Developing Marketing

Strategies and Plans

Discussion Questions

1. How does marketing affect customer

value?

2. How is strategic planning carried out

at different levels of the organization?

3. What does a marketing plan include?

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The Value Delivery Approach

Provide

Choose Communicate

Value

Successful marketers must focus on delivering

value to customers

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 The Value Chain (Porter Model)

Primary Inbound Outbound

Activities Operations Marketing Service
Logistics Logistics

Margin
Procurement
Support Human Resource management
Activities
Technological Development
Infrastructure

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Core Business Processes
Customer relationship
management
Fulfillment
management
Customer
acquisition

New-offering
realization

Market-sensing

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Core Competencies / Value

Difficult to
imitate
Useful in a
wide variety
of markets
Contributes to
perceived
customer benefits
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Holistic Marketing Orientation and Customer Value

Value Exploration – How the firm identifies

new value opportunities.

Value Creation – How

Value Value efficiently a company creates
Exploration Creation
more promising new value
offerings

Value
Delivery

Value Delivery – How a company uses its

capabilities and infrastructure to deliver the
new value offering more efficiently.

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Strategic Planning

Businesses as
investment portfolio

Assessing each
business’s strength

Establish a strategy
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Strategic Planning, Implementation,
and Control Processes

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Marketing Plan

• Directs and coordinates the

marketing effort
• Product Line or Brand Level
• Strategic and Tactical levels

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 Levels of a Marketing Plan

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

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Corporate Strategic Planning

1 Define corporate mission

2 Establish SBU’s

3 Assign resources to SBU’s

4 Assess growth opportunities

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Defining the Corporate Mission

Who is the
customer? What is of
value to the
What is our customer?
business?
1. What is your mission?
2. Who is your customer?
3. What does your customer v
4. What results do you seek?
5. What is your plan?
What should
our business What will our
be? business be?
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 Criteria for Evaluating a Mission Statement

• Is our mission statement focused on satisfying customer needs rather than being focused on
the product?
• Does our mission statement tell who our customers are?
• Does our mission statement explain what customer needs our company is trying to satisfy?
• Does our mission statement explain how our company will serve its customers?
• Does our mission statement fit the current market environment?
• Is our mission statement based on our core competencies? (A core competency is a company
strength.)
• Is our mission statement motivating and does it inspire employee commitment?
• Is our mission statement realistic?
• Is our mission statement specific, short, sharply focused and memorable.
• Is our mission statement clear and easily understood?
• Does our mission statement say what we want to be remembered for?

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 Mission Statements

Characteristics of good mission statements:

1. Focus on a limited number of goals

2. Stress major policies and values
3. Define major competitive spheres
4. Take a long-term view
5. Short, memorable, meaningful

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Vague Mission Statement

To build total brand value by innovating to

deliver customer value and customer
leadership faster, better, and more
completely than our competition

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GOOGLE’S Mission Statement

To organize the world’s information

and make it universally accessible
and useful.

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Vague Philosophy

We build brands and make the world

a little happier by bringing our best
to you.

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GOOGLE’s Philosophy
1. Focus on the user and all else will follow.
2. It’s best to do one thing really, really well.
3. Fast is better than slow.
4. Democracy on the web works.
5. You don’t need to be at your desk to need an answer.
6. You can make money without doing evil.
7. There is always more information out there.
8. The need for information crosses all borders.
9. You can be serious without a suit.
10.Great just isn’t good enough.

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Defining Strategic Business Units
Customer groups

Customer needs Technology

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 Strategic Business Units

Company Product Definition Market Definition

Union Pacific We run a railroad. We are a people-and-goods mover.

We make copying We help improve office

Xerox
equipment. productivity.
Hess
We sell gasoline. We supply energy.
Corporation
Paramount
We make movies. We market entertainment.
Pictures
Encyclopaedia
We sell encyclopedias We distribute information.
Britannica
We make air conditioners We provide climate control in the
Carrier
and furnaces. home.

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Strategic Business Units (SBU)

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 Strategic Business Units (SBU)
Three Characteristics of an SBU:

Unique competitors

A single business or
collection of related
businesses Leader responsible for planning and
profitability

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• Category Attractiveness
– Dimensions ???

• Market growth rate

• Market share
• Profitability

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BCG Matrix

• Nestle

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Boston Consulting Group Matrix

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 Assigning Resources
industry growth rate, market

GE Mckinsey Model
low competition, and PEST
size, industry profitability,
Industry attractiveness:

factors

Market share, growth rate, profitability, brand reputation,

and customer service.
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To achieve Growth
New
Businesses

Growth
Opportunities

Eliminate
Downsizing
Businesses
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• Mech
• 2,3,6,14,16, 17,21, 23, 24, 25, 26, 28, 31, 36, 40
• 42, 43, 48,

– Ip : 4, 10, 16, 19

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The Strategic-Planning Gap

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Intensive Growth- Within Current businesses

Product-Market Expansion Grid

New
Market
Diversification
Development
Markets
Current

Market Product
Penetration Development

Current New
Products

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Integrative Growth

Supplier Business Wholesaler

Competitor

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Diversification Growth

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Corporate Culture

… is the shared experiences, stories, beliefs, and

norms that characterize an organization.

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Marketing Innovation

Identify and encourage new ideas

Scenario Analysis
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Business Unit Strategic Planning

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Opportunity and Threat Matrices

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SWOT Analysis

Internal
SW
Strength Weakness

O T
External

Opportunity Threat

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Goal Formulation

Ranked

Consistent Quantified

Realistic

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 Strategy Formulation
Porter’s Generic Strategies BCG Matrix
Stars
Question marks
Dogs
Cows

Strategic Alliances
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Program Formulation and Implementation

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Feedback and Control

Strong leadership
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 Product Planning
Marketing Plans
Executive Summary and table of contents

Situation analysis

Marketing strategy

Financial projections

Implementation controls

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