Please use CoreLogic as the company.. In which you will be discussing the Property Tax Estimator to answer the below questions.Watch the videos, read the textbook chapters, and read or listen to the lectures for this week. Now describe how you would design a focus group research session for your chosen company and refer to page 39 in your textbook. Include information on the following:How many people would be in the focus group?What are the demographics and psychographics of your targeted audience?What topics would you discuss with the focus group to gain insight into your targeted audience?Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates by Sunday, midnight of your time zone.Chapter 2 & 3 are provided along with Lectures 1 & 2. Please note that references must be provided and must come from the weekly readings. Here is CoreLogic’s website :…Please also provide a response to the below peer Hank:Good evening Professor Robinson and class,My organization provides professional services to Army program and product managers to support equipping the Services with up to date technology. The goal of our focus group would be to appreciate the issues that most concern our customers. We have to take an exploratory approach to get more in-depth information about our customers’ second and third order requirements (Kotler, 1, pg. 39). In the competitive bidding process, our customers typically provide a broad list of capabilities and qualifications they are seeking. We will differentiate from our competition by solving the deeper concerns that are unstated in the customer request and difficult to discern without intimate knowledge of the business case. Gaining insights from our customer through focused interaction will inform how we market our capabilities in pursuit of contract awards (Flatley, 2). The ideal composition of a focus group would is six (6) to eight (8) managers (Lecture Two, 3, pg. 5; Kotler, 1, pg. 39). The nature of our industry, however, usually prevents us from organizing a panel of more than one or two project and program managers. My focus group will be disaggregated, but the experience gained from one interview can help us gather deeper insights at the next. Our desired demographic profile is a broad range of expertise from first-time project managers to experienced program managers (Lecture One, 4, pg.6). Conducting several one to two person interviews we will gain insights into the different aims, ambitions, anxieties, and hot buttons of managers from small to large projects. We are seeking qualitative insight into the customers’ priorities as they select the awardee (Lecture Two, 3, pg. 4). We will ask about the next phase of their projects, and where the project manager perceives the most risk – budget, technical, or schedule. We will also learn about past failures and success in their experience. Where has this kind of effort gone wrong, and why? Where has it gone very right, and why? These topics will draw out the risks and opportunities that are most forward in our customers’ minds.




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Chapter 2
Developing and
Implementing Marketing
Strategies and Plans
In this chapter, we will address the following questions:
1. How does marketing affect customer value? (Page 19)
2. How is strategic planning carried out at different organizational levels? (Page 21)
3. What does a marketing plan include? (Page 26)
4. How can companies monitor and improve marketing activities and performance? (Page 28)
Marketing Management at Hewlett-Packard
A true technology pioneer, Hewlett-Packard (HP) has encountered much difficulty in recent years, culminating in a massive quarterly charge of more than $9.5 billion in 2012. Of that total, $8 ­billion was a
write-down in the value of its IT services unit as the result of a disastrous acquisition of EDS. Revenue
for the unit dropped when customers stopped signing large, long-term outsourcing contracts that were at
the core of the unit’s business model. In a maturing market with few good new products, PC sales slowed
so much that HP announced it was exiting the business. Printer and ink sales dropped as consumers began to print less. CEO Meg Whitman vowed to increase the company’s emphasis on design, reorganizing
the PC group to come up with a cleaner, minimalist sensibility. Admitting that the company did not yet
have a strategy for mobile phones, Whitman acknowledged there was much work to be done.1 Therefore,
HP is revising its corporate strategy to reflect all these significant changes in the marketing environment.
eveloping the right marketing strategy requires a blend of discipline and flexibility. Firms
must stick to a strategy but also constantly improve it. In today’s fast-changing marketing
world, identifying the best long-term strategies is crucial—but challenging—as HP has been
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Chapter 2   Developing and Implementing Marketing Strategies and Plans
finding out. This chapter examines some of the strategic marketing implications in creating customer value, planning for marketing, and assessing marketing performance.
Marketing and Customer Value
The task of any business is to deliver customer value at a profit. A company can win only by
fine-tuning the value delivery process and choosing, providing, and communicating superior
value to increasingly well-informed buyers.
