Deck 2: Strategic Planning in Contemporary Marketing

Question 1

State whether each of the following illustrates strategic or tactical planning:
a. Global automakers begin setting up manufacturing plants in India.
b. The merging of Play N Trade Video Games and Dimensions Games Corporation.
c. The Washington Redskins trade multiple draft picks to draft Baylor QB Robert Griffin III.
d. A regional airline looks for ways to expand to other areas of the country.

Answer 1

Strategic planning :
Strategic planning is the process of an organization to achieve long-term goals in the future and provide direction for the decision makers.
Tactical planning :
Tactical planning is the process of short range activities that fulfill the needs of the customer and also help to achieve the objective of strategic planning.
(a)"Global automakers begin setting up of manufacturing plants in India."
Planning type : Strategic planning
Justification : To set up new manufacturing plants involves the mission of the company, objectives and goals, building of portfolio and setting up of new functional plans. All these form the major category of strategic planning.
(b)"Merging of live Nation and Ticketmaster"
Planning type : Tactical planning
Justification : The two companies have merged in a short span based on the situation in order to improve the company experience, innovation, increasing the customer services, these objectives ultimately lead the organization to long -term goal.
(c)"The New England patriots trade a backup quarterback to the Kansas City chiefs."
Planning type: Tactical planning
Justification: According to the situation, the company trades a backup plan to sustain in the market.
(d)"A regional airline looks for ways to expand to other areas of the country."
Planning type: Strategic planning
Justification : Expanding is the strategic planning that helps the company to grow in the market; attracting new customers by advisement increases the market share.

Question 2

How a Stadium Becomes Part of a Marketing Strategy
A stadium isn't just the place where sports are played. Whether it's football, soccer, or baseball, a team's stadium is its home. It is where fans come to cheer and cry; it is where teams live and die each season. When team owners announce the construction of a new stadium-though it may be highly necessary in order to provide modern facilities and an increased number of seats-fans mourn the loss of an old favorite venue. The stadium has become one of the most important components of marketing strategy in professional sports.
It's not surprising that several National Football League (NFL) teams are competing not just on the field, but in the race to build bigger and better stadiums. The New Orleans Saints resurrected themselves with a 70,000-seat stadium post-Hurricane Katrina. The NY Jets and NY Giants have shared the reconstruction of their home field, Meadowlands Stadium. Dallas Cowboys owner Jerry Jones is going for the glitz and glamour-bigger, better, jazzier. Seating capacity at the new Dallas stadium tops 80,000, with another 20,000 available "standing room" slots. Club-level seats cost as much as a one-time hit of $50,000-and those aren't the luxury boxes, which house upholstered seats, business centers with video and Internet access, and entry to exclusive clubs. Food concessions offer a Kobe beef burger for $13 and pizza for $60. Of course, there's the gargantuan video screen, which hangs about 90 feet above the field. But the showpiece of the stadium is its retractable roof, supported by two enormous arches that soar nearly 300 feet above the playing field. It is the longest single-span roof in the world, making this the largest enclosed Nflstadium as well.
So, what do all these bells and whistles mean for a football team? Of course the team needs to win-if it doesn't, it won't matter how high the roof is or how big the video screen is. And if they lose, fans may be less likely to pay $13 for that burger. But if the home stadium conveys the team's image-particularly if it's a winner-then fans will pay to be associated with that image, or that brand. They'll buy tickets, food, T-shirts and caps. They'll bring friends and family. And they'll come back. At least, that's what marketers hope. It's part of the winning strategy.
How would you describe the target market for the Dallas Cowboys' new stadium? Do you think marketers are targeting the right consumers? Why or why not?

Answer 2

Target customers of Company DC's new stadium possess the following characteristics:
• Football loving people along with their families and friends
• High disposable income
• Focus on brand image and reputation of the stadium
Company DC has targeted the right customers for their new stadium. The stadium comprises all the facilities and services to attract and retain their target customers. It has standing rooms with video and internet access. It also contains large video screen and longest single-span roof. Besides this, cost of seats and food is significantly high for this stadium.

Question 3

Suppose you are a marketer for a U.S. manufacturer of pet supplies. Two top executives have proposed expanding the company by opening retail stores and marketing pets on- site-puppies, kittens, rabbits, birds, fish, and the like. What are the potential benefits and drawbacks of making a move like this? How would you advise your company to proceed?

