MARKETING MANAGEMENT

12th edition

2

DevelopingMarketing

Strategies and Plans

Kotler Keller

2-2

Chapter Questions

How does marketing affectcustomer value?

How is strategic planning carriedout at different levels of theorganization?

What does a marketing planinclude?

2-3

Improving Value Delivery theJapanese Way

0 customer feedback time

0 product improvement time

0 purchasing time

0 setup time

0 defects

2-4

3 V’s Approach to Marketing

Define the value segment

Define the value proposition

Define the value network

2-5

Benchmarks

Organizationalcostsand

performancemeasures

Competitorcostsand

performancemeasures

2-6

Core Business Processes

Marketsensing

Fulfillmentmanagement

Customeracquisition

New offeringrealization

Customerrelationshipmanagement

2-7

Characteristics of Core Competencies

A source of competitive advantage

Applications in a wide variety of markets

Difficult to imitate

2-8

Challenges Facing CMO’s

Doing more with less

Driving new business development

Becoming a full business partner

2-9

Levels of a Marketing Plan

Strategic

Target marketingdecisions

Value proposition

Analysis ofmarketingopportunities

Tactical

Product features

Promotion

Merchandising

Pricing

Sales channels

Service

2-10

Corporate Headquarters’ PlanningActivities

Define the corporate mission

Establish SBUs

Assign resources to each SBU

Assess growth opportunities

2-11

Good Mission Statements

Focus on limited number of goals

Stress major policies and values

Define major competitive spheres

2-12

Major Competitive Spheres

Industry

Products

Competence

Market segment

Vertical channels

Geographical

2-13

Rubbermaid Commercial Products, Inc.

“Our vision is to be the Global Market Share

Leader in each of the markets we serve. Wewill earn this leadership position byproviding to our distributor and end-usercustomers innovative, high-quality, cost-effective and environmentally responsibleproducts. We will add value to these productsby providing legendary customer servicethrough our uncompromising Commitmentto Customer Satisfaction.”

2-14

Motorola

“The purpose of Motorola is to honorably

serve the needs of the community by providingproducts and services of superior quality at afair price to our customers; to do this so as toearn an adequate profit which is required forthe total enterprise to grow; and by doing so,provide the opportunity for our employees andshareholders to achieve their personalobjectives.”

2-15

eBay

“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all – collectors,dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.”

2-16

Dimensions That Define ABusiness

Customergroups

TechnologyCustomer

needs

2-17

Characteristics of SBUs

It is a single business or collection ofrelated businesses

It has its own set of competitors

It has a leader responsible for:

Strategic planning

Profitability

Efficiency

2-18

Organizations

Culture

Policies

Structure

2-19

Market Opportunity Analysis(MOA) Can the benefits involved in the

opportunity be articulatedconvincingly to a defined targetmarket?

Can the target market be located andreached with cost-effective media andtrade channels?

Does the company possess or haveaccess to the critical capabilities andresources needed to deliver thecustomer benefits?

2-20

Market Opportunity Analysis(MOA)_2

Can the company deliver the benefitsbetter than any actual or potentialcompetitors?

Will the financial rate of return meet orexceed the company’s requiredthreshold for investment?

2-21

Goal Formulation and MBO

Requirements for using MBO

Unit’s objectives must be hierarchical

Objectives should be quantitative

Goals should be realistic

Objectives must be consistent

2-22

Porter’s Generic Strategies

Overall cost leadership

Differentiation

Focus

2-23

Categories of MarketingAlliances

Product or Service Alliances

Promotional Alliances

Logistics Alliances

Pricing collaborations

2-24

Marketing Plan Contents

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

2-25

Evaluating a Marketing Plan

Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?