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Developing Marketing

Strategies and Plans

Marketing Management, 13thed

2

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Chapter Questions

How does marketing affect customervalue?

How is strategic planning carried out atdifferent levels of the organization?

What does a marketing plan include?

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3 Vs Approach to Marketing

Define the value segment(needs and wants)

Define the value proposition(benefits)

Define the value network todeliver promise services.

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2-4

What is the Value Chain?

The value chain is a tool for identifyingand creating more customer value

because every firm is a synthesis of

primary and support activitiesperformed to design, produce, market,

deliver, and support its product.

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Core Business Processes

Market-sensing process (marketing intelligence).

New-offering realization process (research anddevelopment).

Customer acquisition process (defining targetmarkets and consumers).

Customer relationship management process(deeper understanding of consumers).

Fulfillment management process (receiving,shipping, and collecting payments).

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Characteristics of Core Competencies

A source of competitive advantage(technical, production expertise, distribution,financial strength, etc.)

Applications in a wide variety of markets Difficult to imitate

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Becoming a Vigilant Organization

Can we learn from the past?

How should the present be evaluated?

What do we envision for the future?

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What is Holistic Marketing?

Holistic marketing sees itself asintegrating the value exploration, valuecreation, and value delivery activities

with the purpose of building long-term,mutually satisfying relationships and

coprosperity among key stakeholders.

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What is a Marketing Plan?

A marketing plan is the centralinstrument for directing and

coordinating the marketing effort.

It operates at astrategic and tactical level.

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Levels of a Marketing Plan

Strategic

Target marketingdecisions

Value proposition

Analysis ofmarketingopportunities

Tactical

Product features

Promotion Merchandising

Pricing

Sales channels

Service

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Corporate Headquarters

Planning Activities

Define the corporate mission

Establish strategic business units

(SBUs) Assign resources to each SBU

Assess growth opportunities

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Good Mission Statements

Focus on a limited number of goals

Stress major policies and values

Define major competitive spheres Take a long-term view

Short, memorable, meaningful

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Major Competitive Spheres

Industry (consumer(s) and/or industrial(s) Products (range) Competence (technological, production,

etc.) Market segment (type of market or

customer) Vertical channels (number of channel

levels, from raw materials to final product and

distribution) Geographic (range of regions, countries, or

country groups)

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Motorola

The purpose of Motorola is to honorablyserve the needs of the community by providing

products 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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Product 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

Customer groups

Customer needs

Technology

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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 strategicplanning and profitability

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What is Corporate Culture?

Corporate culture is the sharedexperiences, stories, beliefs, and norms

that characterize an organization.

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Tactics for Managing Change

Avoid the innovation title for the team

Use the buddy system

Set the metrics in advance Aim for quick hits first

Get data to back up your gut

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SWOT Analysis

Strengths

Weaknesses

Opportunities Threats

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Market Opportunity Analysis (MOA)

Can the benefits involved in the opportunitybe articulated convincingly to a defined targetmarket?

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)(cont.)

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

Will the financial rate of return meet orexceed the companys required

threshold for investment?

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Goal Formulation and MBO

Units objectives must be hierarchical

Objectives should be quantitative

Goals should be realistic Objectives must be consistent

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Porters Generic Strategies

Overall Cost Leadershiplowestproduction and distribution costs to be

able to price lower than competitors andto obtain larger market share.

Differentiationuniquely achievingsuperior performance in an important

customer benefit area.

Focuson one or more narrow marketsegments

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Categories of MarketingAlliances

Product or Service Alliancesjointlymarket complementary products

Promotional Alliancespromotion

of another companys products

Logistics Allianceslogistical servicesfor another companys products.

Pricing Collaborationsone or morecompanies join in special price reduction.

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Ansoffs Product-Market ExpansionGrid

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The Business Unit StrategicPlanning Process

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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?