Developing and Implementing Marketing Strategies and Plans

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Developing and Implementing Marketing Strategies
and Plans

• Key Concepts

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Two Views of the Value Delivery Process

• Traditional Physical Process Sequence
• Make the product
• Sell the product

• Value Creation and Delivery Sequence
• Choose the value
• Provide the value
• Communicate the value

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The Value Chain

• Primary Activities
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service

• Support Activities
• Firm infrastructure
• Human resource management
• Technology development
• Procurement

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Core Business Processes

• The market sensing process
• The new offering realization process
• The customer acquisition process
• The customer relationship management process
• The fulfillment management process

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Characteristics of Core Competencies

• A source of competitive advantage
• Applications in a wide variety of markets
• Difficult for competitors to imitate

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Holistic Marketing Orientation and Customer Value

• Value exploration How can a company identify new
  value opportunities?
• Value creation How can a company efficiently
  create more promising new value offerings?
• Value delivery How can a company use its
  capabilities and infrastructure to deliver the
  new value offerings more efficiently?

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A Holistic Marketing Framework

• Value exploration
• Value creation
• Value delivery

• Customer focus
• Core competencies
• Collaborative network

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Role of Strategic Planning

• Managing a companys businesses as an investment
  portfolio
• Assessing each businesss strength
• Establishing a strategy to achieve its long-run
  objectives

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Organizational Levels

• Corporate level
• Divisional level
• Business unit level
• Product level

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Marketing Plan

• Central instrument for directing and coordinating
  the marketing effort
• Two levels
• Strategic marketing planlays out the firms
  target markets and value propositions, based on
  the best market opportunities.
• Tactical marketing planspecifies the marketing
  tactics, including product features, promotion,
  pricing, and service.

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Corporate Planning Activities

• Defining the corporate mission
• Establishing strategic business units
• Assigning resources to each unit
• Assessing growth opportunities

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Defining the Corporate Mission

• What is our business?
• Who is the customer?
• What is the value to the customer?
• What will our business be?
• What should our business be?

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Good Mission Statements

• Focus on limited number of goals
• Stress major policies and values
• Define major competitive spheres

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Major Competitive Spheres

• Industry
• Products and applications
• Competence

• Market segment
• Vertical
• Geographical

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Dimensions That Define a Business

• Customer groups
• Customer needs
• Technology

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Characteristics of an SBU

• Single business or collection of related
  businesses
• Own set of competitors
• Manager responsible for strategic planning and
  profit performance

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Growth Opportunities

• Intensive growth
• Integrative growth
• Diversification growth

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Organizations

• Structure
• Policies
• Culture

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The Business Unit Strategic Planning Process

• Business mission
• SWOT analysis
• Goal formulation
• Strategy formulation
• Program formulation
• Implementation
• Feedback and control

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SWOT Analysis

• Strengths
• Weaknesses
• Opportunities
• Threats

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Marketing Opportunity

• An area of buyer need and interest that a company
  has a high probability of profitably satisfying.
• Sources
• Supply something that is in short supply
• Supply an existing product or service in a new or
  superior way
• Totally new offering

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Environmental Threat

• Challenge posed by an unfavorable trend or
  development that would lead, in the absence of
  defensive marketing action, to lower sales or
  profit.

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Effective Goal Formulation

• Arranged hierarchically from most to least
  important
• Stated quantitatively
• Realistic
• Consistent

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Porters Generic Strategies

• Overall cost leadership
• Differentiation
• Focus

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McKinseys Seven S Elements

• Hardware
• Strategy
• Structure
• Systems

• Software
• Style
• Skills
• Staff
• Shared values

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Marketing Plan Contents

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

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Measuring Marketing Plan Performance

• Sales analysis
• Market share analysis
• Marketing expense-to-sales ratio
• Financial analysis

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