MM Chapter 2

2
Developing Marketing Strategies and Plans
Marketing Management, 13th ed
Chapter Questions
How does marketing affect customer value? How is strategic planning carried out at different levels of the organization? What does a marketing plan include?
2-2
3 Vs Approach to Marketing
Define the value segment (needs and wants)
Define the value proposition (benefits)
Define the value network to deliver promise services.
2-3
What is the Value Chain?

The value chain is a tool for identifying and creating more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.
2-4
Core Business Processes

Market-sensing process (marketing intelligence). New-offering realization process (research and development). Customer acquisition process (defining target markets and consumers). Customer relationship management process (deeper understanding of consumers). Fulfillment management process (receiving, shipping, and collecting payments).
2-5
Characteristics of Core Competencies

A source of competitive advantage (technical, production expertise, distribution, financial strength, etc.) Applications in a wide variety of markets Difficult to imitate
2-6
Becoming a Vigilant Organization
Can we learn from the past? How should the present be evaluated? What do we envision for the future?
2-7
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 prosperity among key stakeholders.
2-8
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.
2-9
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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Corporate Headquarters Planning Activities Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunities
2-11
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
2-12
Major Competitive Spheres

Industry (consumer(s) and/or industrial(s) Products (range) Competence (technological, production, etc.) Market segment (type of market or customer) Vertical channels (number of channel levels, from raw materials to final product and distribution) Geographic (range of regions, countries, or country groups)
2-13
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.
2-14
Product Orientation vs. Market Orientation Company

Missouri-Pacific Railroad Xerox Standard Oil Columbia Pictures
Product
We run a railroad We make copying equipment We sell gasoline We make movies
Market
We are a peopleand-goods mover We improve office productivity We supply energy We entertain people
2-15
Dimensions that Define a Business

Customer groups Customer needs Technology
2-16
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
2-17
What is Corporate Culture?

Corporate culture is the shared experiences, stories, beliefs, and norms that characterize an organization.
2-18
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
2-19
SWOT Analysis
Strengths Weaknesses Opportunities Threats
2-20
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?
2-21
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?
2-22
Goal Formulation and MBO

Units objectives must be hierarchical Objectives should be quantitative Goals should be realistic Objectives must be consistent
2-23
Porters Generic Strategies

Overall Cost Leadershiplowest production and distribution costs to be able to price lower than competitors and to obtain larger market share.
Differentiationuniquely achieving superior performance in an important customer benefit area. Focuson one or more narrow market segments
2-24
Categories of Marketing Alliances

Product or Service Alliancesjointly market complementary products Promotional Alliancespromotion of another companys products Logistics Allianceslogistical services
for another companys products.
Pricing Collaborationsone or more companies join in special price reduction.
2-25
Ansoffs Product-Market Expansion Grid
2-26
The Business Unit Strategic Planning Process
2-27
Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls
2-28
Evaluating a Marketing Plan
Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?
2-29

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2

Developing Marketing Strategies and Plans

Marketing Management, 13th ed

Define the value proposition (benefits)

Define the value network to deliver promise services.

What is the Value Chain?

Core Business Processes

Characteristics of Core Competencies

Becoming a Vigilant Organization

What is Holistic Marketing?

What is a Marketing Plan?

Levels of a Marketing Plan

Good Mission Statements

Major Competitive Spheres

Motorola The purpose of Motorola is to honorably

Product Orientation vs. Market Orientation Company

Dimensions that Define a Business

What is Corporate Culture?

Tactics for Managing Change

Market Opportunity Analysis (MOA)

Market Opportunity Analysis (MOA) (cont.)

Goal Formulation and MBO

Porters Generic Strategies

Categories of Marketing Alliances

Ansoffs Product-Market Expansion Grid

The Business Unit Strategic Planning Process

Marketing Plan Contents

Evaluating a Marketing Plan

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