Marketing 6th Edition Grewal Solutions Manual
Marketing 6th Edition Grewal Solutions Manual
Manual
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Marketing 6th Edition Grewal Solutions Manual
Chapter 2
Developing Marketing Strategies and a Marketing Plan
Learning Objectives
A marketing strategy identifies (1) a firm’s target markets(s), (2) a related marketing mix (its four Ps), and
(3) the bases on which the firm plans to build a sustainable competitive advantage. Firms use four macro
strategies to build their sustainable competitive advantage. Customer excellence focuses on retaining
loyal customers and excellent customer service. Operational excellence is achieved through efficient
operations, excellent supply chain, and human resource management. Product excellence entails having
products with high perceived value and effective branding and positioning. Finally, locational excellence
entails having a good physical location and Internet presence.
A marketing plan is composed of an analysis of the current marketing situation, opportunities and threats
for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and
appropriate financial statements. A marketing plan represents the output of a three-phase process:
planning, implementation, and control. The planning phase requires that managers define the firm’s
mission and vision and assess the firm’s current situation. It helps answer the questions, “What business
are we in now, and what do we intend to be in the future?” In the second phase, implementation, the firm
specifies, in more operational terms, how it plans to implement its mission and vision. Specifically, to
which customer groups does it wish to direct its marketing efforts, and how does it use its marketing mix
to provide good value? Finally, in the control phase, the firm must evaluate its performance using
appropriate metrics to determine what worked, what didn’t, and how performance can be improved in the
future.
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SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis occurs during the
second step in the strategic planning process, the situation analysis. By analyzing what the firm is good at
(its strengths), where it could improve (its weaknesses), where in the marketplace it might excel (its
opportunities), and what is happening in the marketplace that could harm the firm (its threats), managers
can assess their firm’s situation accurately and plan its strategy accordingly.
LO2-4 Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts.
Once a firm identifies different marketing opportunities, it must determine which to pursue. To accomplish
this task, marketers go through a segmentation, targeting, and positioning (STP) process. Firms segment
various markets by dividing the total market into those groups of customers with different needs, wants, or
characteristics who therefore might appreciate products or services geared especially toward them. After
identifying the different segments, the firm goes after, or targets, certain groups on the basis of the firm’s
perceived ability to satisfy the needs of those groups better than competitors and do so profitably. To
complete the STP process, firms position their products or services according to the marketing mix
variables so that target customers have a clear, distinctive, and desirable understanding of what the
product or service does or represents relative to competing products or services.
LO2-5 Outline the implementation of the marketing mix as a means to increase customer value.
The marketing mix consists of the four Ps—product, price, promotion, and place—and each P contributes
to customer value. To provide value, the firm must offer a mix of products and services at prices their
target markets will view as indicating good value. Thus, firms make trade-offs between the first two Ps,
product and price, to give customers the best value. The third P, promotion, informs customers and helps
them form a positive image about the firm and its products and services. The last P, place, adds value by
getting the appropriate products and services to customers when they want them and in the quantities
they need.
LO2-6 Summarize portfolio analysis and its use to evaluate marketing performance.
Portfolio analysis is a management tool used to evaluate the firm’s various products and businesses—its
“portfolio”—and allocate resources according to which products are expected to be the most profitable for
the firm in the future. A popular portfolio analysis tool developed by the Boston Consulting Group
classifies all products into four categories. The first, stars, are in high-growth markets, and have high
market shares. The second, cash cows, are in low-growth markets, but have high market share. These
products generate excess resources that can be spun off to products that need them. The third category,
question marks, are in high-growth markets, but have relatively low market shares. These products often
utilize the excess resources generated by the cash cows. The final category, dogs, are in low-growth
markets and have relatively low market shares. These products are often phased out.
Firms use four basic growth strategies: market penetration, market development, product development,
and diversification. A market penetration strategy directs the firm’s efforts toward existing customers and
uses the present marketing mix. In other words, it attempts to get current customers to buy more. In a
market development strategy, the firm uses its current marketing mix to appeal to new market segments,
as might occur in international expansion. A product development growth strategy involves offering a new
product or service to the firm’s current target market. Finally, a diversification strategy takes place when a
firm introduces a new product or service to a new customer segment. Sometimes a diversification
strategy relates to the firm’s current business, such as when a women’s clothing manufacturer starts
making and selling men’s clothes, but a riskier strategy is when a firm diversifies into a completely
unrelated business.
