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Marketing Management

An Asian Perspective2-1

DevelopingMarketing

Strategies and Plans

Chapter

2

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Marketing Management

An Asian Perspective2-2

Marketing and Customer Value

3 key questions:1. Value exploration – new opportunities?2. Value creation –new offerings?3. Value delivery – deliver more efficiently?

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Marketing Management

An Asian Perspective2-3

INTERNAL ENVIRONMENT (STRENGTHS/WEAKNESSES) ANALYSIS

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Marketing Management

An Asian Perspective2-4

Define the Corporate Mission

What is our business? Who is the customer? What is of value to the customer? What will our business be? What should our business be?

Mission statements are the vision direction for company for next 10 to 20 years

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Marketing Management

An Asian Perspective2-5

Table 2.1 Sample Mission Statement

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Marketing Management

An Asian Perspective2-6

Assess growth opportunities

the strategic planning gap

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Marketing Management

An Asian Perspective2-7

INTENSIVE GROWTH1st course of action - to review

opportunities for improving existing businesses

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Marketing Management

An Asian Perspective2-8

INTENSIVE GROWTH The company first considers…

– more market share with current products & markets (market-penetration strategy)?

– find new markets for current products (market-development strategy)?

– develop new products to current markets (product-development strategy)?

– develop new products for new markets (diversification strategy)?

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Marketing Management

An Asian Perspective2-9

diversification strategyFrappuccino® bottled drinks, Starbucks brand ice cream & purchase of tea retailer Tazo® Tea into grocery store aisles

market-development strategysame as above throughout North America & worldwide

market-penetration strategycafés serving gourmet coffee directly to customers in Seattle

product development strategyIncrease customers’ purchases with new in-store merchandise (CDs)

1

3

11

4

2

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Marketing Management

An Asian Perspective2-10

INTEGRATIVE GROWTHINTEGRATIVE GROWTH: backward, forward or horizontal integration within its industry

acquire suppliers -backward integration acquire retailer-forward integration acquire competitors-horizontal

integration If unsuccessful, diversification

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Marketing Management

An Asian Perspective2-11

DIVERSIFICATION GROWTH

When good opportunities are found outside present businesses

Good opportunity is when industry is attractive & company has strengths to be successful

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Marketing Management

An Asian Perspective2-12

Business Unit Strategic Planning

Overall costleadership

achieve lowest costs to price lower than competitors & win large marketshare

Focus

focuses onnarrow marketsegments

Differentiation

superiorperformance inarea valued by large part of market

PORTER’S GENERIC STRATEGIES

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Marketing Management

An Asian Perspective2-13

Marketplace will change –review & revise implementation, programs, strategies or objectives

Business Unit Strategic Planning – feedback and control

HAIER is a good example:Started with inferior-quality products

Later, sales went upChina’s leading maker of washing

machinesFaces competition in Chinese market

Partner with Sanyo in production alliancesMakes digital TVs with LG ElectronicsDiversify into finance, computers, cell

phones

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Marketing Management

An Asian Perspective2-14

1. Is the plan simple?

2. Is the plan specific?

3. Is the plan realistic?

4. Is the plan complete?

Business Unit Strategic Planning - Contents of a Marketing Planmarketing

plan

A summarized writtendocument aboutmarketplace &plans to reach marketing objectives

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Marketing Management

An Asian Perspective2-15

Market Opportunity Analysis (MOA)

To evaluate opportunitiesTo determine attractiveness

& probability of success

Market Opportunity Analysis (MOA)

1. Can benefits convince

target markets?

4. Are benefits better than

competitors?

5. Is it profitable?

2. Can target markets be reached with cost-

effective media & trade channels? 3. Possess

resources to deliver

benefits?