1. MARKETING MANAGEMENT 12th edition
Developing
Marketing
Strategies and Plans
Kotler Keller

2. Objectives Defining the Business and the Mission
Strategic Planning, Implementation and Control Processes
Planning Based on Competencies and Competition Relative to Opportunity, Objectives and Performance
Opportunity Assessment Model and Marketing Plan Specifics

3. Defining the Business and the Mission
A Market Versus a Product Orientation
The Mission
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.”
Company
Product
Market
Missouri-Pacific Railroad
We run a railroad
We are a people-and-goods mover
Xerox
We make copying equipment
We improve office productivity
Standard Oil
We sell gasoline
We supply energy
Columbia Pictures
We make movies
We entertain people
Motorola: “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.”
Rubbermaid: “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.”

4. The Strategic Planning, Implementation, and Control Processes
MARKETING EFFORT
DRIVEN BY MARKETING PLANS
Strategic marketing plans:
Opportunity analysis, target markets
and value proposition
Tactical marketing plans:
Marketing Mix = Product, Price,
Promotion and Place
by SBU
ATTRIBUTES AND PURPOSE OF SBUs
Is single or collection of related businesses
that can be planned for separately
Has its own set of competitors
Has dedicated management with authority
and responsibility for strategic planning
and profitability
Created to optimize specific business
opportunities that require specialized
resources and dedicated funding
BASIC PLANNING ACTIVITIES OF HQ
Defines Corporate Mission (competency,
industry, product, application, vertical,
geographic and market scope)
Establishes Divisions and Strategic Business
Units (SBUs – product vs. market)
Assigns resources to each Division and SBU
Enters new businesses, downsizes, or
terminates older businesses relative to
assessment of growth opportunities

5. Corporate, Division and SBU Strategic Planning
The General Electric Model
CHARACTERISTICS
Assesses SBU opportunity based on current market share of quantifiable market sizes
SBUs are rated in terms of business strengths relative to competitive position in markets
of varying attractiveness
Defines specific business strategies in accordance with SBUs’ competitive business
strengths in markets of varying attractiveness
Market Attractive-ness
Overall market size
Annual market growth rate
Historical profit margin
Competitive intensity
Technological requirements
Inflationary vulnerability
Energy requirements
Environmental impact
Social-political-legal
Weight
0.20
0.15
0.05
Must be acceptable
1.0
Rating =
(1-5) 4 5 2 3
Value
0.80 1.
0.60
0.30
0.10
3.70
Business Strength
Market share
Share growth
Product quality
Brand reputation
Distribution network
0.40
0.50

6. Corporate and Division Strategic Planning
Intensive Growth Strategies: Ansoff’s Product-Market Expansion Grid Need for Incremental Revenue to Meet Objectives 1
INTENSIVE GROWTH STARTEGIES
A) Market Penetration Strategy
- Encourage current customers to buy more (Programs, Promotions, Incentives))
- Attract competitors' customers (Value Differentiation and PPI)
- Motivate non-users of common applications in current geographies to buy (PPI)
B) Market development
- Develop new (applications) uses for current products (Sales Strategies)
- Motivate non-users of common applications in new geographies to buy (PPI & expanded channels)
C) Product Development
- Develop new features and performance capabilities of current products
- Develop new products as better solutions for current applications
INTEGRATIVE GROWTH STARETGIES
A) Acquire suppliers and their related revenues (backward integration)
B) Acquire external sales and fulfillment channels and their related revenues
C) Acquire competitors
DIVERSIFICATION GROWTH STRATEGIES
A) Develop or acquire new products to enter new markets with synergies to existing markets
B) Develop new offerings (or services) to existing customers with no synergy to existing products
C) Enter new markets with new offerings and no synergy to existing products, markets or customers (Play on Brand)
THREE WAYS TO
CLOSE THE
REVENUE GAP
CONSIDERATIONS
Revenue / Profit Opportunity
Investment Requirements
- Ease of Entry – Logistics
- Working Capital Availability
- Critical Lead Time Availability
- Competitive Positions / Strengths 2 3

7. Strategic and Tactical Planning
Direct Control
Organization Groups
Business Unit
Strategic Planning
Strategic
Tactical
COMPANY*
BUSINESS
PRODUCT MARKETING STRATEGY
OBJECTIVES
UNITS
P V N
MARKETS
r a i
Marketing Plan Contents
Executive Summary
Current Marketing
Situation
Opportunity and issue
analysis
Objectives
Marketing strategy
Action programs
Financial projections
Implementation controls
i l c
PERFORMANCE
c u h
REQUIREMENTS
e e e
PRODUCTS
SKILLS
MANAGEMENT
ACCOUNTS / P
GEOGRAPHIES e r
s A
o d P
TERRITORY:
SALES
n v r
Plans & Controls
a e o
PROCESSES
l r m
t o
S i t
e s i
l i o
COMPENSATION
RESOURCES
l n n
INCENTIVES
Marketing Alliances
Product or service alliances
Promotional alliances
Logistical alliances
Pricing collaborations
Type-Mix-Qty
i g s n g
PERFORMANCE
Simple
Specific
Realistic
Complete
ORGANIZATION
Review & Assess
Competitive Philosophy
Strategic Planning Process
* Profitability, Growth
Organization Performance

8. The Mission, MOA / Threat Analysis and Goal Setting
MISSION STATEMENTS
Focus on a Limited Number of goals
Stress Major Policies and Values
Define Major Competitive Spheres
MARKET OPPORTUNITY ANALYSIS
Can the benefits of the opportunity be credible to a defined target market?
Can the target market be located and reached cost-effectively by media and 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 ROI meet or exceed the company’s required threshold for investment?
GOAL FORMULATION USING MBO
Unit’s objectives must be hierarchical
Objectives should be quantitative
Goals should be realistic
Objectives must be consistent