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
A. Customer Excellence
B. Operational Excellence
C. Product Excellence
D. Locational Excellence
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
Answer: A marketing strategy includes a firm’s target market(s), a related marketing mix, and the
bases upon which the firm plans to build a sustainable competitive advantage.
2. List the four macro strategies that can help a firm develop a sustainable competitive advantage.
Answer: The four macro strategies that can help a firm develop a sustainable competitive
advantage include customer excellence, operational excellence, product excellence, and
locational excellence.
C. Step 3: Identify and Evaluate Opportunities Using STP (Segmentation, Targeting, and
Positioning)
1. Segmentation
2. Targeting
3. Positioning
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
4. Portfolio Analysis
a. Stars
b. Cash Cows
c. Questions Marks
d. Dogs
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
Answer: The five steps in creating a marketing plan are defining a business mission and
objectives, evaluating a situation analysis, identifying opportunities, implementing a marketing
mix, and evaluating performance using marketing matrics.
3. What is STP?
A. Market Penetration
B. Market Development
C. Product Development
D. Diversification
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
Answer: The type of strategy that grows a business from existing customers is market penetration
strategy.
Answer: The diversification strategy is the riskiest, because unrelated diversifications do not
capitalize on either core strengths associated with markets or with products.
1. The mission statement for The Estee Lauder Companies is “'Bringing the best to everyone we
touch'. By 'The best', we mean the best products, the best people and the best ideas. These
three pillars have been the hallmarks of our Company since it was founded by Mrs. Estee
Lauder in 1946. They remain the foundation upon which we continue to build our success
today." Harley-Davidson, Inc.'s mission statement is more straightforward: "We fulfill dreams
through the experience of motorcycling, by providing to motorcyclists and to the general
public an expanding line of motorcycles and branded products and services in selected
market segments." (both statements taken from:
https://www.missionstatements.com/fortune_500_mission_statements.html) These different
perspectives also reflect the quite different positioning adopted by each company. Visit the
websites of each manufacturer and review the descriptions of the company, its mission, and
its values. Do you believe these two disparate mission statements reflect what the firms do
and how they are portrayed in the media? Justify your answer.
Students should discuss the difference between the two mission statements and how they relate to both
Estee Lauder’s and Harley-Davidson’s company’s official descriptions.
About Harley-Davidson
Fulfilling dreams of personal freedom is more than a phrase. It’s our purpose and our passion. We bring
a commitment of exceptional customer experiences to everything we do—from the innovation of our
products to the precision of our manufacturing—culminating with our strong supplier and dealer networks.
We are Harley-Davidson.
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
2. More and more firms seem to be entering the dating service industry. Visit
www.eharmony.com and tour its website to find the types of activities and methods such
companies use to help match compatible couples. Then visit www.match.com and do the
same. What are the similarities and differences of these two online dating services? Pick one
and perform a SWOT analysis for it.
Students can apply what they have learned to a novel service area they might not have considered
before. To obtain an understanding of how a company like eHarmony attempts to match singles, students
must consider what factors affect online dating services in the guise of a SWOT analysis.
Positive Negative
STRENGTHS WEAKNESSES
Internal ♦ At-home convenience factor ♦ No guarantee that matches will be
♦ Multiple matching criteria good or safe
♦ Low client risk ♦ Requires client subscription to
enable communication between
matches
OPPORTUNITIES THREATS
External ♦ Use matching criteria for couples ♦ Many no-charge opportunities for
to provide inexpensive counseling singles to meet, online or off
♦ International expansion ♦ Potential for sexual predators to
use the service negatively
3. Black and Decker (www.blackanddecker.com) and DeWalt (www.dewalt.com) are owned by the
same parent company, and both sell similar products. Visit each of their websites and identify
what markets each brand targets. Next, discuss how the two companies use the marketing
mix differently to target these unique target markets.
National TV Advertising,
Promotion Field Marketing
Merchandising
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Marketing Applications
1. How have PepsiCo and Coca-Cola created sustainable competitive advantages for
themselves?
PepsiCo and Coca-Cola have created sustainable competitive advantages for themselves by building
brand awareness through strategic sponsorships, unique advertising campaigns, and efficient operations.
