
High

Invest/
Grow
Business Position
Med

Selective
Investment
Low

Harvest/
Divest

“GE Business Screen,” Business Resource Software Online, www.brs-inc.com/pwxcharts.asp?32, accessed May 16, 2008.

21
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 Elements of Marketing Planning: Mission
Statement

Marketing planning does not occur in a vacuum.

• A mission statement articulates an organization’s
purpose, or reason for existence.
• Most mission statements also include a discussion
of what the company would like to become in the
future–its strategic vision.

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 Elements of Marketing Planning:
Strategy

Organizational strategies
• A strategy is a comprehensive plan stating
how the organization will achieve its
mission and objectives.
• A firm’s generic strategy is its overall
directional strategy at the business level.

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Generic Business Strategies

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Elements of Marketing Planning:
Strategy Categories
Three primary categories of competitive strategy:
1. Cost leadership—low cost
2. Differentiation
3. Focus (or niche)

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Generic Business Strategies

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EXHIBIT 3.7 Competitive Strategy Options

Competitive Advantage
Lower Cost Differentiation
Broad Target

Cost Leadership Differentiation

Competitive Scope

Narrow Target

Focus
Cost Focus
Differentiation

Link to long alt text description

Source: Michael E. Porter, Competitive Advantage (New York: Simon & Schuster, 1985).

27
 Elements of Marketing Planning:
Competencies

Core competencies: Activities the firm

does well.
Distinctive competencies: Core
competencies that are superior to
competitors.
Sustainable competitive advantage: Cannot
be easily duplicated by competitors.

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 Serious 5 mins task on Blackboard Chat function
AB rules to follow 

a. Do companies focus on distinctive competencies or core

competencies? Choose an example and provide your version of
explanation

Note: NO funny answers. I want to see your critical thinking?

EXHIBIT 3.9 Forces Driving Industry Competition

Potential
Potentialentrants
entrants
(Threat
(Threatofof
mobility)
mobility)

Industry
Industry
Supplier
Supplier Buyers
Buyers
competitors
competitors
(Supplier
(Supplier (Buyer
(Buyer
(Segment
(Segmentrivalry)
rivalry)
power)
power) power)
power)

Substitutes
Substitutes
(Threat
(Threatofof
substitutes)
substitutes)
Link to long alt text description

Source: Michael E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors (Boston: The Free Press, 1980).
 Elements of Marketing
31
Planning: SWOT Analysis
Summarize the situation analysis into a SWOT
analysis:
• A convenient way to summarize key findings into a
matrix of strengths, weaknesses, opportunities, and
threats.
• Internal analysis reveals strengths and weaknesses,
while external analysis points to potential opportunities
and threats.

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 EXHIBIT
3.10 SWOT Analysis Template

Source: J. David Hunger and Thomas H. Wheelen, Essentials of Strategic Management, 4th ed. (Upper Saddle River, NJ: Prentice Hall, 2007).
Elements of Marketing Planning:
Market Research

Perform any needed market research.

Establish marketing goals and objectives.
• Goals are qualitative.
• Objectives are quantitative.

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 Elements of Marketing Planning:
Additional Aspects
34

Additional aspects of marketing

planning.
Develop marketing strategies.
• Market penetration strategies
• Product development strategies
• Market development strategies
• Diversification strategies

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 EXHIBIT
3.11 Product – Market Combinations

Source: H. Igor Ansoff, The New Corporate Strategy (New York: John Wiley & Sons, 1988).

35
 Elements of Marketing Planning:
Implementation

Implementation Plan

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 Elements of Marketing Planning:
Control and Plans

Marketing control: Process of measuring marketing

results and adjusting the marketing plan as needed.
Action plans: Implementation strategy that describes
specific tasks and the resources needed, who is
responsible, and metrics to track success.
Contingency plans: Plans that can be implemented
should something happen that negates the viability of
the marketing plan.

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