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    Ch.2: Developing Marketing: Strategies and Plans

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    The document discusses key concepts for developing marketing strategies and plans. It covers Michael Porter's value chain, core competencies, different levels of marketing plans, defining a corporate mission and strategic business units, the BCG matrix for growth-share analysis, assessing growth opportunities, SWOT analysis, Porter's generic strategies of cost leadership, differentiation and focus. The document also discusses marketing alliances and the typical contents of a marketing plan.

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    Ch.2: Developing Marketing: Strategies and Plans

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    blees
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    The document discusses key concepts for developing marketing strategies and plans. It covers Michael Porter's value chain, core competencies, different levels of marketing plans, defining a corporate mission and strategic business units, the BCG matrix for growth-share analysis, assessing growth opportunities, SWOT analysis, Porter's generic strategies of cost leadership, differentiation and focus. The document also discusses marketing alliances and the typical contents of a marketing plan.

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    The document discusses key concepts for developing marketing strategies and plans. It covers Michael Porter's value chain, core competencies, different levels of marketing plans, defining a corporate mission and strategic business units, the BCG matrix for growth-share analysis, assessing growth opportunities, SWOT analysis, Porter's generic strategies of cost leadership, differentiation and focus. The document also discusses marketing alliances and the typical contents of a marketing plan.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    15 views23 pages

    Ch.2: Developing Marketing: Strategies and Plans

    Uploaded by

    blees
    The document discusses key concepts for developing marketing strategies and plans. It covers Michael Porter's value chain, core competencies, different levels of marketing plans, defining a corporate mission and strategic business units, the BCG matrix for growth-share analysis, assessing growth opportunities, SWOT analysis, Porter's generic strategies of cost leadership, differentiation and focus. The document also discusses marketing alliances and the typical contents of a marketing plan.

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    You are on page 1of 23

    Ch.

    2: Developing Marketing
    Strategies and Plans

    04/06/23 MKT 302 1


    04/06/23 MKT 302 2
    Michael Porter’s Value Chain

    04/06/23 MKT 302 3


    Characteristics of Core
    Competencies
    • A source of competitive advantage
    • Applications in a wide variety of markets
    • Difficult to imitate

    04/06/23 MKT 302 4


    Marketing Plan

    •Strategic Marketing Plan- target markets and the firm’s


    value proposition

    •Tactical Marketing Plan- product features, promotion,


    merchandising, pricing, sales channels, and service

    04/06/23 MKT 302 5


    Four organization level

     Corporate level
     Division level
     Business unit level
     Product level

    04/06/23 MKT 302 6


    Corporate and division strategic planning

    Four planning activities:


    Defining the corporate mission
    Establishing strategic business units (SBUs)
    Assigning resources to each SBU
    Planning new businesses, downsizing or terminating old
    businesses (assigning growth opportunities)

    04/06/23 MKT 302 7


    Defining the corporate mission

    •Mission: What do we want to become?


    – E.g., to become one of the leading automobile
    manufacturers in the world
    – "We organize the world‘s information and make
    it universally accessible and useful" - Google

    04/06/23 MKT 302 8


    Establishing strategic business unit

    3 Characteristic:
    It is a single business or collection of related businesses that can be planned
    separately from the rest of the company
    It has its own set of competitors
    It has a manager who is responsible for strategic planning and profit
    performance and who controls most of the factors affecting profit

    04/06/23 MKT 302 9


    BCG Matrix
    High
    Stars Question Marks
    Market Growth Rate

    ??
    ???
    Low

    Cash Cows Dogs

    High Low
    Relative Market Share

    04/06/23 MKT 302 10


    − Cash Cows: low growth, high market share
    − Generate large amount of cash but prospects of future growth are limited
    − Strategic implication: milk cash cows, limit new investment in them, use the money
    generated in Stars and Question Marks

    − Stars: high growth, high market share


    − Their contribution to cash flow depends on their need for resources
    − Strategic implication: heavy investment in Stars will help take advantage of market
    growth and maintain high market share
    − Stars will eventually develop into cash cows as their market mature and growth slows

    − Question Mark: high growth, low market share


    − Business in attractive industry but holds low market share
    − Strategic implication: hard decision for managers – need careful analysis
    − Some will be sold-off, some will become Stars

    − Dogs: low growth, low market share


    − Business in this category do not produce or consume much cash. No promise for
    improved performance
    − Strategic implication: should be sold-off or liquidated

    − BCG very useful


    04/06/23 strategic management tool. Provides
    MKT 302 a framework for understanding diverse 11
    business and help managers establish priorities for resource allocation decisions
    Assessing growth opportunities to minimize Gap

     Intensive growth:
    -More use, new use and new users
    Market penetration, Market Development, Product development and
    Diversification growth (Product-Market expansion grid)

     Integrative growth:
    Horizontal and Vertical (backward and forward) Integration.

     Diversification growth:
    Concentric, Horizontal & Conglomerate.

    04/06/23 MKT 302 12


    SWOT Analysis

    04/06/23 MKT 302 13


    SWOT – Strategic Implication

    04/06/23 MKT 302 14


    Strategic formulation

    Porter’s generic strategies

    Overall Cost
    Leadership

    Focus

    Differentiation

    04/06/23 MKT 302 15


    Cost leadership strategy
    –A cost leadership strategy is an integrated set of actions
    designed to produce or deliver goods or services at the
    lowest cost relative to competitors, with features that are
    acceptable to customers:
    • lowest competitive price
    • features acceptable to many customers
    • relatively standardised products.

    Examples: Wal-Mart and Dell, Walton

    04/06/23 MKT 302 16


    Differentiation strategy
    •Definition
    –An integrated set of actions taken to produce goods
    or services that customers perceive as being different
    in important ways
    • non-standardized products for customers who
    value differentiated features more than they value
    low cost.
    • success depends on a firm’s ability to continuously
    and consistent upgrade the differentiated features.
    Examples: Lexus

    04/06/23 MKT 302 17


    Focus strategy
    •Definition

    –An integrated set of actions designed to produce or


    deliver goods or services that serve the needs of a
    particular competitive segment. Select few segments
    rather than going after the whole market.
    –Types of focus strategies:
    • focused cost leadership strategy (ex: IKEA)
    • focused differentiation strategy (ex: Maserati)

    04/06/23 MKT 302 18


    Marketing Alliances
     Product or service alliances
     Promotional alliances
     Logistic alliances
     Pricing collaborations

    04/06/23 MKT 302 19


    04/06/23 MKT 302 20
    04/06/23 MKT 302 21
    04/06/23 MKT 302 22
    Contents of a Marketing Plan
    • Executive summary and table of contents
    • Introduction
    • Situation/business analysis
    • Marketing strategy development
    • Financial projections
    • Implementations and control

    04/06/23 MKT 302 23

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