Chapter

2
Developing
Marketing
Strategies and
Plans

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Learning Objectives
1. How does marketing affect customer
value?
2. How is strategic planning carried out at
the corporate and divisional levels?
3. How is strategic planning carried out at
the business unit level?
4. What does a marketing plan include?

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 Marketing and customer
Value
• The value delivery process

• The value chain

• Core competencies

• The central role of strategic planning

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 MARKETING AND
CUSTOMER VALUE
The task of any business is to
deliver customer value at a profit.
A company can win only by fine-
tuning the value delivery process
and choosing, providing, and
communicating superior value to
increasingly well-informed buyers

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The value delivery process

CHOOSING THE VALUE

PROVIDING THE VALUE

COMMUNICATING THE VALUE

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CHOOSING THE VALUE

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PROVIDING THE VALUE

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 The Value chain
• The value chain is a concept introduced by Michael
Porter in his 1985 book Competitive Advantage. It
refers to the full range of activities that a company
performs to bring a product or service from its initial
conception to its final delivery to the customer—and
even beyond, including after-sales service.

• A tool for identifying ways to create more customer value

– Every firm is a synthesis of activities
performed to design, produce, market, deliver,
and support its product

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Primary Activities – Directly involved in the creation and
delivery of the product:

1. Inbound logistics: Receiving, storing, and distributing raw

materials.
2. Operations: Transforming inputs into the final product (e.g.,
manufacturing).
3. Outbound logistics: Delivering the product to customers.
4. Marketing and sales: Promoting and selling the product.
5. Service: After-sales support, maintenance, and customer care.

Support Activities – Help improve the efficiency and

effectiveness of primary activities:

1. Firm infrastructure: General management, legal, finance, etc.

2. Human resource management: Hiring, training, and employee
development.
3. Technology development: Research and innovation.
4. Procurement: Sourcing raw materials and other inputs.
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The firm’s success depends not only on how well each
department performs its work, but also on how well the
company coordinates departmental activities to conduct
core business processes.

These processes include:

1. The market-sensing process: This refers to how well a company

gathers, interprets, and responds to information about customers,
competitors, and market trends. Daraz Bangladesh constantly analyzes
online shopping behaviors to tailor flash sales and product placements,
sensing what buyers are looking for in real time.

2. The new-offering realization process: This involves developing and

launching new products or services quickly, efficiently, and within
budget. PRAN-RFL Group often launches new snack products by
quickly adapting local taste preferences and scaling production through
efficient R&D and supply chain integration.
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3. The customer acquisition process: This is the process of
identifying and attracting new customers in targeted markets. bKash
focused on acquiring rural and unbanked users through targeted
campaigns and agent outreach, especially in underserved regions.

4. The customer relationship management process: This focuses

on understanding individual customers better, building long-term
relationships, and delivering personalized offerings. Aarong uses
membership cards and digital touchpoints to understand customer
behavior, offer special discounts, and build a premium brand
experience.

5. The fulfillment management process: This covers the order-to-

delivery cycle, ensuring products are delivered accurately and
payments are collected smoothly. Shajgoj, a beauty e-commerce
brand, emphasizes fast delivery and reliable inventory tracking,
helping maintain customer satisfaction in fulfillment.

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 Core competencies
A CORE COMPETENCY IS A UNIQUE
CAPABILITY THAT GIVES A COMPANY
COMPETITIVE ADVANTAGE AND IS
CENTRAL TO ITS OPERATIONS AND
STRATEGY.
ACCORDING TO MANAGEMENT EXPERTS GARY
HAMEL AND C.K. PRAHALAD, A CORE
COMPETENCY MUST MEET THREE CRITERIA:

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• A source of competitive advantage and
makes a significant contribution to
perceived customer benefits
Example: PRAN-RFL Group: Strong rural distribution network
reaches remote areas competitors struggle to serve

• Applications in a wide variety of markets

Example: Pathao: App-based platform development used in
ride-sharing, delivery, logistics, and food services.

