1. Crafting Strategy and the Marketing Plan
Arild Aspelund

2. Outline A simple model for marketing strategy
Containing the roles of the key concepts
A practical guide to the marketing strategy process
Kotler’s view
The marketing plan
Rationale
Content
Dissemination and confidentiality

3. Marketing Strategy Resources & Capabilities Firm Market Strategy
Segmentation
Buying behavior
Targeting
Value
Positioning

4. The Value Delivery Process

5. K&K’s Business Unit Strategic Model

6. Business Mission
A good mission statement clearly defines the organization’s mission to all employees, stake holders, customers and suppliers
Defines focus on a common mission!
Focus on a limited number of goals!
Stress major policies and values!
Define major competitive spheres!

7. Mission statement - eBay
“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.”

8. Mission statement - IKEA
Does it say that IKEA’s prices should be as low as possible?
“The IKEA vision is to create a better everyday life for the many people. We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”

9. SWOT - Analysis Internal Factors Strengths Weaknesses
Competitive strengths, resources and capabilities
Weaknesses
Competitive disadvantages, resource and capability gaps
Three models for internal analysis
The Value Workshop
The Value Chain
The Value Network

10. The Value Work Shop
Stabell and Fjeldstad (1998)

11. Porter’s Value Chain

12. The Value Network
Stabell and Fjeldstad (1998)

13. SWOT - Analysis External Factors Opportunities Threats Market research
Attractiveness and success probability
Threats
Seriousness and probability of occurrence
Market research
Customer characteristics, segments, preferences, buying behavior, etc
Two models for external analysis
PESTEL - analysis
Porter’s five forces
(We will come back to these shortly)

14. Goal Formulation Goals should be realistic!
Objectives should be quantitative!
Objectives must be consistent!
Create hierarchical sub-goals!

15. Strategy Formulation Porter’s generic strategies
Overall cost leadership
Differentiation
Focus
Define overall allocation and development of the firm’s organizational resources and capabilities
Market strategies
Value proposition
Segmentation
Targeting
Positioning
Customer behavior
Define allocation and development of market resources and capabilities

16. Program Formulation, Implementation, Control and Feedback
Specification of tactical issues
Product features
Promotion
Merchandising
Pricing
Sales channels
Service
Development of a feasible time schedule associated with each task
Organization and allocation of responsibilities
Development of reliable measures of performance on all levels
Report procedures
Stop criteria

17. The Market Plan - Motivation
Primarily internal focus
Frequently used in programs for holistic marketing
Communication of market knowledge throughout the organization
A plan…with milestones…
Economic measures, commitment and control

18. The Market Plan - Contents
Executive Summary
Value proposition, key market segments, targeting, positioning, forecasts and returns
Situation Analysis
Market summary with consumer behavior, SWOT, competition, value proposition, CSF
Marketing Strategy
Mission, goals, key market segments, targeting, positioning, marketing mix, marketing research
Financial
Break-even analysis, sales forecast, expense forecast
Controls
Implementation, organization, feed-back routines

19. The Market Plan - Dissemination
It is rarely smart to disclose your market plan
Not only due to competitors can see your evaluation of
Value propositions
Accuracy and amount of market information
Future actions and investments
Cost structure
But also to protect your actions from transparency from customers
It could be wise, however, to publish a version that you want the public and your competitors to see…

20. Summary and continuation
A market strategy should start with a scan of the environment
We have presented a framework for strategical market management that incorporates several frameworks of analysis and forms the basis for new marketing campaignes (these will be revisited in detail…)
We have suggested a structure for a market plan
And in the next episode of Marketing Management…
A model for scanning the environment
A practical guide for performing market research