2. Perform a SWOT analysis for the company that made your favorite shoes.
Students’ answers will vary. Each answer should include strengths and weaknesses that are internal to
the shoe manufacturer and opportunities and threats that are external to the manufacturer. Strengths for
shoes might include: brand reputation, technology, fit. Weaknesses might include: lack of innovation,
poor promotions, etc. Opportunities might revolve around new markets, global expansion, and trends in
footwear. Threats might come from competitors, the economy, etc.
3. How does Coca-Cola segment its market? Describe the primary target markets for Coca-Cola.
How does it position its various offerings so that it appeals to these different target markets?
Geographic segmentation
Coca-Cola has a countrywide network of product distribution but the company segments more in urban
and suburban areas as compared to rural areas in the United States and does the same in other
countries.
Demographic segmentation
• Age: 15-25 years old and 40 plus
• Gender: targets both genders with a wide variety of drinks
• Income: segments different income levels, for example, by packaging
• Family size: offers various bottle sizes: 500ml, 1L, 1.5L, 2L pack. People can easily choose a
suitable pack based on their family size.
Psychographics segmentation
• People who are brand conscious will try to show their status by drinking Coca-Cola.
• Based on the level of education, the company can use ads to convey the company massage.
• Because Coca Cola is a recognized world brand, people will drink it without hesitation.
4. How does Hertz add value for business customers through the implementation of the four Ps?
Hertz positions itself as a quality car and truck rental company that is top of mind for its target segments.
One of Hertz’s primary market segments is business customers. Hertz uses the four P’s to create value
for its business customers:
• Product: Hertz uses its Prestige Collection, which features the Cadillac Escalade and Infiniti QX80, to
target business customers.
• Price: Hertz offers business customers special deals and discounts for business travel. In addition,
business customers can sign up for Hertz’s loyalty rewards program for further discounts.
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
• Promotion: Hertz uses marketing communications to tell their business customers that Hertz will help
them enjoy their journey and reduce their travel time.
• Place: Hertz makes it easy for business customers to rent cars on business travel. Business
customers are allowed to go through a separate line, or often bypass the lines altogether, to be on
their way faster.
5. Dyson successfully sells its fans and heaters for $150 to $400, whereas most conventional
fans sell for around $25. Explain what is the value it creates and how this affects the price it
can charge.
Dyson fans and fan heaters draw in and redirect surrounding air without potentially dangerous or fast
spinning blades or visible heating elements. These sculpturally beautiful appliances are perceived by
consumers to be a valuable alternative to products that haven’t significantly changed since the early
1900s.
6. Of the four growth strategies described in the chapter, which is the riskiest? Which is the
easiest to implement? Why?
Of the four growth strategies, diversification is the riskiest because it involves significant reallocation of
resources. Diversification requires firms to invest in both new products and new markets. Market
penetration is probably the easiest to implement because it requires initiatives to get more of your current
customers to purchase more of your current products. Programs that offer sales, discounts, two-for-one,
or BOGO specials can assist in a market penetration strategy.
7. Choose three companies. You believe the first builds customer value through product
excellence, the second through operational excellence, and the third through customer
excellence. Justify your answer.
Customer excellence is achieved when a firm develops value-based strategies for retaining loyal
customers and provides outstanding customer service. Students may provide examples of local firms or
larger firms such as Nordstrom, Amazon.com, Zappos.com, and Ritz-Carlton. Firms that have a
competitive advantage through product excellence have products with high perceived value and effective
branding and positioning. Students might choose companies like Coca-Cola, Nike, and Apple.
Operational excellence occurs through efficient operations and excellent supply chain and human
resource management. Companies with operational excellence include Dell, Toyota, and Walmart.
Students should justify their answers.
8. You are in the job market and have received offers from three very different firms. Develop a
marketing plan to help market yourself to prospective employers.
Answers will vary based upon the three companies the student selects. The student should include
details in each of the following areas:
1. Executive summary
2. Company overview
3. Objectives or goals
4. Situation analysis
5. Market/product/customer analysis
6. Marketing strategy
7. Financial projections
8. Implementation plan
9. Evaluation and control metrics
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Quiz Yourself
1. After a firm has conducted a SWOT analysis, it would typically progress to the next step of marketing
planning, which is _______ and involves using STP (segmentation, targeting, and positioning).
2. Which of the following is a marketing metric that might be used to evaluate the performance of a
company's implementation of its marketing plan?
1. Perform a SWOT analysis for Starbucks and Dunkin’ Donuts. Based on your analysis, in
which company would you invest? Justify your answer.
