1. D EVELOPING M ARKETING S TRATEGIES AND P LANS MBA 649 : Marketing Management M Wahidul Islam Fall 2014 LECTURE 2

2. HTTP :// EDU - MBA 649. WEEBLY. COM

3. 2-3Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall W HAT IS THE V ALUE C HAIN ? The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.

4. 2-4Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall C ORE B USINESS P ROCESSES Market-sensing process New-offering realization process Customer acquisition process Customer relationship management process Fulfillment management process

5. W HAT IS C ORE C OMPETENCY ?

6. 2-6Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall C HARACTERISTICS OF C ORE C OMPETENCIES A source of competitive advantage Applications in a wide variety of markets Difficult to imitate

7. 2-7 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall N ETFLIX ’ S D ISTINCTIVE C APABILITIES

8. I DENTIFY C ORE C OMPETENCY

9. 2-9Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall T HREE V’ S A PPROACH TO M ARKETING Define the value segment Define the value proposition Define the value network

10. 2-10Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall W HAT IS H OLISTIC M ARKETING ? 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 coprosperity among key stakeholders.

11. 2-11Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall W HAT IS A M ARKETING P LAN ? A marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at a strategic and tactical level.

12. 2-12 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall L EVELS OF A M ARKETING P LAN Strategic Target marketing decisions Value proposition Analysis of marketing opportunities Tactical Product features Promotion Merchandising Pricing Sales channels Service

13. 2-13Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall F IGURE 2.2 T HE S TRATEGIC P LANNING, I MPLEMENTATION, AND C ONTROL P ROCESSES

14. 2-14Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall C ORPORATE H EADQUARTERS ’ P LANNING A CTIVITIES Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunities

15. G OOD M ISSION S TATEMENTS PROVIDE A SHARED SENSE OF PURPOSE, DIRECTION AND OPPORTUNITY 2-15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Focus on limited number of goals Stress major policies and values Define major competitive spheres Take a long-term view Short, memorable, meaningful

16. 2-16 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall R UBBERMAID C OMMERCIAL P RODUCTS, I NC. “ Our vision is to be the Global Market Share Leader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost- effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our uncompromising Commitment to Customer Satisfaction.”

17. 2-17 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall M OTOROLA “ 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.”

18. 2-18 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall E B AY “We help people trade anything on earth. We will continue to enhance the online trading experiences of all—collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.”

19. 2-19Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall C ORPORATE H EADQUARTERS ’ P LANNING A CTIVITIES Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunities

20. 2-20Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall C HARACTERISTICS OF SBU S 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

21. 2-21Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall C ORPORATE H EADQUARTERS ’ P LANNING A CTIVITIES Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunities

22. T HE GE–M C K INSEY NINE - BOX MATRIX Enduring Ideas: The GE–McKinsey nine-box matrix http://www.mckinsey.com/insights/strategy/enduring_ideas_the_ge_and_mckinsey_nine-box_matrix

23. BCG’ S G ROWTH S HARE M ATRIX 1-23

24. 2-24Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall C ORPORATE H EADQUARTERS ’ P LANNING A CTIVITIES Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunities

25. 2-25Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall F IGURE 2.3 T HE S TRATEGIC P LANNING G AP

26. S TRATEGIES S UGGESTED BY A NSOFF ’ S P RODUCT -M ARKET E XPANSION G RID 2-26 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Product CurrentNew Market CurrentMarket PenetrationProduct Development NewMarket DevelopmentDiversification

27. 2-27Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall T HE B USINESS U NIT S TRATEGIC P LANNING P ROCESS

28. 2-28Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall SWOT A NALYSIS Strengths Weaknesses Opportunities Threats

29. M ARKET O PPORTUNITY A NALYSIS (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? 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? 2-29 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

30. 2-30Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall F IGURE 2.6 O PPORTUNITY M ATRIX

31. 2-31Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall F IGURE 2.6 T HREAT M ATRIX

32. 2-32Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall G OAL F ORMULATION AND MBO Unit’s objectives must be hierarchical Objectives should be quantitative Goals should be realistic Objectives must be consistent

33. 2-33Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall P ORTER ’ S G ENERIC S TRATEGIES Overall Cost Leadership Differentiation Focus

34. 2-34Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall C ATEGORIES OF M ARKETING A LLIANCES Product or Service Alliances Promotional Alliances Logistics Alliances Pricing Collaborations

35. R EFERENCES Chapter 2 – Developing Marketing Strategies and Plans Kotler, Philip, Keller, Kevin L., Koshy, Abraham and Jha, Mithileshwar (2013-14) Marketing Management: A South Asian Perspective (14 th Edition) Pearson Education Inc