Developing and Implementing Marketing Strategies and Plans

Developing and Implementing Marketing Strategies and Plans Key Concepts

Two Views of the Value Delivery Process Traditional Physical Value Creation and Process Sequence Delivery Sequence Make the product Sell the product Choose the value Provide the value Communicate the value -

The Value Chain Primary Activities Support Activities Inbound logistics Firm infrastructure Operations Human resource Outbound logistics Marketing and sales Service management Technology development Procurement

Core Business Processes The market sensing process The new offering realization process The customer acquisition process The customer relationship management process The fulfillment management process

Characteristics of Core Competencies A source of competitive advantage Applications in a wide variety of markets Difficult for competitors to imitate

Holistic Marketing Orientation and Customer Value Value exploration: How can a company identify new value opportunities? Value creation: How can a company efficiently create more promising new value offerings? Value delivery: How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently?

A Holistic Marketing Framework Value exploration Value creation Value delivery Customer focus Core competencies Collaborative network

Role of Strategic Planning Managing a company’s businesses as an investment portfolio Assessing each business’s strength Establishing a strategy to achieve its long-run objectives

Organizational Levels Corporate level Divisional level Business unit level Product level

Marketing Plan Central instrument for directing and coordinating the marketing effort Two levels: Strategic marketing plan—lays out the firm’s target markets and value propositions, based on the best market opportunities. Tactical marketing plan—specifies the marketing tactics, including product features, promotion, pricing, and service.

Corporate Planning Activities Defining the corporate mission Establishing strategic business units Assigning resources to each unit Assessing growth opportunities

Defining the Corporate Mission What is our business? Who is the customer? What is the value to the customer? What will our business be? What should our business be?

Good Mission Statements Focus on limited number of goals Stress major policies and values Define major competitive spheres

Major Competitive Spheres Industry Market segment Products and Vertical applications Competence Geographical

Dimensions That Define a Business Customer groups Customer needs Technology

Characteristics of an SBU Single business or collection of related businesses Own set of competitors Manager responsible for strategic planning and profit performance

Growth Opportunities Intensive growth Integrative growth Diversification growth

Organizations Structure Policies Culture

The Business Unit Strategic Planning Process Business mission SWOT analysis Goal formulation Strategy formulation Program formulation Implementation Feedback and control

SWOT Analysis Strengths Weaknesses Opportunities Threats

Marketing Opportunity An area of buyer need and interest that a company has a high probability of profitably satisfying. Sources: Supply something that is in short supply Supply an existing product or service in a new or superior way Totally new offering

Environmental Threat Challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to lower sales or profit.

Effective Goal Formulation Arranged hierarchically from most to least important Stated quantitatively Realistic Consistent

Porter’s Generic Strategies Overall cost leadership Differentiation Focus

McKinsey’s Seven “S” Elements “Hardware” “Software” Strategy Style Structure Skills Systems Staff Shared values

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

Measuring Marketing Plan Performance Sales analysis Market share analysis Marketing expense-to-sales ratio Financial analysis