10.Marketing Strategies and Plans

7/31/2019 10.Marketing Strategies and Plans

1/49


2/49


3/49

Nike Creates Value
http://www.nike.com/


4/49

Improving Value Deliverythe

Japanese Way

0 customer feedback time

0 product improvement time

0 purchasing time

0 setup time 0 defects


5/49

Three Vs Approach to

Marketing

Define the value segment

Define the value proposition

Define the value network


6/49

What is the Value Chain?

The value chain is a tool for identifyingways to create more customer value

because every firm is a synthesis ofprimary and support activitiesperformed to design, produce, market,

deliver, and support its product.


7/49

Cisco Systems Taps into Partner

Expertise to Create Value
http://www.cisco.com/


8/49

Benchmarks

Organizationalcostsand

performance

measures

Competitorcostsand

performance

measures


9/49

Characteristics of Core Competencies

A source of competitive advantage

Applications in a wide variety ofmarkets

Difficult to imitate


10/49

What is a Marketing Plan?

A marketing plan is the central

instrument for directing and

coordinating the marketing effort.

It operates at a

strategic and tactical level.


11/49

Levels of a Marketing Plan

Strategic Target marketing

decisions

Value proposition

Analysis ofmarketingopportunities

Tactical Product features

Promotion Merchandising

Pricing

Sales channels

Service


12/49

Strategic Planning

(Corporate Headquarters)

Define Corporate Mission (Vision)

Establishment of SBU s

Resource allocation to SBU s

Assess growth opportunities

Planning new businesses

Downsizing old businesses


13/49

THE PLANNING PROCESS

Company Mission Objectives/Goals Strategies (Marketing)

What is our business Support the mission

Who are our customers at different levels

What value are we offering specific

Market Oriented Business/Marketing.

Direction for next

10-20 years

AN IMPOSSIBLE DREAM VISION


14/49

The Strategic Planning,Implementation,

and Control Processes


15/49

Good Mission Statements

Focus on limited number of goals

Stress major policies and values

Define major competitive spheres

Take a long-term view

Short, memorable, meaningful
http://www.communitycoffee.com/


16/49

Major Competitive Spheres

Industry

Products

Market

segment

Geographical

Competence

Vertical

channels


17/49

Infosys Technologies Limited

To achieve our objectives in an environment

of fairness, honesty, and courtesy towardsour clients, employees, vendors, and society

at large.


18/49

Biocon

To be an integrated biotechnology enterpriseof global distinction.


19/49

eBay

We help people trade anything on earth.

We will continue to enhance the onlinetrading experiences of allcollectors,

dealers, small businesses, unique item

seekers, bargain hunters, opportunity

sellers, and browsers.


20/49

Motorola

The purpose of Motorola is to honorably

serve the needs of the community by providing

products and services of superior quality at a

fair price to our customers; to do this so as to

earn an adequate profit which is required for

the total enterprise to grow; and by doing so,

provide the opportunity for our employees andshareholders to achieve their personal

objectives.


21/49

Product Orientation vs. MarketOrientation

Company Product Market

Xerox We make copying

equipment

We improve office

productivity

Columbia

Pictures

We make movies We entertain

people

Encyclopedia

Britannica

We sell encyclopedias We distribute

information

Carrier We make air conditioners

and furnaces

We provide climate

control inside

homes


22/49

Dimensions That Define a Business

Customer

groups

TechnologyCustomer

needs


23/49

Characteristics of SBUs

It is a single business or collection of relatedbusinesses

It has its own set of competitors

It has a leader responsible for strategicplanning and profitability


24/49

RESOURCE ALLOCATION

RMS : Market share relative to its largest competitor in segment;

0.1 = 10% of leader 10x = Market leader with 10 times the sales of itscompetitor : Drawn by Log Scale

Market

Growth

Rate

0% 10X 1x 0.5x 0.1x

Relative Market Share

Stars Question

Marks?

