Presentation on theme: "A Framework for Marketing Management"— Presentation transcript:
1 A Framework for Marketing Management Chapter 2Developing and Implementing Marketing Strategies and PlansCopyright 2009, Prentice-Hall, Inc.
2 Copyright 2009, Prentice-Hall, Inc. 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?How can management assess marketing performance?Copyright 2009, Prentice-Hall, Inc.
3 Two Views of the Value Delivery Process Traditional Physical Process SequenceMake the productSell the productValue Creation and Delivery SequenceChoose the valueProvide the valueCommunicate the valueCopyright 2009, Prentice-Hall, Inc.
4 Copyright 2009, Prentice-Hall, Inc. Other ViewsKumar’s “3Vs”Define the value segment or customers (and their needs)Define the value propositionDefine the value network to deliver promised serviceWebster—Marketing is:Value-defining process like market researchValue-developing processes including new-product development, sourcing strategy, and vendor selectionValue-delivering processes such as advertising and managing distributionCopyright 2009, Prentice-Hall, Inc.
5 Copyright 2009, Prentice-Hall, Inc. The Value ChainPrimary ActivitiesInbound logisticsOperationsOutbound logisticsMarketing and salesServiceSupport ActivitiesFirm infrastructureHuman resource managementTechnology developmentProcurementCopyright 2009, Prentice-Hall, Inc.
6 Core Business Processes The market sensing processThe new offering realization processThe customer acquisition processThe customer relationship management processThe fulfillment management processCopyright 2009, Prentice-Hall, Inc.
7 Characteristics of Core Competencies A source of competitive advantageApplications in a wide variety of marketsDifficult for competitors to imitateCopyright 2009, Prentice-Hall, Inc.
8 Holistic Marketing Orientation and Customer Value Value exploration: How can a company identify new value opportunities?Value creation: How can a company efficiently create more promising new value offerings?Value delivery: How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently?Copyright 2009, Prentice-Hall, Inc.
9 A Holistic Marketing Framework Value explorationValue creationValue deliveryCustomer focusCore competenciesCollaborative networkCopyright 2009, Prentice-Hall, Inc.
10 Role of Strategic Planning Managing a company’s businesses as an investment portfolioAssessing each business’s strengthEstablishing a strategy to achieve its long-run objectivesCopyright 2009, Prentice-Hall, Inc.
11 Organizational Levels Corporate levelDivisional levelBusiness unit levelProduct levelCopyright 2009, Prentice-Hall, Inc.
12 Copyright 2009, Prentice-Hall, Inc. Marketing PlanCentral instrument for directing and coordinating the marketing effortTwo levels:Strategic marketing plan—lays out the firm’s target markets and value propositions, based on the best market opportunities.Tactical marketing plan—specifies the marketing tactics, including product features, promotion, pricing, and service.Copyright 2009, Prentice-Hall, Inc.
13 Corporate Planning Activities Defining the corporate missionEstablishing strategic business unitsAssigning resources to each unitAssessing growth opportunitiesCopyright 2009, Prentice-Hall, Inc.
14 Defining the Corporate Mission What is our business?Who is the customer?What is the value to the customer?What will our business be?What should our business be?Copyright 2009, Prentice-Hall, Inc.
15 Good Mission Statements Focus on limited number of goalsStress major policies and valuesDefine major competitive spheresCopyright 2009, Prentice-Hall, Inc.
16 Major Competitive Spheres IndustryProducts and applicationsCompetenceMarket segmentVerticalGeographicalCopyright 2009, Prentice-Hall, Inc.
17 Dimensions That Define a Business Customer groupsCustomer needsTechnologyCopyright 2009, Prentice-Hall, Inc.
18 Characteristics of an SBU Single business or collection of related businessesOwn set of competitorsManager responsible for strategic planning and profit performanceCopyright 2009, Prentice-Hall, Inc.
19 Copyright 2009, Prentice-Hall, Inc. Growth OpportunitiesIntensive growthIntegrative growthDiversification growthCopyright 2009, Prentice-Hall, Inc.
20 Copyright 2009, Prentice-Hall, Inc. OrganizationsStructurePoliciesCultureCopyright 2009, Prentice-Hall, Inc.
21 The Business Unit Strategic Planning Process Business missionSWOT analysisGoal formulationStrategy formulationProgram formulationImplementationFeedback and controlCopyright 2009, Prentice-Hall, Inc.
22 Copyright 2009, Prentice-Hall, Inc. SWOT AnalysisStrengthsWeaknessesOpportunitiesThreatsCopyright 2009, Prentice-Hall, Inc.
23 Marketing Opportunity An area of buyer need and interest that a company has a high probability of profitably satisfying.Sources:Supply something that is in short supplySupply an existing product or service in a new or superior wayTotally new offeringCopyright 2009, Prentice-Hall, Inc.
24 Copyright 2009, Prentice-Hall, Inc. Environmental ThreatChallenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to lower sales or profit.Copyright 2009, Prentice-Hall, Inc.
25 Effective Goal Formulation Arranged hierarchically from most to least importantStated quantitativelyRealisticConsistentCopyright 2009, Prentice-Hall, Inc.
26 Porter’s Generic Strategies Overall cost leadershipDifferentiationFocusCopyright 2009, Prentice-Hall, Inc.
27 McKinsey’s Seven “S” Elements “Hardware”StrategyStructureSystems“Software”StyleSkillsStaffShared valuesCopyright 2009, Prentice-Hall, Inc.
28 Marketing Plan Contents Executive summaryTable of contentsSituation analysisMarketing strategyFinancial projectionsImplementation controlsCopyright 2009, Prentice-Hall, Inc.
29 Marketing Metrics and Marketing Dashboards Marketing metrics is the set of measures that helps marketers quantify, compare, and interpret marketing performance.Marketing dashboard is a visual display of real-time indicators that summarize a set of relevant internal and external measures to ensure proper functioning.Copyright 2009, Prentice-Hall, Inc.
30 Measuring Marketing Plan Performance Sales analysisMarket share analysisMarketing expense-to-sales ratioFinancial analysisCopyright 2009, Prentice-Hall, Inc.