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Learning Objectives
Chapter – 2
2.1 Identify the key tasks required for company and
business unit planning.
Marketing Planning and 2.2 Describe the process of developing a market offering.
Management 2.3 Explain the process of market planning.
2.4 Describe the key components of an actionable
marketing plan.
2.5 Explain how and when to modify the marketing plan.

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The MarketingPlan

Marketing and customer Value

Executive Summary & Table of Contents
 The value delivery process
Current Marketing Situation

Opportunity & Issue Analysis

 The value chain
Objectives

Marketing Strategy  Core competencies

Action Programs

Projected Profit-and-loss
 The central role of strategic planning
Controls

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Core Competencies

Core business processes

Core competencies are those capabilities that are critical to a
business achieving competitive advantage.  Market-sensing process
 New-offering realization process
 Customer acquisition process
 Customer relationship management process
 Fulfillment management process

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Characteristics of Core Competencies Maximizing Core Competencies

 (Re)define the business concept

 A source of competitive advantage  (Re)shaping the business scope

 (Re)positioning the company’s brand identity
 Applications in a wide variety of markets
 Difficult to imitate

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Central role of strategic planning
 Managing the businesses as an investment portfolio
 Assessing the market’s growth rate and the company’s
position in that market
 Establishing a strategy
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Developing Market Offerings
▪ Strategy involves choosing a well-defined market in
which the company will compete and determining the
value it intends to create in this market
▪ Tactics, also called the marketing mix, make the
company’s strategy come alive
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Figure 2.1
Strategic Planning, Implementation, and Good Mission Statements
Control Processes
Focus on limited number of goals

Stress major policies and values

Define major competitive spheres

Take a long-term view

Short, memorable,meaningful

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Examples of Good Mission Statement:

Characteristics of SBUs
▪ Facebook: Make the world more open and connected by free flow of  It is a single business or collection of related businesses
information.
 It has its own set of competitors
▪ Twitter: Share and discover what is happening right now, anywhere in the
world.  It has a leader responsible for strategic planning and
▪ Philips India: Transform Philips India from a pure consumer electronics firm profitability
to a ‘health and well-being company’.

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Tasks Involved in Strategic Planning.. Tasks Involved in Strategic Planning..

 Analytical Models Used in Appraising Businesses Models Used in Appraising Businesses - Ansoff Grid (Ansoff
Product-Market Expansion Grid)
(i) BCG Model (The Boston Consulting Group’s Growth-
Share Matrix)
(ii) Ansoff Grid (Ansoff Product-Market Expansion Grid)

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Strategies Suggested by Ansoff’s Developing the People’s Car

Product- Market Expansion Grid ‘TATA Nano’

 Market penetration
 Market development
 Product development
 Diversification

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Resource allocation to SBUs BCG Market Growth / Market Share Matrix

Resource allocation to strategic business units is done
by differentiating the company’s businesses according to their
Market Growth %
potential and identifying whether they are profitable. L H

BCG competitive advantage matrix

H

This model helps multi-business or single-business Market

organizations allocate organizational resources efficiently Share
and effectively.
L

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B C G Matrix & Strategies associated Tasks Involved in Strategic Planning..

with each quadrant

▪ Boston Consultancy Group Matrix  Setting Corporate Objectives

 Deciding the extent of growth the firm should aim at
▪ Question Marks - Businesses which operate in high growth markets
and have relatively low market share. Most businesses start off as
question marks  Formulating the Corporate Strategy
▪ Stars- Market leaders in a high growth markets….best businesses.
o What should be done with each of the businesses?
▪ Cash Cows- Market leaders in slow growth markets…..generates lot
of cash flows to the organizations as entry barriers become higher ❖ Build? Maintain? Harvest? Divest?
for new entrants as market growth is less.
▪ Dogs - Declining Businesses  Resource Allocation

 Objective- Strategy Design Completes Corporate Strategy

formulation

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Market Opportunity Analysis

SWOT Analysis (MOA)
 Can the benefits involved in the opportunity be
articulated convincingly to a defined target market?
Strengths
 Can the target market be located and reached with cost-
effective media and trade channels?
Weaknesses  Does the company possess or have access to the critical
capabilities and resources needed to deliver the customer
Opportunities benefits?

Threats

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Market Opportunity Analysis (MOA)

(cont.) FedEx
 Can the company deliver the benefits better than any actual
or potential competitors?
FedEx added Sunday
 Will the financial rate of return meet or exceed the
company’s required threshold for investment?
deliveries
based on customer
requests and
market demand

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Figure 2.2 Identifying the Target Market: The

Identifying the Target Market 5-C Framework

▪ The Five Cs:

▪ Customers
▪ Competitors
▪ Collaborators
▪ Context
▪ Company

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The Five Cs (1 of 2) The Five Cs (2 of 2)

▪ Target customers are the individuals or organizations ▪ The company develops and manages a given market
whose needs the company plans to fulfill offering
▪ Collaborators work with the company to create value ▪ The context is the environment in which the company
for target customers and its collaborators operate
▪ Competitors aim to fulfill the same needs of the same
customers that the company is targeting

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Developing a Value Proposition (1 of 2) Developing a Value Proposition (2 of 2)

▪ Customer value ▪ An optimal value proposition balances the value for
customers, collaborators, and the company
▪ Collaborator value
▪ Company value