The Value Delivery Process
The traditional—but dated—view of marketing is that the firm makes something and then sells it,
with marketing taking place during the selling process. Companies that take this view succeed only
in economies marked by goods shortages where consumers are not fussy about quality, features, or
style—for example, basic staple goods in developing markets.
In economies with many different types of people, each with individual wants, perceptions,
preferences, and buying criteria, the smart competitor must design and deliver offerings for welldefined target markets. This realization inspired a new view of business processes that places
marketing at the beginning of planning. Instead of emphasizing making and selling, companies
now see themselves as part of a value delivery process.
The value creation and delivery sequence consists of three phases.2 In the first phase, choosing
the value, marketers segment the market, select the appropriate target, and develop the offering’s
value positioning. The formula “segmentation, targeting, positioning (STP)” is the essence of
strategic marketing. The second phase is providing the value through identifying specific product features, prices, and distribution. The third phase is communicating the value by utilizing the
Internet, advertising, sales force, and other communication tools to announce and promote the
product. The value delivery process begins before there is a product and continues through development and after launch.
The Value Chain
Harvard’s Michael Porter has proposed the value chain as a tool for identifying ways to create
more customer value.3 According to this model, every firm is a synthesis of activities performed
to design, produce, market, deliver, and support its product. Nine strategically relevant activities—
five primary and four support activities—create value and cost in a specific business.
The primary activities are (1) inbound logistics, or bringing materials into the business;
(2) operations, or converting materials into final products; (3) outbound logistics, or shipping
out final products; (4) marketing, which includes sales; and (5) service. Specialized departments handle the support activities—(1) procurement, (2) technology development, (3) human
resource management, and (4) firm infrastructure (including general management, planning,
finance, accounting, legal, and government affairs).
The firm’s task is to examine its costs and performance in each value-creating activity,
­benchmarking against competitors, and look for ways to improve. Even the best companies can
benchmark, against other industries if necessary, to improve their performance. The firm’s success
depends not only on how well each department performs its work but also on how well the company
coordinates departmental activities to conduct core business processes.4 These processes include:
• The market-sensing process—gathering and acting upon information about the market
• The new-offering realization process—researching, developing, and launching new highquality offerings quickly and within budget
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Part 1   Understanding Marketing Management
• The customer acquisition process—defining target markets and prospecting for new
• The customer relationship management process—building deeper understanding of, relationships with, and offerings for individual customers
• The fulfillment management process—receiving and approving orders, shipping goods on
time, and collecting payment
Strong companies are reengineering their work flows and building cross-functional teams
to be responsible for each process.5 Ford established a cross-functional team to help reduce water
usage per vehicle by 30 percent.6 A firm also needs to look for competitive advantages beyond its
own operations in the value chains of suppliers, distributors, and customers. Many companies have
partnered with specific suppliers and distributors to create a superior value delivery network, also
called a supply chain.
Core Competencies
Companies today outsource less-critical resources if they can obtain better quality or lower cost.
The key is to own and nurture the resources and competencies that make up the essence of the
business. A core competency has three characteristics: (1) it is a source of competitive advantage
and makes a significant contribution to perceived customer benefits; (2) it has applications in a
wide variety of markets; and (3) it is difficult for competitors to imitate. Competitive advantage
also accompanies distinctive capabilities or excellence in broader business processes. Wharton’s
George Day sees market-driven organizations as excelling in three distinctive capabilities: market sensing, customer linking, and channel bonding.7
In terms of market sensing, Day believes tremendous opportunities and threats often begin
as “weak signals” from the “periphery” of a business.8 He suggests systematically developing peripheral vision by asking three questions related to learning from the past, evaluating the present,
and envisioning the future. Over time, businesses may need to realign themselves to maximize
core competencies, by (re)defining the business concept or “big idea,” (re)shaping the business
scope, and (re)positioning the company’s brand identity.
The Central Role of Strategic Planning
Marketers must prioritize strategic planning in three key areas: (1) managing their businesses
as an investment portfolio, (2) assessing the market’s growth rate and the company’s position
in that market, and (3) establishing a strategy. Most large companies consist of four organizational levels: corporate, division, business unit, and product. Corporate headquarters designs
a corporate strategic plan to guide the whole enterprise; it makes decisions on the amount of
resources to allocate to each division as well as on which businesses to start or eliminate. Each
division establishes a plan covering the allocation of funds to each business unit within the
division. Each business unit develops a strategic plan to carry that business unit into a profitable future. Finally, each product level (product line, brand) develops a marketing plan for
achieving its objectives.
