Developing Marketing Strategies and Plan Vishnu Parmar, IBA University of Sindh, Jamshoro
Marketing & Customer Value The delivery Value Process Tradition Physical Process Sequence Value Creation and Delivery Sequence
The Value-Delivery Process (a) Traditional physical process sequence Make the product Sell the product Procure Design product Make Price Sell Advertise/ promote Distribute Service (b) Value creation & delivery sequence Choose the Value Provide the Value Communicate the Value Strategic marketing Tactical marketing
Marketing & Customer Value Value Creation and Delivery Sequence Choose the Product Customer Segmentation Market Selection / Focus Value Positioning Provide the Value Product Development Service Development Pricing Sourcing Making Distributing Service
Marketing & Customer Value Value Creation and Delivery Sequence Communicate the Value Sales force Sales Promotion Advertising Traditional view of business will not work in economies where people face abundant choices
Japanese Concept Zero customer Feedback time Zero Product Improvement Time Zero Purchasing Time Zero Setup Time Zero Defects
The Value Chain Michael Porter of Harvard University proposed the value chain as a tool for identifying ways to create more customer value Every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product. The value chain identifies nine activities consist of five primary activities and four support activities.
Core Competencies A core competency has three characteristics: It is source of competitive advantage in that it makes a significant contribution to perceived customer benefits It has application in a wide variety of markets, and It is difficult for competitors to imitate.
HOLISTIC RELATIONSHIP MARKETING FRAMEWORK 1) Who is involved? CORPORATION COLLABORATORS CUSTOMERS MARKET SPACE 2) How can we define relevant market space? 3) What are the potential opportunities emerging from the market space? POTENTIAL OPPORTUNITIES 4) What business capabilities and infrastructure required? BUSINESS INVESTMENT CUSTOMER FOCUS CORE COMPETENCIES COLLABORATIVE NETWORK
4 COMPETITIVE PLATFORMS Customer Focus Core Competencies Collaborative Network Exploring Value COGNITIVE SPACE COMPETENCY SPACE RESOURCE SPACE Market Offerings Business Architecture Creating Value CUSTOMER VALUE BUSINESS DOMAIN BUSINESS PARTNERS Marketing Activities Operational System Delivering Value CRM ERP SCM
Strategic-Planning, Implementation, and Control Process Corporate planning Division Business Product Organizing Implementing Measuring results Diagnosing Taking corrective action
The Strategic-Planning Gap Sales 10 5 Time (years) Desired sales Strategic- planning gap Diversification growth Integrative growth Intensive growth Current portfolio
Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid penetration Existing markets products 3. Product development New products 2. Market development New markets 4. Diversification
Opportunity Matrix 1 2 3 4 Success Probability Opportunities High Low 1. Company develops a more powerful lighting system 2. Company develops a device for measuring the energy efficiency of any lighting system 3. Company develops a device for measuring illumination level 4. Company develops a software program to teach lighting fundamentals to TV studio personnel 1 2 High Attractiveness 3 4 Low
Probability of Occurrence Threat Matrix Threats Probability of Occurrence High Low 1. Competitor develops a superior lighting system 2. Major prolonged economic depression 3. Higher costs 4. Legislation to reduce number of TV studio licenses 1 2 High Seriousness 3 4 Low
The Marketing Plan Executive Summary & Table of Contents Current Marketing Situation Opportunity & Issue Analysis Objectives Marketing Strategy Action Programs Projected Profit-and-loss Controls
The Boston Consulting Group’s Growth-Share Matrix 20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%- Market Growth Rate Stars 5 4 3 ? Question marks 2 1 Cash cow 6 Dogs 8 7 10x 4x 2x 1.5x 1x Relative Market Share .5x .4x .3x .2x .1x