Md

Maharulla
23134107
Chapter:2
Developing Marketing Strategies And Plans

1. What is the Value Chain?

In Simple Words:
The value chain is a way of looking at all the activities a business does to
make a product and deliver it to the customer. It helps find areas to improve
so the customer gets more value.

Example:
Think of a company that makes shoes. It designs them, makes them in a
factory, packages them, sends them to stores, and offers customer service.
All these steps add value and are part of the value chain.

2. Core Business Processes

In Simple Words:
These are the most important activities that help a business run well and
serve customers.

Key Processes & Examples:

 Market-sensing process:
Understand what customers want.
Example: Surveys or social media listening to find out trends.

 New-offering realization process:

Create new products or services.
Example: Nike developing a new sneaker.

 Customer acquisition process:

Attract and get new customers.
Example: Facebook ads to bring more people to an online store.

 Customer relationship management (CRM) process:

Keep customers happy and loyal.
Example: Loyalty points or personalized emails.
 Md
Maharulla
23134107
 Fulfillment management process:
Deliver the product/service well and on time.
Example: Amazon delivering packages fast and accurately.

3. Characteristics of Core Competencies

In Simple Words:
Core competencies are the special strengths of a company that make it
better than others.

They must be:

 A source of competitive advantage

Example: Apple’s design and technology help it stand out.

 Useful in many markets

Example: Google’s search tech helps in phones, ads, and smart
devices.

 Hard to copy
Example: Coca-Cola’s secret formula.

4. Holistic Marketing

In Simple Words:
Holistic marketing looks at everything together—finding, creating, and
delivering value to customers in a connected way.

Main Questions:

 Value exploration:
How can we find new opportunities?
Example: Discovering a need for eco-friendly packaging.

 Value creation:
How can we make something valuable for customers?
Example: Designing a product that solves a real problem.

 Value delivery:
How can we give this value to customers better?
Example: Fast delivery or 24/7 support.
 Md
Maharulla
23134107
Goal:
Build long-term relationships with customers, employees, and others.

5. What is a Marketing Plan?

In Simple Words:
A marketing plan is like a guide or map. It helps a business know how to
promote and sell its products.

It works on two levels:

 Strategic: Big picture planning

 Tactical: Day-to-day actions

6. Levels of a Marketing Plan

Strategic Level

Focuses on long-term goals.

 Target marketing decisions:

Who do we want to sell to?
Example: Teens or working mothers.

 Value proposition:
Why should they choose us?
Example: “Best price in the market.”

 Marketing opportunities:
Where can we grow or do better?
Example: Online sales or international markets.

Tactical Level

Focuses on actions to take now.

 Product features, promotion, pricing, channels, service

Example: Adding a new feature, running a sale, or selling on Amazon.

7. Corporate Headquarters’ Planning Activities

 Md
Maharulla
23134107
In Simple Words:
Top managers in a company make big decisions that guide the whole
company.

 Define the corporate mission:

What is our purpose?

 Create SBUs (Strategic Business Units):

Different parts of the company focused on different products or
markets.

 Assign resources:
Give money, people, tools to each SBU.

 Assess growth opportunities:

Find chances to expand or improve.

8. Good Mission Statements

In Simple Words:
A good mission statement says what the company wants to achieve and how.

It should:

 Focus on a few goals

 Show the company’s values

 Define where it competes

 Think long-term

 Be short, clear, and powerful

Example:
Google’s mission: “To organize the world’s information and make it
universally accessible and useful.”

9. Major Competitive Spheres

In Simple Words:
These are the areas a company competes in.

 Industry: Cars, electronics, food, etc.

 Md
Maharulla
23134107
 Products: What it sells.

 Competence: What it's good at.

 Market segment: Who it sells to (kids, seniors, etc.).

 Vertical channels: How it sells (retail, online, etc.).

 Geographic: Where it sells (USA, Europe, etc.).

10. Rubbermaid Mission Statement Example

Summary in Easy Words:

Rubbermaid wants to be the #1 in every market it joins. It plans to do this
by:

 Offering high-quality, affordable, and eco-friendly products

 Giving great customer service

 Always aiming to satisfy customers

It shows:
A strong mission, focus on quality, customer care, and long-term leadership.

