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Developing Marketing
Strategies and Plans
Chapter Questions
How does marketing affect customer value?
How is strategic planning carried out at
different levels of the organization?
What does a marketing plan include?
How can management issues assess
marketing performance?
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The Value Delivery Process
Choose the value
Provide the value
Communicate the value
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3 Vs Approach to Marketing
Define the value segment
(customers, needs and wants)
Define the value proposition
(benefits)
Define the value network
(to deliver promised product or service)
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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.
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Characteristics of
Core Competencies
A source of competitive advantage
Applications in a wide variety of markets
Difficult to imitate
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Maximizing Core Competencies
(Re)define the business concept
(Re)shape the business scope
(Re)position the companys brand identity
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What is Holistic Marketing?
Holistic marketing integrates the
value exploration, creation and delivery
activities with the purpose of building long-
term, mutually satisfying relationships and
co-prosperity among key stakeholders.
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A Holistic Marketing Framework
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The Strategic Planning,
Implementation, Control Processes
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Corporate and Division Strategic
Planning
Define the corporate mission
Establish strategic business units (SBUs)
Assign resources to each SBU
Assess growth opportunities
What is a SBU?
a single business or collection of related businesses
has its own set of competitors
has a leader responsible for strategic planning and
profitability
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Good Mission Statements
Focus on a limited number of goals
Stress major policies and values
Define major competitive spheres (industry,
products, competencies, market segment, etc.)
Take a long-term view
Short, memorable, meaningful
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Google
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Sample Mission Statements
Delivering an outstanding client experience based on excellence in
sales, service and solutions; Achieving a superior, ethically based,
long-term return for our shareholders; Leading in our chosen
markets; Creating a challenging, rewarding and pleasant work
environment.
Provide high quality banking services to both traditional customers in
industrial, construction, trade sectors as well as to customers in
other sectors of economy by operating in step with ongoing
economic development and trends. The Bank will continue its
innovation policy by adopting new high quality banking services
shaped to fully satisfy the changing needs of all the segments of
target market, to improve the degree of confidence and
transparency in bank-client relationship, to keep leader's position in
Armenian banking system and to provide with maximum returns to
the shareholders.
We commit to offer Armenian citizens innovative and quality
telecommunication services.
Extend business development and financial services to emerging
entrepreneurs in search of productive opportunities to support
families and communities striving for decent life for children in
Armenia.
Accelerating social investments
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Growth Opportunities
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Ansoffs Product-Market
Expansion Grid
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The Business Unit Strategic
Planning Process
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SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Recommended supplementary source:
http://www.marketingteacher.com
Review sample SWOT analyses for:
1. Nestl
2. Burger King
3. Sony
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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?
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?
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Opportunity and Threat Matrices
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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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Categories of Marketing Alliances
Product or service alliance
Promotional alliance
Logistics alliances
Pricing collaborations
Partner Relationship Management (PRM)
is the ability to form and manage partnership
to complement or leverage existing market
capabilities and resources.
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What is Corporate Culture?
Corporate culture is the
shared experiences, stories, beliefs,
and norms that
characterize an organization.
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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 proposition
Analysis of
marketing
opportunities
Tactical
Product features
Promotion
Merchandising
Pricing
Sales channels
Service
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Marketing Plan Contents
Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
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Evaluating a Marketing Plan
Is the plan simple?
Is the plan specific?
Is the plan realistic?
Is the plan complete?
Recommended supplementary source:
http://www.mplans.com
Review sample Marketing plans:
1. Riverview Hotel
2. Orti's Organic Bakery
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Measuring Marketing Performance
Marketing metrics
Marketing dashboard
Marketing Plan performance
Profitability analysis
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What are Marketing Metrics?
Marketing metrics are the set of measures that helps
marketers quantify, compare, and interpret marketing
performance.
External: Awareness, Market share, Relative
price, Number of complaints, Customer
satisfaction, Distribution, Total number of
customers, Loyalty
Internal: Awareness of goals, Commitment to
goals, Active support, Resource adequacy,
Staffing levels, Desire to learn, Willingness to
change, Freedom to fail, Autonomy
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Sample Customer-Performance Scorecard
Measures
% of new customers to average # of customers
% of lost customers to average # of customers
% of win-back customers to average # of customers
% of customers in various levels of satisfaction
% of customers who would repurchase the product
% of target market members with brand recall
% of customers who say brand is most preferred
Average perception of companys product/service
quality relative to chief competitor
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Marketing Dashboard Samples
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Marketing Plan Performance
Sales analysis
Sales variance analysis
Factors to a gap in sales performance
Micro-sales analysis
Overall market share
Served market share
Relative market share
Marketing expense-to-sales ratio components
Rate of return on net worth
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Marketing Measurement Pathway
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