Chapter Questions: Support Activities Performed To Design

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?
Copyright © 2012 Pearson Education 2-2
Phases of Value Creation and

What is the Value Chain?
Delivery
The value chain is a tool for identifying ways
to create more customer value because Choosing the value
every firm is a synthesis of primary and
support activities performed to design,
produce, market, deliver, and support its Providing the value
product.
Communicating the value
Copyright © 2012 Pearson Education 2-4 Copyright © 2012 Pearson Education 2-3
Characteristics of
Core Business Processes
Core Competencies
The key is to own and nurture the resources Market-sensing process
and competencies that make up the essence New-offering realization process
of the business. Customer acquisition process
Customer relationship management process
A source of competitive advantage Fulfillment management process
Applications in a wide variety of markets
Difficult to imitate
Figure 2.1 The Strategic Planning,
What is a Marketing Plan? Implementation, and
Control Processes
A marketing plan is the central instrument for
directing and coordinating the marketing effort.
strategic marketing plan: lays out target

markets and the firm’s value proposition,
based on the best market opportunities.
tactical marketing plan: specifies the
marketing tactics, product features, promotion,
pricing, sales channels, and service.
A. Corporate/Division Strategic
Levels of a Marketing Plan
Planning
1.Define the corporate mission Strategic Tactical
2.Establish strategic business units (SBUs) Target marketing Product features
decisions Promotion
3. Assign resources to each SBU
Value proposition Merchandising
4. Assess growth opportunities Analysis of Pricing
marketing Sales channels
opportunities
Service
1. Define the corporate mission

Google
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?
to share with managers, employees, customers
provides a shared sense of purpose, direction,
and opportunity
Focus on a limited number of goals
Stress major policies and values
Define major competitive spheres
Take a long-term view
Short, memorable, meaningful
2. Establish SBUs Product Orientation vs.
Characteristics of SBUs Market Orientation
It is a single business or collection of related Company Product Market
businesses
Missouri-Pacific We run a railroad We are a people-
It has its own set of competitors Railroad and-goods mover
It has a leader responsible for strategic Xerox We make copying We improve office
planning and profitability equipment productivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain

people
4. Assesing Growth Opportunities 3. Assigning resources to each

Figure 2.2 The Strategic Planning Gap SBU
GE/McKinsey Matrix: classifies SBUs by the extent of
its competitive advantage and attractiveness of its
industry; grow, harvest (draw cash) or hold the
business
BCG’s Growth-Share Matrix: evaluates relative market
share and annual rate of market growth; dogs, cash
cows, stars, question marks
But they are not popular anymore; simple and
subjective
Rather, shareholder value analysis, market value of
the company with and without the SBU etc. are
favored
1. Business Mission B. The Business Unit Strategic

Planning
Each business unit needs to define its specific Figure 2.3 The BU Strategic Planning Process
mission within the broader company mission.
3. Goal Formulation
2.SWOT Analysis
Management by Objectives
Unit’s objectives must be hierarchical
Strengths
Objectives should be quantitative
Goals should be realistic
Weaknesses
Objectives must be consistent
Opportunities
Threats
4. Strategy Formulation
Categories of Marketing Alliances
Porter’s Generic Strategies
Product or service alliance
Overall cost leadership
Promotional alliance
Logistics alliances
Differentiation
Pricing collaborations
Focus
5. Program Formulation and

McKinsey’s Elements of Success
Implementation
Skills Strategy Even the best marketing strategy will not work
without a proper implementation, which is
Staff Structure backed up by all stakeholders
Style Systems
Shared values
C. Product Strategic Planning 6. Feedback and Control
Each product level must develop a marketing Company’s strategic fit with the environment
plan for achieving its goals will inevitably erode
A marketing plan is a written document that Company should examine the changing
summarizes what the marketer has learned environment and adapt to it with new products
about the marketplace and how the firm plans
to reach its marketing objectives
provides direction and focus for the product
involves tactical guideleines and financial
allocations over the specified planning period.
For Review Marketing Plan Contents
How does marketing affect customer value?

How is strategic planning carried out at Executive summary
different levels of the organization? Table of contents
What does a marketing plan include? Situation analysis
Marketing strategy
Financial projections
Implementation controls

Chapter Questions: Support Activities Performed To Design

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Chapter Questions

How does marketing affect customer value?

Copyright © 2012 Pearson Education 2-2

Phases of Value Creation and

strategic marketing plan: lays out target

1. Define the corporate mission

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain

4. Assesing Growth Opportunities 3. Assigning resources to each

1. Business Mission B. The Business Unit Strategic

5. Program Formulation and

For Review Marketing Plan Contents

How does marketing affect customer value?

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