MARKETING

MANAGEMENT
SESSION 2
Dr. Dipanjan Kumar Dey
MBA
Term 1 (2022-24)
DEVELOPING MARKETING
STRATEGIES AND PLANS
 How does marketing affect customer value?

 How is strategic planning carried out at the corporate and divisional

levels?

 How is strategic planning carried out at the business unit level?

 What does a marketing plan include?

MARKETING AND CUSTOMER
VALUE
 The task of any business is to deliver
customer value at a profit

VALUE DELIVERY PROCESS

 Choosing the Value  STP

 Providing the Value  Identification

of 3Ps

 Communicating the Value  4th P

PORTER’S VALUE CHAIN
 CORE COMPETENCIES
"a harmonized combination of multiple resources and skills that distinguish a firm in the
marketplace“
 Own and nurture the resources and competencies that make up the essence of the business
 Outsource less-critical resources if they can obtain better quality or lower cost
 Examples of core competency: _____________________

CHARACTERISTICS OF CORE COMPETENCY:

 It is a source of competitive advantage and makes a significant
contribution to perceived customer benefits
 It has applications in a wide variety of markets
 It is difficult for competitors to imitate
 THE CENTRAL ROLE OF STRATEGIC
PLANNING
 Three key areas:
 managing the businesses as an investment portfolio
 assessing the market’s growth rate and the company’s position in that market
 establishing a strategy

 Four organizational levels: corporate, division, business unit, and product

 PLANNING HIERARCHY
 Corporate headquarters is responsible for designing a corporate
strategic plan to guide the whole enterprise; it makes decisions on
the amount of resources to allocate to each division as well as on
which businesses to start or eliminate
 Each division establishes a plan covering the allocation of funds
to each business unit within the division
 Each business unit develops a strategic plan to carry that
business unit into a profitable future
 Finally, each product level (product line, brand) develops a
marketing plan for achieving its objectives
 The strategic marketing plan lays out the target markets and the firm’s value
proposition, based on an analysis of the best market opportunities.
 The tactical marketing plan specifies the marketing tactics, including product
features, promotion, merchandising, pricing, sales channels, and service
STRATEGIC BUSINESS UNITS
(SBUS)
A strategic business unit is a business term used to present an independently managed entity
or unit of a large company
 is an array of a huge corporation that is responsible for its shared planning treatment.
 They can be business divisions, product lines of the division, or a particular product/service
CHARACTERISTICS OF A SBU
 SBU is a separate business or a group of similar
businesses that are in charge of scope for
autonomous planning

 A single SBU is regarded as a profit centre

 Do not have the same set of rival companies as the

others
 The head of a SBU will be responsible for the
profitability, performance, and strategic planning of
the specific unit
 SBUs work in different markets and target different
groups of customers
INTENSIVE GROWTH
CORPORATE MANAGEMENT SHOULD FIRST REVIEW
OPPORTUNITIES FOR IMPROVING EXISTING BUSINESSES
BUSINESS UNIT STRATEGIC
PLANNING

• ARRANGED
HIERARCHICA
LLY
• SHOULD BE
QUANTITATIV
E
• REALISTIC
PORTER’S FIVE FORCES
MODEL: COMPETITIVE
ANALYSIS

•Porter, M.E. (1979). How Competitive Forces Shape Strategy. Harvard Business Review
•Porter, M.E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review