MKT 327: CLASS FIVE “OVERVIEW OF PLANNING PT. 1”Theme: ‘Outplay, Outwit, and Outlast’Pre-Class Tasks:1. Read Chapter 2 LO to LO2. Complete Quiz4 on ConnectLearning Objectives:1. Core Aspects of Strategy2. The Role of Marketing in Planning 3. Corporate VisionKey Terms:1. Types of Organizationsa. Business Firms (for profit)b. Non-profit2. StrategyCore Components: a. Unique position b. Competitive advantages c. AdaptabilityDual Paths: a. Acquisition strategies b. Retention strategies3. Organizational Levelsa. Corporateb. Strategic Business Unit (SBU)c. Functional4. Corporate Visiona. Core Valuesb. Missionc. Corporate Philosophy (Culture)d. Objectives5. Marketing Goals (objectives)a. Profit and/or R.O.I.b. Salesc. Market ShareThere are two basic types of organizations based on their inherent goals. A business or ‘for-profit’ organization has the goal of profit or shareholders’ wealth. Non-profit organizations have the goal of operating efficiency in achieving some social goal or constituency satisfaction. The ultimate goal of any organization though is to SURVIVE. It does so through its strategic planning process that maintains a favorable market position and sustainable competitive advantages, and most of all adapt. (These are the three core aspects of strategy). Marketing plays a role in an organization’s planning process at three separate levels: corporate, SBU, and functional levels. At the corporate level, the role of marketing is to help establish the organization’s vision.At the SBU level, the role of marketing is to communicate customer’s needs and wants, create value,and help the organization operate more efficiently and effectively. This role is typically referred to as the marketing concept.At the functional level marketing strategy takes dual paths. One path is acquisition, the other retention. Needs are recognized and turned into wants and demands, and thus the initial acquisition of a customer. Once a customer has been acquired customers are kept satisfied long enough for them to become loyal and thenturned into relationships. Thus customers are retained long term (retention). Looking more specifically at the corporate level, two aspects of vision are why the organization exists (core values, mission, and culture or corporate philosophy); and what direction it hopes to take to achieve that mission and maintain that culture (goals and strategic direction).d. Growth Ratee. Quality / Product Patentsf. Customer Satisfaction- Planning: Ultimate goalFirm’s adapt through strategic planning- Strategy is the long-term course of action that delivers a unique customer experience (position) while achieving its goal.- Core components:I. Positioning (Value proposition)II. Competitive advantagesIII. Adaptability (Fit with environment)- Corporate level strategic plan- Set overall organizational Vision and direction - Strategic business units (SBU’S) level strategic plan- Select value creating opportune, select target segments & strategic direction -- The Role of marketing in developing strategy- Provide Vision- Provide intelligence for competitive advantage- Develop and achieve desired position- Marketing PlanA written document for business unit/profit center providing guidelines for achieving strategic position & efficiency in marketing programs to achieve competitive advantages & Long Term performance goals- Corporate visionThe desired Image of the company in the Minds Vision- Organizational foundation- Core Values- Mission - Culture- Organizational direction- Business Def.- Objectives- Organizational SBU Strategies- Allocate resources- Marketing plans - Core value- Mission: A motivating statement defining the organization’s purpose.- Mission statement:a) Clearb) Concisec) Meaningfuld) Inspirational, ande) Long-term- Corporate culture (Philosophy)- The set of values, ideas, attitudes, and behavioral Norms that are learned and shared among the members of an organization.- Determines which function drives organization Philosophy defines specific objectives Measured by marketing metricsMarketing Market shareProduction ProductivityFinance R.O.I. R & D # of PatentsSelling Sales Value- Positioning A value creation planEstablishment of the fundamental value that will be offered to Market- Customer valueThe Difference between the contribution a product or service makes to consumer’s “Array of needs” and the Extraction from consumer’s resources