2Developing Marketing Strategies and Plans1

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Chapter QuestionsHow does marketing affect customer value?How is strategic planning carried out at different levels of the organization?What does a marketing plan include?Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Phases of Value Creation and DeliveryCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*Choosing the valueProviding the valueCommunicating the value

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*What is the Value Chain?The value chain is a tool for identifying was to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.

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Core Business ProcessesMarket-sensing processNew-offering realization processCustomer acquisition processCustomer relationship management processFulfillment management processCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Characteristics of Core CompetenciesA source of competitive advantageApplications in a wide variety of marketsDifficult to imitateCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Maximizing Core Competencies(Re)define the business concept(Re)shaping the business scope(Re)positioning the companys brand identityCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*What is 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 co-prosperity among key stakeholders.

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Questions to Address in Holistic Marketing Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*What value opportunities are available?How can we create new value offerings efficiently?How can we delivery the new offerings efficiently?

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Figure 2.1 The Strategic Planning, Implementation, and Control ProcessesCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

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Table 2.1 Master MarketersCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*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.

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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*Levels of a Marketing PlanStrategicTarget marketing decisionsValue propositionAnalysis of marketing opportunitiesTacticalProduct featuresPromotionMerchandisingPricingSales channelsService

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Corporate Headquarters Planning ActivitiesDefine the corporate missionEstablish strategic business units (SBUs)Assign resources to each SBUAssess growth opportunities

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Good Mission StatementsFocus on a limited number of goalsStress major policies and valuesDefine major competitive spheresTake a long-term viewShort, memorable, meaningfulCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

GoogleCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Table 2.2 Major Competitive SpheresIndustryProductsCompetenceMarket segmentVertical channelsGeographicCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

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Product Orientation vs. Market OrientationCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

CompanyProductMarketMissouri-Pacific RailroadWe run a railroadWe are a people-and-goods moverXeroxWe make copying equipmentWe improve office productivityStandard OilWe sell gasolineWe supply energyColumbia PicturesWe make moviesWe entertain people

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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*Dimensions Define a BusinessCustomer GroupsCustomer NeedsTechnology

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Characteristics of SBUsIt is a single business or collection of related businessesIt has its own set of competitorsIt has a leader responsible for strategic planning and profitability

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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Figure 2.2 The Strategic Planning GapCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

What is Corporate Culture?Corporate culture is the shared experiences, stories, beliefs, and norms that characterize an organization.Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Figure 2.3 The Business Unit Strategic Planning ProcessCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

SWOT AnalysisCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*StrengthsWeaknessesOpportunitiesThreats

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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 and reached 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?Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Market Opportunity Analysis (MOA)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?Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Figure 2.4 Opportunity and Threat MatricesCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Goal Formulation and MBOUnits objectives must be hierarchicalObjectives should be quantitativeGoals should be realisticObjectives must be consistentCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Porters Generic StrategiesCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*Overall cost leadershipDifferentiationFocus

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Categories of Marketing AlliancesProduct or service alliancePromotional allianceLogistics alliancesPricing collaborationsCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

McKinseys Elements of SuccessCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*StrategyStructureSystemsStyleShared valuesStaffSkills

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Marketing Plan ContentsCopyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-* Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*Evaluating a Marketing Plan Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

For ReviewHow does marketing affect customer value?How is strategic planning carried out at different levels of the organization?What does a marketing plan include?Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-*

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