Developing Marketing
Strategies and Plans
Take away..
How does marketing affect customer
value?
How is strategic planning carried out
at different levels of the
organization?
What does a marketing plan include?
Siemens AG has grown through new
product innovation and strategic
acquisitions
The value delivery process
In a hypercompetitive economy a
company can win only by fine
tuning value delivery process and
choosing, providing, and
communicating superior value
Three Vs Approach to
Marketing
Define
Define the
the value
value segment
segment
Define
Define the
the value
value
proposition
proposition
Define
Define the
the value
value network
network
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.
Value Chain
Cisco Systems Taps into Partner
Expertise to Create Value
Core Business Processes
Market-sensing process
New-offering realization process
Customer acquisition process
Customer relationship management
process
Fulfillment management process
Characteristics of Core Competencies
A source of competitive advantage
Applications in a wide variety of
markets
Difficult to imitate
Holistic Marketing Orientation
and Customer Value
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.
Value exploration
Customers cognitive space
Exploring consumers present and future
needs
Companys competence space
Exploring firms own abilities
Collaborator's resource space
(horizontal & Vertical)
Intels New Brand Identity:
Leap Ahead
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.
Levels of a Marketing Plan
Strategic
Target marketing
decisions
Value proposition
Analysis of
marketing
opportunities
Tactical
Product features
Promotion
Merchandising
Pricing
Sales channels
Service
The Strategic Planning,
Implementation,
and Control Processes
Corporate Headquarters
Planning Activities
Define the corporate mission
Establish strategic business units
(SBUs)
Assign resources to each SBU
Assess growth opportunities
Good Mission Statements
Focus
Focus on
on limited
limited number
number of
of goals
goals
Stress
Stress major
major policies
policies and
and values
values
Define
Define major
major competitive
competitive
spheres
spheres
Take
Take aa long-term
long-term view
view
Short,
Short, memorable,
memorable,
meaningful
meaningful
Major Competitive Spheres
Industry
Geographical
Products
Vertical
channels
Competence
Market
segment
Rubbermaid Commercial Products, Inc.
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, costeffective and environmentally responsible
products. We will add value to these products
by providing legendary customer service
through our uncompromising Commitment
to Customer Satisfaction.
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.
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.
Google
To organize the worlds information
and make it universally accessible
and useful
Infosys
To achieve our objectives in an
environment of fairness, honesty,
and courtesy towards our clients,
employees, vendors and society at
large
Biocon
To be an integrated biotechnology
enterprise of global distinction
Product Orientation vs. Market Orientation
Company
Product
Market
Missouri-Pacific
Railroad
We run a railroad
We are a peopleand-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
Dimensions That Define a Business
Customer
groups
Customer
needs
Technology
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
The Strategic Planning Gap
Strategies Suggested by Ansoffs Product-Market
Expansion Grid
Intensive growth
Market penetration
Market development
Product development
Diversification
The Growth of Starbucks
What is Corporate Culture?
Corporate culture is the shared
experiences, stories, beliefs, and
norms that characterize an
organization.
The Business Unit
Strategic Planning Process
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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?
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?
FedEx
FedEx added
Sunday deliveries
based on customer
requests and
market demand
Opportunity Matrix
Threat Matrix
Goal Formulation and MBO
Units objectives must be hierarchical
Objectives should be quantitative
Goals should be realistic
Objectives must be consistent
Porters Generic
Strategies
Overall Cost Leadership
Differentiation
Focus
Categories of Marketing Alliances
Product
Product or
or Service
Service Alliances
Alliances
Promotional
Promotional Alliances
Alliances
Logistics
Logistics Alliances
Alliances
Pricing
Pricing Collaborations
Collaborations
Marketing Plan Contents
Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
Evaluating a Marketing
Plan
Is
Is
Is
Is
the
the
the
the
plan
plan
plan
plan
simple?
specific?
realistic?
complete?
Marketing Debate
What good is a mission statement?
Take a position:
1. Mission statements are critical to a
successful marketing organization.
or
2. Mission statements rarely provide
useful marketing value.
Marketing Discussion
What implications do Porters value
chain and the holistic marketing
orientation model have for
marketing planning?