The marketing plan is the central instrument for directing and coordinating the marketing effort, operating at both the strategic and tactical levels. The strategic marketing plan lays
out the target markets and the firm’s value proposition, based on an analysis of the best market
opportunities. The tactical marketing plan specifies the marketing tactics, including product
features, promotion, merchandising, pricing, sales channels, and service. The complete strategic
planning, implementation, and control cycle is shown in Figure 2.1.
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Chapter 2   Developing and Implementing Marketing Strategies and Plans
Figure 2.1 Strategic Planning, Implementation, and Control
Corporate planning
Measuring results
Division planning
Diagnosing results
Business planning
Product planning
Taking corrective
Corporate and Division Strategic Planning
All corporate headquarters undertake four planning activities: (1) defining the corporate mission,
(2) establishing strategic business units, (3) assigning resources to each unit, and (4) assessing
growth opportunities. These activities are discussed next.
Defining the Corporate Mission
An organization exists to accomplish something: to make cars, lend money, provide a night’s lodging. Over time, the mission may change to respond to new opportunities or market conditions. changed its mission from being the world’s largest online bookstore to aspiring to be
the world’s largest online store. To define its mission, a company should address Peter Drucker’s
classic questions:9 What is our business? Who is the customer? What is of value to the customer?
What will our business be? What should our business be? These simple-sounding questions are
among the most difficult a company will ever face. Successful companies continuously ask and
answer them.
A clear, thoughtful mission statement, developed collaboratively with and shared with
managers, employees, and often customers, provides a shared sense of purpose, direction, and
opportunity. Good mission statements focus on a limited number of goals, stress the firm’s major
policies and values, and define the major competitive spheres within which the firm will operate.
They also take a long-term view and are short, memorable, and meaningful. Table 2.1 shows key
competitive dimensions for mission statements along with examples.
Establishing Strategic Business Units
Large companies normally manage quite different businesses, each requiring its own strategy. A
strategic business unit (SBU) has three characteristics: (1) it is a single business, or a collection of
related businesses, that can be planned separately from the rest of the company; (2) it has its own
set of competitors; and (3) it has a manager responsible for strategic planning and profit performance who controls most of the factors affecting profit. The purpose of identifying the company’s
strategic business units is to develop separate strategies and assign appropriate funding. Senior
management knows its portfolio of businesses usually includes a number of “yesterday’s hasbeens” as well as “tomorrow’s winners.”
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Table 2.1
Defining Competitive Territory and Boundaries in Mission Statements
Competitive Dimension
Some companies operate only in one industry;
some only in a set of related industries; some only
in industrial goods, consumer goods, or services;
and some in any industry.
Caterpillar focuses on the industrial market; John Deere
­operates in the industrial and consumer markets.
Products and applications
The range of products and applications that a firm
will supply.
St. Jude Medical develops medical technology and services
for physicians.
The range of technological and other core
­competencies that a firm will master and leverage.
Japan’s NEC has core competencies in computing,
­communications, and components to support production
of ­laptop computers, ­television receivers, and handheld
Market segment
The type of market or customers that a company
will serve.
Gerber serves primarily the baby market.
Vertical sphere
The number of channel levels, from raw ­material to
final product and distribution, in which a ­company
will participate.
At one extreme are companies with a large vertical scope.
At the other extreme are “hollow corporations,” which
­outsource the production of nearly all goods and services.
Geographical sphere
The range of regions, countries, or country groups
in which a company will operate.
Some firms operate in a specific city or state. Others are
­multinationals like Royal Dutch/Shell, which operates in
more than 100 countries.
Assigning Resources to Each SBU10
Once SBUs have been defined, management must decide how to allocate corporate resources
to each unit. Newer methods of portfolio planning rely on shareholder value analysis and on
whether the market value of a company is greater with an SBU or without it. These value calculations assess the potential of a business based on growth opportunities from global expansion,
repositioning or retargeting, and strategic outsourcing.
