Slide 3.1 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Developing marketing strategies and plans Chapter 3

Slide 3.2 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Chapter questions 1.How does marketing affect customer value? 2.How is corporate and divisional strategic planning carried out? 3.How is business unit strategic planning carried out? 4.What is involved in developing a marketing plan?

Slide 3.3 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Transitioning from sellers’ to buyers’ markets Competition Demanding customers Choices for customers Transformation of the value concept Fragmented market segments

Slide 3.4 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Sequences in the value delivery process Figure 3.2 Repetitive sequences of the value delivery process Source: M. R. V. Goodman, Durham University

Slide 3.5 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Nirmalya Kumar’s 3Vs marketing approach Define the value segment Define the value proposition Define the value network

Slide 3.6 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 The generic value chain Figure 3.3 The generic value chain Source: From M. E. Porter (1985) Competitive Advantage. Creating and Sustaining Superior Performance, New York: Free Press. Copyright © 1985 by Michael E. Porter. Reproduced with permission from The Free Press, a division of Simon & Schuster Adult Publishing Group

Slide 3.7 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Core business processes The market sensing process The new offering realisation process The customer acquisition process The customer relationship management process The fulfillment management process

Slide 3.8 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Characteristics of core competencies It is a source of competitive advantage It has applications in a wide variety of markets It is difficult for competitors to imitate See what C. K. Prahalad has to say about the core competencies of the firm:

Slide 3.9 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Steps in the business realignment process (Re)define the business concept (Re)shaping the business scope (Re)positioning the brand identity

Slide 3.10 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Questions answered by the holistic marketing framework How can we identify new value opportunities? How can we efficiently create more promising new value offerings? How can we use capabilities and infrastructure to deliver the new value offerings more efficiently?

Slide 3.11 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Organisational levels Corporate level Division level Business unit level Product level

Slide 3.12 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 What is a marketing plan? The marketing plan is the central instrument for directing and coordinating the marketing effort.

Slide 3.13 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Figure 3.5 The strategic planning, implementation and control processes

Slide 3.14 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Planning activities Defining the corporate mission Defining the business Assigning resources to each SBU Assessing growth opportunities

Slide 3.15 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Questions to ask when defining a mission What is our business? Who is the customer? What is of value to the customer? What will our business be? What should our business be? Questions to ask when defining a mission: ure=related

Slide 3.16 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Mission statements ‘To create the safest and most exciting car experience for modern families.’ – Volvo ‘We help people trade practically anything on earth. We will continue to enhance the online trading experience of all – collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.’ – eBay

Slide 3.17 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Characteristics of good mission statements State limited number of goals Stress company’s major policies, values and culture Define major competitive spheres Take a long-term view Stated in brief, with flexibility and distinction

Slide 3.18 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Definitions of business Product definition BP sells fuels Biersdorf sells cosmetics Renault sells automobiles Xerox makes copy equipment Market definition BP sells energy Biersdorf sells beauty Renault supplies transport vehicles Xerox improves office productivity

Slide 3.19 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Major competitive spheres Industry Product Competence Market segment Vertical Geographic

Slide 3.20 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Characteristics of SBUs It is a single business, or a collection of related businesses, that can be planned separately from the rest It has its own set of competitors. It has a manager responsible for strategic planning and profit performance

Slide 3.21 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Figure 3.6 The strategic planning gap

Slide 3.22 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Strategies for managing change Avoid the innovation title Use the buddy system Set the metrics in advance Aim for quick hits first Get data to back up your gut feelings

Slide 3.23 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Dimensions of business innovation Offerings Platform Solutions Customers Customer experience Value capture Processes Organisation Supply chain Presence Networking Brand

Slide 3.24 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Figure 3.8 The business unit strategic-planning process

Slide 3.25 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 SWOT Analysis Figure 3.9 Using SWOT analysis to monitor the internal and external position of an organisation McDonald’s advises that care should be taken when conducting SWOT analysis:

Slide 3.26 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Market opportunity analysis Can we articulate the benefits to a target audience? Can we locate the target market and reach them with cost-effective media and trade channels? Does our company possess or have access to the critical capabilities and resources we need? Can we deliver the benefits better than the competition? Will the rate of return meet or exceed our expectations?

Slide 3.27 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Figure 3.10 Opportunity and threat matrices

Slide 3.28 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Goal formulation and the MBO Arrange objectives hierarchically from most to least important Make goals quantitative if possible Make goals realistic Make goals consistent

Slide 3.29 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Porter’s generic strategies Overall cost leadership DifferentiationFocus To see an interesting video clip that summarises the dichotomy between differentiation and low cost go to: Y&feature=PlayList&p=DAA8BC0955BC0A5D&playnext_from=PL &playnext=1&index=13

Slide 3.30 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Forms of strategic alliances Product or service alliance Promotional alliance Logistics alliance Pricing collaborations

Slide 3.31 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Elements of strategy Strategy Structure Systems StyleSkills Staff Shared values

Slide 3.32 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Contents of a marketing plan Executive summary and table of contents Situation analysis Marketing strategy Financial projections Implementation controls For some tips on how to write a marketing plan go to: ul65NjOMzo&feature=related

Slide 3.33 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Contents of a marketing plan The Euromart marketing plan is based on an approach inspired by Professors Kashani and Turpin of the IMD in Switzerland: Executive summary Contextual analysis Customer analysis Competition analysis Company strategic approach Channel analysis (distribution and marketing communications) Cash analysis Marketing management implementation and control

Slide 3.34 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Kotler on strategy In this video clip, Philip Kotler discusses some key strategic marketing issues for practitioners

Slide 3.35 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Marketing debate What good is a mission statement? Take a position: Mission statements are critical to a successful marketing organisation. Mission statements rarely provide useful marketing value.

Slide 3.36 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Recap: can you explain? How does marketing affect customer value? How is corporate and divisional strategic planning carried out? How is business unit strategic planning carried out? What is involved in developing a marketing plan?