By Izza Shahzad

DEVELOPING MARKETING STRATEGIES AND PLANS

The Value Delivery Process

Traditional Physical Process Sequence Value Creation and Delivery Sequence
Choose the Value Customer Segmentation Market Selection/Focus Value Positioning Provide the Value Product Development Service development Pricing Sourcing / Making Distributing/ Servicing Communicate the Value Sales Force Sales Promotion Advertising

Make the Product Design Product Procure Make Sell Product Price Sell Advertise/Promote Distribute Service

The Value Chain

Michael Porter of Harvard has proposed the VALUE CHAIN as a tool for identifying ways to create more customer value.

Core Competencies
A Core Competency has three characteristics : 1. It is a source of completive advantage in that it makes a significant contribution to perceived customer benefits
2. It has application in a wide variety of

markets 3. It is difficult for competitors to imitate

Holistic Marketing
The that Holistic Marketing concept is based

on the development design, and implementation of marketing programs, processes and activities that recognizes that EVERY THING matters in marketing. Relationship Marketing aims to build mutually satisfying long-term relationships with constituents in order to earn and retain their business.

Marketing Network
A Marketing Network consists of the

company and its supporting stakeholders

Customers
Employees Suppliers

Distributors
Retailers Ad Agencies

University Scientists

Holistic Marketing
Internal Marketing

Performance Marketing

Holistic Marketing

Relationship Marketing

Integrated Marketing

Internal Marketing
Marketing Department Senior Management Other Departments

Performance Marketing
Sales Revenue Brand & Customer Equity Ethics Environment Legal Community

Relationship Marketing
Customers Channel Partners

Integrated Marketing
Communications Product & Services Channels

Holistic Marketing Orientation and Customer Value

Value Exploration : How can a company

identify new value opportunities Value Creation: How can company efficiently create new promising new value offerings Value Delivery: How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently

Marketing Plan
The Marketing Plan is the central instrument for directing and coordinating the marketing effort.

The marketing plan lays out the target market and the value proposition the firm will offer based on an analysis of the best market opportunities.
The tactical marketing plan specifies the marketing tactics, including product features,

promotion, merchandising, pricing, sales channel and service.

Corporate and Division Strategic Planning

Planning Implementing Controlling

Corporate Planning Division Planning Business Planning Product Planning

Organizing Implementing

Measuring Results Diagnosing Results Taking Corrective Actions

Corporate and Division Strategic Planning (Contd)

All corporate headquarters undertake four

planning activities:
Defining the corporate mission 2. Establishing strategic business unit 3. Assigning resources to each SBU 4. Assessing growth opportunities
1.

Mission Statement
A mission statement is a statement of the

purpose of a company or organization, its reason for existing. The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decision-making. It provides "the framework or context within which the company's strategies are formulated

Mission Statement (Contd)

Good Mission Statements have five major

characteristics
1.
2.

3.
4.

5.

Focus on limited number of goals Mission Statements stress on the companys major policies and values They define the major competitive spheres within which the company will operate Mission Statement take a long-term view A good Mission Statement is a short, memorable and meaningful as possible.

Strategic Business Unit

It is a single business, or a collection of

related businesses, that can be planned separately from the rest of the company. It has its own set of competitors. It has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit.

Assigning Resources to Each SBU

Intensive Growth Integrative Growth Diversification

Assessing Growth Opportunities

Market Penetration Strategy
Product Development Strategy

Market Development Strategy

Diversification

Integrative Growth
Backward Integration Forward Integration Horizontal Integration

Diversification Growth
1. The company could seek new products that have technological or marketing synergies with

existing product lines appealing to new group of customers. 2. The company can develop new products that are technologically unrelated to its current product line and could appeal to its current customers 3. The company may seek new opportunities that have no relation with its current technology, products, or markets

Business Unit Strategic Planning

The Business Mission
SWOT Analysis 1. Strengths 2. Weaknesses 3. Opportunities 4. Threats

Goal Formulation
1. They must be arranged hierarchically, from

most to the least important 2. Objectives should be quantitative whenever possible 3. Objectives should be realistic 4. Objectives must be consistent

Strategic Formulation
1. Overall cost Leadership 2. Differentiation 3. Focus

Strategic Alliances
1. Product or Services alliance 2. Promotional alliances 3. Logistics Alliances 4. Pricing Collaborations

Business Unit Strategic Planning

Seven Elements of Strategy Hardware 1. Strategy 2. Structure 3. Systems Software 1. Style 2. Skills 3. Staff 4. Shared Values

Program Formulation and Implementation

Feedback and Control

Marketing Plan
A marketing plan is a written document that summarizes what the marketer has learned about the market place and indicates how the firm plans to reach its marketing objectives

Marketing Plan (Contd)

Marketing Plan comprises of: 1. Executive Summary and Table of Contents 2. Situation Analysis 3. Marketing Strategy 4. Financial Projections 5. Implementation Controls

The End