Developing Marketing Strategies and Plans
Marketing Management
September 22, 2011 | Class 02@ HKIMSR
2011, Prof. T. G. Roy
Learning Objectives:
Know how Marketing affects customer value Know how strategic planning are carried out at different levels of the organization Know what is included in the Marketing Plan
Nike Creates Value
Three Vs Approach to Marketing
Define the value segment Define the value proposition Define the value network
What is the Value Chain?
The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.
Cisco Systems Taps into Partner Expertise to Create Value
Core Business Processes
Market-sensing process New-offering realization process Customer acquisition process Customer relationship management process Fulfillment management process
Characteristics of Core Competencies A source of competitive advantage Applications in a wide variety of markets Difficult to imitate
Netflixs Distinctive Capabilities
Firms Should Consider Key Questions
Can we learn from the past? How should the present be evaluated? What do we envision for the future?
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.
Intels New Brand Identity: Leap Ahead
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.
Levels of a Marketing Plan
Strategic Target marketing decisions Value proposition Analysis of marketing opportunities Tactical Product features Promotion Merchandising Pricing Sales channels Service
The Strategic Planning, Implementation, and Control Processes
Strategic Planning Activities
Define the Corporate Mission Establish Strategic Business Units (SBUs) Assign resources to each SBU Assess growth opportunities
Defining the Corporate Mission
Defining the Corporate Mission: Key Questions
What is our business? Who is the customer? What is of value to the customer? What will our business be? What should our business be?
Good Mission Statements
Focus on limited number of goals Stress major policies and values Define major competitive spheres Take a long-term view Short, memorable, meaningful
Major Competitive Spheres
Industry Geographical Vertical channels Products
Competence Market segment
Infosys Technologies Limited
To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors, and society at large.
Biocon
To be an integrated biotechnology enterprise of global distinction.
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.
MISSION STATEMENT Product Orientation v/s Market Orientation Company
Xerox Columbia Pictures Encyclopedia Britannica Carrier
Product
We make copying equipment We make movies We sell encyclopedias We make air conditioners and furnaces
Market
We improve office productivity We entertain people We distribute information We provide climate control inside homes
EXERCISE: YOUR MISSION STATEMENT
CONGRATULATIONS!!
All of you present here just cleared the Nursery Exam (Level 0) for becoming a Successful Marketing Professional
Establish Strategic Business Units (SBUs)
What is SBU?
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
Establishing Strategic Business Units
Must see their companies as a customer-satisfying process A target market definition tends to focus on selling a product or service (Pepsi targets all who drinks cola sodas) A strategic market definition is broader and more encompassing (Pepsi redefines its strategy to everyone who has a thirst)
Assigning Resources to each SBUs
Assigning Resources to each SBUs
Internal investment decisions are based on Shareholder Value Analysis Market value of the company is greater with an SBU or without an SBU
Assess Growth Opportunities
Assessing Growth Opportunities
Involves planning for new businesses Downsizing or terminating old businesses
Intensive Growth
Corporate managers first course of action should be a review of opportunities for improving existing businesses: Market penetration strategy (gain more market share) Market development strategy (new markets for current products) Product development strategy (new products for current markets) Diversification strategy (new products for new markets)
Integrative Growth
Sales and profits can be increased through Backward Integration Forward Integration Horizontal Integration
Diversification Growth
When opportunities are found outside the present business and the company has the right mix of business strengths to be successful: New products that have technological or marketing synergies with existing product lines New products unrelated to the current industry New businesses unrelated
The Strategic Planning Gap
Downsizing and Divesting Older Businesses
Focus on businesses that provide growth opportunities Weak businesses require a disproportionate amount of managerial time/talent
Dimensions that Define a Business
Customer groups
Customer needs
Technology
Developing the Peoples Car TATA Nano
What is Corporate Culture?
Corporate Culture defined as the share experiences, stories, beliefs, and norms that characterize an organization Sometimes corporate culture develops organically and is transmitted by the CEOs personality
The Business Unit Strategic Planning Process
BUSINESS UNIT STRATEGIC PLANNING
Each business unit needs to define its specific mission within the broader company mission George Stalk suggests that winning companies are those that have achieved superior in-company capabilities, not just core competencies. Stalk calls this capabilitiescapabilities-based competition
SWOT Analysis
Strengths Weaknesses Opportunities Threats
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?
Market Opportunity Analysis (MOA) (contd.) Can the company deliver the benefits better than any actual or potential competitors? Will the financial rate of return meet or exceed the companys required threshold for investment?
FedEx
FedEx added Sunday deliveries based on customer requests and market demand
Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.
2-47
Opportunity Matrix
Threat Matrix
Goal Formulation and MBO
Units objectives must be hierarchical Objectives should be quantitative Goals should be realistic Objectives must be consistent
Porters Generic Strategies
Overall Cost Leadership Differentiation Focus
Categories of Marketing Alliances
Product or Service Alliances Promotional Alliances Logistics Alliances Pricing Collaborations
MARKETING INNOVATION: 5 key strategies
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
Marketing Plan Contents
Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls
Evaluating a Marketing Plan
Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?
Marketing Debate
What good is a mission statement? Take a position: 1. Mission statements are critical to a successful marketing organization or 2. Mission statements rarely provide useful marketing value.
