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Developing Marketing
Strategies and Plans
Dr. Md. Kashedul Wahab Tuhin
Associate Professor
Department of Marketing
Faculty of Business Studies
Jahangirnagar University
Savar, Dhaka-1342.

Marketing Management, 15th ed

 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?

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 Marketing and Customer Value

The Value-Delivery Process

(a) Traditional physical process sequence

Make the product Sell the product

Design Procure Make

product Price Sell Advertise/
promote Distribute Service

(b) Value creation & delivery sequence

Choose the Value Provide the Value Communicate the Value

Strategic marketing Tactical marketing

 What is the Value Chain?

The value chain is a tool for identifying

and creating more customer value.
Every firm is a synthesis of primary and
support activities performed to design,
produce, market, deliver, and support
its product.

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Figure 3-3: The Generic Value Chain
 Core Business Processes

• Market-sensing process (marketing intelligence).

• New-offering realization process (research and
development).
• Customer acquisition process (defining target
markets and consumers).
• Customer relationship management process
(deeper understanding of consumers).
• Fulfillment management process (receiving,
shipping, and collecting payments).

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Characteristics of Core Competencies

• A source of competitive advantage

(technical, production expertise, distribution,
financial strength, etc.)
• Applications in a wide variety of markets
• Difficult to imitate

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Central role of strategic planning
Strategic-Planning, Implementation, and Control Process

Planning Implementation Control

Organizing
Corporate Measuring
planning results
Division
planning Diagnosing
Implementing
results
Business
planning
Taking
Product corrective
planning action
Central role of strategic planning

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 Marketing
Plan- lays out the target
markets and the firm’s value
proposition, based on an
analysis of the best market
opportunities
• Target marketing
decisions
• Value proposition
• Analysis of marketing
opportunities
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• Tactical Marketing
Plan- specifies the
marketing tactics, including-
• Product features
• Promotion
• Merchant desing
• Pricing
• Sales channels
• Service
 Corporate and Division Strategic
Planning

• Define the corporate mission

• Establish strategic business units
(SBUs)
• Assign resources to each SBU
• Assess growth opportunities

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 Defining the Corporate Mission
• An organization exist to accomplish something.
• To define its mission a company should address Peter
Drucker’s classic questions-
• What is our business?
• Who is our customer?
• What is our value to customer?
• What will our business be?
• What should our business be?
• Business Definition- companies often define their business
• Product definition
• market definition
• Strategic market definition

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Rubbermaid Commercial Products, Inc.

“Our vision is to be the Global Market Share

Leader in each of the markets we serve. We
will earn this leadership position by
providing to our distributor and end-user
customers innovative, high-quality, cost-
effective and environmentally responsible
products. We will add value to these products
by providing legendary customer service
through our Uncompromising Commitment
to Customer Satisfaction.”
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 Motorola

“The purpose of Motorola is to honorably

serve the needs of the community by providing
products and services of superior quality at a
fair price to our customers; to do this so as to
earn an adequate profit which is required for
the total enterprise to grow; and by doing so,
provide the opportunity for our employees and
shareholders to achieve their personal
objectives.”

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 eBay

“We help people trade anything on earth.

We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”

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 Product Orientation vs. Market Orientation
Company Product Market
Missouri-Pacific We run a railroad We are a people-
Railroad and-goods mover

Xerox We make copying We improve office

equipment productivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain

people

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 Defining the Corporate Mission
• Crafting a mission statement
• A clear thoughtful mission statement, developed collaboratively with and
shared with managers, employees, and provides a shared sense of
purpose, direction, and opportunity.
• Good mission statements have five characteristics-
• on a limited number of goals
• Stress major policies and values
• Define major competitive spheres: Major Competitive Spheres are:
• Industry (consumer(s) and/or industrial(s)
• Products (range)
• Competence (technological, production, etc.)
• Market segment (type of market or customer)
• Vertical channels (number of channel levels, from raw materials to final
product and distribution)
• Geographic (range of regions, countries, or country groups)

• Take a long-term view

• Short, memorable, meaningful

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 Establishing Strategic Business
Units
• It is a single business or collection of
related businesses
• It has its own set of competitors
• It has a leader responsible for strategic
planning and profitability

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 Assigning Resources to Each SBU

• The Growth-Share Matrix

• Relative market share and market growth rate
• BCG Approach: Four Cells
• Question Marks
• Stars
• Cash Cows
• Dogs
• More recent methods firms use to make internal investment
decisions are based on Shareholder Value Analysis (SVA) and
whether the market value of a company is greater with an SBU or
without it.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-19

 Assessing Growth Opportunities
• Strategic Gap: If there is a gap between future desired sales and projected
sales. Corporate management will need to develop or acquire new business
to fill it. The are three ways:
• Intensive Growth
• Integrative growth
• Diversification Growth.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-20

 The Strategic Planning Gap

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Intensive Growth: Corporate managers should review the opportunities for
improving existing business.

Ansoff’s Product-Market Expansion Grid:

1. Market penetration strategy
2. Market development strategy
3. Product development strategy
4. Diversification strategy

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 Ansoff’s Product-Market Expansion
Grid

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• Integrative Growth:
• Backward
• Forward
• Horizontal
• Diversification Growth:
• Concentric Diversification: Develop a products that have technology or marketing synergies
with existing product lines appealing to a new group of customer.
• Horizontal diversification: Develop products that are technologically unrelated to its current
product line and could appeal to its current customers.
• Conglomerate Diversification: Seek new opportunities that have no relation with its current
technology, products or markets.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-24

 What is Corporate Culture?

Corporate culture is the shared

experiences, stories, beliefs, and norms
that characterize an organization.

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 Tactics for Managing Change

• Avoid the innovation title for the team

• Use the buddy system
• Set the metrics in advance
• Aim for quick hits first
• Get data to back up your gut

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 The Business Unit Strategic
Planning Process

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 SWOT Analysis

• Strengths
• Weaknesses
• Opportunities
• Threats

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 External Environment (Opportunity & Threat) Analysis:

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?

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 Market Opportunity Analysis (MOA)
(cont.)
• Can the company deliver the benefits
better than any actual or potential
competitors?
• Will the financial rate of return meet or
exceed the company’s required
threshold for investment?

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Figure 4-7: Opportunity and Threat Matrices
 Goal Formulation and MBO

• Unit’s objectives must be hierarchical

• Objectives should be quantitative
• Goals should be realistic
• Objectives must be consistent

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 Porter’s Generic Strategies

Overall Cost Leadership—lowest

production and distribution costs to be
able to price lower than competitors and
to obtain larger market share.

Differentiation—uniquely achieving
superior performance in an important
customer benefit area.

Focus—on one or more narrow market

segments

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 Strategic/Categories of
Marketing Alliances
Product or Service Alliances—jointly
market complementary products

Promotional Alliances—promotion
of another company’s products

Logistics Alliances—logistical services

for another company’s products.

Pricing Collaborations—one or more

companies join in special price reduction.

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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?

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