Developing Marketing strategies

and plans
• The value delivery process
• The value chain
• Core competencies
• Corporate and divisional strategic
planning
• Business unit strategic planning
 The value delivery process
• Traditional view of marketing (selling )
• New way is to focus on value creation and
delivery process
Value creation and delivery process divided in
following
First assessing the market opportunities and
customer value (environment scanning,
customer needs and wants)
• Secondly decision related to targeting and positioning STP
• New offering and pricing
• Distribution
• Communication value through integrated marketing
communication (ntegrated Marketing Communications
(IMC) is a concept under which a company carefully
integrates and coordinates its many communications
channels to deliver a clear and consistent message. It aims
to ensure the consistency of the message and the
complementary use of media)
 The value chain
• value chain as a tool for identifying ways to
create more customer value.
• Nine strategically relevant activities under it
• Five primary four support activities
• Primary
• Inbound logistic ( bringing material into business)
• Operations (converting material into final
product)
• Outbound logistic (shipping out final products)
• Marketing
• Services
Support activities
Procurement
Procurement is the sourcing and purchasing of goods and
services for business use from an external source.
Individual businesses set procurement policies that govern
their choice of suppliers, products, and the methods and
procedures that are going to be used to communicate with their
suppliers. (Diff from purchasing )
• Technology development
• HRM
• Firm infrastructure
Apart from this all company have to look after its
competitors and coordination of departments
too.
 Core Competences
• Core mean fundamental
• Competence mean skills (Capabilities)
Capabilities which are unique which help the get
competitive advantage over rivals.
This came from C K prahalad and Gary hamel 1994
(Competing in the future )
They said if you want to know whether one has
core competence or not analyze following three
areas
 Continue…………
• Competitor differentiation ( Difficult to imitate,
Unique ability or skill) Apple software (ios) and
hardware)
• Customer value
• Application of competencies to other markets
It should be applicable throughput the org.
Every product of Apple comes under it. Macbook.
Ipad. Iphone no competition. Means company has
core competent
2. Corporate and divisional strategic planning

• All corporate headquarters undertake four

planning activities
• Defining the corporate mission
• Establishing strategic business units
• Assigning resources to each strategic business
units
• Assessing growth opportunities
 Defining the corporate mission
• A mission statement defines
• what an organization is
• why it exists
Walmart mission : to save people money so they
can live better.
At a minimum, your mission statement should
define who your primary customers are, identify the
products and services you produce, and describe
the geographical location in which you operate.
• Mission may change to take advantage of new
opportunities
Example:
Amazon changed its mission from world largest
online bookstore to world largest online store.
Dunkin donuts from donuts to coffee.
• Good mission statement have five major
characteristic
• They focus on limited number of goals
• They stresses the company major policies and values
• They define the major competitive spheres within
the which company will operate
• They take as long term view
• They are short, memorable and meaningful as
possible.
 ii) Establishing strategic business units
• Separate department, function, product line which
think separate from company
• Company has separate goals and that particular unit
has separate goal.
• Example is Tata company
• Tata Motors
• Tata docomo (mobile network operator)
• Tata croma (online shopping)
• Tata tanishq (jewelry )
 SBU must have following three
characteristics
• It planned separately
• It has its own set of competitors
• Separate manager for strategic planning and
profit performance
iii) Assessing resources to each SBU
• There are two models comes under this
(I) GE/McKinsey Matrix
(II) BCG’s Growth Share matrix
GE/McKinsey Matrix
A strategic took for portfolio planning
The matrix help you to determine
• Which SBU should receive more or less investment
• What new product needed in portfolio
• Which product should be divested (Reduction in finance or
…..opposite of investment)
 BCG Growth share matrix
• It is graph of growth rate and market share
• Which product line is standing where
• Stars Question marks
• Cash cows Dogs
Stars:
High market growth rate
High relative market share (Profit)
Question marks (Introductory phase) High possibility to convert
into star
• High market growth rate
• Low market share
Cash cows(It helps org to invest other places)(Maturity wale
products)
• Low market growth rate
• High market share
Dogs (declining phase)
• Low
• Low
 Assessing growth opportunity
• Intensive opportunity
• Integrative
• Diversification
Intensive :
Growth within the current business through
market penetration, market development
strategy , product development strategy.
• Market penetration (Can gain more market
share with its current products in current
market)
• Market development strategy (find new
markets for current product)
• Product development (New product for
current market
 ii. Integrative growth
Trough
Backward, forward and horizontal integration
Backward integration :
It includes purchase of raw material , spare parts
supply
E.G ABC company if having own department for
this mean doing backward integration. Tata steel
is example.
• Forward integration:
If company has its own chain of distributor and retailors. Its
for cost cutting. Having its own showroom. Management will
e big in this sense
Horizontal Integration:
It is the process of the company increasing production of
goods and services . A company can do via acquisition or
merger .
Example: First you are manufacturing cars now you want to
manufacture Bikes. You have to integrate with bike company.
 iii) Diversification growth
• When good opportunities exist outside the
present business
Example :
Walt disney origin is animated film producer
moved into licensing characters , theme parks .
In Paris too now.
 Business unit strategic planning
It consist of the following steps
• SWOT analysis
• Goal formulation
• Strategy formulation
• Program formulation
• Implementation
• Feedback and control
 SWOT Analysis
• External environment (opportunity and
threats )
• Good marketing is the art of finding,
developing and profiting from these
opportunities
• To evaluate opportunities companies can use
Market Opportunity analysis to ask questions like
• Can we reach the target markets with cost
effective media and trade channels
• Does our company have access to the resources
we need to deliver the customer benefit
• Can we deliver the benefits better than any actual
or potential competitors
 Goal formulation
• After Swot analysis its second step
• Goals are specific with respect to magnitutude
and time
• MBO
is a strategic management model that aims to
improve the performance of an organization by
clearly defining objectives that are agreed to by
both management and employees.
 Strategy Formulation
• Goals indicate what a business unit want to
achieve
• Strategy is game plan for getting there
PORTER’S GENERIC STRATEGIES
Michael porter has proposed three generic strategies
Overall cost leadership
Differentiation
Focus
• Overall cost leadership
You have to decrease the price of your product in
order to increase the market share
Differentiation :
You have to make different product than your
competitor
Focus : you have to decide one segment and invest
only there. You can apply cost leadership or
differentiation over here.