• Difficult for competitors to imitate

Example: Aarong (BRAC Enterprises): Integration of artisan-
based supply chain with retail strong brand rooted in cultural
craftsmanship.
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 Maximizing Core
competencies
• (Re)define the business concept

This means revisiting what business the company is really in

not just in terms of products, but in terms of value creation
and customer needs.

Example: bKash
Before: A mobile money transfer service.

After redefining: A financial inclusion platform providing

payments, savings, donations, utility payments, and salary
disbursements.

Impact: Expanded its relevance from just transactions to

becoming a key infrastructure in the national economy.
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• (Re)shaping the business scope

This involves expanding or narrowing down the product or

market boundaries based on what the company does best.

Example: PRAN Group

Core competency: Efficient agro-processing and rural
sourcing.

Scope reshaped:
• Initially: Local food and beverage producer.
• Now: Operates across FMCG, agriculture, and export markets
in 145+ countries.

Impact: Built on its core agricultural supply chain and expanded

product lines while staying grounded in its strengths.

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• (Re)positioning the company’s brand identity

This means adjusting how the company wants to be perceived

by its customers, based on its evolving strengths and value
propositions.

Example: Aarong (BRAC Enterprise)

Original image: Handicrafts outlet supporting rural artisans.

Repositioned brand: A premium lifestyle brand that

celebrates Bengali heritage and empowers women artisans.

Impact: Attracted urban and international consumers while

retaining its social mission.

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 Marketing plan
• The central instrument for directing
and coordinating the marketing effort

– Strategic

– Tactical

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 Marketing plan
• The strategic marketing plan lays out the
target markets and the firm’s value
proposition, based on an analysis of the
best market opportunities.
• The tactical marketing plan specifies the
marketing tactics, including product
features, promotion, merchandising,
pricing, sales channels, and service. The
complete planning, implementation, and
control cycle of strategic planning
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 Figure 2.1
Strategic Planning,
Implementation, and Control
Processes

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 PLANNING
1. Corporate Planning: Set the broad company mission and long-
term goals.
Example: Walton decides to become the top-selling Bangladeshi mobile
phone brand in South Asia within 5 years.

2. Division Planning: Define goals for the mobile division.

Example: The mobile division plans to expand its product line and
improve smartphone technology.

3. Business Planning: Strategy for specific product lines or target

markets.
Example: Walton targets students and young professionals with a mid-
range smartphone under BDT 15,000.

4. Product Planning: Develop product features, pricing, and launch

strategies.
Example: A new phone model with high battery life, good camera, and
local language support is planned for launch during university
admission season.
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 IMPLEMENTING
1. Organizing: Set up teams for product design,
marketing, and distribution.
Example: A cross-functional team is formed to
handle design, promotion, and online sales.

2. Implementing: Launch the campaign and

distribute the product.
Example: The phone is launched with a student
discount, social media marketing, and availability in
key electronics stores and e-commerce sites.

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 CONTROLLING
1. Measuring Results: Monitor sales data, customer reviews,
and social media engagement.
Example: Sales data shows good performance in urban
centers but weak uptake in rural areas.

2. Diagnosing Results: Analyze why some goals were not

met.
Example: The price was too high for rural students, and the
marketing did not reach them.

3. Taking Corrective Action: Adjust strategy or operations.

Example: Walton introduces an installment payment plan and
partners with rural telecom shops for better outreach.

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 Corporate and division
strategic planning
• Defining the corporate mission

• Establishing strategic business units

• Assigning resources to each strategic

business unit

• Assessing growth opportunities

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 Defining the
corporate mission
• What is our business?
• Who is the customer?
• What is of value to the customer?
• What will our business be?
• What should our business be?

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1. What is our business?
This question defines the core purpose of the organization what it
fundamentally does.
Example: For Grameen Bank, the business is providing microfinance
services to low-income individuals, especially women, to promote
financial inclusion.

2. Who is the customer?

This identifies the primary target group that the business serves.
Example: For Aarong, the customer includes urban middle-class and
upper-middle-class consumers who value ethical fashion and
traditional Bangladeshi craftsmanship.

