Phillip Kevin Lane: Kotler - Keller

7/29/2019 Kotler Mm14 Ch02 Dppt
Phillip Kevin Lane
Kotler • Keller
Marketing Management • 14e
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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?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 38
The Value Delivery Approach
Provide
Choose Communicate
Value
The Value Chain
Primary Inbound Outbound

Activities
Operations Marketing Service
Logistics Logistics
M
a
r
g
i
n
Procurement
Support Human Resource management
Activities
Technological Development
Infrastructure
Core Business Processes

Customer relationship
management
Fulfillment
management
Customer
acquisition
New-offering
realization
Market-sensing
Core Competencies
Difficult to
imitate
Useful in a
wide variety
Contributes to of markets
perceived
customer benefits
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Slide 7 of 38
Holistic Marketing
Value Value
Exploration Creation
Value
Delivery
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 8/38
Slide 8 of 38
Strategic Planning
Businesses as
investment portfolio
Assessing each
business’s strength
Establish a strategy
Slide 9 of 38
Strategic Planning, Implementation,

and Control Processes
Slide 10 of 38
Marketing Plan
• Directs and coordinates the

marketing effort
•
Product Line or Brand Level

• Strategic and Tactical levels
Slide 11 of 38
Levels of a Marketing Plan
• Strategic • Tactical
– Analysis of marketing – Product features
opportunities – Promotion
– Target marketing – Merchandising
decisions
– Pricing
– Value proposition
– Sales channels
–
Service
Slide 12 of 38
Corporate Strategic Planning
1 Define corporate mission
2 Establish SBU’s
3 Assign resources to SBU’s
4 Assess growth opportunities
Slide 13 of 38
Defining the Corporate Mission
Who is the
What is of
customer?
value to the
What is our customer?
business?
What should
our business What will our
be? business be?

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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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Vague Mission Statement
To build total brand value by innovating to

deliver customer value and customer
leadership faster, better, and more
completely than our competition

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GOOGLE’S Mission Statement
To organize the world’s information

and make it universally accessible
and useful.

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Vague Philosophy
We build brands and make the world

a little happier by bringing our best
to you.

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GOOGLE’s Philosophy
Never settle for the best.

1. Focus on the user and all else will follow.
2. It’s best to do one thing really, really well.
3. Fast is better than slow.
4. Democracy on the web works.
5. You don’t need to be at your desk to need an answer.
6. You can make money without doing evil.
7. There is always more information out there.

8. The need for information crosses all borders.
9. You can be serious without a suit.
10. Great just isn’t good enough.

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Strategic Business Units (SBU) Kotler Mm14 Ch02 Dppt
Three Characteristics of an SBU:
Unique competitors
A single business or
collection of related
businesses Leader responsible
for planning and

profitability Slide 20 of 38
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Defining Strategic Business Units Kotler Mm14 Ch02 Dppt
Customer groups
Customer needs
Technology Slide 21 of 38
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Strategic Business Units Kotler Mm14 Ch02 Dppt
Company Product Definition Market Definition
Union Pacific We run a railroad. We are a people-and-goods mover.
We make copying We help improve office

Xerox
equipment. productivity.
Hess
We sell gasoline. We supply energy.
Corporation
Paramount
We make movies. We market entertainment.
Pictures
Encyclopaedia
We sell encyclopedias We distribute information.
Britannica
We make air conditioners We provide climate control in the
Carrier
and furnaces. home.

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Assigning Resources Kotler Mm14 Ch02 Dppt
GE/McKinsey Matrix
H
G
I
H
B
u
s
i
n
e Boston Consulting Group Matrix
s D
s E
P
o M
s
i
t
i
o
n

W
O
L
LOW MED HIGH

Industry Attractiveness

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Assessing Growth Opportunities Kotler Mm14 Ch02 Dppt
New
Businesses
Opportunities
Eliminate
Downsizing
Businesses

The Strategic-Planning Gap

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Intensive Growth Kotler Mm14 Ch02 Dppt
Product-Market Expansion Grid
w Market
e Diversification
N
s
t Development
e
k
r
a
M t
n
e
r Market Product
r
u Penetration
C Development
Current New
Products

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Integrative Growth Kotler Mm14 Ch02 Dppt
Supplier Business Wholesaler
Competitor

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Diversification Growth Kotler Mm14 Ch02 Dppt

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Corporate Culture Kotler Mm14 Ch02 Dppt
… is the shared experiences, stories, beliefs, and

norms that characterize an organization.

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Marketing Innovation Kotler Mm14 Ch02 Dppt
Identify and encourage new ideas
Scenario Analysis
Business Unit Strategic Planning

Opportunity and Threat Matrices

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SWOT Analysis Kotler Mm14 Ch02 Dppt
S W
l
a
n
r
e
t
Strength Weakness
n
I
O T
l
a
n
r
e
t
Opportunity Threat
x
E

7/29/2019
Goal Formulation Kotler Mm14 Ch02 Dppt
Ranked
Consistent Quantified
Realistic

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Strategy Formulation Kotler Mm14 Ch02 Dppt
Porter’s Generic Strategies

Strategic Alliances
Slide 35 of 38
Program Formulation and Implementation

7/29/2019
Feedback and Control Kotler Mm14 Ch02 Dppt
Strong leadership
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Product Planning Kotler Mm14 Ch02 Dppt
Marketing Plans
Executive Summary and table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls

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7/29/2019 Kotler Mm14 Ch02 Dppt

Phillip Kevin Lane

1. How does marketing affect customer

2. How is strategic planning carried out

3. What does a marketing plan include?

The Value Delivery Approach

The Value Chain

Primary Inbound Outbound

Core Business Processes

Strategic Planning, Implementation,

• Directs and coordinates the

Product Line or Brand Level

1 Define corporate mission

3 Assign resources to SBU’s

4 Assess growth opportunities

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Characteristics of good mission statements:

1. Focus on a limited number of goals

2. Stress major policies and values

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

To build total brand value by innovating to

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

To organize the world’s information

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

We build brands and make the world

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Never settle for the best.

7. There is always more information out there.

10. Great just isn’t good enough.

Strategic Business Units (SBU) Kotler Mm14 Ch02 Dppt

Three Characteristics of an SBU:

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Defining Strategic Business Units Kotler Mm14 Ch02 Dppt

Strategic Business Units Kotler Mm14 Ch02 Dppt

Company Product Definition Market Definition

Union Pacific We run a railroad. We are a people-and-goods mover.

We make copying We help improve office

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22 of 38

Assigning Resources Kotler Mm14 Ch02 Dppt

LOW MED HIGH

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 23 of 38

Assessing Growth Opportunities Kotler Mm14 Ch02 Dppt

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24 of 38

The Strategic-Planning Gap

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 25 of 38

Intensive Growth Kotler Mm14 Ch02 Dppt

Product-Market Expansion Grid

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 26 of 38

Supplier Business Wholesaler

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 27 of 38

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 28 of 38

… is the shared experiences, stories, beliefs, and

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 29 of 38

Identify and encourage new ideas

Business Unit Strategic Planning

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 31 of 38

Opportunity and Threat Matrices

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 32 of 38

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 33 of 38

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 34 of 38

Porter’s Generic Strategies

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 36 of 38