Developing Marketing

Strategies and Plans

Iin Mayasari
 Chapter Questions

 How does marketing affect customer Value?

 How is strategic planning carried out at
different level of the organization?
 How is strategic planning carried out at the
business unit level?
 What does a marketing plan include?
Four Aspects
 Marketing and Customer Value
 Corporate & Division Strategic Planning
 Business Unit Strategic Planning
 Marketing Plan
 Customer
Retention

Sales
Customer
Loyalty
Indicator of
Strategy
Success Profitability

Market
share

Sustainabili
Sustainability
ty
Price of
Share
 2-
Value Creation
5
(Choose,
Provide,
Communicate)

Value Indicators
Company (Profitability
(Benefit/Cost)
Strategy etc)

Marketing & Customer Value

(Value delivery process, value chain, core competence)
Corporate & Division Strategic Planning
(mission, strategic business unit, growth opportunities-intensive,
integrative, and diversification, organizational culture, leadership,
marketing innovation)
Business Unit Strategic Planning
Marketing Plan
 Marketing &
Customer Value
 2-7

 A key ingredient of the marketing management

process is insightful, creative marketing strategies,
and plans that can guide marketing activities by
choosing the value (STP); providing the value
(product, price, distribution) and communicating the
value (internet, advertising, sales force).

 The aim of marketing management process is

satisfying consumers’ needs and wants. The task of
any business is to deliver customer value at a profit.
 2-8

Value Chain

 The value chain is a tool for identifying was to create more

customer value because every firm is a synthesis of primary
and support activities performed to design, produce,
market, deliver, and support its product.
Company Value Chain
Core Competence

1. It is a source of competitive advantage and

makes a significant contribution to perceived
customer benefit.

2. It has application in a wide variety of markets.

3. It is difficult for competitors to imitate.

Maximizing Core
Competencies
 (Re)define the business concept
 (Re)shaping the business scope
 (Re)positioning the company’s brand identity
 Corporate and
Division Strategic
Plan
Corporate & Strategic Planning
Corporate Headquarters’
Planning Activities

Define the corporate mission

Establish SBUs

Assess growth opportunities-intensive,

integrative and diversification
 Characteristics of a
Mission Statement
2-20

 Defines current business activities, highlighting

boundaries of current business
 Present products and services
 Types of customers served
 Conveys
 Who we are,
 What we do, and
 Why we are here
Major Competitive Spheres
of Mission Statement
 Industry
 Products
 Competence
 Market segment
 Vertical channels
 Geographic
Corporate planning
Characteristics of SBUs
 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
 Profitability
 Efficiency
 Intensive Growth Strategy-Ansoff's Product-Market 2-28
Expansion Grid
Current New
Product Product

Current Market Product

Markets Penetration Development
Strategy Strategy

New Market
Diversification
Markets Development
Strategy
Strategy
 2-
29

Integrative Growth
 Backward integration.
 Forward integration.
 Horizontal integration.
Diversification Growth
 New products that have technological or
marketing synergies with existing product
lines. See Samsung

 New products unrelated to the current

industry. See Mandiri-Tokone

 New businesses unrelated. See Astra

 Organizational
Culture, Market
Innovation,
Leadership

2-31
 BUSINESS UNIT &
SWOT ANALYSIS

2-34
 2-35
Business Unit Strategic Planning

External
Environment

T
Business O Program Feed
Goal Strategy Implemen
Mission W Formu Back &
Formulation Formulation tation
S lation Control

Internal
Environment
SWOT

S W O T represents
the first letter in
S W
 S strengths
 W weaknesses
 O opportunities
O T
 T threats
2-37
 2-38

Goal Formulation and MBO

 Requirements for using MBO
 Unit’s objectives must be hierarchical
 Objectives should be quantitative
 Goals should be realistic
 Objectives must be consistent
 2-39

Strategic Formulation
Porter Marketing Alliance
 Overall cost leadership  Product or Service
 Differentiation Alliances
 Focus  Promotional Alliances
 Logistics Alliances
 Pricing collaborations
Program Formulation & 2-40

Implementation-Mc-Kinsey

Structure

Strategy System

Shared values

Skill
Style

Staff
Feedback & Control
• Trend in sales and market share
• Acquiring and/or retaining customers
• Trend in profit margins
• Trend in net profits, ROI, and EVA
• Overall financial strength and credit
ranking
• Efforts at continuous improvement
activities
• Trend in stock price and stockholder
value
• Image and reputation with customers
• Leadership role(s) – Technology, quality,
innovation, e-commerce, etc.
 Marketing
Planning

2-43
What is a Marketing Plan?
A marketing plan is the
central instrument for
directing and coordinating
the marketing effort.
It operates at a strategic and tactical level.
Levels of a Marketing Plan
 Strategic  Tactical
 Target marketing  Product features
decisions  Promotion
 Value proposition  Merchandising
 Analysis of marketing  Pricing
opportunities  Sales channels
 Service
Marketing Plan Contents

 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls
Evaluating a Marketing Plan

 Is the plan simple?

 Is the plan specific?
 Is the plan realistic?
 Is the plan complete?