2. Chapter Questions
ď§
How does marketing affect customer value?
ď§
How is strategic planning carried out at
different levels of the organization?
ď§
What does a marketing plan include?
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3. Phases of Value Creation and
Delivery
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Choosing the value
Providing the value
Communicating the value
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What is the Value Chain?
The value chain is a tool for identifying ways
to create more customer value because
every firm is a synthesis of primary and
support activities performed to design,
produce, market, deliver, and support its
product.
5.
6. Core Business Processes
ď§
Market-sensing process
ď§
New-offering realization process
ď§
Customer acquisition process
ď§
Customer relationship management process
ď§
Fulfillment management process
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7. Characteristics of
Core Competencies
ď§
A source of competitive advantage
ď§
Applications in a wide variety of markets
ď§
Difficult to imitate
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8. Maximizing Core Competencies
ď§
(Re)defining the business concept
ď§
(Re)shaping the business scope
ď§
(Re)positioning the companyâs brand identity
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9. Copyright Š 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-9
What is Holistic Marketing?
Holistic marketing sees itself as integrating
value exploration, value creation, and value
delivery activities with the purpose of
building long-term, mutually satisfying
relationships and co-prosperity among key
stakeholders.
10. Questions to Address in
Holistic Marketing
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What value opportunities are available?
How can we create new value offerings
efficiently?
How can we deliver the new offerings
efficiently?
11. Figure 2.1: The Strategic Planning,
Implementation, and
Control Processes
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12. Table 2.1: Master Marketers
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13. Copyright Š 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-13
Levels of a Marketing Plan
ď§
Strategic
ď§
Target marketing
decisions
ď§
Value proposition
ď§
Analysis of
marketing
opportunities
ď§
Tactical
ď§
Product features
ď§
Promotion
ď§
Merchandising
ď§
Pricing
ď§
Sales channels
ď§
Service
14. Corporate Headquartersâ
Planning Activities
ď§
Define the corporate mission
ď§
Establish strategic business units (SBUs)
ď§
Assign resources to each SBU
ď§
Assess growth opportunities
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15. Good Mission Statements
ď§
Focus on a limited
number of goals
ď§
Stress major policies
and values
ď§
Define major
competitive spheres
ď§
Take a long-term view
ď§
Are short, memorable,
meaningful
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17. Table 2.2:
Major Competitive Spheres
ď§
Industry
ď§
Products
ď§
Competence
ď§
Market segment
ď§
Vertical channels
ď§
Geographic
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18. Table 2.3: Product Orientation vs.
Market Orientation
Company Product Market
Missouri-Pacific
Railroad
We run a railroad We are a people-
and-goods mover
Xerox We make copying
equipment
We improve office
productivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain
people
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19. Dimensions Define a Business
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Customer Groups
Customer Needs
Technology
20. Characteristics of
Strategic Business Units (SBUs)
ex. General Electric has 49 SBUs
â˘It is a single business or collection of
related businesses
âcollection of related businesses
â˘It has its own set of competitors
ă â Sony, Samsung
â˘It has a leader responsible for strategic
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22. What is Corporate Culture?
Corporate culture is
The shared experiences, stories, beliefs,
and norms that characterize an
organization.
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23. Figure 2.3: The Business Unit
Strategic-Planning Process
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24. SWOT Analysis
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Strengths
Weaknesses
Opportunities
Threats
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26. Market Opportunity Analysis (MOA)
Consider followings:
⢠Can the benefits involved in the
opportunity be articulated convincingly to
a defined target market?
⢠Can the target market be located and
reached with cost-effective media and
trade channels?
⢠Does the company possess or have
access to the critical capabilities and
resources needed to deliver the customer
benefits?
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27. Market Opportunity Analysis (MOA)
⢠Can the company deliver the benefits
better than any actual or potential
competitors?
⢠Will the financial rate of return meet or
exceed the companyâs required
threshold for investment?
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28. Figure 2.4:
Opportunity and Threat Matrices
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29. Goal Formulation and
Managers by Objectives
⢠Unitâs objectives must be hierarchical
â priority # of objectsâ importance
⢠Objectives should be quantitative
â increase sales by 15% in 2 years.
⢠Goals should be realistic
â use SWOT/Market Opportunity Analysis
⢠Objectives must be consistent
â not possible to increase sales/profit at
the same time
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31. Categories of Marketing Alliances
⢠Product or service alliances
ex. Starbucks + ă Barnes and Nobles
⢠Promotional alliances
ex. McDonaldâs + Disney = Happy meal
⢠Logistics alliances
ex. Zappos + UPS
⢠Pricing collaborations
ex. Credit card/Rental car offer mutual price
discount
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32. McKinseyâs Elements of Success
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Strategy
Structure
SystemsStyle
Shared values
Staff
Skills
33. Marketing Plan Contents
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ďź Executive summary
ďź Table of contents
ďź Situation analysis
ďź Marketing strategy
ďź Financial projections
ďź Implementation controls
34. Evaluating a Marketing Plan
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ďź Is the plan simple?
ďź Is the plan specific?
ďź Is the plan realistic?
ďź Is the plan complete?
35. For Review
⢠How does marketing affect customer
value?
⢠How is strategic planning carried out at
different levels of the organization?
⢠What does a marketing plan include?
Copyright Š 2012 Pearson Education,
Inc. Publishing as Prentice Hall
36. Mission Statements
NIKE
To Bring Inspiration and innovation to
every athlete in the world.
Microsoft
We work to help people and businesses
throughout the world realize their full
potential
CVS
We will be the easiest pharmacy retailer for
customers to use.
Disney
We create happiness by providing the finest
in entertainment for people of all ages,
everywhere.
37. Questions
1. Are these mission statements lacking
âteethâ and specificity?
2. Do they vary much from firm to firm?
3. Are these empty promises?
4. Take mission: mission statements are
critical to a successful marketing
organization versus mission statements
rarely provide useful marketing value.
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38. 2-2-3838
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