r 2

te
a p
Ch

Developing
Marketing Strategies
and Plans
Discussion Questions

1. How does marketing affect customer

value?

2. How is strategic planning carried out

at different levels of the organization?

3. What does a marketing plan include?

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The Value Delivery Approach

Successful marketers must focus on delivering

value to customers

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 The Value Chain (Porter Model)

Primary Inbound Outbound

Operations Marketing Service
Activities Logistics Logistics

Margin
Procurement
Support Human Resource management
Activities
Technological Development
Infrastructure

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Core Business Processes
Customer relationship
management
Fulfillment
management
Customer
acquisition

New-offering
realization

Market-sensing

Slide 5 of 38
Core Competencies / Value

Slide 6 of 38
Holistic Marketing Orientation and Customer Value

Value Exploration – How the firm identifies

new value opportunities.

Value Creation – How

efficiently a company creates
more promising new value
offerings

Value Delivery – How a company uses its

capabilities and infrastructure to deliver the
new value offering more efficiently.

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Strategic Planning

Businesses as
investment portfolio

Assessing each
business’s strength

Establish a strategy
Slide 8 of 38
Strategic Planning, Implementation,
and Control Processes

Slide 9 of 38
Marketing Plan

• Directs and coordinates the

marketing effort
• Product Line or Brand Level
• Strategic and Tactical levels

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 Levels of a Marketing Plan

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

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Corporate Strategic Planning

1 Define corporate mission

2 Establish SBU’s

3 Assign resources to SBU’s

4 Assess growth opportunities

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Defining the Corporate Mission

Who is the
customer? What is of
value to the
What is our customer?
business?
1. What is your mission?
2. Who is your customer?
3. What does your customer va
4. What results do you seek?
5. What is your plan?
What should
our business What will our
be? business be?
Slide 13 of 38
 Criteria for Evaluating a Mission
Statement
• Is our mission statement focused on satisfying customer needs rather than being
focused on the product?
• Does our mission statement tell who our customers are?
• Does our mission statement explain what customer needs our company is trying
to satisfy?
• Does our mission statement explain how our company will serve its customers?
• Does our mission statement fit the current market environment?
• Is our mission statement based on our core competencies? (A core competency is
a company strength.)
• Is our mission statement motivating and does it inspire employee commitment?
• Is our mission statement realistic?
• Is our mission statement specific, short, sharply focused and memorable.
• Is our mission statement clear and easily understood?
• Does our mission statement say what we want to be remembered for?

Slide 14 of 38
 Mission Statements

Characteristics of good mission statements:

1. Focus on a limited number of goals

2. Stress major policies and values
3. Define major competitive spheres
4. Take a long-term view
5. Short, memorable, meaningful

Slide 15 of 38
Vague Mission Statement

To build total brand value by innovating to

deliver customer value and customer
leadership faster, better, and more
completely than our competition

Slide 16 of 38
GOOGLE’S Mission Statement

To organize the world’s information

and make it universally accessible
and useful.

Slide 17 of 38
Vague Philosophy

We build brands and make the world

a little happier by bringing our best
to you.

Slide 18 of 38
GOOGLE’s Philosophy
1. Focus on the user and all else will follow.
2. It’s best to do one thing really, really well.
3. Fast is better than slow.
4. Democracy on the web works.
5. You don’t need to be at your desk to need an answer.
6. You can make money without doing evil.
7. There is always more information out there.
8. The need for information crosses all borders.
9. You can be serious without a suit.
10.Great just isn’t good enough.

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Defining Strategic Business Units
Customer groups

Customer needs Technology

Slide 20 of 38
 Strategic Business Units

Company Product Definition Market Definition

We are a people-and-goods
Union Pacific We run a railroad.
mover.
We make copying We help improve office
Xerox
equipment. productivity.
Hess
We sell gasoline. We supply energy.
Corporation
Paramount
We make movies. We market entertainment.
Pictures
Encyclopaedia
We sell encyclopedias We distribute information.
Britannica
We make air conditioners We provide climate control in the
Carrier
and furnaces. home.

Slide 21 of 38
Strategic Business Units (SBU)

Slide 22 of 38
 Strategic Business Units (SBU)
Three Characteristics of an SBU:

Unique competitors

A single business or
collection of related
businesses Leader responsible for planning and
profitability

Slide 23 of 38
• Category Attractiveness
– Dimensions ???

• Market growth rate

• Market share
• Profitability

Slide 24 of 38
BCG Matrix

• Nestle

Slide 25 of 38
Boston Consulting Group Matrix

Slide 26 of 38
 Assigning Resources
industry growth rate, market

GE Mckinsey Model
low competition, and PEST
size, industry profitability,
Industry attractiveness:

factors

Market share, growth rate, profitability, brand reputation,

and customer service.
Slide 27 of 38
To achieve Growth

Slide 28 of 38
• Mech
• 2,3,6,14,16, 17,21, 23, 24, 25, 26, 28, 31, 36, 40
• 42, 43, 48,

– Ip : 4, 10, 16, 19

Slide 29 of 38
The Strategic-Planning Gap

Slide 30 of 38
Intensive Growth- Within Current businesses

Product-Market Expansion Grid

Market
New
Diversification
Development
Markets
Current

Market Product
Penetration Development

Current New
Products

Slide 31 of 38
Integrative Growth

Business Wholesaler

Competitor

Slide 32 of 38
Diversification Growth

it y
un
rt
po
Op
ew
N

Slide 33 of 38
Corporate Culture

… is the shared experiences, stories, beliefs, and

norms that characterize an organization.

Slide 34 of 38
Marketing Innovation

Identify and encourage new ideas

Scenario Analysis
Slide 35 of 38
Business Unit Strategic Planning

Slide 36 of 38
Opportunity and Threat Matrices

Slide 37 of 38
SWOT Analysis

Internal
SW
Strength Weakness

O T
External

Opportunity Threat

Slide 38 of 38
Goal Formulation

Ranked

Consistent Quantified

Realistic

Slide 39 of 38
 Strategy Formulation
Porter’s Generic Strategies BCG Matrix
Stars
Question marks
Dogs
Cows

Strategic Alliances
Slide 40 of 38
Program Formulation and Implementation

Slide 41 of 38
Feedback and Control

Strong leadership
Slide 42 of 38
 Product Planning
Marketing Plans

Slide 43 of 38