2

Developing Marketing
Strategies and Plans

Marketing Management, 15th ed

 Three V’s Approach to Marketing

Define the value segment

Define the value proposition

Define the value network

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 Three V’s Approach to Marketing

Define the value segment

Values Segments* — an innovative system of market

segmentation that goes beyond demographics and
psychographics to explore the values, mindsets and
attitudes that motivate consumer behaviour.

VALUE SEGMENT is the further classification of

segmentation in which segments are created by
considering qualitative factors or you can say intangible
factors such as mindset, attitude, etc.

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 Three V’s Approach to Marketing
Define the value proposition

In marketing, an innovation, service, or

feature intended to make a company or
product attractive to customers.

A value proposition is a statement that

clearly identifies the benefits a
company's products and services
will deliver to its customers. A well-
crafted value proposition will
differentiate the company and/or its
specific product or service in the
marketplace and among a target
market or target audience.

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Three V’s Approach to Marketing
Define the value proposition

Your Value Proposition is the reason why

customers turn to your company over
another. It solves your customer's problem
or satisfies your customer's need. Each
Value Proposition consists of a selected
bundle of products and/or services that
caters to the requirements of a specific
Customer Segment.
What is Nike's value proposition?
Nike offers four primary value
propositions: accessibility, innovation,
customization, and brand/status. The
company creates accessibility by offering a
wide variety of options. ... The company has
established a strong brand as a result of its
success. It is the top seller of athletic
footwear and apparel globally.
 Three V’s Approach to Marketing
Define the value network

A value network is a set of connections between organizations and/or

individuals interacting with each other to benefit the entire group. A value
network allows members to buy and sell products as well as share information.

Internal networks focus on key activities, processes and relationships that cut
across internal boundaries, such as order fulfillment, innovation, lead processing
and customer support. Value is created through exchange and the relationships
between roles.

External networks include customers/recipients, intermediaries, stakeholders,

complementary, open innovation networks and suppliers.

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 Three V’s Approach to Marketing
Define the value network

value networks consist of these components:

•customers
•a service that enables interaction among them
•an organization to provide the service.
•contracts that enable access to the service

Example of a value network is that formed by social media users. The

company provides a service, users contract with the company and
immediately have access to the value network of other customers.

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 Three V’s Approach to Marketing

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 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.

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 Figure 2.2 Porter’s Value Chain

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 Characteristics of Core Competencies

• A source of competitive advantage

• Applications in a wide variety of markets
• Difficult to imitate

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 Chapter-2 (4/2/22)
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.

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 What is a Marketing Plan?

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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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 Corporate Headquarters’
Planning Activities

• Define the corporate mission

• Establish strategic business units
(SBUs)
• Assign resources to each SBU
• Assess growth opportunities

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 Mission, Vision, Strategy and Goals &
Strategy

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 Good Mission Statements

Focus on limited number of goals

Stress major policies and values

Define major competitive spheres

Take a long-term view

Short, memorable, meaningful

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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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 Motorola

“The purpose of Motorola is to honorably

serve the needs of the community by providing
products and services of superior quality at a
fair price to our customers; to do this so as to
earn an adequate profit which is required for
the total enterprise to grow; and by doing so,
provide the opportunity for our employees and
shareholders to achieve their personal
objectives.”

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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
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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 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 and profitability

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 Figure 2.3 The Strategic Planning Gap

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 Ansoff’s Product-Market Expansion Grid

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 Figure 2.5 The Business Unit
Strategic Planning Process

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 SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

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 Market Opportunity Analysis (MOA)

• Can the benefits involved in the opportunity

be articulated convincingly to a defined target
market?
• Can the target market be located and
reached with cost-effective media and trade
channels?
• Does the company possess or have access
to the critical capabilities and resources
needed to deliver the customer benefits?

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 Market Opportunity Analysis (MOA)

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 Market Opportunity Analysis (MOA)

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 Market Opportunity Analysis (MOA)

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 Market Opportunity Analysis (MOA)

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 Market Opportunity Analysis (MOA)

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 Market Opportunity Analysis (MOA)

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 Market Opportunity Analysis (MOA)

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 Market Opportunity Analysis (MOA)
(cont.)
• Can the company deliver the benefits
better than any actual or potential
competitors?
• Will the financial rate of return meet or
exceed the company’s required
threshold for investment?

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 Market Opportunity Analysis (MOA)
(cont.)

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 Market Opportunity Analysis (MOA)
(cont.)

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 Porter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus

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 Marketing Plan Contents

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

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 Marketing Plan Contents

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 Marketing Plan Contents

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 Marketing Debate

 What good is a mission statement?

Take a position:
1. Mission statements are critical to a
successful marketing organization.
or
2. Mission statements rarely provide
useful marketing value.

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 Assignment
Consider an existing product or a new or improved version of an
existing product. Before you begin writing your marketing plan, ask
questions in a group the following questions:
1. What is the product or service you are selling?
2. Who is the target market for your product or service?
3. What is the need for your product or service in the aforementioned
market?
4. What is the most important message you want to convey to this
market about your product?
5. What is the most effective method of contacting your target market?
(i.e., television, radio, print, and the web)

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