DEVELOPING AND IMPLEMENTING CORE BUSINESS PROCESSES

MARKETING STRATEGIES AND PLANS - The market sensing process- All the
activities in gathering and acting upon
Marketing and Customer Value- The task of information about the market
any business is to deliver customer value at a
profit. - The new offering realization
process- All the activities in
The Value Delivery Process- The traditional researching, developing, and
view of marketing is that the firm makes launching new high-quality offerings
something and then sells it, with marketing quickly and within budget
taking place in the selling process.
- The customer acquisition process-
TWO VIEWS OF THE VALUE DELIVERY All the activities in defining target
PROCESS markets and prospecting for new
customers
❖ Traditional Physical Process
Sequence - The customer relationship
- Make the product management process- All the
- Sell the product activities in building deeper
understanding, relationships, and
❖ Value Creation and Delivery offerings to individual customers
Sequence
- Choose the value - The fulfillment management
- Provide the value process- All the activities in receiving
- Communicate the value and approving orders, shipping the
goods on time, and collecting
THE VALUE CHAIN payment

❖ Primary Activities CHARACTERISTICS OF CORE

- Inbound Logistics COMPETENCIES
- Operations - A source of competitive advantage
- Outbound logistics - Applications in a wide variety of
- Marketing and sales markets
- Service - Difficult for competitors to imitate

❖ Support Activities BUSINESS REALIGNMENT

- Firm infrastructure - (re)defining the business concept or
- Human resource Management “big idea”
- Technology development - (re)shaping the business scope,
- Procurement - (re)positioning the company’s brand
identity

HOLISTIC MARKETING ORIENTATION

AND CUSTOMER VALUE
 - Value exploration: How can a DEFINING THE CORPORATE MISSION
company identify new value - What is our business?
opportunities? - Who is the customer?
- Value creation: How can a company - What is the value to the customer?
efficiently create more promising new - What will our business be?
value offerings? - What should our business be?
- Value delivery: How can a company
use its capabilities and infrastructure GOOD MISSION STATEMENTS
to deliver the new value offerings - Focus on limited number of goals
more efficiently? - Stress major policies and values
- Define major competitive spheres
ROLE OF STRATEGIC PLANNING
- Managing a company’s businesses as MAJOR COMPETITIVE SPHERES
an investment portfolio - Industry. Some companies operate in
- Assessing each business’s strength only one industry; some only in a set
- Establishing a strategy to achieve its of related industries; some only in
long-run objectives industrial goods, consumer goods, or
services; and some in any industry.
ORGANIZATIONAL LEVELS - Products and applications. Firms
- Corporate level define the range of products and
- Divisional level applications they will supply.
- Business unit level - Competence. The firm identifies the
- Product level range of technological and other core
competencies it will master and
MARKETING PLAN leverage.
- Central instrument for directing and - Market segment. The type of market
coordinating thE marketing effort or customers a company will serve is
TWO LEVELS: the market segment.
❖ Strategic marketing plan— lays out - Vertical. The vertical sphere is the
the firm’s target markets and value number of channel levels, from raw
propositions, based on the best material to final product and
market opportunities. distribution, in which a company will
❖ Tactical marketing plan— specifies participate.
the marketing tactics, including - Geographical. The range of regions,
product features, promotion, pricing, countries, or country groups in which
and service. a company will operate defines its
geographical sphere.
CORPORATE PLANNING ACTIVITIES
- Defining the corporate mission DIMENSIONS THAT DEFINE A BUSINESS
- Establishing strategic business units - Customer groups
- Assigning resources to each unit - Customer needs
- Assessing growth opportunities - Technology
CHARACTERISTICS OF AN SBU MARKETING OPPORTUNITY
- Single business or collection of - An area of buyer need and interest
related businesses that a company has a high probability
- Own set of competitors of profitably satisfying.
- Manager responsible for strategic ❖ Sources:
planning and profit performance - Supply something that is in short
supply
GROWTH OPPORTUNITIES - Supply an existing product or service
- Intensive growth- Corporate in a new or superior way
management’s first course of action - Totally new offering
should be a review of opportunities for
improving existing businesses. ENVIRONMENTAL THREAT
- Integrative growth- A business can - Challenge posed by an unfavorable
increase sales and profits through trend or development that would lead,
backward, forward, or horizontal in the absence of defensive marketing
integration within its industry. action, to lower sales or profit.
- Diversification growth- makes
sense when good opportunities exist EFFECTIVE GOAL FORMULATION
outside the present businesses - Arranged hierarchically from most to
least important
ORGANIZATIONS - Stated quantitatively
- Structure - Realistic
- Policies - Consistent
- Culture
PORTER’S GENERIC STRATEGIES
MARKETING INNOVATION- Is the - Overall cost leadership. Firms work
implementation of a new marketing method to achieve the lowest production and
involving significant changes in product distribution costs
design or packaging, product placement, - Differentiation. The business
product promotion or pricing. concentrates on achieving superior
performance
THE BUSINESS UNIT STRATEGIC - Focus. The business focuses on one
PLANNING PROCESS or more narrow market segments,

