2

Developing Marketing
Strategies and Plans

Marketing Management, 13th 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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 Three V’s Approach to Marketing
Define
Define the
the value
value segment
segment
Chose
Chose the
the Value
Value
Segmentation,
Segmentation, Targeting,
Targeting,
Positioning
Positioning
Define
Define the
the value
value proposition
proposition
Provide
Provide the
the Value
Value
Product
Product Features,
Features, Prices,
Prices,
Distribution
Distribution

Define
Define the
the value
value network
network
Communicating
Communicating the
the Value
Value
Sales
Sales Force,
Force, Promotion,
Promotion, Advertising
Advertising

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 Value Chain: Tool for identifying ways to
create more customer value

Primary Activities:
•Inbound Logistics
•Operations
•Outbound Logistics
•Marketing & Sales
•Services
Support Activities:
• Procurement
• Technology Development
• Human resource management
• Firm infrastructure

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 Core Business Processes

• Market-sensing process (Gathering market

intelligence)
• New-offering realization process (MR,
Developing and Launching new items)
• Customer acquisition process (Defining Target
Markets & Prospecting for New Custm)
• Customer relationship management process
(Developing Relationship with Customers)
• Fulfillment management process (Receiving,
Processing, Shipping and Collection on time)
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 Core Competencies: Area of special
technical & production expertise
3 Characteristics
• It is source of competitive advantage
in that it makes a significant
contribution to perceived customer
benefits
• It has applications in a wide variety
of markets
• It is difficult for competitors to imitate
it
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 Distinctive Capability:
Excellence in broader business process

• Market Sensing
(Learning from the past)
• Customer Linking
(Evaluating Present)
• Channel Bonding
(Envision the Future)
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 Business Realignment

• Competitive Advantage:
How well company has fitted its core
competencies & distinctive capabilities
in tightly “interlocking system”
• (Re)defining the business concept “big
idea”
• (Re)shaping the business scope
• (Re)positioning the brand identity
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Figure 2.1 A Holistic Marketing Framework

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 Levels of a Marketing Plan

• Strategic • Tactical
• Target marketing • Product features
decisions • Promotion
• Value proposition • Merchandising
• Analysis of • Pricing
marketing • Sales channels
opportunities
• Service

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 Figure 2.2 The Strategic Planning,
Implementation,
and Control Processes

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 Major Competitive Spheres

Industry
Industrial/
Consumer
Geographical Products
Local or Global After Sale
Services
Vertical
Channels Competence
Companies
Raw Material to
Leverage (NEC)
Final Point Market
Segment
Ferrari or Ford
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 Table 2.3
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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 Dimensions That Define a Business

Customer
Groups
Studios

Customer
Technology
Needs
Incandescent Light
Lights
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 Strategic Business Unit (SBU)
Three Characteristics

• It is a single business or collection of

related businesses, that can be planned
separately from the rest of company
• It has its own set of competitors
• It has a manager responsible for
strategic planning and profit
performance, who controls most of the
factors affecting profit

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 BCG Growth-Share Matrix

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 Figure 2.3 The Strategic Planning Gap

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 Figure 2.4
Ansoff’s Product-Market
Expansion Grid

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 Figure 2.5 The Business Unit
Strategic Planning Process

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 Figure 2.6 Opportunity Matrix

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 Figure 2.6 Threat Matrix

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 Porter’s Generic Strategies

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 Categories of Marketing Alliances

Product
Product or
or Service
Service Alliances
Alliances
Pepsi
Pepsi &
& Unilever
Unilever in
in India
India for
for Bottle
Bottle Ice
Ice Tea
Tea
Promotional
Promotional Alliances
Alliances
Movie
Movie “My
“My Name
Name is
is Khan”
Khan” by
by Express
Express
Logistics
Logistics Alliances
Alliances
“Transystem”
“Transystem” aa joint
joint venture
venture of
of India
India Japan
Japan
responsible
responsible for
for all
all Toyota
Toyota Transportation
Transportation

Pricing
Pricing Collaborations
Collaborations
Pakistani
Pakistani Sugar
Sugar Industry
Industry

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 Marketing Plan Contents

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

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