3. What is of value to the customer?

This asks what benefits or value the business delivers to customers—
why they would choose your product or service.
Example: For bKash users, the value is convenience, speed, and
accessibility of digital financial transactions, especially in rural and
unbanked areas.

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4. What will our business be?
This is a forward-looking question about where the
business is heading or how it plans to grow or evolve.
Example: A Bangladeshi edtech startup may aim to expand
from digital learning to full-fledged virtual schools with
AI-driven tutoring.

5. What should our business be?

This question is about aspiration and responsibility what
the business ought to become based on its values, potential,
and social context.
Example: Walton may decide that its business should not
just be selling electronics but also promoting digital
inclusion and tech innovation in rural Bangladesh.

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 Product Orientation vs.
Market Orientation
Company Product Market
Pathao We operate a bike- We solve every day
sharing and delivery urban mobility and
app delivery needs
Teletalk We provide SIM We connect
cards and mobile underserved
networks communities to the
digital world
Bata We produce shoes We help people
move comfortably
and confidently
Walton We manufacture We enhance home
refrigerators and comfort and smart
TVs living
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 Good Mission statements
• Focus on a limited number of goals
• Stress the company’s major policies
and values
• Define the major competitive spheres
within which the company will operate
• Take a long-term view
• Are as short, memorable, and
meaningful as possible

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 WHY APPLE’S MISSION
STATEMENT IS A GOOD ONE:
Focus on a limited number of goals
Apple emphasizes a single clear goal: delivering the best
user experience.

Stresses the company’s major policies and values

The mission highlights Apple’s core values: innovation,
quality, and customer focus.

Defines the major competitive spheres

It mentions hardware, software, and services, covering
Apple’s core business areas: from iPhones and MacBooks to
iOS and iCloud.

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Takes a long-term view
The emphasis on continuous innovation
and user experience positions Apple for
future growth, not just current products.

Short, memorable, and meaningful

It’s concise, clear, and easy to understand. It
also resonates with Apple’s brand identity of
simplicity and excellence.

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 Establishing Strategic
Business Units
A Strategic Business Unit (SBU) is a separately managed
unit within a larger company, designed to focus on a specific
product line or market segment. Each SBU operates like a
mini-company with its own mission, objectives, and
competition, but still aligns with the broader goals of the
parent organization.

Key Features of a Strategic Business Unit

1.A single business or collection of related businesses

[Link] its own set of competitors
[Link] a leader responsible for strategic planning and
profitability

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 Assigning Resources
to Each SBU
• Management must decide how to
allocate corporate resources to each
SBU

– Portfolio-planning models

– Shareholder/market value analysis

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 ANALYZING THE CURRENT
BUSINESS PORTFOLIO

The BCG Growth-Share Matrix (developed

by the Boston Consulting Group) is a
strategic planning tool that helps companies
analyse their business units or products
based on two key factors:

It's a portfolio-planning method that

evaluates a company’s SBUs in terms of
market growth rate and relative market
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Market Growth Rate (Vertical Axis):
Indicates how fast the industry is growing
High growth = more investment
opportunities, but also more competition

Relative Market Share (Horizontal Axis):

Measures how strong the SBU is compared
to its top competitor
High share = competitive advantage
and cash generation

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Assessing growth
opportunities

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 Assessing growth
opportunities
• Intensive Growth

• Integrative Growth

• Diversification Growth

• Downsizing and Divesting Older

Businesses
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INTENSIVE GROWTH

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 Existing New
products products

Existing
markets

New
markets

FIGURE 2.3 The Product/Market Expansion Grid

2-40
1. Market Penetration: Increase sales of current products to current
markets
Example: Grameenphone offers data bundle discounts to increase usage
among existing users.

2. Market Development: Enter new markets with existing products

Example: Aarong expands from urban to rural outlets with the same
product lines.

3. Product Development: Launch new products to existing markets

Example: Walton introduces smart TVs and eco-fridges for its Bangladeshi
customer base.

