Chapter 5 begins the two-chapter sequence addressing the next stage of the effective marketing management process: planning (see Figure 5.1).

Marketing managers who begin with adoption of a societal marketing orientation (SMO) feel it is important to understand before they plan. An integral part of the SMO is the desire to serve the shortand long-term needs of customers and society at a profit, and accomplish this objective better than competitors. Thus, we seek to first understand the market (i.e., consumers, competitors, and the financial implications of what we do) and then use that understanding to develop plans of how we can create mutually beneficial exchange rela-

tionships. This planning process occurs at two levels-a corporate level, which is referred to as strategic planning, and a product/market level, which is referred to as operational or marketing planning. This chapter addresses broader, strategic planning issues.