Developing Marketing strategies &

Plans

INSTRUCTOR: KRISHAN GOPAL

 Value delivery process

• Traditional process: Design, procure,

make, price, sell, advertise, promote,
service
• Modern process:

INSTRUCTOR: KRISHAN GOPAL

 Three V’s Approach to Marketing

Define
Define the
the value
value segment:
segment:
STP
STP

Providing
Providing the
the value
value

Communicating
Communicating the
the value
value

INSTRUCTOR: KRISHAN GOPAL

 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.

INSTRUCTOR: KRISHAN GOPAL

 Figure 2.2 Porter’s Value Chain

INSTRUCTOR: KRISHAN GOPAL

 Characteristics of Core Competencies

• A source of competitive advantage

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

INSTRUCTOR: KRISHAN GOPAL

 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.

INSTRUCTOR: KRISHAN GOPAL

 Levels of a Marketing Plan

• Strategic • Tactical
• Target marketing • Product features
decisions • Promotion
• Value proposition • Merchandising
• Analysis of • Pricing
marketing • Sales channels
opportunities
• Service

INSTRUCTOR: KRISHAN GOPAL

 Figure 2.2 The Strategic Planning,
Implementation,
and Control Processes

INSTRUCTOR: KRISHAN GOPAL

 Corporate Headquarters’
Planning Activities

• Define the corporate mission

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

INSTRUCTOR: KRISHAN GOPAL

 Good Mission Statements

Focus
Focus on
on limited
limited number
number of
of goals
goals

Stress
Stress major
major policies
policies and
and values
values

Define
Define major
major competitive
competitive spheres
spheres

Take
Take aa long-term
long-term view
view

Short,
Short, memorable,
memorable, meaningful
meaningful

INSTRUCTOR: KRISHAN GOPAL

 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.”

INSTRUCTOR: KRISHAN GOPAL

 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.”

INSTRUCTOR: KRISHAN GOPAL

 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

INSTRUCTOR: KRISHAN GOPAL

 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

INSTRUCTOR: KRISHAN GOPAL

 Assigning resources to each SBU

INSTRUCTOR: KRISHAN GOPAL

 The Boston Consulting
Group’s Growth-Share Matrix
Market Growth Rate

Stars Question marks

4
20%-
3
?2 ? 1
?
18%-
16%-
14%-
5

?
12%-
10%-
8%- Cash cow Dogs
6%-
4%-
2%-
8
0 6 7
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x

Relative Market Share

 Assessing Growth Opprotunities

INSTRUCTOR: KRISHAN GOPAL

 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

INSTRUCTOR: KRISHAN GOPAL

 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?

INSTRUCTOR: KRISHAN GOPAL

 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?

INSTRUCTOR: KRISHAN GOPAL

 Goal Formulation

• Goals are objectives that are specific

with respect to magnitude and time.
• Arranged hierarchically
• Should be quantitative
• Realistic

INSTRUCTOR: KRISHAN GOPAL

 Strategy formulation
Porter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus

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 Programme formulation &
implementation

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 Feedback & Control

INSTRUCTOR: KRISHAN GOPAL

 Marketing Plan Contents

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

INSTRUCTOR: KRISHAN GOPAL

 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.

INSTRUCTOR: KRISHAN GOPAL