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DEVELOPING
MARKETING
STRATEGIES AND
PLANS
 The Value Delivery
Process
■ 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 finetuning the value delivery
process and choosing, providing, and
communicating superior value
■ new view of business processes that
places marketing at the beginning of
planning. Instead of emphasizing making
and selling, companies now see
themselves as part of a value delivery
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 2 of 38
 The Value
Delivery Process
Choosing the value – Here marketers
do their homework to
segment the market, select the
appropriate target, and develop the
offerings value positioning.
Providing the value – Entails
selecting specific product features,
prices, and distribution.
Communicate the value – The third
phase, communicating the value, is
accomplished through the use of
the sales force, the Internet,
advertising, and other
communication methods to
announce and promote the product.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 38
 THE VALUE CHAIN
One way that managers can identify ways to
create more value is through The Value Chain,
developed by Harvard’s Michael Porter. According
to this model, a company is a collection of
activities that are performed to design,
produce, market, deliver and support its
products. The Value Chain identifies nine – five
primary and 4 support – activities that create
value and cost in a business.
 The Value Chain

Primary Inbound Outboun

Operation Marketin Service
Activitie Logistic d
s s g
s Logistics
Procurement
Support Human Resource management
Activitie
Technological Development
s
Infrastructure

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 5 of 38

 ■ The firm’s task is to examine its costs and
performance in each value-creating activity and
look for ways to improve it. Managers should
estimate competitors’ costs and performances as
benchmarks against which to compare their own.
■ And they should go further and study the “best of
class” practices of the world’s best companies.
■ We can identify best-practice companies by
consulting customers, suppliers, distributors,
financial analysts, trade associations, and
magazines to see whom they rate as doing the best
job.
■ Even the best companies can benchmark, against
other industries if necessary, to improve their
performance

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 6 of 38

 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 processes 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

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 7 of 38

 • 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

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 8 of 38

 A Holistic Marketing Orientation and
Customer Value
Integrating the value exploration, value creation,
and value delivery activities with the purpose of
building long-term, mutually satisfying
relationships and coprosperity among key
stakeholders

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 9 of 38

 Holistic marketers address three key
management questions:

1. Value exploration—How a company identifies

new value opportunities
2. Value creation—How a company efficiently
creates more promising new value offerings
3. Value delivery—How a company uses its
capabilities and infrastructure to deliver the new
value offerings more efficiently

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 10 of 38

 The Central Role of Strategic Planning

Successful marketing thus requires

capabilities such as understanding,
creating, delivering, capturing, and
sustaining customer value.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 11 of 38

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 12 of 38
 To ensure they select and execute the right
activities, marketers must give priority to
strategic planning in three key areas:

(1)managing a company’s businesses as an

investment portfolio,
(2)assessing each business’s strength by
considering the market’s growth rate and the
company’s position and fit in that market, and

(3)establishing a strategy.

The company must develop a game plan for

achieving each business’s long-run objectives.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 38

 Most large companies consist of four organizational
levels:

(1)corporate,
(2)division,
(3)business unit, and
(4)product.

• Corporate headquarters is responsible for

designing a corporate strategic plan to guide the
whole enterprise; it makes decisions on the
amount of resources to allocate to each division,
as well as on which businesses to start or
eliminate.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 14 of 38

 • Each division establishes a plan
covering the allocation of funds to each
business unit within the division.

• Each business unit develops a strategic

plan to carry that business unit into a
profitable future.

• Finally, each product level (product line,

brand) develops a marketing plan for
achieving its objectives.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 15 of 38

 The marketing plan is the central
instrument for directing and coordinating the
marketing effort. It operates at two levels:
strategic and tactical.
The strategic marketing plan lays out the
target markets and the firm’s value proposition,
based on an analysis of the best market
opportunities.

The tactical marketing plan specifies the

marketing tactics, including product features,
promotion, merchandising, pricing, sales
channels, and service. The complete planning,
implementation, and control cycle of strategic
planning is shown in next slide
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16 of 38
 STRATEGIC PLANNING, IMPLEMENTATION,
AND CONTROL PROCESSES

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 17 of 38

 Marketing Plan

■ A marketing plan is
used to direct and
coordinate the
marketing effort and
is created at the
strategic and
tactical level.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 18 of 38

 Levels of a Marketing
Plan
■ Strategic ■ Tactical
– Analysis of – Product
marketing features
opportunities – Promotion
– Target – Merchandising
marketing – Pricing
decisions – Sales channels
– Value – Service
proposition
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 19 of 38
 Defining the Corporate
Mission
Who is What is of
the value to the
customer customer?
What is ?
our
business
?

What
should What will
our our
business business
be?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall be? Slide 20 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

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 21 of 38

 GOOGLE’S MISSION STATEMENT
“To organize the world’s information and
make it universally accessible and useful”

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22 of 38

 Company Product Definition Market Definition

We are a people-
Union Pacific We run a railroad.

STRATEGI
and-goods mover.

We make copying We help improve

Xerox

C
equipment. office productivity.

Hess
We sell gasoline. We supply energy.

BUSINESS
Corporation

Paramount We market
We make movies.

UNITS
Pictures entertainment.

Encyclopaedia We sell We distribute

Britannica encyclopedias information.

We make air
We provide climate
Carrier conditioners and
control in the home.
furnaces.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 23 of 38

 Three Approaches Toward Achieving
Growth:
INTENSIVE; INTEGRATIVE, OR
DIVERSIFICATION
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24 of 38
Market Penetration – gaining market
share with current products and current
customers. The company can achieve
growth by having current customers
purchase more, attract competitor’s
customers, or bring non-buyers into the I.
market. Intensive
Market Development – Finding new Growth
markets for existing products. The firm can
find new buyer groups (business customers
rather than consumers), new distribution
channels (online), or expand distribution to
other regions or countries.

Product Development – Develop new

products to the current market. As the firm
already has a relationship with current
customers, they can develop new products
to meet other, related needs of its
customers.

Diversification – Developing new products

for new markets.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 25 of 38
 II.
Integrativ
A business can achieve e Growth
growth through backward
(buy supplier), forward (buy
wholesaler), or horizontal
(competitor) integration.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 26 of 38

 III.
Firms can often discover Diversificati
opportunities outside its on Growth
present business.
However, the new industry
should be highly attractive
(grow potential) and the
company should have (or
acquire) the right
capabilities to succeed.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 27 of 38

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 28 of 38
 Objective
Formulation
S – PECIFIC
M – EASURABLE
A – TTAINABLE
R – EALISTIC
T- IME BOUND

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 29 of 38

 Strategy Formulation

PORTER’S GENERIC STRATEGY

Cost Leadership, where they are

seeking to achieve the lowest
production and distribution costs
to underpriced competitors and
gain market share.

Differentiation strategy, where

they focus on achieving better
performance on an important
customer benefit (such as quality
or speed).

Focus approach where they

concentrate on a narrow market
segment, gaining as much
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 30 of 38
 Product/Service
Alliances – one company
license another company
to produce its product, or
Strategi two company jointly
market their
c complementary products
Alliance or a new product.
Promotional Alliances –
agrees to carry a
s promotion for another
company’s product or
service.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 31 of 38

 Logistics Alliances –
one company offers
logistical services for
another company’s
Strategi product.

c
Alliance Pricing Collaborations
– one or more companies
s join in a special pricing
collaboration.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 32 of 38

 ■ ASSIGNMENT

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 33 of 38