Would you like a one-page summary or flashcards for quick revision?

Here’s a simple explanation of each topic shown in your images, along

with examples to help you understand better:

1. Business Mission (Motorola & eBay Examples)

What it means:
A business mission explains why a company exists. It’s a short statement
that tells what the company does, who it serves, and what it values.

✅ Motorola's Mission:
 Md
Maharulla
23134107
“Serve the community by offering high-quality products at a fair price, make
enough profit to grow, and help employees and shareholders reach their
goals.”

🟢 Example: Motorola makes reliable phones and devices for customers,

keeps prices fair, and uses profits to grow and support its people.

✅ eBay's Mission:

“Help people trade anything online and make the experience better for
everyone—collectors, businesses, bargain hunters, etc.”

🟢 Example: eBay lets people buy and sell anything online, whether you're a
collector or just looking for a good deal.

2. Dimensions That Define a Business

There are 3 important parts to understand any business:

1. Customer groups – Who are your customers?

🟢 Example: Kids, adults, small businesses, large companies.

2. Customer needs – What do your customers want?

🟢 Example: Communication, transportation, entertainment, etc.

3. Technology – How do you meet those needs?

🟢 Example: Phones, apps, machines, delivery systems.

3. Product Orientation vs. Market Orientation

Product Orientation = Focus on the product.

Market Orientation = Focus on what the customer really needs.

Company Product Orientation Market Orientation

Missouri-Pacific
We run a railroad We move people and goods
RR

We make copying We help improve office

Xerox
machines productivity

Standard Oil We sell gasoline We supply energy

Columbia We make movies We entertain people

 Md
Maharulla
23134107
Company Product Orientation Market Orientation

Pictures

🟢 Example:
Instead of saying "we make cameras," a company should say "we help
people capture memories."

4. SBUs – Strategic Business Units

What is an SBU?
An SBU is a part of a company that focuses on one product or market area
and can be managed separately.

Characteristics:

 One business or related group.

 Competes with its own rivals.

 Has its own manager for planning and profits.

🟢 Example:
In a big company like Sony:

 PlayStation is one SBU (gaming),

 Sony Music is another SBU (entertainment).

5. Assigning Resources to SBUs (Investment Decisions)

Companies use tools to decide where to invest money.

A. GE/McKinsey Matrix

 Looks at how strong the business is and how attractive the market
is.

 Decide to: grow, harvest (take profits), or hold.

B. BCG Matrix (Boston Consulting Group)

High Market Low Market

Growth Growth

High Market Stars (🟡) Cash Cows (🐄)

 Md
Maharulla
23134107
High Market Low Market
Growth Growth

Share

Low Market Question Marks

Dogs (🐶)
Share (?)

 Stars: Growing fast, need investment.

🟢 Example: Tesla EVs

 Cash Cows: Make a lot of money but not growing.

🟢 Example: Apple's iPhone

 Question Marks: Could succeed or fail.

🟢 Example: New product line

 Dogs: Low growth and profits.

🟢 Example: Old tech like DVDs

6. Ansoff’s Product-Market Expansion Grid

Helps companies plan for growth.

Existing Products New Products

Existing 1. Market 3. Product

Markets Penetration Development

2. Market
New Markets 4. Diversification
Development

Easy Explanation:

1. Market Penetration – Sell more to current customers.

🟢 Example: McDonald's offering more promotions in current cities.

2. Market Development – Sell to new customers/places.

🟢 Example: Netflix expanding to new countries.

3. Product Development – Create new products for existing customers.

🟢 Example: Apple launching new AirPods for iPhone users.

4. Diversification – New products in new markets.

🟢 Example: Amazon offering healthcare services.
 Md
Maharulla
23134107

7. Business Unit Strategic Planning Process

Steps a business unit follows to plan and grow:

1. Business Mission – What are we here to do?

2. SWOT Analysis – Check strengths, weaknesses, opportunities, and

threats.

