Developing Marketing Strategies and Plans

Agenda
How does marketing affect customer value? Strategic planning at different levels of the organization Components of a marketing plan

Strategy
Strategy is the direction and scope of an organization over the long-term; which achieves advantage for the organization through its

configuration of resources within a challenging

environment, to meet the needs of markets and to

fulfill stakeholder expectations".

Hierarchy of Strategy

Marketing and Customer Value

The value delivery process

Two views of value delivery process

Traditional physical process (make the product and sell the product) Value creation and delivery process (Choose the value by STP, provide the value, communicate the value)

Three Vs Approach to Marketing

Value exploration Company identifying new value opportunities Value creation Company efficiently create more promising

new value offerings

Value delivery Company use its capabilities and infrastructure to deliver new value offerings more efficiently

The Value Chain

Value chain: 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.
Many companies today have partnered with specific suppliers and distributors to create a superior value delivery network, also called as supply chain

Core Competencies
Competitive advantage ultimately derived from how well the company has fitted its core competencies into tightly interlocking activity systems. Maximizing core competencies: Business realignment is the

key and involves three steps:

1. 2. 3. (re) defining the business concept (re) shaping the business scope (re) positioning the companys brand identity

The Role of Strategic Planning in Marketing

Strategic planning helps in: 1. Managing a companys business as an investment portfolio 2. Assessing each businesss strength by considering the

markets growth rate and companys fit in the market

3. Establishing a strategy Strategic planning happens at different levels of an organization: Corporate, division, business, product

The Strategic planning Process

Corporate strategy Mission, goals and objectives

Business unit strategy Mission, goals and objectives

Functional unit strategy

Marketing goals and objectives

Production goals and objectives

Financial goals and objectives

Marketing strategy
Implementation Evaluation and control

Production strategy
Implementation Evaluation and control

Financial strategy
Implementation Evaluation and control

The Strategic Planning, Implementation, and Control Processes

Corporate Strategic Planning

All corporate headquarters undertake four planning activities: 1. Defining the corporate mission 2. Establishing the SBUs 3. Assigning resources to each SBU 4. Assessing growth opportunities

1. Defining Corporate Mission

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

Define major competitive spheres

Take a long-term view Short, memorable, meaningful

Organizational Mission vs. Vision

Mission A clear and concise statement that explains the organizations reason for existence (what business are we in?) Ex: To organize the worlds information and make it universally accessible and useful Vision Future oriented and represents where the organization is headed and where it wants to go (what do we want to become?) Ex: Never settle for the best

Mission Statements Examples

Infosys Technology Ltd. - To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients,

employees, vendors, and society at large.

Biocon - To be an integrated biotechnology enterprise of global distinction

2. Establishing SBUs
An SBU has three characteristics:
1. It is a single business, or collection of related businesses that can be
planned separately from the rest of the company 2. It has its own set of competitors

3.

It has a manager responsible for planning and performance

GE has classified its businesses into 49 SBUs

3. Assigning Resources to Each SBU

Portfolio-planning models provide an analytical means for

making investment decisions

Some of the models used are as follows:
BCGs Growth-Share matrix

GE multifactor model
Shareholder value analysis

4. Assessing Growth Opportunities

Involves planning new

businesses, downsizing, and

terminating older businesses Ansoff Matrix Strategies suggested:
Market penetration Market development Product development Diversification

Business Unit Strategic Planning

All corporate headquarters undertake four planning activities: 1. Business mission 2. SWOT analysis (External and internal environment analysis) 3. Strategy formulation 4. Program formulation

5. Strategy implementation
6. Feedback and control

Strategy Formulation
Porters Generic Strategies
Overall Cost Leadership

Differentiation
Focus

Product Planning
Marketing Plan
Each product level within a business unit must develop a

marketing plan for achieving its goals

The marketing plan is one of the most important outputs of the marketing process A marketing plan is the central instrument for directing and coordinating the marketing effort.

It operates at a strategic and tactical level.

Marketing Plan Structure

1. Executive Summary (Synopsis, Major aspects of the marketing plan) 2. Situation Analysis (Analysis of the internal, customer and external
environment)

3. SWOT Analysis 4. Marketing Goals and Objectives

5. Marketing Strategy (Product, pricing, distribution, and IMC strategy)

6. Marketing implementation (Structural issues, tactical marketing
activities)

7. Evaluation and Control (Formal controls, informal controls,

Implementation schedule and timeline)

Levels of a Marketing Plan

Strategic
Target marketing decisions Value proposition Analysis of marketing opportunities

Tactical
Product features Promotion Merchandising Pricing Sales channels Service