Positive Negative
STRENGTHS WEAKNESSES
Internal • Ubiquitous Stores ♦ High Prices
• Social Marketing Channels
OPPORTUNITIES THREATS
External ♦ Growing Market ♦ New competitors (McDonald’s and
Taco Bell)
Positive Negative
STRENGTHS WEAKNESSES
Internal ♦ Strong sponsorships ♦ Lower number of locations
♦ DoorDash
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
OPPORTUNITIES THREATS
External ♦ Growing Market ♦ New competitors (McDonald’s and
Taco Bell)
2. Which growth strategies have been pursued by Starbucks and Dunkin’ Donuts in the past?
Which strategies do you believe will be most successful for the two firms in the future? Why?
Starbucks: Starbucks connects with fans through social marketing channels, including its popular
My Starbucks Idea site. New capabilities available through the apps will allow greater
connections for the company.
Dunkin’ Donuts: Through partnerships with sports teams (e.g., “Pats Win, You Win) Dunkin’ Donuts
encourages consumers to interact more closely with it. The popular, vastly successful
promotion will continue to bring fans to its stores.
3. Which marketing metrics would be most helpful for an executive in charge of developing new
products for a coffee chain?
Students will answer with different metrics. Some commonly used metrics to assess performance include
revenues, or sales, and profits. An attempt to maximize one metric may therefore lower another. Thus,
managers must understand how their actions affect multiple performance metrics. The metrics used to
evaluate a firm vary depending on (1) the level of the organization at which the decision is made and (2)
the resources the manager controls.
The utility of the marketing plan must be conveyed throughout the course. Teach students that the
marketing plan is a subset of the business plan that forms the foundational strategy of business.
Students come to realize the importance of the marketing plan when the instructor frequently makes
connections to its purpose not only on the day the concept is taught but also throughout the course.
Customer value is a difficult concept for students to grasp. Instructors may want to ask students to write
down something they find of value and what aspects lead to creating that value. The instructor can then
ask what they would trade for that value. It is important that instructors communicate that value is more
than monetary worth and can’t easily be measured. As a result, marketers must conduct target market
research in order to create the value proposition of their marketing strategy.
The SWOT matrix may be easily demonstrated by dividing your class into groups and having each group
contribute one item to each of the four quadrants using the college they are attending (common ground
for all students) or a major chain food (such as McDonald’s) so that all students are familiar with the
strengths, weaknesses, opportunities, and threats that may apply. Students can work as a group and then
each group may put their items on the whiteboard to form a collective classroom SWOT. Instructors
should then make the link that the opportunities and strengths should filter into the marketing message
delivered in advertising campaigns and other marketing tools. Online tip: Instructors may want to divide
their class by last name A-E Strengths, F-J Weaknesses, and so forth to answer a discussion board
question using the same concept. Students could then complete an individual SWOT as an assignment.
Another option would be to use the same concepts and integrate it as an online team assignment where
each team forms their respective completed SWOT.
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Connect Activities
Activity
Introduction: Firms like Disney plan their marketing strategies to adjust to changes in the
environment, the competition, and their customers. Effective marketing doesn’t just happen.
Concept Review: The strategic marketing planning process represents a set of steps a marketer
goes through to develop and implement a strategic marketing plan. The three major phases of the
process are planning, implementation, and control.
Follow-Up Activity
Assign and discuss the following article: “At Disney Parks, a Bracelet Meant to Build Loyalty (and Sales),”
by Brooke Barnes, New York Times, published 1/7/2013:
http://www.nytimes.com/2013/01/07/business/media/at-disney-parks-a-bracelet-meant-to-build-loyalty-
and-sales.html?_r=0
This article describes the “MyMagic+” bracelet that is one key element of Disney’s technology upgrade
program. In addition to improving the customer experience, discuss how it also benefits Disney by
providing customer information that can be used both to understand customer behavior in the parks (a
form of marketing research) and also to improve service to individual customers (as part of a customer
relationship management program).
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Activity
Introduction: The 4 Ps—product, price, promotion, and place—are functions retailers use to create
value for their customers. Staples, Inc. successfully integrates the 4 Ps with its “easy” brand promise.
Its ability to execute the 4 Ps seamlessly within the parameters of this brand promise helps to make
Staples successful.
