MARKETING MANAGEMENT

12th edition
2
Developing Marketing
Strategies and Plans

Kotler Keller
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?

2-2
•　 Four Customer Definitions of
Value

Value is everything
Value is low price.
I want in a product.

Value is the Value is all that

quality I get for I get for all
the price I pay. that I give.

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 Products as Bundles of Attributes: Attributes are the
operating characteristics of a product.

Arch Support

Nike
running Good Design
shoes
Lacing Pattern

2-4
 Products as Bundles of Benefits: Benefits are the desirable
consequences consumers seek when buying and using
products.

Long-wearing

Nike
running Stabilize heal
shoes
Run faster

2-5
 Products as Value Satisfiers: Values are the important life
goals that consumers are trying to achieve.

Be physically fit

Nike
running Have good health
shoes
Live a long life

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•　 Marketing and Customer Value
- Marketing involves satisfying customer needs and wants.
-The task of any business is to deliver customer value at a profit.

• The Value Delivery Process

(a) Traditional Physical Process Sequence

Make the Product Sell the product

Deign Procure Make Price Sell Promote Distribute Service

Product

2-7
•　 Marketing and Customer Value
• The Value Delivery Process
(b) Value Creation and Delivery Sequence
Choose the Value Provide the Value Communicate the Value
Customer Market Value P S P Distributing Sales Sales Advertising
Segmentation Selection Positioning r e r Servicing Force Promotion
o r i
d v c
u i i
c c n
t e g

D D
e
e
v v
e e
l l
o
o
p p
m m
e e
n
n
t t

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•　 Improving Value Delivery : the Japanese
Way
 0 customer feedback time
 0 product improvement time
 0 purchasing time
 0 setup time
 0 defects

2-9
• The Value Chain
The value chain is a tool for identifying ways to create more
customer value.

The Generic Value Chain

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• A Holistic Marketing Orientation and
Customer Value

Customer Core Collaborative

Focus Competency Network
Value Cognitive Competency Resource
Space Space Space
Exploration
Value Customer 　
Business 　 Business Partners
Creation Benefits
Domain

Value Customer Internal Resource Business Partner

Delivery Relationship Management Management
Management

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•　 Marketing Plan
The marketing plan is the central instrument for
directing and coordinating the marketing effort.

•　 Levels of a Marketing Plan

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

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•　 Assessing Growth Opportunities
 Different strategies:
1. Intensive Growth
2. Integrative Growth
3. Diversification growth

Current Products New Products

Current 1. Market-penetration 3. Product-development

Markets Strategy Strategy

New 2. Market-development (Diversification Strategy)

Markets Strategy

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•　 Opportunity and Threat Matrices

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•　 Goal Formulation
 Goals indicate what a business unit wants to achieve.
 Managers use the term goals to describe specific objectives.

 Objectives must meet four criteria:

1. They must be arranged hierarchically;
2. Should be stated quantitatively;
3. Should be realistic; and
4. Must be consistent.

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•　 Strategy Formulation
Strategy is a game plan for achieving goals.

• Porter’s Generic Strategies

 Overall cost leadership
 Differentiation
 Focus

• Strategic Alliances
 Product or Service Alliances
 Promotional Alliances
 Logistics Alliances
 Pricing collaborations

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