Marketing
DEVELOPING MARKETING
STRATEGIES AND PLANS
Value delivery process
1. Choosing the value: homework marketers must do before
products exist -> segment the market, select the appropriate
target and develop the offerings value positioning-> STP
2. Providing the value: identify specific product features, prices
and distribution
3. Communicating the value: by utilizing the internet,
advertising, sales force and any other communication tools to
announce and market the product
Value chain:
1.
2.
3.
4.
5.
The market sensing process
New offering realization process
Customer acquisition process
Customer relationship management process
Fulfillment management process
Core competencies
1. Source of competitive advantage
2. Applications in wide variety of markets
3. Difficult for competitors to imitate
Strategic planning
1. Managing businesses as an investment portfolio
2. Assessing the markets growth rate and the companys
position in that market
3. Establishing a strategy
Organizational levels
1.
2.
3.
4.
Corporate
Division
Business unit
Product
Marketing plan
1. Strategic marketing plan: lays out the target markets and the
firms value proposition based on analysis of the best
marketing opportunities
2. Tactical marketing plan: specifies the marketing tactics
including product features, promotion, merchandising,
pricing, sales channel and service
Corporate and division strategic planning
1. Defining the corporate mission -> what is our business? Who
is the customer? What is of value to the customer? What will
our business be? What should our business be?
Mission statement:
a. They focus on a limited number of goals
b. They stress the companys major policies and values
c. They define the major competitive spheres within
which the company will operate
d. They take a long term view
e. They are as short, memorable and meaningful as
possible
2. Establishing strategic business units
Characteristics of SBU
a. Single business, or a collection of related businesses,
that can be planned separately from the rest of the
company
b. It has its own set of competitors
c. It has a manager responsible for strategic planning and
profit performance, who controls most of the factors
affecting profit
3. Assigning resources to each strategic business unit -> use
GE/Mckinsey matrix: extent of competitive advantage and
attractiveness of the industry, BCGs growth share matrix:
classifying as dogs, cash cows, question marks and stars,
shareholder value analysis and whether the market value of a
company is greater with an SBU or without it
4. Assessing growth opportunities
a. Planning new businesses
b. Downsizing
c. Terminating older businesses
How to fill strategic planning gap?
1. Intensive opportunities: Identify opportunities of growth
within current businesses
2. Integrative opportunities: Identify opportunities to build or
acquire businesses related to current businesses
3. Diversification opportunities: Identify opportunities to add
attractive unrelated businesses
Business Unit strategic planning
1. SWOT analysis
a. External environment -> opportunity and threat analysis
b. Internal environment -> strengths and weaknesses analysis
2. Goal formulation
Developing specific goals for the planning period
Mix of objectives including profitability, sales growth, market
share improvement, risk containment, innovation and
reputation
MBO-> Management by objectives
a. They must be arranged hierarchically, from most to least
important
b. Objectives should be quantifiable whenever possible
c. Goals should be realistic
d. Objectives must be consistent
Major tradeoffs:
i)
ii)
iii)
iv)
Short term profit vs long term growth
Deep penetration of existing markets vs development
of new markets
Profit goals vs nonprofit goals
High growth vs low risk
3. Strategic formulation
a. Marketing strategy
b. Compatible technology strategy
c. Sourcing strategy
Porters generic strategies:
i. Overall cost leadership
ii. Differentiation
iii. Focus
Strategic group: competing firms directing the same strategy to the
same target market
Strategic alliances
i. Product or service alliances
ii. Promotional alliances
iii. Logistics alliances
iv. Pricing collaborations
Partner relationship management: ability to form and manage
partnerships as core skills
4. Program formulation and implementation
5. Feedback and control
Nature and contents of a marketing plan
Marketing plan-> written document that summarizes what the
marketer has learnt about the marketplace and indicates how a firm
plans to reach its marketing objectives
a. contains tactical guidelines for the marketing programs and
financial allocations over the planning period
b. documents how the organization will achieve its strategic
objectives through specific marketing strategies and tactics,
with the customer as the starting point
c. linked to plans of other departments
Sections in a marketing plan
a. executive summary and table of contents
b.
c.
d.
e.
f.
situation analysis
marketing strategy
marketing tactics
financial projections
implementation controls
CREATING LONG TERM LOYALTY
RELATIONSHIPS
