MKTG 311 1st Edition Lecture 2 Outline of Last Lecture I. What is marketing?II. Simple Model of the Marketing Process1. Understand the marketplace and customer needs and wants2. Design a customer-driven marketing strategy3. Construct an integrated marketing program that delivers superior value4. Build profitable relationships and create customer delight5. Capture value from customers to create profits and customer equityOutline of Current Lecture I. Business PlanningII. Marketing PlansIII. 3 Levels of Business PlanningIV. Strategic Business/ Planning UnitV. Strategic Planning StepsCurrent LectureI. Business Planning- Series of decisions that guide a business (roadmap) 1-5 years. [Strategic]o Company Overviewo Description of products/serviceso Management teamo Market analysiso Mini marketing plano Resourceso Financial plano Operations planII. Marketing Plans- Describes the marketing environment. It outlines the marketing strategies. Discusses how the strategies will be implemented, monitored and controlled. [Functional]III. 3 Levels of Business Planning1. Strategic: Conducted by top level managers. Looks at the overall big picture. Looks at overall long term growth.These 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.2. Functional: Conducted by mid-level managers. Includes various functional areas such as marketing! Includes a 5 year plan in support of the strategic plan, plus a detailed annual plan.3. Operational: Conducted by first line managers. Focuses on the day to day execution of the functional plan. Includes a detailed annual plan, semi-annual and quarterly plan.IV. Strategic Business/ Planning Unit- Planning today involves multi-product companies with self- contained divisions (like SBU’s- Strategic Business Units) organized around products/brands.- Each SBU has their own mission statement, objectives, managers, resources, competitors. Example- Disney’s 5 Strategic Business UnitsV. Strategic Planning Steps1. Define the Organization’s Mission- What makes a good mission statement?o Market Orientedo Is centered on the customer’s needso Specific and Realistico Fit the market environment. Example- Girl Scoutso Address the firms distinctive competencieso Motivating!*Social element- Reflects an ideal that is morally right and worthwhile.2. Set company or SBU’s objectives- They are an outgrowth of the mission statement, objectives tell us what the firm hopes to accomplish. Objectives are SMART (Specific, Measureable, Achievable, Realistic, Time Based) based.- Types of objectives: Profitability, sales, market shares, quality, customer satisfaction.- Step 2 also includes evaluating the internal/external environmento Internal environment- Strength and weaknesses. Controllable elements inside the firm, affect how well the firm operates. Examples- physical facilitates, relationship with suppliers, financial stability, and corporate cultures.o External environment- Opportunities and threats. Elements outside the firm affect it positively/negatively. Examples- Consumers, economy, competition, government, cultural trends.3. Design the Business Portfolio- 2X2 Matrix- Developed by BCG (Boston Consulting Group) helps the firm determine how to best allocate resources.Stars- This is a product that takes off, high market shares, high market growth. Example- Chevy CruzeQuestion Marks- Low market share, potential for high market growth. Example- Chevy SonicDogs- Low market share, low market growth. Example- Saturn Oldsmobile PontiacCash Cows- Main stay products, low market growth, high market share. Example- Cadillac Corvette