2

Developing Marketing
Strategies and Plans

Marketing Management, 13th ed

 Three Vs Approach to Marketing

Define
Define the
the value
value segment
segment

Define
Define the
the value
value proposition
proposition

Define
Define the
the value
value network
network

2-2 Copyright 2009 Pearson Education, Inc. Publishing

 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.

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 Figure 2.2 Porters Value Chain

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 Characteristics of Core Competencies

A source of competitive advantage

Applications in a wide variety of markets
Difficult to imitate

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 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.

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 Levels of a Marketing Plan

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

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 Figure 2.2 The Strategic Planning,
Implementation,
and Control Processes

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 Corporate Headquarters
Planning Activities

Define the corporate mission

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

2-9 Copyright 2009 Pearson Education, Inc. Publishing

 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

2-10 Copyright 2009 Pearson Education, Inc. Publishing

 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.

2-11 Copyright 2009 Pearson Education, Inc. Publishing

 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.

2-12 Copyright 2009 Pearson Education, Inc. Publishing

 eBay

We help people trade anything on earth.

We will continue to enhance the online
trading experiences of allcollectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.

2-13 Copyright 2009 Pearson Education, Inc. Publishing

 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

2-14 Copyright 2009 Pearson Education, Inc. Publishing

 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

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 Figure 2.3 The Strategic Planning Gap

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 Ansoffs 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

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 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?

2-20 Copyright 2009 Pearson Education, Inc. Publishing

 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 companys required
threshold for investment?

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 Porters Generic Strategies

Overall Cost Leadership

Differentiation

Focus

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 Marketing Plan Contents

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

2-23 Copyright 2009 Pearson Education, Inc. Publishing

 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.

2-24 Copyright 2009 Pearson Education, Inc. Publishing