3. Goal Formulation – Set goals.

4. Strategy Formulation – Plan how to reach those goals.

5. Program Formulation – Create action plans.

6. Implementation – Do the work.

7. Feedback and Control – Measure results and adjust.

🟢 Example:
A toy company wants to grow:

 SWOT: Finds it's strong in design but weak in advertising.

 Goal: Increase sales by 20%.

 Strategy: Launch ads on YouTube.

 Program: Set budget, timeline.

 Implementation: Launch campaign.

 Feedback: See if sales increased.

Let me know if you want a PDF or a summarized note version!

Sure! Here's a simplified and more detailed explanation of each topic with
examples to help you understand better:

1. Business Mission
 Md
Maharulla
23134107
What is it?
A business mission explains the main purpose of a company. It says what the
company does, who it serves, and how it does it.

Example:
A company that makes lighting equipment for TV studios could have this
mission:
“To help major television studios by giving them the best and most
dependable lighting technology.”

It tells us who the customer is (TV studios) and what value the company
offers (advanced, reliable lighting).

2. SWOT Analysis

What is it?
SWOT stands for:

 Strengths: What the company is good at

 Weaknesses: What the company needs to improve

 Opportunities: Chances to grow or do better

 Threats: Things that can harm the company

Example:
For a mobile phone company:

 Strengths: High-quality cameras

 Weaknesses: Expensive products

 Opportunities: Growing markets in developing countries

 Threats: Strong competition from other brands

3. Market Opportunity Analysis (MOA)

What is it?
This helps a company decide if a new business idea or market is worth
entering.

Questions it asks:
 Md
Maharulla
23134107
 Can we explain the benefits to customers clearly?

 Can we reach the customers easily?

 Do we have the skills and tools needed?

 Can we do it better than our competitors?

 Will it make enough profit?

Example:
A company wants to launch eco-friendly packaging.
MOA helps them decide if customers will buy it, if they can reach the right
stores, and if it’s profitable.

4. Goal Formulation

What is it?
Once a company knows its SWOT, it sets clear goals. Goals are targets it
wants to achieve.

Good goals should be:

 Hierarchical (big goals broken into small steps)

 Quantitative (measurable with numbers)

 Realistic (possible to achieve)

Example:
A bakery’s goal:
“Increase monthly sales by 20% in the next 6 months by introducing online
orders.”

5. Strategic Formulation: Porter’s Generic Strategies

What is it?
These are three main ways a company can compete in the market.

 Cost Leadership: Be the cheapest (e.g., Walmart)

 Differentiation: Be different or better (e.g., Apple)

 Focus: Target a small, specific group of customers (e.g., a shop that

only sells to athletes)
 Md
Maharulla
23134107
Example:
A local restaurant uses focus strategy by only serving vegan food to attract
health-conscious customers.

6. Strategic Formulation: Marketing Alliances

What is it?
When two or more companies work together in marketing to grow faster.

Types of alliances:

 Product/service alliance: One company makes or sells another’s

product

 Promotional alliance: Companies promote each other

 Logistics alliance: One company delivers for another

 Pricing collaboration: Companies offer joint discounts

Example:
A coffee shop and a bookstore may work together. Buy a book, get 10% off
on coffee – that’s a promotional alliance.

7. Marketing Plan Contents

What is it?
A marketing plan is a document that shows how a company will attract and
keep customers.

It includes:

 Executive summary (short overview)

 Table of contents

 Situation analysis (current state of business)

 Marketing strategy (what we will do)

 Financial projections (how much we expect to earn and spend)

 Implementation controls (how we will check if things are going well)

Example:
A clothing brand makes a plan to launch a new winter collection. It includes
 Md
Maharulla
23134107
who the customers are, how they will advertise, and what results they
expect.

8. Evaluating a Marketing Plan

What is it?
After creating the marketing plan, we must check if it’s good and useful.

A good plan should be:

 Simple (easy to understand)

 Specific (clear goals and steps)

 Realistic (possible to achieve)

 Complete (covers all important areas)

Example:
If a startup makes a plan to reach 1 million users in 1 month with no budget,
that’s not realistic. A better plan would aim for 10,000 users in 3 months
using social media ads.