1

2
Developing Marketing
Strategies and Plans
 Phases of Value Creation and
Delivery

Choosing the value

Providing the value

Communicating the value

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 What is the Value Chain?

The value chain is a tool for identifying was

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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 Maximizing Core Competencies

 (Re)define the business concept

 (Re)shaping the business scope
 (Re)positioning the company’s brand identity

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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 co-prosperity among key
stakeholders.

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 Questions to Address in
Holistic Marketing

What value opportunities are available?

How can we create new value offerings

efficiently?

How can we delivery the new offerings

efficiently?

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 Figure 2.1 The Strategic Planning,
Implementation, and
Control Processes

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 Table 2.1 Master Marketers

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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  Tactical
 Target marketing  Product features
decisions  Promotion
 Value proposition  Merchandising
 Analysis of  Pricing
marketing  Sales channels
opportunities
 Service

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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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 Good Mission Statements

 Focus on a 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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 Google

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 Table 2.2
Major Competitive Spheres
 Industry
 Products
 Competence
 Market segment
 Vertical channels
 Geographic

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 Product Orientation vs.
Market Orientation
Company Product Market
Missouri-Pacific We run a railroad We are a people-
Railroad and-goods mover

Xerox We make copying We improve office

equipment productivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain

people

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 Dimensions Define a Business

Customer Groups

Customer Needs

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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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 2-20
 Figure 2.2 The Strategic Planning
Gap

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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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 Figure 2.3 The Business Unit
Strategic Planning Process

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 SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

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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)
 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?

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 Figure 2.4
Opportunity and Threat Matrices

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 Goal Formulation and MBO

 Unit’s objectives must be hierarchical

 Objectives should be quantitative
 Goals should be realistic
 Objectives must be consistent

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 Porter’s Generic Strategies

Overall cost leadership

Differentiation

Focus

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 Categories of Marketing Alliances

 Product or service alliance

 Promotional alliance
 Logistics alliances
 Pricing collaborations

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 McKinsey’s Elements of Success

Skills Strategy

Staff Structure

Style Systems

Shared values

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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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