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Developing Marketing
Strategies and Plans
Marketing Management
A South Asian Perspective, 13th 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?
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Siemens AG has grown through new
product innovation and strategic
acquisitions
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Nike Creates Value
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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
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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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Cisco Systems Taps into Partner
Expertise to Create Value
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Core Business Processes
Market-sensing process
New-offering realization process
Customer acquisition process
Customer relationship management
process
Fulfillment management process
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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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Netflixs Distinctive Capabilities
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Firms Should Consider Key Questions
Can we learn from the past?
How should the present be evaluated?
What do we envision for the future?
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What is Holistic Marketing?
Holistic marketing sees itself as
integrating the value exploration,
value creation, and value delivery
activities with the purpose of building
long-term, mutually satisfying
relationships and coprosperity among
key stakeholders.
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Intels New Brand Identity:
Leap Ahead
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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
Target marketing
decisions
Value proposition
Analysis of
marketing
opportunities
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Tactical
Product features
Promotion
Merchandising
Pricing
Sales channels
Service
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Figure 2.4 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
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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
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Major Competitive Spheres
Industry
Geographical
Products
Vertical
channels
Competence
Market
segment
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Infosys Technologies Limited
To achieve our objectives in an environment
of fairness, honesty, and courtesy towards
our clients, employees, vendors, and society
at large.
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Biocon
To be an integrated biotechnology enterprise
of global distinction.
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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.
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Table 2.3
Product Orientation vs. Market Orientation
Company
Product
Market
Xerox
We make copying
equipment
We improve office
productivity
Columbia
Pictures
We make movies
We entertain
people
Encyclopedia
Britannica
We sell encyclopedias
We distribute
information
Carrier
We make air conditioners
and furnaces
We provide climate
control inside
homes
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Dimensions That Define a Business
Customer
groups
Customer
needs
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Technology
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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 2.5 The Strategic Planning Gap
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Strategies Suggested by Ansoffs
Product-Market Expansion Grid
Market penetration
Market development
Product development
Diversification
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Developing the Peoples Car
TATA Nano
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What is Corporate Culture?
Corporate culture is the shared
experiences, stories, beliefs, and
norms that characterize an
organization.
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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
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Figure 2.7 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?
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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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FedEx
FedEx added
Sunday deliveries
based on customer
requests and
market demand
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Figure 2.8 Opportunity Matrix
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Figure 2.8 Threat Matrix
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Goal Formulation and MBO
Units objectives must be hierarchical
Objectives should be quantitative
Goals should be realistic
Objectives must be consistent
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Porters Generic Strategies
Overall Cost Leadership
Differentiation
Focus
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Categories of Marketing Alliances
Product
Product or
or Service
Service Alliances
Alliances
Promotional
Promotional Alliances
Alliances
Logistics
Logistics Alliances
Alliances
Pricing
Pricing Collaborations
Collaborations
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Marketing Plan Contents
Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
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Evaluating a Marketing Plan
Is the plan simple?
Is the plan specific?
Is the plan realistic?
Is the plan complete?
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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.
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Marketing Discussion
What implications do Porters value
chain and the holistic marketing
orientation model have for
marketing planning?
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