STRATEGIC ALLIANCES
- Product or service alliances- One
company licenses another to produce
its product, or two companies jointly
market their complementary products
or a new product.
- Promotional alliances- One
company agrees to carry a promotion
SWOT ANALYSIS for another company’s product or
- Strengths, Weaknesses, service.
Opportunities,Threats
 - Logistics alliances- One company COLLECTING DATA
offers logistical services for another - is crucial for making informed
company’s product. decisions about how to promote and
- Pricing collaborations- One or more sell products or services.
companies join in a special pricing
collaboration. ❖ INTERNAL RECORDS
- Data from within the organization,
MCKINSEY 7-S FRAMEWORK like sales reports and customer
❖ HARD ELEMENTS feedback.
- Strategy 3 ASPECTS
- Structure ● The Order-to-Payment Cycle
- Systems - represents the entire process from
when a customer places an order
❖ SOFT ELEMENTS ● Sales Information Systems (SIS)
- Shared Values - are technology-based systems
- Style designed to manage and support the
- Staff sales activities of an organization
- Skills ● Databases- organized collections of
structured data that are stored
MARKETING PLAN CONTENTS electronically in a computer system
- Executive summary ● Data Warehousing- facilitate data
- Table of contents analysis and reporting for
- Situation analysis decision-making purposes
- Marketing strategy ● Data Mining- process of extracting
- Financial projections meaningful patterns, insights, and
- Implementation controls knowledge from large datasets

MEASURING MARKETING PLAN ❖ INTELLIGENCE MARKET SYSTEM

PERFORMANCE - External data sources for
- Sales analysis understanding market trends and
- Market share analysis competitors.
- Marketing expense-to-sales ratio 7 STRATEGIES/APPROACH
- Financial analysis ● Train and motivate the sales force to
spot and report new developments
COLLECTING INFORMATION AND ● Set up a customer advisory panel
FORECASTING DEMAND ● Motivate distributors, retailers, and
other intermediaries to pass along
- Making marketing decisions in a important intelligence
fast-changing world is both an art and ● Take advantage of
a science. government-related data resources
- Holistic marketers recognize that the ● Hire external experts to collect
marketing environment is constantly intelligence
presenting new opportunities and ● Purchase information from outside
threats research firms and vendors
● Network internally and externally
 ❖ COLLECTING MARKETING ● Ethnic and Other Markets- Refers to
INTELLIGENCE ON THE INTERNET demographic segments based on
- Gathering online data from sources ethnicity, race, cultural background,
like social media and industry and nationality.
websites. ● Educational Groups- Segments of
● Independent customer goods and the population based on educational
service review forums attainment levels.
● Distributor or sales agent feedback ● Household Patterns- Describes the
sites composition and structure of
● Combo sites offering customer households, including family size,
reviews and expert opinions marital status, and living
● Customer complaint sites arrangements.
● Public Blogs
MACRO ENVIRONMENTAL ANALYSIS
ANALYZING THE MACROENVIRONMENT ● Economic Environment- Assessing
- Involves examining the external factors such as economic growth,
factors that impact a business but are inflation rates, interest rates, and
beyond its control. consumer spending patterns.

