MKT327 Introduction to Marketing 1st Edition Lecture 4 Planning in marketingOutline of Last Lecture I. Marketing domains reviewII. Differentiating needs and wantsIII. Satisfaction and relationshipsIV. Relational exchangeV. Course knowledge checkOutline of Current Lecture A. PlanningII. Firm’s adaptation through strategic planningIII. The role of marketing in developing strategy IV. Marketing planV. Corporate visionVI. Elements of visionVII. Core valuesVIII.MissionIX. Corporate culture (philosophy)X. Positioning XI. Customer valueCurrent Lecture1) Planninga) Ultimate goal b) Example: which species is likely to survive? Shark vs. cockroachc) SURVIVAL cant be taken for grantedi) Factors leading to extinction(1) Strategic- mis-planned(2) Operational- plant failure, product recall(3) Financial- embezzlement, accounting errors(4) Hazard- product spill, electricalThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.ii) Between 1998 and 2003, 10% of fortune 1000 company lost more than 25% of its shareholder value within one month2) Firms adaptation through strategic planninga) Strategy is the long term courses of action that delivers a unique customer experience position while achieving its goalsi) Core components(1) Positioning (value proposition) the value of the product, how does this benefit the customer’s life (2) Competitive advantages- what can you do better than anyone else, what core competencies do you have that cant be duplicated(3) Adaptability- fit in within the environment- how does your company operate so that in can adapt easilyb) Corporate level strategic plani) Sets overall organizational vision and directionc) Strategic business units (SBU’s) level strategic plani) Select value creating opportunities, select target segments, and strategic directiond) Functional level tactical plani) Details specific methods of executing creation, delivery and capturing of value3) The role of marketing in developing strategy a) Provide visionb) Provide intelligence for competitive advantagesc) Develop and achieve desired position4) Marketing plana) A written document for business unit/profit center providing guidelines for achieving strategic position and efficiency in marketing programs to achieve competitive advantages and long tern performance goals5) Corporate visiona) The desired image of the company in the minds of employees that maintains consistent direction in reaching goalsi) “Where the is no vision, the people perish”6) Elements of visiona) Organization foundationi) Core values- what does it believe inii) Mission- purpose iii) Culture- the organizations normsb) Organizational directioni) Business definitionii) Marketing objectives- corporate philosophyc) Organizational SBU strategiesi) Allocate resourcesii) Marketing plan 7) Core valuesa) A set of statements describing the type of behavior expected of the company and its employees8) Missiona) A motivating statement defining the organization purposei) Mission statement(1) Clear(2) Concise(3) Meaning(4) Inspirational(5) Long term ii) Mission statement based on:(1) 3M- “to solve unsolved problem innovatively”(2) Mary K- “to give unlimited opportunity to women”(3) Wal-Mart- “to give ordinary fold the chance to buy the same thing as rich people”9) Corporate culture (philosophy)a) The set of values ideas attitudes and behavioral norms that are learned and shared among the members of an organizationb) Determines which functions drives organizationc) Philosophy defines specific objectivesd) Measured by marketing metricsi) Marketing- >market shareii) Production- >productivityiii) Finance- >ROIiv) R&D- ># of patentsv) Selling- >sales volume10) Positioninga) A value creation planb) Establishment of the fundamental value that will be offered to market11) Customer valuea) The difference between the CONTRIBUTION a product or service makes to consumer’s ‘array of needs’ and the EXTRACTION from consumer’s resources requiredb) Clicker questioni) What has more value?(1) Oj/coffee(2) Coke/milk(3) Fruit/ tea(4) Oj/soda(5)