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Developing Marketing Strategies and Plans
1.
Developing Marketing Strategies and
Plans Marketing Management, 13th ed 2
2.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-2 Chapter Questions • How does marketing affect customer value? • How is strategic planning carried out at different levels of the organization? • What does a marketing plan include?
3.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-3 Three V’s Approach to Marketing • Define the value segment • Define the value proposition • Define the value network
4.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-4 What is the Value Chain? The value chain is a tool for identifying was 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.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-5 Core Business Processes • Market-sensing process • New-offering realization process • Customer acquisition process • Customer relationship management process • Fulfillment management process
6.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-6 Characteristics of Core Competencies • A source of competitive advantage • Applications in a wide variety of markets • Difficult to imitate
7.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-7 Table 2.1 Becoming a Vigilant Organization • Can we learn from the past? • How should the present be evaluated? • What do we envision for the future?
8.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-8 What is Holistic Marketing? Holistic marketing sees itself as 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.
9.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-9 What is a Marketing Plan? A marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at a strategic and tactical level.
10.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-10 Levels of a Marketing Plan • Strategic • Target marketing decisions • Value proposition • Analysis of marketing opportunities • Tactical • Product features • Promotion • Merchandising • Pricing • Sales channels • Service
11.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-11 Corporate Headquarters’ Planning Activities • Define the corporate mission • Establish strategic business units (SBUs) • Assign resources to each SBU • Assess growth opportunities
12.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-12 Good Mission Statements • Focus on a limited number of goals • Stress major policies and values • Define major competitive spheres • Take a long-term view • Short, memorable, meaningful
13.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-13 Major Competitive Spheres • Industry • Products • Competence • Market segment • Vertical channels • Geographic
14.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-14 Rubbermaid Commercial Products, Inc. “Our vision is to be the Global Market Share Leader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost- effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our Uncompromising Commitment to Customer Satisfaction.”
15.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-15 Motorola “The purpose of Motorola is to honorably serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by doing so, provide the opportunity for our employees and shareholders to achieve their personal objectives.”
16.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-16 eBay “We help people trade anything on earth. We will continue to enhance the online trading experiences of all—collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.”
17.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-17 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
18.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-18 Dimensions that Define a Business • Customer groups • Customer needs • Technology
19.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 2-19 Characteristics of SBUs • It is a single business or collection of related businesses • It has its own set of competitors • It has a leader responsible for strategic planning and profitability
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Pearson Education, Inc. Publishing as Prentice Hall 2-20 Ansoff’s Product-Market Expansion Grid • Market penetration strategy • Market development strategy • Product development strategy • Diversification strategy
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Pearson Education, Inc. Publishing as Prentice Hall 2-21 What is Corporate Culture? Corporate culture is the shared experiences, stories, beliefs, and norms that characterize an organization.
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Pearson Education, Inc. Publishing as Prentice Hall 2-22 Tactics for Managing Change • Avoid the innovation title for the team • Use the buddy system • Set the metrics in advance • Aim for quick hits first • Get data to back up your gut
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Pearson Education, Inc. Publishing as Prentice Hall 2-23 SWOT Analysis • Strengths • Weaknesses • Opportunities • Threats
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Pearson Education, Inc. Publishing as Prentice Hall 2-24 Market Opportunity Analysis (MOA) • 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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Pearson Education, Inc. Publishing as Prentice Hall 2-25 Market Opportunity Analysis (MOA) (cont.) • Can the company deliver the benefits better than any actual or potential competitors? • Will the financial rate of return meet or exceed the company’s required threshold for investment?
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Pearson Education, Inc. Publishing as Prentice Hall 2-26 Goal Formulation and MBO • Unit’s objectives must be hierarchical • Objectives should be quantitative • Goals should be realistic • Objectives must be consistent
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Pearson Education, Inc. Publishing as Prentice Hall 2-27 Porter’s Generic Strategies • Overall cost leadership • Differentiation • Focus
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Pearson Education, Inc. Publishing as Prentice Hall 2-28 Categories of Marketing Alliances • Product or service alliance • Promotional alliance • Logistics alliances • Pricing collaborations
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Pearson Education, Inc. Publishing as Prentice Hall 2-29 Marketing Plan Contents Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls
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Pearson Education, Inc. Publishing as Prentice Hall 2-30 Evaluating a Marketing Plan Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?
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