NEEDS & TRENDS ● Technological Environment-

● NEEDS- Essential desires or Understanding advancements in
requirements that drive consumer technology, innovation trends, and
behavior. their implications for products,
● TRENDS- Patterns of change in services, and business processes.
consumer behavior, market dynamics,
or societal norms over time. ● Social and Cultural Environment-
● FAD- A short-lived, temporary trend Examining demographic trends,
characterized by sudden popularity cultural shifts, lifestyle changes, and
and rapid decline. consumer attitudes and values.
● MEGA TRENDS- A significant,
long-lasting transformation affecting ● Political and Legal Environment-
multiple industries and societal Monitoring government policies,
aspects. regulations, political stability, and legal
frameworks that may impact business
IDENTIFYING MAJOR FORCES WITHIN operations.
THE DEMOGRAPHIC ENVIRONMENT
● Worldwide Population Growth- ● Environmental Factors- Considering
Refers to the overall increase in the sustainability concerns, environmental
global population over time. regulations, and the impact of
● Population Age Mix- Represents the business activities on the natural
distribution of age groups within a world.
population.
CORPORATE ENVIRONMENTALISM
- Is a proactive approach by VIEWS OF ORGANIZATIONS- Refers to
businesses to operate in a more perceptions and attitudes towards institutions,
sustainable and environmentally businesses, and other organizations within
conscious manner society.

CONSUMER PSYCHOLOGY VIEWS OF SOCIETY- Encompasses

- Refers to the study of how individuals perceptions, beliefs, and attitudes towards
perceive, interpret, and make broader societal issues, values, and norms.
decisions about goods and services.
VIEWS OF NATURE- Refers to individuals'
INCOME DISTRIBUTION perceptions, attitudes, and behaviors towards
- Describes how income is distributed the natural environment and ecosystems.
among individuals or households
within a society. VIEWS OF THE UNIVERSE- Encompasses
❖ INCOME- Represents the earnings or individuals' beliefs, perceptions, and attitudes
financial resources available to towards existential questions, spirituality,
individuals or households. cosmology, and metaphysical concepts.
❖ SAVINGS- Refers to the portion of
income that individuals or households INCREASE IN BUSINESS LEGISLATION
set aside for future use or investment. - Refers to the rise in the number and
❖ DEBT- Represents money owed by complexity of laws and regulations
individuals or households to lenders, that govern business activities.
such as credit card debt, student
loans, mortgages, or personal loans. GROWTH OF SPECIAL-INTEREST
❖ CREDIT- Refers to the ability of GROUPS
individuals or businesses to borrow - Special-interest groups are
money or access credit lines. organizations formed to advocate for
specific causes, interests, or
❖ Digital Marketing Platforms industries.
❖ Data Analytics
❖ E-commerce NATURAL ENVIRONMENT- Impacts
❖ Mobile Technology marketing management by influencing
❖ Artificial Intelligence (AI) and consumer preferences, regulatory
Automation requirements, and brand reputation.
❖ Internet of Things (IoT)
GREEN MARKETING REVOLUTION- This
VIEWS OF OURSELVES- Refers to revolution emphasizes promoting products
individuals' perceptions, beliefs, and and brands that prioritize sustainability,
self-concepts. resource conservation, and environmental
protection.
VIEWS OF OTHERS- Encompasses
individuals' perceptions, attitudes, and
stereotypes about other people or social
groups.
❖ RENEWABLE ENERGY- Utilizing FORECASTING AND DEMAND
sources such as solar, wind, and PREDICTION
hydroelectric power to reduce reliance - critical components of business
on fossil fuels and minimize carbon planning and operations, particularly
emissions. in the realm of supply chain
management and inventory control.
❖ ENERGY EFFICIENCY-
Implementing technologies and FORECASTING
practices to optimize energy usage ● Predicting sales volumes and
and reduce waste, leading to cost revenues
savings and environmental benefits. ● Planning budgets and setting financial
targets
❖ SUSTAINABLE MATERIALS- Using ● Estimating resource requirements
eco-friendly materials and production such as inventory, production
processes that minimize capacity, and staffing
environmental impact and promote ● Anticipating market trends and
resource conservation. competitive dynamics

