Phillip Kevin Lane

Kotler • Keller
Marketing Management • 14e
Developing Marketing
Strategies and Plans
Discussion Questions

1. How does marketing affect customer

value?

2. How is strategic planning carried out

at different levels of the organization?

3. What does a marketing plan include?

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 The Value Chain

Primary Inbound Outbound

Activities
Operations Marketing Service
Logistics Logistics

Margin
Procurement
Support Human Resource management
Activities
Technological Development
Infrastructure

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Marketing Plan

• Directs and coordinates the

marketing effort
• Product Line or Brand Level
• Strategic and Tactical levels

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 5. CREATING THE MARKETING PLAN
• Marketing Planning
– The process of assessing
opportunities and
resources, determining
objectives, defining
strategies, and
establishing guidelines
for implementation and
control of the marketing
program

© Used By Permission.

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Components of the Marketing Plan

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Corporate Strategic Planning

1 Define corporate mission

2 Establish SBU’s

3 Assign resources to SBU’s

4 Assess growth opportunities

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Step -1:Defining the Corporate Mission

Who is the
customer? What is of
value to the
What is our customer?
business?

What should
our business What will our
be? business be?
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 Mission of Orascom
• Our mission is to satisfy all communication needs
of the developing markets which we serve. It is
our belief that there is viable economic model to
serve emerging markets while availing affordable
quality. We are racing to serve the largest possible
number of customers, covering the most populous
countries in the world. We believe that by
positioning ourselves as the primary provider of
communication services, we are shaping the
future of the markets we serve.

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 Mission Statements

Characteristics of good mission statements:

1. Focus on a limited number of goals

2. Stress major policies and values
3. Define major competitive spheres
4. Take a long-term view
5. Short, memorable, meaningful

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 Step – 2: Establish Strategic Business Units (SBU)

Three Characteristics of an SBU:

Unique competitors

A single business or
collection of related
businesses Leader responsible
for planning and
profitability
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Step – 3: Assigning Resources
Boston Consulting Group Matrix

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Step – 4: Assessing Growth Opportunities

New
Businesses

Opportunities

Eliminate
Downsizing
Businesses
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 The Strategic-Planning Gap

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Intensive Growth

Product-Market Expansion Grid

New
Market
Diversification
Development
Markets
Current

Market Product
Penetration Development

Current New
Products

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 Market Development
Here, you’re targeting new markets, or new areas of the
market. You’re trying to sell more of the same things
to different people. Here you might:
• Target different geographical markets at home
or abroad.
• Use different sales channels, such as online or
direct sales if you are currently selling through
the trade.
• Target different groups of people, perhaps with
different age groups, genders or demographic
profiles from your normal customers.
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 Market Penetration
With this approach, you’re trying to sell more of the
same things to the same people. Here you might:
• Advertise, to encourage more people within
your existing market to choose your product,
or to use more of it.
• Introduce a loyalty scheme.
• Launch price or other special offer
promotions.
• Increase your sales force activities.
• Buy a competitor
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 Product Development
Here, you’re selling more things to the same people.
Here you might:
• Extend your product by producing different variants,
or packaging existing products it in new ways.
• Develop related products or services (for example, a
domestic plumbing company might add a tiling
service – after all, if customers who want a new
kitchen plumbed in are quite likely to need tiling as
well!)
• In a service industry, shorten your time to market, or
improve customer service or quality.

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 Diversification
• This strategy is risky: There’s often little scope
for using existing expertise or for achieving
economies of scale, because you are trying to
sell completely different products or services
to different customers
• The main advantage of diversification is that,
should one business suffer from adverse
circumstances, the other may not be affected.

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Integrative Growth

Supplier Business Wholesaler

Competitor

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Integrative Growth

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 Integrative growth

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 Horizontal integration

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 Vertical Integration

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 Vertical integration

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 Backward & Forward Integration

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Diversification Growth

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 Types of Diversification

• Related Technology +
Concentric
• Existing Product +
Diversification • New Customer

Horizontal • Unrelated Technology +

• Existing Product +
Diversification
• Current Customer

• Unrelated Technology +
Conglomerate • New Product +
Diversification • New Customer

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 Business Unit Strategic Planning

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Setting company objectives and goals

• What is objective?

• Objective: SMAC

• Specific, measurable, achievable, consistent

aim company wants to achieve.
• Example: We want to increase sales from 5% to
10%.
• We want to increase profit from 10% to 15%.
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Setting company objectives and goals

• What is goal?

• Specific, measurable, achievable, consistent

aim company wants to achieve within a time
period.

• Example:
• We want to increase sales from 5% to 10%. within 1 year.
• We want to increase profit from 10% to 15%. within 6 months.

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 Setting company objectives and goals

• What is target?

• Specific, measurable, achievable, consistent

aim company wants to achieve within a
definite time period.

• Example:
• We want to increase sales from 5% to 10%. within December,
2010.
• We want to increase profit from 10% to 15%. within july,2010.

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Setting company objectives and goals

• What is strategy?

• The way of gaining objective.

• Example:
• We want to increase sales from 5% to 10%. within December,
2010 by increasing promotion.

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Setting company objectives and goals

• What is program?

• Detailed version of a strategy.

• Example:
• We want to increase sales from 5% to 10%. within December, 2010. by
increasing promotion.
• Program:
• Advertisement on NTV, BTV, Channel I before prime news.
• Setting billboard at Shahbagh, farmgate, Mirpur-10 circle.
• Press ad on kaler kontho and Bangladesh protidin.

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SWOT Analysis

Internal
SW
Strength Weakness

O T
External

Opportunity Threat

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