PREPARED BY:

JANET P. MONTECILLO

Developing
Marketing
Strategies and
Plans
Marketing and Customer Value
01 The Value Delivery Process
Three Phases of Value Creation and Delivery
Sequence
• Choosing the Value
- represents the “homework” marketing must do
before any product exists.
- Formula “segmentation, targeting, positioning (STP)
• Providing the Value
- marketing must determine specific product
features, prices, and distribution
• Communicating the Value
- utilizing the sales force, Internet, advertising, and any
other communication tools to announce and
promote the product.
Marketing and Customer Value
02 The Value Chain
Primary Activities
• Inbound Logistics , or bringing materials into the business
• Operations, or converting materials into final products
• Outbound logistics, or shipping out final products
• Marketing, which includes sales
• Service
Support Activities
• Procurement
• Technology Development
• Human Resource Management
• Firm Infrastructure (Infrastructure covers the costs of general
management, planning, finance, accounting, legal, and
government affairs.)
2.1 The Value Chain
The firm’s success depends not only on how well each department performs its work, but also
on how well the company coordinates departmental activities to conduct core business
processes. These process include:

• The market-sensing process. All the activities in gathering and acting upon information about
the market.
• The new-offering realization process. All the activities in researching, developing, and
launching new high-quality offerings quickly and within budget.
• The customer acquisition process. All the activities in defining target markets and
prospecting for new customers.
• The customer relationship management process. All the activities in building deeper
understanding, relationships, and offerings to individual customers.
• The fulfillment management process. All the activities in receiving and approving orders,
shipping the goods on time, and collecting payment.
2.1 The Value Chain

To be successful, a firm also needs to look for competitive

advantages beyond its own operations, into the value chains of
suppliers, distributors, and customers. Many companies today
have partnered with specific suppliers and distributors to create a
superior value delivery network, also called a supply chain.
Marketing and Customer Value
03 Core Competencies
Traditionally, companies owned and controlled most of the resources
that entered their businesses - labor power, materials, machines,
information, and energy - but many today outsource less critical
resources if they can obtain better quality or lower cost.

Three characteristics:

• It is a source of competitive advantage and makes a significant

contribution to perceived customer benefits.
• It has applications in a wide variety of markets.
• It is difficult for competitors to imitate.

Businesses may need to realign themselves in order to maximize core

competencies:
It has three steps:
• (re)defining the business concept or “big idea”,
• (re)shaping the business scope, and
• (re)positioning the company’s brand identity.
Marketing and Customer Value
04 The Central Role of Strategic Planning
To ensure they select and execute the right activities,
marketers must give priority to strategic planning in three
key areas:
• managing a company’s businesses as an investment
portfolio (portfolio = a collection of investments held
by an investment company),
• assessing each business’s strength by considering the
market’s growth rate and the company’s position and
fit in that market, and
• establishing a strategy (the company must develop a
game plan for achieving each business’s long-run
objectives)
Most large companies consist of
four organization levels:

corporate

division

business unit

product
Marketing Plan
• is the central instrument for directing and coordinating the marketing effort. It operates at two
levels:
STRATEGIC MARKETING PLAN
lays out the target markets and the firm’s
value proposition, based on an analysis
of the best market opportunities.

TACTICAL MARKETING PLAN

specifies the marketing tactics, including
product features, promotion,
merchandising, pricing, sales channels,
and service.
Strategic Planning, Implementation, and Control Processes

04
Corporate and Division Strategic Planning
Some corporations give their business units freedom04 to set their own sales and profit
goals and strategies. Others set goals for their business units but let them develop
their own strategies. Still others set the goals and participate in developing individual
business unit strategies.

All corporate headquarters undertake four planning activities:

• Defining the corporate mission

• Establishing strategic business units
• Assigning resources to each strategic business unit
• Assessing growth opportunities
Defining the Establishing Strategic
Corporate Mission Business nits
An organization exists to accomplish something: Companies often define themselves in terms of
to make cars, lend money, provide a night’s products: They are in the “auto business” or the
lodging. Over time, the mission may change, to “clothing business.” Market definitions of a
take advantage of new opportunities or respond to business, however, describe the business as a
new market conditions. customer satisfying process. Products are
transient; basic needs and customer groups endure
Organizations develop mission statements to share forever. Transportation is a need: the horse and
with managers, employees, and (in many cases) carriage, automobile, railroad, airline, ship, and
customers. A clear, thoughtful mission statement truck are products that meet that need.
provides a shared sense of purpose, direction, and
opportunity.
Table 2.3 Lists of companies that have moved from a product to a market definition of their
business.
Assigning Resources to Each SBU
Once it has defined SBUs, management04 must decide how to allocate
corporate resources to each. Several portfolio-planning models provide
ways to make investment decisions.

Portfolio-planning models like these have fallen out of favor as

oversimplified and subjective. Newer methods rely on shareholder value
analysis, and on whether the market value of a company is greater with an
SBU or without it (whether it is sold or spun off). These value calculations
assess the potential of a business based on growth opportunities from
global expansion, repositioning or retargeting, and strategic outsourcing.
Assessing Growth Opportunities
Assessing growth opportunities includes planning new businesses, downsizing, and
terminating older businesses. If there is a gap between
04 future desired sales and projected
sales, corporate management will need to develop or acquire new businesses to fill it.

This figure illustrates the strategic-planning gap.

The first option is to identify opportunities for
growth within current business (intensive
opportunities). The second is to identify
opportunities to build or acquire businesses
related to current business (integrative
opportunities). The third is to identify
opportunities to add attractive unrelated
businesses (diversification opportunities
01
The company first considers
whether it could gain more
02
Next, it considers whether it can
find or develop new markets for
Intensive
Growth
market share with its current its current products.
products in their current
markets.

MARKET- MARKET-
PENETRATION DEVELOPMENT Corporate management’s first course of action
STRATEGY STRATEGY should be a review of opportunities for
improving existing businesses. One useful
03 04 framework for detecting new intensive growth
Then considers whether it can Later, the firm will also review opportunities is a “product-market expansion
develop new products of opportunities to develop new
potential interest to its current products for new markets. grid.” It considers the strategic growth
markets.
opportunities for a firm in terms of current and
PRODUCT- DIVERSIFICATION new products and markets.
DEVELOPMENT STRATEGY
STRATEGY
Integrative Growth
A business can increase sales and profits through backward, forward, or
horizontal integration within its industry.

Diversification Growth
Diversification growth makes sense when good opportunities exist outside the
present businesses—the industry is highly attractive and the company has the
right mix of business strengths to succeed.
The Business Unit Strategic Planning Process
 Product Planning:
The Nature and Contents of a Marketing Plan
Working within the plans set by the levels above them, product managers come up with a marketing plan
for individual products, lines, brands, channels, or customer groups. Each product level, whether product
line or brand, must develop a marketing plan for achieving its goals. A marketing plan is a written
document that summarizes what the marketer has learned about the marketplace and indicates how the
firm plans to reach its marketing objectives. It contains tactical guidelines for the marketing programs and
financial allocations over the planning period.

A marketing plan is one of the most important outputs of the marketing process. It provides direction and
focus for a brand, product, or company. Nonprofit organizations use marketing plans to guide their fund-
raising and outreach efforts, and government agencies use them to build public awareness of nutrition and
stimulate tourism.
Thank
You