Answer 3

A manufacturer of pet supplies wants to expand its business in retail stores and marketing pet-on-site. Advantages of this expansion strategy are listed below:
• This strategy would help to increase the growth and market share of the business firm by diversifying its product.
• Helps to increase the customer base by attracting new customers.
• Online sales of pets would help to increase the reach of marketer.
Disadvantages of this expansion strategy are listed below:
• The company might face the problem of inexperience into new business area.
• Company can no longer focus on its core business.
• Diversified business might lead towards poor service quality.
• It might lead towards consumer dissatisfaction.
Hence, it can be concluded that a company should analyze it's the risk-profit payoff.

Question 4

A recent news story reported a study whose results revealed that food at popular chain restaurants and in frozen-food packages at the supermarket contain more calories than advertised. Meals from restaurants including Ruby Tuesday and Wendy's were tested and found to be more than 18 percent higher in calories than listed on their menus. Frozen diet meals made by Lean Cuisine, Weight Watchers, and Healthy Choice, among others, averaged 8 percent higher in calories than listed on the package labels.30 Imagine that you are a marketer for a food manufacturer that competes with these firms.
Create an advertisement for your firm's food. Decide on a strategy and tactics. Would you follow in the footsteps of some of your competition, or use accurate calorie counts? Would you refer to the study that found discrepancies in your competitors' numbers?

Question 5

Business portfolio analysis. Occasionally, companies sell parts of themselves to other firms. One stated motive for such divestitures is that the sold assets are a poor strategic fit for the rest of the company's business portfolios. An example is the sale of a controlling interest in NBC Universal by GE to cable giant Comcast. Using a major search engine, research the sale of NBC Universal. In the context of business portfolio analysis, why did GE decide to sell, and why did Comcast decide to buy NBC Universal?

Question 6

Choose one of the following companies, or select another one whose goods and services are familiar to you. On your own or with a classmate, formulate a mission statement for that company. Then create a list of objectives that reflect your company's mission.
a. Old Navy
b. Scottrade
c. Taco Bell
d. Verizon Wireless

Question 7

Imagine you had a chance to interview Google co-founders Larry Page and Sergey Brin. What questions might you ask each about strategic planning for individual divisions and for the firm overall?

Question 8

How a Stadium Becomes Part of a Marketing Strategy
A stadium isn't just the place where sports are played. Whether it's football, soccer, or baseball, a team's stadium is its home. It is where fans come to cheer and cry; it is where teams live and die each season. When team owners announce the construction of a new stadium-though it may be highly necessary in order to provide modern facilities and an increased number of seats-fans mourn the loss of an old favorite venue. The stadium has become one of the most important components of marketing strategy in professional sports.
It's not surprising that several National Football League (NFL) teams are competing not just on the field, but in the race to build bigger and better stadiums. The New Orleans Saints resurrected themselves with a 70,000-seat stadium post-Hurricane Katrina. The NY Jets and NY Giants have shared the reconstruction of their home field, Meadowlands Stadium. Dallas Cowboys owner Jerry Jones is going for the glitz and glamour-bigger, better, jazzier. Seating capacity at the new Dallas stadium tops 80,000, with another 20,000 available "standing room" slots. Club-level seats cost as much as a one-time hit of $50,000-and those aren't the luxury boxes, which house upholstered seats, business centers with video and Internet access, and entry to exclusive clubs. Food concessions offer a Kobe beef burger for $13 and pizza for $60. Of course, there's the gargantuan video screen, which hangs about 90 feet above the field. But the showpiece of the stadium is its retractable roof, supported by two enormous arches that soar nearly 300 feet above the playing field. It is the longest single-span roof in the world, making this the largest enclosed Nflstadium as well.
So, what do all these bells and whistles mean for a football team? Of course the team needs to win-if it doesn't, it won't matter how high the roof is or how big the video screen is. And if they lose, fans may be less likely to pay $13 for that burger. But if the home stadium conveys the team's image-particularly if it's a winner-then fans will pay to be associated with that image, or that brand. They'll buy tickets, food, T-shirts and caps. They'll bring friends and family. And they'll come back. At least, that's what marketers hope. It's part of the winning strategy.
How does the new Dallas Cowboys' stadium fit into an overall marketing mix, in terms of product and pricing strategies?

