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Developing Marketing Strategies and Plans

Marketing Management
A South Asian Perspective, 13th ed

TWO VIEWS OF VALUE DELIVERY PROCESS

(A) Traditional Physical Process Sequence :
Make the product
Make Design Procure Price Sell

Sell the product

Advertise Promote

Service Distribute

( Used in Economies of Scarcities )

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TWO VIEWS OF VALUE DELIVERY PROCESS

(B) The Value Creation and Delivery Sequence
Choose the value Provide the value
Product Value Positioning Market Selection / Focus Dev. Service Development Pricing Servicing Making Sourcing Distributing Sales Promotion

Communicate the value

Sales Force

Customer Segmentation

( Used in More Competitive Economies )

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Nike Creates Value

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Three Vs Approach to Marketing

Define the value segment

Define the value proposition

Define the value network

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The value Chain

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What is the Value Chain?

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.

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Core Business Processes

Market-sensing process New-offering realization process Customer acquisition process Customer relationship management process Fulfillment management process

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Characteristics of Core Competencies

A source of competitive advantage Applications in a wide variety of markets Difficult to imitate

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What is Holistic Marketing?

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.

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What is a Marketing Plan?

A marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at a strategic and tactical level.

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Levels of a Marketing Plan

Strategic
Target marketing decisions Value proposition Analysis of marketing opportunities

Tactical
Product features Promotion Merchandising Pricing Sales channels Service

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Figure 2.4 The Strategic Planning, Implementation, and Control Processes

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Corporate Headquarters Planning Activities Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunities

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Defining the corporate mission

What is our business? Who is our customer? What is of value to the customer? What will our business be? What should our business be?

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Good Mission Statements

Focus on limited number of goals Stress major policies and values

Define major competitive spheres

Take a long-term view Short, memorable, meaningful

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Major Competitive Spheres

Industry
Geographical Vertical channels Products

Competence Market segment

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Infosys Technologies Limited

To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors, and society at large.

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eBay

We help people trade anything on earth. We will continue to enhance the online trading experiences of allcollectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.

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Establishing Strategic Business Units

Companies must see their business as a customer satisfying process, not a goods producing process.

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Table 2.3
Product Orientation vs. Market Orientation Company
Xerox Columbia Pictures Encyclopedia Britannica Carrier

Product
We make copying equipment We make movies We sell encyclopedias We make air conditioners and furnaces

Market
We improve office productivity We entertain people We distribute information We provide climate control inside homes
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Dimensions That Define a Business

Customer groups

Customer needs
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Technology
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Characteristics of SBUs
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

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Assigning Resources to each SBU

BCG Matrix GE / Mc Kinsey Matrix

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Assessing Growth Opportunities

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Strategies Suggested by Ansoffs Product-Market Expansion Grid Market penetration Market development Product development Diversification

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Developing the Peoples Car TATA Nano

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What is Corporate Culture?

Corporate culture is the shared experiences, stories, beliefs, and norms that characterize an organization.

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Tactics for Managing Change

Avoid the innovation title for the team Use the buddy system Set the metrics in advance Aim for quick hits first Get data to back up your gut

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The Business Unit Strategic Planning

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SWOT Analysis
Strengths Weaknesses Opportunities Threats
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External Environment analysis

A marketing opportunity is an area of buyer need and interest that a company has a high probability of profitably satisfying. Sources of market opportunities:
Short supply Existing product or service in superior way
Problem Detection method Ideal method Consumption chain method

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Opportunities can take many forms

Converging industry trends and introduce hybrid products Make buying process more convenient Meet the need for more information and advice Customize product or service Introduce new capability May be able to deliver a product or service faster Offer a product at much lower price
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Market Opportunity Analysis (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?
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Market Opportunity Analysis (MOA) (cont.)

Can the company deliver the benefits better than any actual or potential competitors? Will the financial rate of return meet or exceed the companys required threshold for investment?

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FedEx
FedEx added Sunday deliveries based on customer requests and market demand

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Figure 2.8 Opportunity Matrix

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Figure 2.8 Threat Matrix

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Goal Formulation and MBO

Units objectives must be hierarchical Objectives should be quantitative Goals should be realistic Objectives must be consistent

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Porters Generic Strategies

Overall Cost Leadership

Differentiation
Focus

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Categories of Marketing Alliances

Product or Service Alliances
Promotional Alliances Logistics Alliances

Pricing Collaborations

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Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

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Evaluating a Marketing Plan

Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?

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