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Developing Marketing Strategies and Plans

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20 views24 pages

Developing Marketing Strategies and Plans

Uploaded by

raihanul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Developing Marketing Strategies and

Plans
Marketing and Customer Value

The task of any business is to deliver customer value


at a profit. In a hypercompetitive economy with
increasingly informed buyers faced with abundant
choices, a company can win only by fine-tuning the
value delivery process and choosing, providing, and
communicating superior value.
Two Views of the Value Delivery Process
The Value Chain
Harvard’s Michael Porter has proposed the value
chain as a tool for identifying ways to create more
customer value.3 According to this model, every firm
is a synthesis of activities performed to design,
produce, market, deliver, and support its product.The
value chain identifies nine strategically relevant
activities—five primary and four support activities—
that create value and cost in a specific business.
The Value Chain
Core Competencies
A core competency has three characteristics:

(1) It is a source of competitive advantage and makes


a significant contribution to perceived customer
benefits.

(2) It has applications in a wide variety of markets.

(3) It is difficult for competitors to imitate.


Three V’s Approach to Marketing

Value Exploration

Value Creation

Value Delivery
A Holistic Marketing Framework
Strategic planning

Market-oriented strategic planning is the managerial


process of developing and maintaining a viable fit
among the organization’s objectives, skills, and
resources and its changing market opportunities.

All corporate headquarters undertake four planning


activities:

1. Defining the corporate mission

2. Establishing strategic business units

3. Assigning resources to each strategic business unit

4. Assessing growth opportunities


Corporate Mission

Market Oriented Characteristics of


a Good Mission
Realistic Statement:

Specific
Fit Market Environment

Distinctive Competencies
Motivating
Major Competitive Spheres

Industry

Geographical Products

Vertical
channels Competence

Market
segment
Classic Questions :Mission

To define its mission, a company should address


Peter Drucker’s classic questions:

What is our business?

Who is the customer?

What is of value to the customer?

What will our business be?

What should our business be?


Establishing Strategic Business Units
An SBU has three characteristics:

(1) It is a single business or collection of related


businesses that can be planned separately from
the rest of the company;

(2) it has its own set of competitors; and

(3) it has a manager responsible for strategic planning


and profit performance who controls most of the
factors affecting profit.
Assigning Resources to SBUs

The purpose of identifying the company’s strategic business


units is to develop separate strategies and assign appropriate
funding to the entire business portfolio. Senior managers
generally apply analytical tools to classify all of their SBUs
according to profit potential. Two of the best-known business
portfolio evaluation models are the Boston Consulting Group
model and the General Electric model.
Factors for GE Matrix
For market attractiveness:
Size of market.
Market rate of growth.
The nature of competition and its diversity.
Profit margin.
Impact of technology, the law, and energy
efficiency.
Environmental impact.
For competitive position:
Market share.
Management profile.
R & D.
Quality of products and services.
Branding and promotions success.
Place (or distribution).
Efficiency.
Cost reduction.
Assessing Growth Opportunities

Assessing growth opportunities includes planning


new businesses, downsizing, and terminating older
businesses. If there is a gap between future desired
sales and projected sales, corporate management
will need to develop or acquire new businesses to
fill it.
Ansoff’s Product-Market Expansion Grid:
Intensive Growth Opportunity

Existing New
Products Products
Existing 1. Market 3. Product
Markets Penetration Development

New 2. Market
4. Diversification
Markets Development
Intensive Growth Opportunity
Market penetration strategy
Encouraging its current customers to buy
more
Attracting competitor’s customers
Converting non‑users to users

Market development strategy


Trying to identify potential user groups in the
current sales area
Seeking additional distribution channels in its
present location
Considering selling in new location or abroad

Product development strategy


 Offering modified/ new products to current
market segments
Integrative Growth Opportunity
•Backward:
Acquiring one or more supplies to gain more control
•Forward:
Acquiring one or more wholesalers/retailers to gain
control
•Horizontal:
Acquiring one or more competitors to gain more
control
Diversification Growth Opportunity

•Concentric:
Seeking new products that have technological
and/or marketing synergies with existing product
lines
•Horizontal:
Searching for new products that are technologically
unrelated to its current product lines
•Conglomerate:
Seeking new businesses that have no relationship to
company's current technology,
products or markets
Downsizing older Businesses

Companies also prune or divest tired old businesses


in
order to release needed resources

Weak businesses require a disproportionate amount


of
managerial attention

Managers should not fritter away energy and


resources
trying to hemorrhaging business

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