❖ RECYCLING AND WASTE DEMAND PREDICTION

REDUCTION- Incorporating recycling ● Optimizing inventory management by
programs, waste reduction initiatives, ensuring the right amount of stock is
and circular economy principles to available to meet customer demand
minimize waste and promote resource without overstocking or stockouts
reuse. ● Planning production schedules and
allocating resources based on
❖ GREEN PRODUCT DESIGN- anticipated demand
Developing products with ● Improving marketing and sales
environmental considerations in mind, strategies by targeting the right
such as biodegradable materials, products to the right customers at the
energy-efficient designs, and reduced right time
packaging. ● Enhancing customer satisfaction by
minimizing delays and backorders
❖ CARBON NEUTRALITY- Offsetting
carbon emissions through initiatives
such as tree planting, renewable
energy investments, and carbon
credits to achieve a net-zero carbon
footprint.
MEASURES OF MARKET DEMAND MARKET DEMAND- It is obtained by adding
- These measures help businesses together the individual demands of all the
gauge interest, plan strategies, and households in the Economy.
make informed decisions in the
market. ❖ PRICE DEMAND FUNCTION- It
❖ Quantity Demanded- Total amount helps businesses determine how price
consumers are willing to buy at a changes affect consumer demand
given price. and revenue.
❖ Market Size- Total sales value or ❖ CROSS-PRICE DEMAND
volume for a product/service in a FUNCTION- This function
specific market. demonstrates how the quantity
❖ Market Growth Rate- Percentage demanded of one product or service
increase/decrease in market size over changes in response to changes in
time. the price of another related product or
❖ Market Share- Proportion of total service.
market sales/revenue captured by a ❖ INCOME DEMAND FUNCTION- It
company/product. helps businesses understand how
❖ Market Penetration- Percentage of changes in consumer purchasing
potential customers who have bought power impact demand for their
a product/service. offerings.
❖ Consumer Preferences and Trends- ❖ ADVERTISING AND PROMOTION
Insights into consumer behavior and DEMAND FUNCTION- This function
preferences through research. shows how changes in advertising
❖ Price Elasticity of Demand- and promotional activities impact
Sensitivity of quantity demanded to consumer demand for a product or
price changes. service.