Concept Review: The marketing mix consists of the four Ps—product, price, promotion, and place—
and each P contributes to customer value. To provide value, the firm must offer a mix of goods and
services at fair prices in the eyes of its target market. Firms make trade-offs between product and
price, help customers to form a positive image about the firm and its products, and get the
appropriate goods and services to customers when they want them and in the quantities they need.
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activities
Discuss how the Staples “Easy” brand promise helps the company to compete with online-only sellers
of office supplies like Amazon.com. Examples: the Staples branded products help Staples to stock
lower-priced products; making products like paper and toner easily available at the front of
conveniently located stores with plenty of parking offers convenience.
Choose a successful restaurant chain (Chipotle or Chick-fil-A would be good selections in the U.S. as
they tend to be popular with students) and ask for examples of each of the four Ps in the chain’s
strategy.
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Activity
Introduction: HSN (Home Shopping Network) is a $2.8 billion multichannel retailer, using television,
e-commerce, m-commerce, catalogs, and brick and mortar stores. They have recently launched apps
for all major smartphones. HSN currently reaches 90 million homes, 24 hours a day, 7 days a week,
365 days a year. Managing their marketing efforts and staying on top of the competition requires
careful and ongoing strategic planning and implementation.
Concept Review: A marketing strategy is the actions a firm intends to implement to appeal to
potential customers. A successful strategy identifies (1) a firm’s target markets; (2) a related
marketing mix—its 4 Ps; and (3) the basis on which the firm plans to build a sustainable competitive
advantage. HSN (Home Shopping Network) is one example of a firm that has very successfully
implemented its strategy using multichannel marketing efforts. Understanding how HSN has
implemented a successful marketing strategy helps us identify the different components of that
strategy. HSN continually monitors opportunities and threats and reevaluates their strategies in
response to these.
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activities
• Students can research some of HSN’s recent initiatives to see how the company is currently using
lifestyle programming to attract attention to its products. As of this writing, there are two initiatives that
are very much consistent with HSN’s lifestyle strategy:
o A multi-film agreement with Disney to hold shopping events promoting films of interest to HSN’s
target market: http://www.hollywoodreporter.com/news/disney-strikes-multi-film-partnership-
694720
o HSN’s “Live in Concert” series, featuring various artists in conjunction with sales of their music.
• Suppose that HSN decided to launch a second channel with men who are sports fans as the target
market. How would its strategy be different from the current HSN channel’s strategy?
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Activity
Introduction: Recently, a Domino’s pizza franchise in southwest Ohio made the strategic decision to
stay open 24 hours a day. The manager, Steve Martin, made this decision about a month ago in
response to increased demand for Domino’s pizza. Other Domino’s franchise owners are now
considering adopting a similar strategy. In this activity, you will categorize a set of statements
regarding activities in the internal and external environments as they relate to Domino’s pizza, and a
potential initiative of staying open 24 hours a day. These statements will identify either a Strength,
Weakness, Opportunity, or Threat.
Concept Review: Developing a marketing plan consists of five steps. The second step in the
process, after developing a mission statement, is to conduct a situation analysis, using the SWOT
framework. This tool allows firms to assess both the internal environment (strengths and
weaknesses) and the external environment (opportunities and threats).
Activity
Introduction: The letter arrived in millions of e-mail boxes simultaneously in November of 2010.
Reed Hastings, the CEO of Netflix, announced in excited tones the latest innovation by the company
that had revolutionized the movie rental industry. But the response was not quite what he, or Netflix
shareholders, had expected. Since that time, Netflix has recovered and gone on to renewed success
and new challenges; however, the series of events, before and after, offers a clear lesson in how a
failure to sufficiently plan for marketing strategy changes can backfire on even the most successful of
companies.
Concept Review: A marketing strategy identifies (1) a firm's target market(s), (2) a related marketing
mix—its four Ps, and (3) the bases on which a firm plans to build a sustainable competitive
advantage. Firms develop marketing plans to formalize their marketing strategies. One important
element in formulating a marketing plan is to do a situation analysis, also known as a SWOT analysis.
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Following the analysis, firms need to segment their market, target which segments they will serve,
and develop a position that communicates a clear understanding of the market offering. They should
then implement the marketing mix; the four Ps. Finally, they should use various marketing metrics to
evaluate the results of their strategies. There are also four growth strategies firms can implement to
increase their market share.
