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Developing Marketing Strategies and Plans
Siemens AG has grown through new product innovation and
strategic acquisitions
Three V’s Approach to Marketing
Define the value segmentDefine the value segment
Define the value propositionDefine the value proposition
Define the value networkDefine the value network
ABN Amro’s value Proposition for its SB Accounts
• On a minimum monthly average balance of Rs.10,000 our saving bank account offers you something other savings accounts don’t:– Value for money– Free cheque pick up from your home or office– Cash delivery to your home or office(upto Rs.10,000)– Extended banking hours (9am to 4.30pm) on week-
days– Sunday banking (9am to 12 noon0– Free home delivery of pay orders and demand drafts.– Free local pay orders
– Free cheque return protection– Free metro cheque clearing– Free money transfers– Free standing instructions to pay regular bills
(like your kid’s school fees)– Account opening from your home or office.
• ABN Amro calls it the Savings Advantage Account.
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.
VALUE DELIVERY
• Standard Chartered Bank
• Godrej GE
• Virgin Atlantic
• Fedex
Core Business Processes
• Market-sensing process
• New-offering realization process
• Customer acquisition process
• Customer relationship management process
• Fulfillment management process
Characteristics of Core Competencies
• A source of competitive advantage
• Applications in a wide variety of markets
• Difficult to imitate
Firms Should Consider Key Questions
• Can we learn from the past?• How should the present be evaluated?• What do we envision for the future?
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.
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.
Levels of a Marketing Plan
• Strategic– Target marketing
decisions– Value proposition– Analysis of marketing
opportunities
• Tactical– Product features– Promotion– Merchandising– Pricing– Sales channels– Service
The Strategic Planning, Implementation,
and Control Processes
Corporate Headquarters’ Planning Activities
• Define the corporate mission
• Establish strategic business units (SBUs)
• Assign resources to each SBU
• Assess growth opportunities
Good Mission Statements
Focus on limited number of goalsFocus on limited number of goals
Stress major policies and valuesStress major policies and values
Define major competitive spheresDefine major competitive spheres
Take a long-term viewTake a long-term view
Short, memorable, meaningfulShort, memorable, meaningful
Major Competitive Spheres
Industry
Products
Marketsegment
Geographical
CompetenceVertical
channels
Infosys Technologies Limited
“To achieve our objectives in an environmentof fairness, honesty, and courtesy towardsour clients, employees, vendors, and societyat large.”
Biocon
“To be an integrated biotechnology enterpriseof global distinction.”
eBay
“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all—collectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.”
Product Orientation vs. Market Orientation
Company Product Market
Xerox We make copying equipment
We improve office productivity
Columbia Pictures
We make movies We entertain people
Encyclopedia Britannica
We sell encyclopedias We distribute information
Carrier We make air conditioners and furnaces
We provide climate control inside homes
Dimensions That Define a Business
Customer groups
TechnologyCustomer
needs
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
Strategies Suggested by Ansoff’s Product-Market Expansion Grid
• Market penetration
• Market development
• Product development
• Diversification
What is Corporate Culture?
Corporate culture is the shared experiences, stories, beliefs, and norms
that characterize an organization.
The Business Unit Strategic Planning Process
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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?
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?
FedEx added Sunday deliveries based on customer requests andmarket demand
FedEx
Porter’s Generic Strategies
Overall Cost Leadership
Differentiation
Focus
Categories of Marketing Alliances
Product or Service AlliancesProduct or Service Alliances
Promotional AlliancesPromotional Alliances
Logistics AlliancesLogistics Alliances
Pricing CollaborationsPricing Collaborations
Marketing Plan Contents
Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls
Evaluating a Marketing Plan
Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?
Marketing Debate
What good is a mission statement?
Take a position:1. Mission statements are critical to a successful marketing organization.or2. Mission statements rarely provideuseful marketing value.
EXERCISE
• Each student is in effect a “product”. Like all product’s you (they) must be marketed for success. Write your own “mission statement” about your career and a “goal statement” of where you see yourselves in 5 years, 10 years, and after 20 years.
Marketing Discussion
What implications do Porter’s valuechain and the holistic marketingorientation model have formarketing planning?