4. Diversification: Diversification is a growth strategy where a company

enters into new products and new markets—moving beyond its
current scope of operation. It can help spread risk, capture new
opportunities, or leverage core capabilities in new ways.
Example: Beximco Group, originally in pharmaceuticals and textiles, starts a TV
channel (Independent TV).
No direct link to their original product lines; this is purely a business expansion into
media.
 Figure 2.3
ESPN Growth Opportunities

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 INTEGRATIVE GROWTH
A business can increase sales and profits through backward,
forward, or horizontal integration within its industry

[Link] Integration: Acquire suppliers

Example: ACI buying seed companies to control input quality
in agriculture.

[Link] Integration: Control distribution

Example: Unilever opens its own branded retail outlets.

[Link] Integration: Acquire competitors

Example: If PRAN buys another local beverage brand.

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 Diversification growth
Diversification growth makes sense when good opportunities
exist outside the present businesses

Expand by adding new products or entering new

industries—either related or unrelated.

Related Diversification: New product aligned with existing

capabilities
Example: bKash launching a savings or insurance service.

Unrelated Diversification: Entering a completely new sector

Example: A tech startup entering the food delivery market.

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 Downsizing and Divesting
Older Businesses
Companies must carefully prune,
harvest, or divest tired old businesses
to release needed resources for other
uses and reduce costs

Example: Unilever selling off slow-

performing brands like “Rexona” in
some markets

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 Organization and
Organizational Culture
• A company’s organization consists of its
structures, policies, and corporate culture,
all of which can become dysfunctional in a
rapidly changing business environment

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 Organization and
Organizational Culture
• Corporate culture: “The shared
experiences, stories, beliefs, and
norms that characterize an
organization”

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 Marketing Innovation
• Innovation in marketing is critical

• Employees can challenge company

orthodoxy and stimulate new ideas

• Firms develop strategy by choosing

their view of the future
– Scenario analysis
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 Figure 2.4
The Business Unit
Strategic-planning Process

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 SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

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 Figure 2.5
Opportunity And Threat
Matrices

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 Goal formulation (MBO)
• Unit’s objectives must be arranged
hierarchically

• Objectives should be quantitative

• Goals should be realistic

• Objectives must be consistent

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 GOAL FORMULATION
The business sets specific, measurable
objectives based on the SWOT findings.
Example:

Capture 15% market share in the urban

organic juice market within 18 months.”

Achieve BDT 10 crore in sales within the first

year.”

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STRATEGY FORMULATION
Develop a broad plan to reach the goals.
Example:
Differentiation Strategy – Emphasize
health benefits, local fruit sourcing, and eco-
friendly packaging to appeal to middle-class
and health-conscious consumers.

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PROGRAM FORMULATION
Translate the strategy into detailed action
plans, timelines, and budgets.
Example:
•Product design: Glass bottles with eco-labels
•Marketing: TV ads + social media influencer
partnerships
•Budget: BDT 1.5 crore for launch campaign
•Training: Train sales team on health
messaging

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 Program Formulation and
Implementation
• McKinsey’s Elements of Success

Skills Strategy

Staff Structure

Style Systems

Shared values

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 IMPLEMENTATION
This is the actual execution of the
programs by various departments.
Example:
•Marketing runs campaigns in Dhaka and
Chattogram
•Production starts bottling juices at a new
organic-certified facility
•Distribution starts with 500 urban stores
and online platforms

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 Feedback and control
• Peter Drucker: it is more important to
“do the right thing”—to be effective
—than “to do things right”—to be
efficient

– The most successful companies, however,

excel at both

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 FEEDBACK AND
CONTROL
Track performance, measure results, and
adjust where needed.
Example:
•Sales report shows low uptake in
Chattogram Increase discounts there
•Customer feedback says juice is “too thick”
Modify texture for next batch
•Quarterly review reveals under-budget
spending Reallocate for digital ads

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Marketing Plan Contents

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

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Evaluating a Marketing
Plan

 Is the plan simple/succinct?

 Is the plan complete?
 Is the plan specific?
 Is the plan realistic?

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