Follow-Up Activity
Netflix recovered quickly from its misstep; it’s worth reviewing what has happened since the end of the
case write-up, and then discussing the challenges Netflix faces in the future. Students could be asked to
research this topic themselves, or you can use these articles:
“How Netflix Reinvented Itself,” by Peter Cohan, Forbes, 4/23/13.
http://www.forbes.com/sites/petercohan/2013/04/23/how-netflix-reinvented-itself/
“Netflix Ends Huge Year with Price Shift and Executive Raises,” by Nick Summers, Business Week,
12/31/2013. http://www.businessweek.com/articles/2013-12-31/netflix-ends-huge-year-with-price-
shift-and-executive-raises
Activity
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
Review a section of the Spirit Airlines website to learn more about their strategy and how the website
reflects it. Two suggestions based on the website as it exists when I’m writing this:
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
SWOT Analysis:
Ford Motor Company & Fiat Chrysler Automobiles
Activity
Introduction: SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT analysis
evaluates what a firm is good at, where it could improve, where in the marketplace it might excel, and
what events in the marketplace could potentially harm the firm. This activity is important because it
demonstrates how integral SWOT analysis is to the strategic planning process.
Activity
Introduction: Starbucks and Dunkin’ Donuts are the two largest competitors in the coffee and
breakfast retail market. Their approaches to competing in this market are described in the case. This
activity is important because a strong marketing strategy—one that helps to build a sustainable
competitive advantage—is the basis for all marketing activities.
Follow-Up Activity
Look at the Dunkin’ Donuts and Starbucks websites in class. Consider their active promotions; are they
consistent with the strategies discussed in the case?
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Chapter 2 - Developing Marketing Strategies and a Marketing Plan Marketing 6th
Difficulty: Easy
Activity Summary: This video case views marketing strategy from the perspective of the owner of an
independent coffee shop, as she considers working through the different phases of a marketing plan
for her shop.
Activity
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
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McGraw-Hill Education.
Chapter 2
Developing Marketing Strategies
and a Marketing Plan
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Learning Objectives
4
© McGraw-Hill Education
The Marketing Plan
6
© McGraw-Hill Education
Step 1: Define the Business Mission
7
© McGraw-Hill Education
Step 2: Conduct a Situation Analysis
(1 of 2)
Environment Evaluation
Positive Negative
Pepsi Internal Strengths Weakness
• Brand product • Relatively lower brand
portfolio awareness
• Strong celebrity • Water source for bottled
endorsers water
• Dedication to
charitable and social
causes
External Opportunity Threats
• Emerging countries • Water scarcity
• Health food segments • Changes to labeling
• Bottled water regulations
• Increase competition
8
© McGraw-Hill Education
Step 2: Conduct a Situation Analysis
(2 of 2)
Environment Evaluation
Positive Negative
Coca- Internal Strengths Weakness
Cola • Very strong brand • Over-reliance on
• Strong global carbonated drinks
presence • Negative sugar-related
• Excellent customer publicity
loyalty
External Opportunity Threats
• Emerging countries • Water scarcity
• Potential market
saturation
• Changes to labeling
regulations
9
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Step 3: Identifying and Evaluating
Opportunities Using STP
Segmentation
Targeting
Positioning
10
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Step 4: Implement Marketing Mix and
Allocate Resources
Product Price
Value Creation Value Capture
11
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Product and Value Creation
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Price and Value Capture
13
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Place and Value Delivery
14
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Promotion and Value Communication
• Advertising
• Personal selling
• Sales promotion
• Public relations
• Direct marketing
• Online marketing (including
social media)
15
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Step 5: Evaluate Performance
and Make Adjustments
P&G
Website
17
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Growth Strategies
19
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Product Development
20
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Diversification
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PROGRESS CHECK (3 of 3)
22
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Glossary
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Image Descriptions
Appendix
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Appendix 1 Sustainable Competitive
Advantage
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Appendix 2 The Marketing Plan
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Appendix 3 Step 5: Evaluate Performance
and Make Adjustments
A square is divided into four equal quadrants. The vertical axis, market
growth rate, is labeled high on the upper end and low on the lower end.
The horizontal axis, relative market share, is labeled high on the left
side and low on the right side. The quadrants are labeled as follows:
Stars. High market growth rate. High relative market share.
Question marks. High market growth rate. Low relative market share.
Cash cows. Low market growth rate. High relative market share.
Dogs. Low market growth rate. Low relative market share.
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Appendix 4 Growth Strategies
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Marketing 6th Edition Grewal Solutions Manual
Marketing
Chapter 2
The End
The End
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