Chapter 2

Developing
Marketing
Strategies and a
Marketing Plan

© 2018 McGraw-Hill Education 2-1

 THE GOAL IS CLEAR: WIN!

 Is innovation important?
 Creative sustainability
 Strategies and plans
must be precise
 Brand disruption?

© 2018 McGraw-Hill Education 2-2

WHAT IS A MARKETING STRATEGY?
Marketing strategy identifies:
• a firm’s target market (s)
• a related marketing mix –the four P’s and
• the bases upon which the firm plans to build a sustainable
competitive advantage

Leads to sustainable competitive advantage!

© 2018 McGraw-Hill Education 2-3

 SUSTAINABLE COMPETITIVE ADVANTAGE
Nike - Just do it!
• Strong brand
• Technology
• Strong customer base
• Loyal customers

Discussion Question
Why have these factors been the keys to
Nike’s sustainable advantage? Are there
other factors to consider?

© 2018 McGraw-Hill Education 2-4

DEVELOPING CUSTOMER
VALUE

Macro Strategies for Developing Customer Value

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 CUSTOMER EXCELLENCE

Retain loyal
customers

Provide excellent
customer service

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OPERATIONAL EXCELLENCE

Efficient
operations

Strong Excellent
supplier supply chain
relationships management

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PRODUCT EXCELLENCE
High perceived value
+
Effective branding and positioning

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 LOCATIONAL EXCELLENCE

Starbucks The three most important things

in retailing are
location, location, location.

Tim Hortons

© 2018 McGraw-Hill Education 2-9

MULTIPLE SOURCES OF ADVANTAGE

Multiple approaches:
Customer value
Customer service
Customer relations
Great prices!

Good service = Good value

© 2018 McGraw-Hill Education 2-10

DEVELOPING A MARKETING PLAN

© 2018 McGraw-Hill Education 2-11

 STEP 1: DEFINE THE BUSINESS MISSION & OBJECTIVES

Defining the Mission

Tim Hortons states: Our guiding mission is to deliver

superior quality products and services for our customers
and communities through leadership, innovation and
partnerships. Our vision is to be the quality leader in
everything we do.

© 2018 McGraw-Hill Education 2-12

 ANOTHER EXAMPLE: NON-PROFIT

The Heart and Stroke Foundation mission: is to improve the

health of Canadians by preventing and reducing disability
and death from heart disease and stroke through research,
health promotion, and advocacy.

© 2018 McGraw-Hill Education 2-13

 STEP 2: CONDUCT A SITUATION ANALYSIS
(USING SWOT)
Environment Evaluation
Positive
Internal Strengths
• Superior resources and capabilities
• Superior management, marketing, technical talent
• Strong brand
• Superior product offerings
• Extensive marketing reach
• Wide distribution networks (national/global)
• Strong financial resources
• Excellent geographic location
• Proprietary technologies/intellectual property
• Strong base of loyal customers
External Opportunities
• CDSTEP changes that offer opportunities for the
firm to serve new markets with existing products
and/or pursue completely new market
opportunities
• Existing firms exit the market because of financial
or other difficulties (i.e., reduced competition)
• Acquiring another firm and gaining market access,
new customers, new technology and expertise, and
financial resources
© 2018 McGraw-Hill Education
Negative
Weaknesses
• Little or no brand recognition
• Lack of financial resources
• Lack of other resources and capabilities
• Lack of marketing, management, and technical talent
• Limited market reach or distribution network
• No proprietary technology
• Poor location
• Limited customer base or loyalty
• Lack of credibility
Threats
• Political or regulatory changes (e.g., new laws
affecting business or products)
• New entrants into the industry or market
• New technology that could render existing
technology or business practices obsolete
• Natural or human-made disasters
• Recession or economic downturn that affects
consumers’ purchasing power and confidence
• Changes in sociocultural or demographic trends
2-14
 Step 3: Identify and Evaluate
Opportunities by using STP

Segmentation

Targeting

Positioning

© 2018 McGraw-Hill Education 2-15

 AN EXAMPLE: HERTZ MARKET
SEGMENTATION
Segment 1 Segment 2 Segment 3 Segment 4 Segment 5
Segments Single thrill Business Environment Families Commercial
seekers and customers ally customers
gear heads and families conscious
on vacation who prefer a customers
luxurious
ride
Adrenaline Prestige Green SUV/ Commercial
Collection Collection Collection crossover/4 van/truck
×4
Cars Offered Corvette ZHZ Infiniti QX56 Toyota Prius Toyota Rav 4 Ford cargo
van
Chevrolet Cadillac Ford Fusion Ford
Camaro Escalade Explorer

© 2018 McGraw-Hill Education 2-16

STEP 4: IMPLEMENT MARKETING MIX AND ALLOCATE
RESOURCES

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Product and Value Creation

Discussion Question
How does Dyson deliver value based
upon the products it creates?

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PRICE AND VALUE FOR MONEY

• Exchange: product = money

• Customer perception of value

Price is only a part of value!

© 2018 McGraw-Hill Education 2-19

PLACE AND VALUE DELIVERY
• Product must be readily
accessible
• When and where the customer
wants it

Why is this retailer growing?

© 2018 McGraw-Hill Education 2-20

 PROMOTION AND VALUE COMMUNICATION

Marketers communicate the value of their

offering, or the value proposition, to their
customers through a variety of media,
including:
 Television
 Radio
 Magazines
 Sales force
 Internet

© 2018 McGraw-Hill Education 2-21

 STEP 5: EVALUATE PERFORMANCE BY
USING MARKETING METRICS
Outcomes need to be evaluated. Metrics are used to
explain why things happened and to project the future. In
particular:
 Who Is Accountable for Performance?

© 2018 McGraw-Hill Education 2-22

 EVALUATE PERFORMANCE BY USING
MARKETING METRICS
It can be difficult to find one
measure to evaluate
performance.
 Performance Objectives and
Metrics
 Financial Performance Metrics
 Social Responsibility
Performance Metrics

© 2018 McGraw-Hill Education 2-23

 PORTFOLIO ANALYSIS
BOSTON CONSULTING GROUP MATRIX (BCG)

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GROWTH STRATEGIES

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 QUIZ #2
Sign in with First Name and First Letter of Last Name (must match the
course registration)
If you are unsatisfied with your score, or you do not like Kahoot!, you
may complete In-Class Assignment #1 instead.

© 2018 McGraw-Hill Education 2-26

 GROUP PROJECT
- Details under Assignment Module in Learning Materials on
Blackboard
- Types of projects
- Brand new idea
- Significantly new idea for an existing company
- Adapting a product from another market to Toronto

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 FOR NEXT WEEK

Send your project idea via Course Messages by

end of the week.
Include Group Name in the Subject line
CC your group Members
Check for my response
Read Chapter Three

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