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Developing Marketing

Strategies and Plans

Marketing Management, 13 th ed

2

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Ch apter Questions

How does marketing affect customer value?

How is strategic planning carried out atdifferent levels of the organization?What does a marketing plan include?

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T h ree Vs Approac h to Marketing

Define the value segmentChose the Value

Segmentation, Targeting,Positioning

Define the value propositionProvide the Value

Product Features, Prices,Distribution

Define the value networkCommunicating the Value

Sales Force, Promotion, Advertising

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Value Ch ain: T ool for identifying ways tocreate more customer value

Primary Activities:Inbound LogisticsOperationsOutbound LogisticsMarketing & SalesServices

Support Activities:ProcurementTechnology DevelopmentHuman resource managementFirm infrastructure

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C ore Business Processes

Market-sensing process (Gathering marketintelligence)New-offering realization process (MR,Developing and Launching new items)Customer acquisition process (DefiningTarget Markets & Prospecting for New Custm )

Customer relationship management process(Developing Relationship with Customers)Fulfillment management process (Receiving,Processing, Shipping and Collection on time)

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C ore C ompetencies: Area of specialtec h nical & production expertise

3Ch

aracteristicsIt is source of competitiveadvantage in that it makes a

significant contribution to perceivedcustomer benefitsIt has applications in a wide variety

of marketsIt is difficult for competitors toimitate it

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Distinctive C apability:Excellence in broader business process

Market Sensing(Learning from the past)Customer Linking(Evaluating Present)

Channel Bonding(Envision the Future)

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Business Realignment

Competitive Advantage:How well company has fitted its core

competencies & distinctive capabilitiesin tightly interlocking system(Re)defining the business concept bigidea(Re)shaping the business scope(Re)positioning the brand identity

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F igure 2.1 A Holistic Marketing F ramework

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L evels of a Marketing Plan

StrategicTarget marketing

decisionsValue propositionAnalysis of marketingopportunities

TacticalProduct features

PromotionMerchandisingPricingSales channels

Service

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F igure 2.2 T h e Strategic Planning,Implementation,

and C ontrol Processes

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Major C ompetitive Sp h eres

IndustryIndustrial/Consumer

Products After Sale

Services

MarketSegment

Ferrari or Ford

GeographicalLocal or Global

Competence

CompaniesLeverage (NEC)

VerticalChannels

Raw Material toFinal Point

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Dimensions T h at Define a Business

Customer GroupsStudios

TechnologyIncandescent Light

Customer NeedsLights

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Strategic Business Unit (SBU)T h ree Ch aracteristics

It is a single business or collection of related businesses, that can beplanned separately from the rest of companyIt has its own set of competitorsIt has a manager responsible for strategic planning and profitperformance, who controls most of thefactors affecting profit

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F igure 2.3 T h e Strategic Planning G ap

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F igure 2.4Ansoffs Product -Market

Expansion G rid

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F igure 2.5 T h e Business UnitStrategic Planning Process

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F igure 2.6 Opportunity Matrix

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F igure 2.6 T h reat Matrix

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Porters G eneric Strategies

Rock Bottom Prices

Something Unique

One or more narrowMarket segments

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C ategories of Marketing Alliances

Product or Service AlliancesPepsi & Unilever in India for Bottle Ice Tea

Promotional AlliancesMovie My Name is Khan by Express

L ogistics AlliancesTransystem a joint venture of India Japan

responsible for all Toyota Transportation

Pricing C ollaborationsP akistani Sugar Industry

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Marketing Plan C ontents

Executive summaryTable of contentsSituation analysisMarketing strategyFinancial projectionsImplementation controls