Developing Marketing Strategies and Plans

2
Developing Marketing Strategies and Plans
Marketing Management, 13th ed
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.
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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 activities: Inbound logistics--bringing materials into business, Operations--converting materials into final products, Outbound logistics--shipping out final products, Marketing products, Servicing products and support activities Procurement, Technology development, Human resource management, Firm infrastructurecosts of general management, planning, finance, accounting, legal, and government affairs 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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Competitive Advantage
Competitive advantage: the firm has a marketing mix that the target market sees as better than a competitor's mix A better marketing mix offers target customers better customer value Note: customers who are not in the target market may not see the marketing mix as offering better value Requires that the firm: understand current competitors' offerings anticipate competitors' likely plans monitor effects of changes in competition really understand the target customers' needs
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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Examples of Company Resources That May Result in Competitive Advantage Financial strength (Intel) Producing flexibility Patents (IBM) Channel relationships Loyal customer base Technical capability
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 among key stakeholders.
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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
Target marketing decisions Value Analysis of marketing opportunities
Tactical
Product features Promotion Pricing Sales channels Service
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Relation of Strategy Policies to Operational Decisions for Baby Shoe Company
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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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.
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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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Ansoffs Product-Market Expansion Grid
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Examples of Different Types of Opportunities

Market Penetration
company promotes new uses of its product.
Market Development
Marriott Hotels target families for weekend get-aways to rent rooms filled by business travelers during the week
Product Development
Microsoft develops a new version of its Windows operating system to appeal to the people who bought an earlier version but now want more features
Diversification
Company , adds baked goods to its product line to appeal to new customers.
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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Goal Formulation and MBO

Units objectives must be hierarchical Objectives should be quantitative Goals should be realistic Objectives must be consistent
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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
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The Business Unit Strategic Planning Process
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The Marketing Plan

Marketing plan: a written statement of a marketing strategy and the time related details for carrying out the strategy. Spells out, in detail:
What marketing mix is to be offered To what target market For how long What resources (costs) are needed at what rate What results are expected What control procedures will be used.
Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls
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What is the 3 V's approach to marketing?

What is the 3 V's approach to marketing?

What is the value chain?

What is the value chain?

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

Relation of Strategy Policies to Operational Decisions for Baby Shoe Company

Good Mission Statements

Major Competitive Spheres

Ansoffs Product-Market Expansion Grid

Examples of Different Types of Opportunities

What is Corporate Culture?

Tactics for Managing Change

Goal Formulation and MBO

Porters Generic Strategies

The Business Unit Strategic Planning Process

The Marketing Plan

Marketing Plan Contents

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