Cash

CowDog


25/49

? Requires a lot of cash since company needs to spend money

on plant, equipment

Strategy : Build

Market leader in high growth market : but not necessarily

positive cash flow, because company has to keep money to

keep up high growth & fight off competitors

CC Stars with falling growth rate : Since it is market leader, so

economies of scale & high profit; is not growing

Strategy : Hold (strong cc) Harvest (weak cc)

Dog Strategy : Divest


26/49


27/49

Market Attractiveness Business Strength

Overall size Market ShareAnnual growth Share growth

Historical Profit Margin Product Quality

Competitive Intensity Brand Reputation

Technological Requirements Distribution Network

Government Controls Costs

Inflationary Impacts Productive Efficiency

Entry Barriers Raw Materials Strengths

Environment (Labour, Pollution) Research & design

Human Resources


28/49

THE GENERAL ELECTRIC MODEL

BCG - Growth Share Matrix

GE - Multifactor Matrix

BUSINESS STRENGTH


29/49

The Strategic Planning Gap


30/49

3 options for company to fill gap

a) Intensive Growth : Whether any opportunities exist for improving

existing business performance

Current New

Product Product

Current

Market

NewMarket

ANSOFFs PRODUCT-MARKET EXPANSION GRID


31/49

Current New

Product Product

CurrentMarket

NewMarket

Market Penetration

Strategy

Product Development

Strategy

Market Development

Strategy

Diversification

Strategy

ANSOFFs PRODUCT-MARKET EXPANSION GRID


32/49

b) Integrative growth : Integrating with other business

Backward : Acquiring suppliers ( IBS Travel, Alchemist)

Forward : Acquiring Distribution/Retail (IBS March)

Horizontal : Acquiring Competitor


33/49

c) Diversification Growth

When better opportunities exist outside present business:

Industry attractive & company has synergy (TIL)

3 Types

Concentric Diversification : New business has

technology/marketing synergies with current business

through customer group may be different(e.g. Coke Water Kinley)

Horizontal Diversification : Products that are different

technology, but same customers (IBS : )

Conglomerate Diversification : New business with no

relation to current technology, product, market ( ITC :

matchbox, condoms, sweets)


34/49

Developing the Peoples CarTATA Nano
http://www.starbucks.com/


35/49

What is Corporate Culture?

Corporate culture is the shared

experiences, stories, beliefs, and norms

that characterize an organization.


36/49

The Business Unit

Strategic Planning Process


37/49

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats


38/49

Market Opportunity Analysis (MOA)

Can the benefits involved in the opportunitybe 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 resources

needed to deliver the customer benefits?


39/49

Market Opportunity Analysis (MOA)(cont.)

Can the company deliver the benefitsbetter than any actual or potentialcompetitors?

Will the financial rate of return meet orexceed the companys required thresholdfor investment?


40/49

FedEx added

Sunday deliveries

based on customerrequests and

market demand

FedEx


41/49

Opportunity Matrix


42/49

Threat Matrix


43/49

Goal Formulation and MBO

Units objectives must be

hierarchical

Objectives should be quantitative

Goals should be realistic

Objectives must be consistent


44/49


45/49

Porters Generic

StrategiesOverall Cost Leadership

Differentiation

Focus


46/49

Categories of MarketingAlliances

Product or Service Alliances

Promotional Alliances

Logistics Alliances

Pricing Collaborations


47/49

MARKET PLANNING

Analyze Marketing opportunities : select target

market

Developing Marketing Strategy

Planning Marketing Program

Managing Marketing Effort : control after organizing

and implementation

in turn achieving goals (sales, profits) is marketing strategy appropriate


48/49

Marketing Plan Contents

Executive summary

Table of contents

Situation analysis Marketing strategy

Financial projections

Implementation controls


49/49

Evaluating a Marketing

Plan

Is the plan simple?

Is the plan specific?

Is the plan realistic?

Is the plan complete?

Date post:	05-Apr-2018
Category:	Documents
Upload:	avinash-singh
View:	218 times
Download:	0 times

10.Marketing Strategies and Plans

Documents