Developing Marketing Strategies and Plans Chapter 2

The Value Delivery Process Value creation and delivery sequence is divided into the following phases: 1) Assessing market opportunity and customer value 2) Choosing the value 3) Designing value 4) Delivering Value 5) Communicating Value 6) Grown and sustained

Value Chain is a tool to identify ways to create more customer value. The Value Chain Value Chain is a tool to identify ways to create more customer value. Primary activities of value chain: 1) Inbound logistics 2) Operations 3) Outbound logistics 4) Marketing 5) Service Support Activities 1) Procurement 2) Technology Development 3) Human resource management 4) Firm infrastructure

Core Competencies Core competencies are the combination of pooled knowledge and technical capacities that allow a business to be competitive in the marketplace. Characteristics: 1) Source of competitive advantage and makes a significant contribution to perceived customer benefits. 2) Applications in wide variety of markets. 3) Difficult for competitors to imitate.

Holistic Marketing Holistic marketing sees it as as integrating the value exploration, value creation, and value delivery activities with the purpose of building long term, mutual satisfying relationships and co-prosperity among key stakeholders.

Marketing Plan The Marketing plan is the central instrument for directing and coordinating the marketing effort. Levels of Marketing Plan Strategic Marketing plan lays out the target markets and the firms value proposition, based on an analysis of the best market opportunities. Tactical Marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing sales channels and service.

Level of Marketing Plan Strategic Marketing Plan Target Market Value Proposition Analysis of Market Opportunities Tactical Marketing Plan Product Feature Promotion Merchandising Pricing Sales Channels Service Level of Marketing Plan

The Strategic Planning, Implementation and Control Processes

Corporate and Division Strategic Planning Mission Statement: a formal summary of the aims and values of a company, organization, or individual. A clear, thoughtful mission statement provides a shred sense of purpose, and direct opportunity.

Good Mission Statement Major competitive spheres Stress companies major policies and values Focus on a limited number of Goals Long term view Short, Memorable and Meaningful Good Mission Statement

Establishing Strategies Business Units Assigning Resources of each SBU

Major Competency Sphere Industry Product and Application Competence Market Segment Vertical Geography

Product oriented VS Market oriented definitions of Business Company Product Definition Market Definition Railways We run trains. We are a people-and-goods mover. Xerox We make copy equipment. We help improve office productivity. BPLC We sell petrol and diesel. We supply energy. Paramount Pictures We make movies. We market entertainment. Encyclopedia Britannia We sell encyclopedia. We distribute information. Blue Star We make air conditioners. We provide climate control in homes and offices.

Characteristics of SBU Single business or a collection of related business. Own set of compotators. Manager is responsible for strategic planning and profit performance.

The Strategic Planning Gap

Assessing Growth Opportunities Intensive Growth: Product Market expansion grid Market Penetration strategy Market development strategy Product development strategy Integrative Growth Diversification Growth Downsizing and Divesting older bunisess

Corporate Culture Shared experience, stories, beliefs and norms that characterize the organization

Marketing Innovation Innovation in marketing is critical. Imaginative ideas on strategy exist in many places within a company. Senior management should identify and encourage fresh ideas from three under- represented groups: 1) Employee with youthful or diverse perspective, 2) employees far removed from company headquarters and 3) employees new to the industry.

The Business Unit Strategic Planning Process

SWOT Analysis Strengths Weakness Opportunities Threats

Internal Environment External Environment Strengths and Weakness Opportunities and Threats

Market Opportunity Analysis (MOA) Converging trends and introduce hybrid products or services that are new to the market. Make buying process more convenient and efficient Meet the need for information and advice Customize a product or service.

Opportunity Matrix

Opportunity Matrix

Goal Formation Must be arranged hierarchically Objective should be quantitative Goal should be realistic Objective must be consistant

Porters Generic Strategies Overall cost leadership Differentiation Focus

Strategic Alliances Product or Service Alliance Promotional Alliance Logistics Alliance Pricing Collaboration

Financial Projections Marketing Plan Executive Summary Table of content Situational Analysis Marketing Strategy Financial Projections