1. Developing Marketing Strategies and Plans2
Developing Marketing Strategies and Plans
Marketing Management, 13th ed

2. Chapter 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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3. Marketing & Customer Value
Marketing involves satisfying consumers’ needs and wants.
The task of any business is to deliver customer value at a profit.
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4. The Value Delivery Process
The traditional view of marketing is that the firm makes something and then sells it.
Will not work in economies where people face abundant choice.
New belief: marketing begins with the planning process.
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5. The Value Delivery Process
Value creation and delivery consists of three parts:
Choosing the value (segment the market, define target market, develop “offering”).
Providing the value (product features, prices, and distribution channels).
Communicating the value (sales force, advertising, and promotional tools).
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6. Three V’s Approach to Marketing
Nirmalya Kumar’s 3 “Vs” approach to marketing:
Define the value segment (customer needs)
Define the value proposition
Define the value network
Frederick Webster views marketing in terms of:
Value defining process: Market research &company self analysis
Value developing processes: Product development
Value delivering processes: Advertising& Distribution
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7. 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(consists) of primary and support activities performed to design, produce, market, deliver, and support its product. (Cisco)
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8. Corporate Value Chain
Prentice Hall, 2002
Chapter 4
Wheelen/Hunger

9. Core Business Processes
Market-sensing process ( Gathering Market Information)
New-offering realization process all activities in researching ,developing, and lunching high quality products
Customer acquisition process ( Defining and choosing customers)
Customer relationship management process
Fulfillment management process all activities in receiving ,orders shipping and collecting money
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10. Characteristics of Core Competencies
A source of competitive advantage (internal )
Applications in a wide variety of markets (skills)
Difficult to imitate To copy
E.g: Nike: Shoe design & Merchandising
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11. Table 2.1 Becoming a Vigilant (cautious)Organization
Can we learn from the past?
How should the present be evaluated?
What do we envision for the future?
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12. 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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13. Figure 2.1 A Holistic Marketing Framework
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14. Value Exploration
Customer’s cognitive space (reflects existing and latent needs and includes participation, stability, freedom, and change).
Company’s competence space (broad versus focused scope of business)
The collaborator resource space (horizontal and vertical partnerships).
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15. Value Creation Marketer’s need to:
Identify new customer benefits from the customer’s view.
Utilize core competencies.
Select and manage business partners from its collaborative networks.
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16. Value Delivery—What Companies Must Become?
Proficient at customer relationship management.
Who the customers are, and respond to different customer opportunities.
Internal resource management.
Integrate major business processes within a single family.
Business partnership management.
Allow the company to handle complex relationships with its trading partners.
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17. 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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18. Levels of a 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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19. 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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20. Strategic Vision vs. Mission
A strategic vision concerns a firm’s future business path - “where we are going”
Markets to be pursued
Future product/market/ customer/technology focus
Kind of company management is trying to create
The mission statement of a firm focuses on its present business purpose - “who we are and what we do”
Current product and service offerings
Customer needs being served
Technological and business capabilities

21. Characteristics of a Mission Statement
Identifies the boundaries of the current business and highlights
Present products and services
Types of customers served
Geographic coverage
Conveys
Who we are,
What we do, and
Why we are here
A well-conceived mission statement distinguishes a company’s business makeup from that of other profit-seeking enterprises in language specific enough to give the company its own identify!

22. Trader Joe’s Mission Statement
(a unique grocery store chain)
To give our customers the best food and beverage values that they can find anywhere and to provide them with the information required for informed buying decisions. We provide these with a dedication to the highest quality of customer satisfaction delivered with a sense of warmth, friendliness, fun, individual pride, and company spirit.

23. “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 and
shareholders to achieve their personal
objectives.”
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24. 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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25. Major Competitive Spheres company will operate
Industry :one or more
Products: define the range of products they will supply
Competence: identify the level of technology it will master and leverage
Market segment: the type of customers
Vertical channels: the number of channel levels , from raw material to final product and distribution
Geographic: range of regions, countries in which company operate
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26. Table 2.3 Product Orientation vs. Market Orientation
Company
Product
Market/Needs
Missouri-Pacific Railroad
We run a railroad
We are a people-and-goods mover
Xerox
We make copying equipment
We improve office productivity
Standard Oil
We sell gasoline
We supply energy
Columbia Pictures
We make movies
We entertain people
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27. Dimensions that Define a Business
Customer groups :Different customers
Customer needs
Technology
e.g. Incandescent Lightening system for television studios
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28. Characteristics of SBUs
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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29. Figure 2.3 The Strategic Planning Gap
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30. Ansoff’s Product-Market Expansion Grid/ starbucks
Market penetration strategy
Market development strategy
Product development strategy
Diversification strategy
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31. Figure 2.4 Ansoff’s Product-Market Expansion Grid
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32. What is Corporate Culture?
Corporate culture is the shared experiences, stories, beliefs, and norms that characterize an organization.
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33. Figure 2.5 The Business Unit Strategic Planning Process
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34. SWOT Analysis Strengths Weaknesses Opportunities Threats
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35. 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?
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36. 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 company’s required threshold for investment?
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37. Goal Formulation and MBO
Unit’s objectives must be hierarchical
Objectives should be quantitative
Goals should be realistic
Objectives must be consistent
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38. Figure 2.6 Opportunity Matrix
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39. Figure 2.6 Threat Matrix
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40. Porter’s Generic Strategies
Overall cost leadership
Differentiation
Focus
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41. Categories of Marketing Alliances
Product or service alliance; licenses another to produce its products or services
Promotional alliance; carry promotion to another commpany
Logistics alliances
Pricing collaborations
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42. Marketing Plan Contents
Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
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43. Evaluating a Marketing Plan
Is the plan simple?
Is the plan specific?
Is the plan realistic?
Is the plan complete?
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