Question 9

Netflix has made thousands of streaming videos available to its subscribers. How does this strategy demonstrate a strategic window for the company?

Question 10

A recent news story reported a study whose results revealed that food at popular chain restaurants and in frozen-food packages at the supermarket contain more calories than advertised. Meals from restaurants including Ruby Tuesday and Wendy's were tested and found to be more than 18 percent higher in calories than listed on their menus. Frozen diet meals made by Lean Cuisine, Weight Watchers, and Healthy Choice, among others, averaged 8 percent higher in calories than listed on the package labels.30 Imagine that you are a marketer for a food manufacturer that competes with these firms.
Would you price your own firm's food higher or lower than the competition's? Why?

Question 11

Mission and objectives. Visit the website of the Sara Lee Corporation, whose slogan is "the joy of eating." Define the firm's mission and objectives, and discuss how its brands and activities support both. www.saralee.com

Question 12

Using a first mover strategy, Apple's iPad and iPhone have clearly established the lead in their markets. Research the products of another firm that produces either a tablet or a smartphone to learn about its strategy. How has a second mover strategy benefited the firm? Has the second mover firm been able to catch Apple in sales?

Question 13

What is the difference between a firm's mission and its objectives? Why is it important that both are conveyed clearly to employees and to customers?

Question 14

Choose one of the following products and describe how it may (or already has) become vulnerable to substitution. Then describe an overall strategy-with two or three tactics-for reducing this vulnerability.
a. printed copies of periodicals or books
b. television
c. telephone landlines
d. travel agencies

Question 15

SWOT analysis. Visit the website of an organization whose goods and services interest you-such as Columbia Sportswear, Major League Baseball, Travelocity, Apple, or Urban Outfitters. Based on your research, create a SWOT analysis for your firm. Outline your own ideas for increasing the firm's strengths and reducing its weaknesses.

Question 16

When rivals Samsung and Sony each unveiled their new 3D TVs at a major electronics store, some consumers couldn't tell the difference between the two. But the firm's strategies were very different. Sony opted to use outside manufacturing firms to build its TVs, stating that the move would help cut costs and keep the company strong. But Samsung manufactures its own TVs, including its own computer chips. Since then, the two firms have experienced quite different outcomes. 28 With a classmate, research the two companies and their 3D TVs, evaluating their marketing strategy. Who is the target market for both of these TVs? How does product, distribution, promotion, and pricing fit into each firm's overall marketing strategy? In your opinion, how did the firms' strategies affect their respective outcomes?

Question 17

Over which of Porter's Five Forces do consumers have the greatest influence? Over which do they have the least? How might these factors affect a firm's overall marketing strategy?

Question 18

Research the website of one of the following retail firms to identify its target market. Then outline a strategy for expanding that target market.
a. Quiznos
b. Target
c. Trader Joe's
d. Nordstrom
e. Dollar Tree

Question 19

Select one of the following industries and research which firms might fall into the top three in the industry, creating a rule of three:
a. online securities trading
b. upscale hotels
c. electronics retailing
d. auto manufacturing

Question 20

Why is it so important for a firm to identify its core competencies?

Question 21

Research a company such as L.L. Bean or Kraft Foods that has a number of different successful SBUs. What factors do you think make these units-and this company-successful from a marketing standpoint?

Question 22

On your own or with a classmate, research one of the following large corporations. Select several product lines and classify each in the BCG matrix.
a. 3M
b. Johnson Johnson
c. Condé Nast Publications
d. General Electric (GE)

Question 23

How might an understanding of diversity help formulate a firm's marketing strategy?

Question 24

Suppose you have been hired as a marketer by an online retailer, such as Wayfair or Amazon, to help develop a new marketing mix. State one thing you would do to improve the retailer's position through each of the four strategic elements: product, distribution, promotion, and pricing.

Question 25

What is the rule of three? Suppose you worked for a small firm in a large industry, such as a small manufacturer of furniture. How might you actually use the rule of three to enhance your firm's position in the marketplace?

Question 26

What is a portfolio analysis? What purpose does it serve for marketers?

Question 27

How does the BCG matrix help marketers decide which products to offer? According to the matrix, which types of products are most desirable, and why?