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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?

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 3 V’s Approach to Marketing

Define
Define the
the value
value segment
segment
(needs
(needs and
and wants)
wants)

Define
Define the
the value
value proposition
proposition
(benefits)
(benefits)

Define
Define the
the value
value network
network to
to
deliver
deliver promise
promise services.
services.

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 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.

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 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).

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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

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 Becoming a Vigilant Organization

• Can we learn from the past?

• How should the present be evaluated?
• What do we envision for the future?

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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
coprosperity among key stakeholders.

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 A Holistic Marketing Framework

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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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 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)

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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, cost-
effective and environmentally responsible
products. We will add value to these products
by providing legendary customer service
through our Uncompromising Commitment
to Customer Satisfaction.”
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 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.”

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 eBay

“We help people trade anything on earth.

We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”

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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 that 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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 Ansoff’s Product-Market
Expansion Grid

• Market penetration strategy

• Market development strategy
• Product development strategy
• Diversification strategy

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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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 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

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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)
(cont.)
• 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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 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—lowest

production and distribution costs to be
able to price lower than competitors and
to obtain larger market share.

Differentiation—uniquely achieving
superior performance in an important
customer benefit area.

Focus—on one or more narrow market

segments

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 Categories of Marketing
Alliances
Product
Product or
or Service
Service Alliances—jointly
Alliances—jointly
market
market complementary
complementary products
products
Promotional
Promotional Alliances—promotion
Alliances—promotion
of
of another
another company’s
company’s products
products

Logistics
Logistics Alliances—logistical
Alliances—logistical
services
services for
for another
another company’s
company’s products.
products.

Pricing
Pricing Collaborations—one
Collaborations—one or or more
more
companies
companies join
join in
in special
special price
price reduction.
reduction.

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 The Strategic Planning Gap

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 Ansoff’s Product-Market Expansion
Grid

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 The Business Unit Strategic
Planning Process

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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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 Challenges Facing CMO’s

Doing more with less

Driving new business

development

Becoming a
full business partner

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 Study Question 1

The ________ is a tool for identifying

ways to create more customer value.  

A.  value chain 

B.customer survey
C.brand loyalty index
D.promotion channel
E.supplier database
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 Study Question 2

A good way to describe the ________ would be to

discuss all the activities involved in building deeper
understanding, relationships, and offerings to individual
customers.  
A.  customer acquisition process
B.  customer relationship management
process
C.  customer prospecting process
D.  customer fulfillment management process
E.  customer equity process

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 Study Question 3

Core competencies tend to refer to areas of special

technical and production expertise, whereas ________
tend to describe excellence in broader business
processes.  

A.  process benchmarks

B.  distinctive capabilities
C.  core business values
D.  value statements
E.  mission statements

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 Study Question 4

The ________ is the central instrument for directing

and coordinating the marketing effort.  

A.  strategic plan

B.  marketing plan
C.  tactical plan
D.  customer-value statement
E.  corporate mission

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 Study Question 5

The ________ lays out the target markets and the

value proposition that will be offered, based on an
analysis of the best market opportunities.    

A.  organizational plan

B.  strategic marketing plan
C.  corporate tactical plan
D.  corporate mission
E.  customer-value statement

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