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    Marketing Management Chapter 2

    Uploaded by

    Ahasanul Arefin

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    © All Rights Reserved
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    Marketing Management Chapter 2

    Uploaded by

    Ahasanul Arefin
    33 views36 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    33 views36 pages

    Marketing Management Chapter 2

    Uploaded by

    Ahasanul Arefin

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 36

    2

    Developing Marketing
    Strategies and Plans
    Dr. Md. Kashedul Wahab Tuhin
    Associate Professor
    Department of Marketing
    Faculty of Business Studies
    Jahangirnagar University
    Savar, Dhaka-1342.

    Marketing Management, 15th ed


    Chapter Questions

    • How does marketing affect customer


    value?
    • How is strategic planning carried out at
    different levels of the organization?
    • What does a marketing plan include?

    2-2
    Marketing and Customer Value

    The Value-Delivery Process


    (a) Traditional physical process sequence

    Make the product Sell the product

    Design Procure Make


    product Price Sell Advertise/
    promote Distribute Service

    (b) Value creation & delivery sequence

    Choose the Value Provide the Value Communicate the Value

    Strategic marketing Tactical marketing


    What is the Value Chain?

    The value chain is a tool for identifying


    and creating more customer value.
    Every firm is a synthesis of primary and
    support activities performed to design,
    produce, market, deliver, and support
    its product.

    2-4
    Figure 3-3: The Generic Value Chain
    Core Business Processes

    • Market-sensing process (marketing intelligence).


    • New-offering realization process (research and
    development).
    • Customer acquisition process (defining target
    markets and consumers).
    • Customer relationship management process
    (deeper understanding of consumers).
    • Fulfillment management process (receiving,
    shipping, and collecting payments).

    2-6
    Characteristics of Core Competencies

    • A source of competitive advantage


    (technical, production expertise, distribution,
    financial strength, etc.)
    • Applications in a wide variety of markets
    • Difficult to imitate

    2-7
    Central role of strategic planning
    Strategic-Planning, Implementation, and Control Process

    Planning Implementation Control

    Organizing
    Corporate Measuring
    planning results
    Division
    planning Diagnosing
    Implementing
    results
    Business
    planning
    Taking
    Product corrective
    planning action
    Central role of strategic planning

    A marketing plan is the central


    instrument for directing and
    coordinating the marketing effort.
    It operates at a
    strategic and tactical level.

    2-9
    Levels of a Marketing Plan
    • Strategic Marketing • Tactical Marketing
    Plan- lays out the target Plan- specifies the
    markets and the firm’s value marketing tactics, including-
    proposition, based on an
    analysis of the best market • Product features
    opportunities • Promotion
    • Target marketing • Merchant desing
    decisions • Pricing
    • Value proposition • Sales channels
    • Analysis of marketing • Service
    opportunities

    2-10
    Corporate and Division Strategic
    Planning

    • Define the corporate mission


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

    2-11
    Defining the Corporate Mission
    • An organization exist to accomplish something.
    • To define its mission a company should address Peter
    Drucker’s classic questions-
    • What is our business?
    • Who is our customer?
    • What is our value to customer?
    • What will our business be?
    • What should our business be?
    • Business Definition- companies often define their business
    • Product definition
    • market definition
    • Strategic market definition

    2-12
    Rubbermaid Commercial Products, Inc.

    “Our vision is to be the Global Market Share


    Leader in each of the markets we serve. We
    will earn this leadership position by
    providing to our distributor and end-user
    customers innovative, high-quality, cost-
    effective and environmentally responsible
    products. We will add value to these products
    by providing legendary customer service
    through our Uncompromising Commitment
    to Customer Satisfaction.”
    2-13
    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.”

    2-14
    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.”

    2-15
    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

    2-16
    Defining the Corporate Mission
    • Crafting a mission statement
    • A clear thoughtful mission statement, developed collaboratively with and
    shared with managers, employees, and provides a shared sense of
    purpose, direction, and opportunity.
    • Good mission statements have five characteristics-
    • on a limited number of goals
    • Stress major policies and values
    • Define major competitive spheres: Major Competitive Spheres are:
    • Industry (consumer(s) and/or industrial(s)
    • Products (range)
    • Competence (technological, production, etc.)
    • Market segment (type of market or customer)
    • Vertical channels (number of channel levels, from raw materials to final
    product and distribution)
    • Geographic (range of regions, countries, or country groups)

    • Take a long-term view


    • Short, memorable, meaningful

    2-17
    Establishing Strategic Business
    Units
    • 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

    2-18
    Assigning Resources to Each SBU

    • The Growth-Share Matrix


    • Relative market share and market growth rate
    • BCG Approach: Four Cells
    • Question Marks
    • Stars
    • Cash Cows
    • Dogs
    • More recent methods firms use to make internal investment
    decisions are based on Shareholder Value Analysis (SVA) and
    whether the market value of a company is greater with an SBU or
    without it.

    Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-19


    Assessing Growth Opportunities
    • Strategic Gap: If there is a gap between future desired sales and projected
    sales. Corporate management will need to develop or acquire new business
    to fill it. The are three ways:
    • Intensive Growth
    • Integrative growth
    • Diversification Growth.

    Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-20


    The Strategic Planning Gap

    2-21
    Intensive Growth: Corporate managers should review the opportunities for
    improving existing business.

    Ansoff’s Product-Market Expansion Grid:


    1. Market penetration strategy
    2. Market development strategy
    3. Product development strategy
    4. Diversification strategy

    2-22
    Ansoff’s Product-Market Expansion
    Grid

    2-23
    • Integrative Growth:
    • Backward
    • Forward
    • Horizontal
    • Diversification Growth:
    • Concentric Diversification: Develop a products that have technology or marketing synergies
    with existing product lines appealing to a new group of customer.
    • Horizontal diversification: Develop products that are technologically unrelated to its current
    product line and could appeal to its current customers.
    • Conglomerate Diversification: Seek new opportunities that have no relation with its current
    technology, products or markets.

    Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 2-24


    What is Corporate Culture?

    Corporate culture is the shared


    experiences, stories, beliefs, and norms
    that characterize an organization.

    2-25
    Tactics for Managing Change

    • Avoid the innovation title for the team


    • Use the buddy system
    • Set the metrics in advance
    • Aim for quick hits first
    • Get data to back up your gut

    2-26
    The Business Unit Strategic
    Planning Process

    2-27
    SWOT Analysis

    • Strengths
    • Weaknesses
    • Opportunities
    • Threats

    2-28
    External Environment (Opportunity & Threat) Analysis:

    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?

    2-29
    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?

    2-30
    Figure 4-7: Opportunity and Threat Matrices
    Goal Formulation and MBO

    • Unit’s objectives must be hierarchical


    • Objectives should be quantitative
    • Goals should be realistic
    • Objectives must be consistent

    2-32
    Porter’s Generic Strategies

    Overall Cost Leadership—lowest


    production and distribution costs to be
    able to price lower than competitors and
    to obtain larger market share.

    Differentiation—uniquely achieving
    superior performance in an important
    customer benefit area.

    Focus—on one or more narrow market


    segments

    2-33
    Strategic/Categories of
    Marketing Alliances
    Product or Service Alliances—jointly
    market complementary products

    Promotional Alliances—promotion
    of another company’s products

    Logistics Alliances—logistical services


    for another company’s products.

    Pricing Collaborations—one or more


    companies join in special price reduction.

    2-34
    Marketing Plan Contents

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

    2-35
    Evaluating a Marketing Plan

     Is the plan simple?


     Is the plan specific?
     Is the plan realistic?
     Is the plan complete?

    2-36

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