Post on 10-Apr-2018
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MARKETING MANAGEMENT II
By
DR. LOKESH JINDAL
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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?
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Nike Creates Value
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Three Vs Approach to Marketing
Define the value segment
Define the value proposition
Define the value network
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Whatisthe Value Chain?
The valuechain is a tool for identifying
ways to create more customer value
because every firm is a synthesis ofprimary and support activities
performed to design, produce, market,
deliver, and support its product.
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Core Business Processes
Market-sensing process
New-offering realization process
Customer acquisition process Customer relationship management
process
Fulfillment management process
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Netflixs Distinctive Capabilities
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Whatis Holistic Marketing?
Holistic marketing sees itself as
integrating the value exploration,
value creation, and value delivery
activities with the purpose of building
long-term, mutually satisfying
relationships and coprosperity among
key stakeholders.
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Whatisa Marketing Plan?
Amarketing plan is the central
instrument for directing and
coordinating the marketing effort.
It operates at a
strategic and tactical level.
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Levelsofa Marketing Plan
Strategic
Target marketing
decisions Value proposition
Analysis of
marketing
opportunities
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 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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Infosys Technologies Limited
To achieve our objectives in an environment
of fairness, honesty, and courtesy towards
our clients, employees, vendors, and society
at large.
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Biocon
To be an integrated biotechnology enterprise
of global distinction.
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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.
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Table 2.3Product Orientationvs. Market Orientation
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
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CharacteristicsofSBUs
It is a single business or collection of
related businesses
It has its own set of competitors It has a leader responsible for strategic
planning and profitability
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Figure 2.5 The Strategic Planning Gap
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Strategies Suggestedby Ansoffs
Product-Market Expansion Grid
Market penetration (CM+CP)
Market development (NM+CP)
Product development (CM+NP)
Diversification (NM+NP)
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Developingthe Peoples Car
TATA Nano
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Figure 2.7 The Business Unit
Strategic 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 defined target
market?
Can the target market be located andreached with cost-effective media and trade
channels?
Does the company possess or have access
to the critical capabilities and resources
needed to deliver the customer benefits?
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Market Opportunity Analysis (MOA)
(cont.)
Can the company deliver the benefits
better than any actual or potential
competitors?
Will the financial rate of return meet or
exceed the companys required
threshold for investment?
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FedEx added
Sunday deliveries
based on customerrequests and
market demand
FedEx
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GoalFormulationand 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 Leadership
Differentiation
Focus
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CategoriesofMarketing Alliances
Product or Service Alliances
Promotional Alliances
Logistics Alliances
Pricing Collaborations
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Marketing Plan Contents
Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
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Evaluatinga 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 a
successful marketing organization.
or
2. Mission statements rarely provide
useful marketing value.
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Marketing Discussion
What implications do Porters valuechain and the holistic marketing
orientation model have for
marketing planning?