Chapter14 Fs

26-02-2024
Chapter-14
Learning Objectives
LO1 Know the role of marketing in strategic
planning.
LO2 Explain the strategic planning process at
business unit level in a B2B marketing company.
LO3 Describe how to develop a business marketing
plan, including the marketing strategy.
LO4 Discuss implementation and control aspects of
the marketing plan.
LO5 Illustrate ethical issues in B2B marketing.
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Chapter-14
The Role of Marketing (ROM) in Strategic

Planning
At the three organizational levels, the ROM is as follows
- Corporate level (Strategic management)
• To provide customer and competition information.
• To advocate customer orientation.
- Business unit/SBU (Strategic Business Unit) level
(Strategic management)
• To Provide customer and competition analysis.
• To develop competition advantage, STP (segmenting, targeting and
positioning), and product strategies.
• To help in developing long-term business strategy.
- Functional (Operations management) level.
• To evolve and implement the marketing-mix-strategies.
• To coordinate marketing and related activities.
• To allocate resources to marketing elements.
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Chapter-14
Strategic Planning Process at Business Unit Level

It Consists of the following steps:
1. Define the business unit’s (or SBU’s) mission.
2. Scanning the external environment (for
opportunities/threats analysis).
3. Analyzing the internal environment (for strengths and
weaknesses analysis).
4. Developing objectives and goals.
5. Formulating long-term strategies at business unit level.
6. Developing a short-term business marketing plan,
strategies and action plan.
7. Implementing and controlling the marketing plan.
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Chapter-14
Formulating Strategies at Business Unit Level

Porter’s three generic competitive strategies are:
- Overall cost leadership
- Differentiation
- Focus
Strategic (competitive) Advantage
Uniqueness
Low-cost
perceived by
position
Strategic
customers
Target
Industry Differentiation Overall Cost

Wide
Leadership
Particular
segment only Focus
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Chapter-14
Developing Business Marketing Plan , Including
the Marketing Strategy
• A marketing plan is developed at functional level. It
indicates how a firm plans to reach its marketing
objectives. Generally, it covers one year period.
• Marketing plan is an output of marketing planning
process, which includes the following steps:
- Analyzing marketing situations.
- Segmenting, selecting target market segments, and
positioning.
- Developing marketing-mix strategies.
- Implementing and controlling the marketing plan.
• Marketing planning processes and contents differ among
B2B marketing firms.
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Chapter-14
The Content of Business Marketing Plan:

- Situational (environmental, market, competition, product) analysis
- SWOT and issues analysis.
- Objectives and goals.
- Marketing strategy.
- Action plan.
- Marketing budget.
- Implementation and control.
- Contingency plan.
The Marketing Strategy includes:
• Selection of target segments.
• Positioning strategy.
• Marketing-mix strategies (4Ps).
• Branding
• Customer service.
• Marketing research.
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Chapter-14
Implementing the Marketing Plan

• A good marketing plan fails to achieve its objectives, if
it is not implemented properly.
• Implementation of marketing plan includes:
- Converting marketing strategy into action plan.
- Action plan identifies a person for each activity/action,
activity completion data (by when), and the cost.
- Action plan is monitored and corrective actions taken
regularly.
- Get the right people for implementation of the plan.
• Skill required for effective implementation:
- Allocating, monitoring, organizing and interacting.
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Chapter-14
Controlling the Marketing Performance

• The process of marketing performance control consists of four
steps:
- Setting goals or targets.
- Measuring actual performance.
- Analyzing deviations between actual performance and
goals set and finding causes of major deviations.
- Taking corrective actions.
• Types of marketing performance control
- Strategic: To review long-term goals and effectiveness
- Annual-plan: To examine if annual goals are being achieved.
- Efficiency: To find out how resource are used.
- Profitability: To review where the firm is making profits/losses.
• Out of various tools used for marketing performance control, we
will examine two tools in the next slide.
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Chapter-14
Controlling the Marketing Performance (Continued)

Two major tools used for marketing performance control are:
(i) marketing audit, (ii) sales analysis.
Marketing Audit
• It is used for strategic control of a firm’s marketing activities.
• Independent consultants do better audit than in-house company team.
• Major marketing areas are examined-like strategy, organization, systems.
• Aim is to identify problems and opportunities and recommend an action
plan in order to improve marketing performance.
Sales Analysis
• It is used for evaluating the effectiveness of a company’s sales
organization.
• Many alternatives are available for doing sales analysis. These are
grouped in three areas: (i) all levels in the sales organization, (ii) different
types of sales and (iii) different types of analysis.
• The company management needs to decide which type of sales analysis
is required.
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Chapter-14
Ethical Issues in B2B Marketing
• There are instances of unethical behavior of some B2B firms.
Example: EU fines Siemens, Alstom, Areva for price-fixing.
• Certain business or marketing practices are unethical or illegal.
These include bribery, stealing trade secrets, price-fixing, and
false warranties.
• Today, unethical companies are at greater risk of being exposed,
since a disgruntled customer can reach thousands of people on
the internet.
• The following steps are needed to ensure ethical behavior:
(i) Define those practices that are illegal or unethical.
(ii) Companies must adopt a code of ethics and build a
tradition of ethical behavior with senior executives setting
right examples.
(iii) Individual sales and marketing persons must practice
ethics in their dealing with customers and other stakeholders.
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Chapter14 Fs

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Chapter14 Fs

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26-02-2024

The Role of Marketing (ROM) in Strategic

Strategic Planning Process at Business Unit Level

Formulating Strategies at Business Unit Level

Industry Differentiation Overall Cost

The Content of Business Marketing Plan:

Implementing the Marketing Plan

Controlling the Marketing Performance

Controlling the Marketing Performance (Continued)

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