TYPES OF MARKET MARKET SHARE

● Potential Market- Everyone who - It can also be an indicator of growth
might want to buy something. and success.
● Target Market- The specific group
you focus on selling to based on their ❖ THE MARKET PENETRATION
characteristics. INDEX- A higher index means higher
● Available Market- People who you market acceptance.
can actually sell to because they're ❖ SHARE PENETRATION INDEX-
accessible. Compares a product's sales to total
● Penetrated Market- The part of your market sales, indicating its market
target group that you've already sold share against competitors.
to or reached.
MARKET POTENTIAL
MARKET FORECAST - refers to the maximum sales
- is predicting future market trends by opportunity or demand for a product
analyzing data like past performance, or service within a specific market.
consumer behavior, and economic
indicators.
PRODUCT PENETRATION PERCENTAGE TOTAL MARKET POTENTIAL
- refers to the proportion of potential - Represents the maximum achievable
customers or users within a market sales opportunity for a product or
who have adopted or purchased a service within a specific market.
particular product.
AREA MARKET POTENTIAL
- It focuses on estimating the market
potential within a defined
geographical boundary, such as a city,
state, country, or even a
SALES POTENTIAL FORECAST neighborhood.
- refers to the maximum amount of
sales revenue or units that a particular MULTIPLE-FACTOR INDEX METHOD
company can achieve within its target - Allows businesses to systematically
market. evaluate and prioritize market
opportunities based on a combination
COMPANY DEMAND of relevant factors.
- refers to the specific quantity of a
product or service that a company ❖ IDENTIFY RELEVANT FACTORS-
needs or desires to meet its internal influence market demand are
requirements or objectives. identified, such as population
demographics, economic indicators,
COMPANY SALES FORECAST consumer behavior, competitive
- predicts future sales, aiding in landscape, and infrastructure.
resource planning and strategy ❖ DATA COLLECTION- Data is
development. collected for each factor from reliable
sources such as government
❖ SALES QUOTA- Sets targets for agencies, industry reports, surveys,
sales teams to achieve within a and secondary research
specific timeframe, driving ❖ ASSIGN WEIGHTS- These weights
performance and focus. are determined through market
❖ SALES BUDGET- Estimates research, expert opinion, or statistical
expenses related to sales activities, analysis.
ensuring profitability and financial ❖ NORMALIZE DATA- If the data for
control. different factors are not on the same
scale, they may need to be
ESTIMATING CURRENT DEMAND normalized to ensure comparability.
- Utilizes data such as sales figures, ❖ CALCULATE INDEX SCORE- The
customer orders, and market research index score for each factor is
to understand existing customer calculated by multiplying the data
demand. value by its assigned weight.
 ❖ INTERPRET RESULTS- The resulting HISTORICAL DATA
index score provides an indication of - Review historical sales data and
the market potential, with higher trends to identify patterns and factors
scores indicating greater potential influencing demand over time.
demand.
❖ AGGREGATE SCORES- The index ECONOMIC INDICATORS
scores for all factors are then - Consider economic indicators such as
aggregated to calculate the overall GDP growth, inflation rates,
Multiple-Factor Index score for the employment levels, and consumer
market. confidence, as they impact
purchasing power and overall
INDUSTRY SALES AND MARKET SHARES demand.
- This information helps companies
identify growth opportunities, make INDUSTRY TRENDS
strategic decisions, and allocate - Stay informed about industry-specific
resources effectively to maximize their trends, technological advancements,
market share and profitability. regulatory changes, and other factors
that may influence future demand.
INDUSTRY SALES
- It represents the overall size and SCENARIO ANALYSIS
health of the industry and is - Conduct scenario analysis to assess
influenced by factors such as potential outcomes under different
consumer demand, economic scenarios (e.g., best-case,
conditions, and competitive dynamics. worst-case, and most likely scenarios)
and their implications for future
MARKET SHARES demand.
- indicate a company's relative strength
and competitiveness within the FORECASTING METHODS
industry and are used to assess its - Use quantitative forecasting methods
performance compared to (e.g., time series analysis, regression
competitors. analysis) and qualitative techniques
(e.g., expert judgment, market
MARKET ANALYSIS surveys) to predict future demand
- Conduct a thorough analysis of the based on historical data and market
market, including trends, customer insights.
preferences, competitor behavior, and
economic conditions. ADJUSTMENTS
- Continuously monitor and adjust
MARKET RESEARCH demand forecasts based on new
- Gather insights from market research, information, changing market
surveys, focus groups, and customer conditions, and unexpected events
feedback to understand evolving (e.g., pandemics, natural disasters).
consumer needs and preferences.
COMPOSITE OF SALES FORCE OPINIONS EXPERT OPINION
- serves as a valuable source of - These insights are based on the
frontline intelligence, providing expertise and experience of
valuable insights into market individuals in their respective fields
dynamics, customer needs, and and can provide valuable
competitive landscape. perspectives for decision-making.

COLLECTION OF OPINIONS PAST-SALES ANALYSIS

- Sales representatives, who are in - Involves examining historical sales
direct contact with customers and data to identify patterns, trends, and
prospects, provide their opinions, relationships that can inform future
observations, and feedback regarding sales forecasts and strategic
various aspects of the business. planning.

DECISION-MAKING MARKET-TEST METHOD

- The insights derived from the - This may include pilot programs,
composite of sales force opinions are product demonstrations, limited-time
used to inform strategic promotions, or test markets to gauge
decision-making at various levels of customer interest, feedback, and
the organization demand

ANALYSIS
- analyzed to extract valuable insights
and identify actionable
recommendations for improving sales
performance

AGGREGATION
- collected opinions from individual
sales representatives are aggregated
or combined to create a
comprehensive view

COMMUNICATION
- The findings of the composite of sales
force opinions are communicated
back to the sales team and other
relevant stakeholders within the
organization.