Chapter 2

Developing Marketing
Strategies and Plans
What is the Value Chain?
The value chain is a tool for identifying ways 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.
Nine strategically relevant activities—five primary and four support
activities— create value and cost in a specific business.

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 Figure 2.2 Porter’s Value Chain

Support
Activities

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Value Delivery Process
• Choosing the value
 Implementing the formula of Segmenting-Targeting-Positioning (S-T-P).

• Providing the value

 Marketing must identify 5P ? 8P?

• Communicating the value

 Implementing Integrated Marketing Communication
(Advertising, Sales Promotion, Event & Experience, PR & Publicity,
Direct Marketing, , Interactive Marketing, Personal Selling, W-O-M)
Porter’s Generic Strategies
Competitive Advantage

Overall Cost Leadership

Firms work to achieve the lowest production and distribution costs so they can underprice competitors and
win market share. They need less skill in marketing. The problem is that other firms will usually compete
with still-lower costs and hurt the firm that rested its whole future on cost.

Differentiation
The business concentrates on achieving superior performance in an important customer benefit
area valued by a large part of the market.
The firm seeking quality leadership, for example, must make products with the best components,
put them together expertly, inspect them carefully, and effectively communicate their quality.

Focus
The business focuses on one or more narrow market segments, gets to know them intimately,
and pursues either cost leadership or differentiation within the target segment.

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Strategic Marketing Plan

Planning
Implementing Controlling
Corporate Planning
Division Planning Organizing Measuring results
Business Planning Diagnosing results
Actuating
Product Planning Take corrective-action

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Vision & mission

VISION
• Visi adalah “what be believe we
can be”
• Gambaran masa depan; atau
sebuah impian yang akan
dicapai, di masa yang akan
datang. 
MISSION
• Misi adalah “what be believe we
can do”
• Langkah-langkah apa yang akan
dilakukan demi mencapai visi.

Visi  Jelas, Menarik, Nyata, Mudah Diingat

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Strategy & tactic
STRATEGY TACTIC
• Pendekatan secara keseluruhan • Strategi dibedakan dengan taktik
yang berkaitan dengan yang memiliki ruang lingkup
pelaksanaan perencanaan, yang lebih sempit dan waktu
gagasan, dan eksekusi sebuah yang lebih singkat.
aktivitas dalam
kurun waktu tertentu yang
dilengkapi dengan adanya
monitoring.
"Strategi untuk memenangkan keseluruhan kejuaraan dengan taktik untuk memenangkan satu
pertandingan".
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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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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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Table 2.3
Product Orientation vs. Market Orientation

Company Product Market

(Mission) (Vision)
Missouri-Pacific Railroad We run a railroad We are a people-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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 Chapter 3
Collecting Information and
Forecasting Demand
What is a
Marketing Information System (MIS)?

Consist of people, equipment, and procedures to gather,

sort, analyze, evaluate, and distribute needed, timely and
accurate information to marketing decision makers.

Information needs Probing  Things should be probed:

 What decisions do you regularly make?
 What information do you regularly get?
 What information do you need to make these decisions?
 What information would you want that you are not getting now?
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 Marketing Intelligence
A set of procedures and sources that managers use to obtain everyday
information about developments in the marketing environment.

How to collect marketing intelligence?

 Reading books, newspapers, magazines, publications.
 IDI/FGD/Questionnaire to customers; suppliers; distributors.
 Monitoring social media; Monitoring the competitors.

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Analyzing the
macro environment

Fad
Unpredictable, short-lived, without social, economic, political significance
Ex. Pokemon gifts & toys

Trend
More predictable and durable than fad; reveal the shape of future strategic
Ex. Fashion

Megatrend
Large social, economic, political, and technological change is slow to form,
Once in place, influence between 7 years and longer.
Ex. Application
Identifying the Six Major Forces
• Demographic
• Political-Legal
• Natural
• Technological
• Economic
• Socio-Cultural

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Demographics Environment
• Population growth
• Population age mix
• Ethnic markets and racial diversity
• Educational groups
• Household patterns

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Political-Legal Environment

Increase in business legislation

Intended to protect companies from unfair competition,
protect consumers from unfair business practices,
protect society from unbridled business behavior.

Growth of special interest groups in regulation

Political action committees (PACs) lobby government officials and pressure business executives
to respect the rights of consumers, women, senior citizens, minorities, gays and lesbians.

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Natural Environment
Shortage of
raw materials

Increased
energy costs

Anti-pollution
pressures

Governmental
protections

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Technological Environment
Pace of change

Opportunities
for innovation

Varying R&D
budgets

Increased regulation
of change

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Economic Environment
• Income Distribution
• Savings, Debt, and Credit

• Levi’s has responded to

changes in income distribution
by offering an upscale line and
a mass market line
Social-Cultural Environment

Reference
Family
groups

Social
Statuses
roles
MIS

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