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A Framework forMarketing Management
Chapter 2Chapter 2Developing and Implementing Marketing Strategies and Plans
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Chapter Questions
How does marketing affect customer value?
How is strategic planning carried out at different levels of the organization?
What does a marketing plan include? How can management assess
marketing performance?
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Two Views of the Value Delivery Process Traditional Physical
Process Sequence Make the product Sell the product
Value Creation and Delivery Sequence Choose the value Provide the value Communicate the value
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Other Views
Kumar’s “3Vs” Define the value segment
or customers (and their needs)
Define the value proposition
Define the value network to deliver promised service
Webster—Marketing is: Value-defining process
like market research Value-developing
processes including new-product development, sourcing strategy, and vendor selection
Value-delivering processes such as advertising and managing distribution
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The Value Chain
Primary Activities Inbound logistics Operations Outbound logistics Marketing and sales Service
Support Activities Firm infrastructure Human resource
management Technology
development Procurement
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Core Business Processes
The market sensing process The new offering realization process The customer acquisition process The customer relationship management
process The fulfillment management process
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Characteristics of Core Competencies A source of competitive advantage Applications in a wide variety of markets Difficult for competitors to imitate
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Holistic Marketing Orientation and Customer Value Value exploration: How can a company
identify new value opportunities? Value creation: How can a company
efficiently create more promising new value offerings?
Value delivery: How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently?
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A Holistic Marketing Framework Value exploration Value creation Value delivery
Customer focus Core competencies Collaborative network
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Role of Strategic Planning
Managing a company’s businesses as an investment portfolio
Assessing each business’s strength Establishing a strategy to achieve its long-run
objectives
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Organizational Levels
Corporate level Divisional level Business unit level Product level
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Marketing Plan
Central instrument for directing and coordinating the marketing effort
Two levels: Strategic marketing plan—lays out the firm’s
target markets and value propositions, based on the best market opportunities.
Tactical marketing plan—specifies the marketing tactics, including product features, promotion, pricing, and service.
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Corporate Planning Activities
Defining the corporate mission Establishing strategic business units Assigning resources to each unit Assessing growth opportunities
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Defining the Corporate Mission What is our business? Who is the customer? What is the value to the customer? What will our business be? What should our business be?
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Good Mission Statements
Focus on limited number of goals Stress major policies and values Define major competitive spheres
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Major Competitive Spheres
Industry Products and
applications Competence
Market segment Vertical Geographical
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Dimensions That Define a Business Customer groups Customer needs Technology
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Characteristics of an SBU
Single business or collection of related businesses
Own set of competitors Manager responsible for strategic planning
and profit performance
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Growth Opportunities
Intensive growth Integrative growth Diversification growth
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Organizations
Structure Policies Culture
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The Business Unit Strategic Planning Process Business mission SWOT analysis Goal formulation Strategy formulation Program formulation Implementation Feedback and control
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SWOT Analysis
Strengths Weaknesses Opportunities Threats
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Marketing Opportunity
An area of buyer need and interest that a company has a high probability of profitably satisfying.
Sources: Supply something that is in short supply Supply an existing product or service in a new or
superior way Totally new offering
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Environmental Threat
Challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to lower sales or profit.
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Effective Goal Formulation
Arranged hierarchically from most to least important
Stated quantitatively Realistic Consistent
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Porter’s Generic Strategies
Overall cost leadership Differentiation Focus
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McKinsey’s Seven “S” Elements“Hardware” Strategy Structure Systems
“Software” Style Skills Staff Shared values
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Marketing Plan Contents
Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls
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Marketing Metrics and Marketing Dashboards Marketing metrics is
the set of measures that helps marketers quantify, compare, and interpret marketing performance.
Marketing dashboard is a visual display of real-time indicators that summarize a set of relevant internal and external measures to ensure proper functioning.
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Measuring Marketing Plan Performance Sales analysis Market share analysis Marketing expense-to-sales ratio Financial analysis
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Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall