MARKETING PLAN12th edition

2Developing

MarketingStrategies and Plans

Kotler Keller

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Chapter Questions

• How does marketing affect customervalue?

• How is strategic planning carried outat different levels of the organization?

• What does a marketing plan include?

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Figure 2.1 The Value Delivery Process

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Nike Creates Value

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Improving Value Delivery theJapanese Way

0 customerfeedback time

0 productimprovement time

0 setup time

0 defects0

purchasing time

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3 V’s Approach to Marketing

Define the value segmentDefine the value segment

Define the value propositionDefine the value proposition

Define the value networkDefine the value network

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Figure 2.2 Porter’s Value Chain

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Benchmarks

Organizationalcostsand

performancemeasures

Competitorcostsand

performancemeasures

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Core Business Processes

Marketsensing

Fulfillmentmanagement

Customeracquisition

New offeringRealization/research

Customerrelationshipmanagement

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Wal-Mart’s stock replenishmentprocess is legendary

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Characteristics of Core Competencies

• A source of competitive advantage• Applications in a wide variety of markets• Difficult to imitate

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Netflix’s Distinctive Capabilities

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Figure 2.3 A Holistic Marketing Framework

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Challenges Facing CMO’s

Doing more with less

Driving new businessdevelopment

Becoming afull business partner

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Levels of a Marketing Plan

• Strategic– Target marketing

decisions– Value proposition– Analysis of

marketingopportunities

• Tactical– Product features– Promotion– Merchandising– Pricing– Sales channels– Service

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Figure 2.4 The Strategic Planning,Implementation, and Control Processes

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Corporate headquarters’ planning activities

Define the corporate missionEstablish SBUsAssign resources to each SBUAssess growth opportunities

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Good Mission Statements

Focus on limited number of goalsFocus on limited number of goals

Stress major policies and valuesStress major policies and values

Define major competitive spheresDefine major competitive spheres

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Major Competitive Spheres

Industry

Products

Marketsegment

Geographical

CompetenceVerticalchannels

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GE’s breakthroughs in the process of desalinationcrosses multiple competitive spheres

By 2015, two-thirds of theworld will bewater-stressed.Desalinationplants like thisone help to relievewater shortages.

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Rubbermaid Commercial Products, Inc.

“Our vision is to be the Global Market ShareLeader in each of the markets we serve. Wewill earn this leadership position byproviding to our distributor and end-usercustomers innovative, high-quality, cost-effective and environmentally responsibleproducts. We will add value to these productsby providing legendary customer servicethrough our uncompromising Commitmentto Customer Satisfaction.”

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Motorola

“The purpose of Motorola is to honorablyserve the needs of the community by providingproducts and services of superior quality at afair price to our customers; to do this so as toearn an adequate profit which is required forthe total enterprise to grow; and by doing so,provide the opportunity for our employees andshareholders to achieve their personalobjectives.”

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eBay

“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all – collectors,dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.”

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Table 2.2Product Orientation vs. Market Orientation

Company Product Market

Missouri-PacificRailroad

We run a railroad We are a people-and-goods mover

Xerox We make copyingequipment

We improve officeproductivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertainpeople

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Dimensions That Define A Business

Customergroups

TechnologyCustomerneeds

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Characteristics of SBUs

• It is a single business or collection ofrelated businesses

• It has its own set of competitors• It has a leader responsible for

– Strategic planning– Profitability– Efficiency

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Figure 2.5 The Strategic Planning Gap

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Figure 2.6Ansoff’s Product-Market Expansion Grid

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The Growth of Starbucks

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Organizations

Structure

Policies

Culture

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Merging Corporate Culture?

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Figure 2.7 The Business UnitStrategic Planning Process

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SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

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Market Opportunity Analysis(MOA)• Can the benefits involved in the opportunity

be articulated convincingly to a definedtarget market?

• Can the target market be located andreached with cost-effective media and tradechannels?

• Does the company possess or have accessto the critical capabilities and resourcesneeded to deliver the customer benefits?

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Market Opportunity Analysis(MOA)_2• Can the company deliver the benefits better

than any actual or potential competitors?• Will the financial rate of return meet or

exceed the company’s required thresholdfor investment?

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FedEx addedSunday deliveriesbased on customerrequests andmarket demand

FedEx

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Figure 2.8 Opportunity Matrix

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Figure 2.8 Threat Matrix

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Goal Formulation and MBO

• Requirements for using MBO– Unit’s objectives must be hierarchical– Objectives should be quantitative– Goals should be realistic– Objectives must be consistent

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Porter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus

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The Star Alliance

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Categories of Marketing Alliances

Product or Service AlliancesProduct or Service Alliances

Promotional AlliancesPromotional Alliances

Logistics AlliancesLogistics Alliances

Pricing CollaborationsPricing Collaborations

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Feedback and Control

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Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

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Evaluating a Marketing Plan

Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?

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Marketing Debate

What good is a mission statement?

Take a position:1. Mission statements are critical to asuccessful marketing organization.2. Mission statements rarely provideuseful marketing value.

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Marketing Debate

What implications do Porter’s valuechain and the holistic marketing

orientation model have formarketing planning?