MARKETING PLAN12th edition
2Developing
MarketingStrategies and Plans
Kotler Keller
2-2
Chapter Questions
• How does marketing affect customervalue?
• How is strategic planning carried outat different levels of the organization?
• What does a marketing plan include?
2-3
Figure 2.1 The Value Delivery Process
2-4
Nike Creates Value
2-5
Improving Value Delivery theJapanese Way
0 customerfeedback time
0 productimprovement time
0 setup time
0 defects0
purchasing time
2-6
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
2-7
Figure 2.2 Porter’s Value Chain
2-8
Benchmarks
Organizationalcostsand
performancemeasures
Competitorcostsand
performancemeasures
2-9
Core Business Processes
Marketsensing
Fulfillmentmanagement
Customeracquisition
New offeringRealization/research
Customerrelationshipmanagement
2-10
Wal-Mart’s stock replenishmentprocess is legendary
2-11
Characteristics of Core Competencies
• A source of competitive advantage• Applications in a wide variety of markets• Difficult to imitate
2-12
Netflix’s Distinctive Capabilities
2-13
Figure 2.3 A Holistic Marketing Framework
2-14
Challenges Facing CMO’s
Doing more with less
Driving new businessdevelopment
Becoming afull business partner
2-15
Levels of a Marketing Plan
• Strategic– Target marketing
decisions– Value proposition– Analysis of
marketingopportunities
• Tactical– Product features– Promotion– Merchandising– Pricing– Sales channels– Service
2-16
Figure 2.4 The Strategic Planning,Implementation, and Control Processes
2-17
Corporate headquarters’ planning activities
Define the corporate missionEstablish SBUsAssign resources to each SBUAssess growth opportunities
2-18
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
2-19
Major Competitive Spheres
Industry
Products
Marketsegment
Geographical
CompetenceVerticalchannels
2-20
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.
2-21
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.”
2-22
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.”
2-23
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.”
2-24
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
2-25
Dimensions That Define A Business
Customergroups
TechnologyCustomerneeds
2-26
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
2-27
Figure 2.5 The Strategic Planning Gap
2-28
Figure 2.6Ansoff’s Product-Market Expansion Grid
2-29
The Growth of Starbucks
2-30
Organizations
Structure
Policies
Culture
2-31
Merging Corporate Culture?
2-32
Figure 2.7 The Business UnitStrategic Planning Process
2-33
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
2-34
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?
2-35
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?
2-36
FedEx addedSunday deliveriesbased on customerrequests andmarket demand
FedEx
2-37
Figure 2.8 Opportunity Matrix
2-38
Figure 2.8 Threat Matrix
2-39
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
2-40
Porter’s Generic Strategies
Overall Cost Leadership
Differentiation
Focus
2-41
The Star Alliance
2-42
Categories of Marketing Alliances
Product or Service AlliancesProduct or Service Alliances
Promotional AlliancesPromotional Alliances
Logistics AlliancesLogistics Alliances
Pricing CollaborationsPricing Collaborations
2-43
Feedback and Control
2-44
Marketing Plan Contents
Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls
2-45
Evaluating a Marketing Plan
Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?
2-46
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.
2-47
Marketing Debate
What implications do Porter’s valuechain and the holistic marketing
orientation model have formarketing planning?