Assessing Growth Opportunities
Assessing growth opportunities includes planning new businesses, downsizing, and terminating older businesses. If there is a gap between future desired sales and projected sales, corporate
management will need to develop or acquire new businesses to fill it. One option is to identify
opportunities for growth within current businesses (intensive opportunities). A second option is
to build or acquire businesses related to current businesses (integrative opportunities). A third
option is to add attractive unrelated businesses (diversification opportunities).
• Intensive growth. Marketers can use a “product-market expansion grid” to c­ onsider
the firm’s strategic growth opportunities in terms of current and new products and
markets. The company first considers whether it could gain more market share
with its current products in current markets, using a market-penetration strategy.
Next it considers whether it can find or develop new markets for its current products in a ­market-development strategy. Then it considers whether it can develop
new products for its current markets with a product-development strategy. Later the
firm will also review opportunities to develop new products for new markets in a
diversification strategy.
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Chapter 2   Developing and Implementing Marketing Strategies and Plans
• Integrative growth. A business can increase sales and profits through backward integration
(acquiring a supplier), forward integration (acquiring a distributor), or horizontal integration
(acquiring a competitor). Horizontal mergers and alliances don’t always work out, however.
• Diversification growth. This makes sense when good opportunities exist outside the
present businesses—the industry is highly attractive and the company has the right mix
of business strengths to succeed. The firm might seek new products that have technological or marketing synergies with existing product lines, though appealing to a different
group of customers. Or it might use a horizontal strategy to search for unrelated new
products that appeal to current customers. Finally, the company might seek new businesses with no relationship to its current technology, products, or markets, adopting a
conglomerate strategy to diversification.
Also, companies must carefully prune, harvest, or divest tired old businesses to release
needed resources for other uses and reduce costs.
Organization and Organizational Culture
Strategic planning happens within the context of the organization, the firm’s structures, policies,
and corporate culture, all of which can become dysfunctional in a rapidly changing business
environment. Corporate culture has been defined as “the shared experiences, stories, beliefs,
and norms that characterize an organization.” A customer-centric culture can affect all aspects of
an organization. Enterprise Rent-A-Car featured its own employees in a recent “The Enterprise
Way” ad campaign. One ad in the campaign, themed “Fix Any Problem,” reinforced how any
local Enterprise outlet has the authority to take actions to maximize customer satisfaction.11
Whereas managers can change structures and policies (though with difficulty), the company’s
culture is very hard to change. Yet adapting the culture is often the key to successfully implementing a new strategy.
Organizations develop strategy by choosing their view of the future. The Royal Dutch/Shell
Group has pioneered scenario analysis, which develops plausible representations of a firm’s
possible future using assumptions about forces driving the market and different uncertainties.
Managers think through each scenario with the question “What will we do if it happens?,” adopt
one scenario as the most probable, and watch for signposts that might confirm or disconfirm it.12
Business Unit Strategic Planning
The business unit strategic-planning process consists of the steps shown in Figure 2.2. We examine each step in the sections that follow.
The Business Mission
Each business unit needs to define its specific mission within the broader company mission.
Thus, a television-studio-lighting-equipment company might define its mission as “To target
major television studios and become their vendor of choice for lighting technologies that represent the most advanced and reliable studio lighting arrangements.” Notice this mission does
not mention winning business from smaller studios, offering the lowest price, or offering nonlighting products.
SWOT Analysis
The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats is called
SWOT analysis. It’s a way of monitoring the external and internal marketing environment.
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Part 1   Understanding Marketing Management
Figure 2.2 The Business Unit Strategic-Planning Process
(opportunity &
threat analysis)
SWOT analysis
weaknesses analysis)
External Environment (Opportunity and Threat) Analysis   A business unit must monitor key macroenvironment forces and significant microenvironment factors that affect its ability to
earn profits. It should track trends and important developments and any related opportunities
and threats.
Good marketing is the art of finding, developing, and profiting from these opportunities.13
A marketing opportunity is an area of buyer need and interest that a company has a high probability of profitably satisfying. There are three main sources of market opportunities.14 The
first is to offer something that is in short supply. The second is to supply an existing product or
service in a new or superior way. How? The problem detection method ask …
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