2-Developing Marketing strategies

8/7/2019 2-Developing Marketing strategies

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Developing Marketing strategies &Plans

INSTRUCTOR: KRISHAN GOPAL



Value delivery process

• Traditional process: Design, procure,make, price, sell, advertise, promote,service

• Modern process:





Three V’s Approach to Marketing

Define the value segment:STP

Define the value segment:STP

Providing the value

Providing the value

Communicating the value

Communicating the value




What is the Value Chain?

The value chain is a tool for identifyingways to create more customer valuebecause every firm is a synthesis of

primary and support activities performed to design, produce, market,

deliver, and support its product.




Figure 2.2 Porter’s Value Chain




Characteristics of Core Competencies

• A source of competitive advantage• Applications in a wide variety of markets

• Difficult to imitate




What is a Marketing Plan?

A marketing plan is the centralinstrument 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

marketingopportunities

• Tactical• Product features

• Promotion• Merchandising• Pricing• Sales channels

• Service




Figure 2.2 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




Motorola

“The purpose of Motorola is to honorablyserve the needs of the community by providing

products and services of superior quality at afair price to our customers; to do this so as toearn an adequate profit which is required for the total enterprise to grow; and by doing so,

provide the opportunity for our employees andshareholders to achieve their personalobjectives.”




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 .”




Table 2.3Product Orientation vs. Market Orientation

Company Product Market

Missouri-PacificRailroad

We run a railroad We are a people-and-goods mover

Xerox We make copyingequipment

We improve officeproductivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain people




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



Assigning resources to each SBU




The Boston ConsultingGroup’s Growth-Share Matrix

20%-20%-18%-18%-

16%-16%-14%-14%-12%-12%-10%-10%-

8%-8%-6%-6%-4%-4%-2%-2%-

00

Mark et Growth Rate

3

?

Question marks

? ? ?

2

1

Cash cow

6

Dogs

87

10x 4x 2x 1.5x 1x10x 4x 2x 1.5x 1x

Relative Market Share.5x .4x .3x .2x .1x.5x .4x .3x .2x .1x

Stars

5

4



Assessing Growth Opprotunities





Ansoff’s Product-Market Expansion Grid




Figure 2.5 The Business UnitStrategic Planning Process




SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats




Market Opportunity Analysis (MOA)

• Can the benefits involved in the opportunitybe articulated convincingly to a defined targetmarket?

• Can the target market be located andreached with cost-effective media and tradechannels?

• Does the company possess or have accessto the critical capabilities and resourcesneeded to deliver the customer benefits?




Market Opportunity Analysis (MOA)(cont.)

• Can the company deliver the benefitsbetter than any actual or potentialcompetitors?

• Will the financial rate of return meet or exceed the company’s requiredthreshold for investment?



Goal Formulation

• Goals are objectives that are specificwith respect to magnitude and time.

• Arranged hierarchically• Should be quantitative• Realistic





Strategy formulation

Porter’s Generic StrategiesOverall Cost Leadership

Differentiation

Focus



Programme formulation &implementation




Feedback & Control





Marketing Plan Contents

Executive summaryTable of contentsSituation analysisMarketing strategyFinancial projections

Implementation controls




Marketing Debate

What good is a mission statement?

Take a position:1. Mission statements are critical to asuccessful marketing organization.or 2. Mission statements rarely provideuseful marketing value.

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2-Developing Marketing strategies