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Figure 2.3 The 3-V Market Value Principle Designing the Marketing Tactics
▪ The market offering is the actual good that the
company deploys in order to fulfill a particular
customer need

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Figure 2.5 Marketing Tactics as a Process of Designing,

Figure 2.4 Marketing Tactics: The Seven Tactics Communicating, and Delivering Customer Service
(7Ts) Defining the Market Offering

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Figure 2.6 The Market Value Map Planning and Managing Market Offerings

▪ G-STIC Approach
▪ Set a goal
▪ Develop a strategy
▪ Design the tactics
▪ Define an implementation plan
▪ Identify a set of control metrics

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Figure 2.7 The G-STIC Action-Planning

Flowchart Setting a Goal
▪ Goal focus:
▪ Monetary goals
▪ Strategic goals
▪ Performance benchmarks:
▪ Quantitative benchmarks
▪ Temporal benchmarks

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Developing the Strategy (1 of 2) Developing the Strategy (2 of 2)

▪ Target market ▪ Value proposition
▪ Customers ▪ Customer value
▪ Competitors ▪ Collaborator value
▪ Collaborators ▪ Company value
▪ Company
▪ Context

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Designing the Tactics Identifying Controls

▪ Resource development ▪ Evaluate performance—use benchmarks to track
progress
▪ Development of the offering
▪ Monitor the environment—take corrective actions as
▪ Commercial deployment necessary

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Continued…..

Porter’s Generic Strategies

Overall Cost Leadership
Cost Differentiation
Differentiation
Focus

Focus

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Strategy Formulation
Analyzing Competition

Porter’s Generic Strategies & Strategic Alliances

Porter's Generic Strategies

Advantage

Target Scope

Low Cost Product Uniqueness

Broad Cost Leadership Differentiation

(Industry Wide) Strategy Strategy

Focus Focus
Narrow
(Market Segment) Strategy Strategy
(low cost) (differentiation)

The Forces Shaping Competition in an Industry

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A Framework for Analysing Industry

and Competition …Continued
…Continued

Analysing Competition A Framework for Analysing Industry

Sizing Up the Five Forces Shaping Competition in an Industry and Competition
• Competitors proper (existing players)
Analysing Competition
▪ Know your competitors in precise terms
▪ Factors to be studied about the competitors • Threat from substitutes
▪ Analysing competitor’s market share and mind share ▪ Often more competition comes from substitute products than from
▪ Analysing competitors’ ‘value chains’ existing contestants.
▪ Grasping competitors’ signals • Bargaining power of buyers/customers
• Threat of new entrants ▪ It influences the prices the firm can charge.
‘A New Entrant Disrupts and Alters the Industry Structure: The Case of • Bargaining power of suppliers
Reliance Jio’ explains in detail how a new entrant acutely disrupted the
telecom service industry and significantly altered its structure. ▪ The more specialised the offering from the supplier, the greater is
his clout.

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Adopter Categorization on the Basis of Relative Time Product Life Cycle Marketing Strategies
of Adoption of Innovations - Rogers model of new-product
adoption ▪ Product life cycle
▪ Introduction
▪ Growth
▪ Maturity
▪ Decline

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Figure 17.2 Sales and Profit Life Cycles Summary of Product Life Cycle Characteristics, Objectives, and
Strategies
Characteristics
Bla nk

Introduction Growth Maturity Decline

Rapidly rising
Sales Low sales Peak sales Declining sales
sales
High cost per Low cost per
Average cost per Low cost per unit/
Costs unit/ unit/
unit/ customer customer
customer customer
Profits Negative Rising profits High profits Declining profits

Customers Innovators Early adopters Mainstream Laggards

Competitors Few Growing number Large number Declining number

Marketing Objectives
Bla nk

Introduction Growth Maturity Decline

Create product Maximize Maximize profit while Reduce expenditure
Bla nk

awareness and trial market share defending market share and harvest the market

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Designing an overall marketing plan

Summary of Product Life Cycle Characteristics,
Objectives, and Strategies

Strategies

Bla nk

Introduction Growth Maturity Decline

Improve the
Phase out
product and Diversify product
Product Offer a basic product weak
develop product- offerings
products
line extensions
Price to match or
Price to penetrate
Price Charge cost-plus beat competitors’ Cut price
market
Price
Reduce to
Build product Stress brand
Build awareness minimal
awareness and trial differences and
and level
Communications among early benefits and
interest in the needed to
adopters and encourage brand
mass market retain
dealers switching
customers
Phase out
Build selective Build intensive Build more intensive
Distribution unprofitable
distribution distribution distribution
outlets

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Contents of the Marketing Plan (2 of 2) Figure 2.8 The Organization of the Marketing
Plan
▪ G-STIC section—the core of the marketing plan
▪ Goal
▪ Strategy
▪ Tactics
▪ Implementation
▪ Control
▪ Exhibits

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Updating the Marketing Plan Conducting a Marketing Audit

▪ Marketing plans are not static; they need updating in ▪ An effective marketing audit should be:
order to remain relevant ▪ Comprehensive
▪ Systematic
▪ Unbiased
▪ Periodic

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Feedback and control

Evaluating a Marketing Plan
▪ Is the plan simple/succinct?
▪Peter Drucker: it is more important to “do the
right thing”—to be effective—than “to do things
▪ Is the plan complete? right”—to be efficient
▪ Is the plan specific?
▪ Is the plan realistic? ▪ The most successful companies, however, excel at both

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ThankYou

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