Assignment 1 marketing management

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2
Developing Marketing
Strategies and Plans

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?

Phases of Value Creation and Delivery

Choosing the value

Providing the value

Communicating the value

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.

https://www.youtube.com/watch?v=cpYhgqPRivw

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

Who can name me one competitive advantage of the iPhone?

Maximizing Core Competencies

(Re)define the business concept
(Re)shaping the business scope
(Re)positioning the company’s brand identity

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 co-prosperity among key stakeholders.

Questions to Address in
Holistic Marketing

What value opportunities are available?

How can we create new value offerings efficiently?

How can we deliver the new offerings efficiently?

Figure 2.1 The Strategic Planning, Implementation, and
Control Processes

Table 2.1 Master Marketers

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

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 a limited number of goals
Stress major policies and values
Define major competitive spheres
Take a long-term view
Short, memorable, meaningful

“make transportation as reliable as running water, everywhere, for everyone.”

Google

Table 2.2
Major Competitive Spheres

Industry
Products
Competence
Market segment
Vertical channels
Geographic

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

Dimensions Define a Business

Customer Groups

Customer Needs

Technology

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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BCG Matrix

STARS

CASH COWS

QUESTION MARKS

DOGS

RELATIVE MARKET SHARE

MARKET GROWTH RATE

Products with high growth and high market share. Require significant investment to maintain market leadership. e.g. Apple AirPods

Not known yet whether the product will become a star or a dog. May require a lot of investment to become a star. e.g. Apple HomePod

Mature, well-established products. Not much new investment is required. Just keep milking the product! e.g. Apple iPad

Products that don’t generate much ROI and just waste money. Best to remove the product. e.g. Apple iPod Shuffle

High

Low

High

Figure 2.2 The Strategic Planning Gap

What is Corporate Culture?

Corporate culture is the

shared experiences, stories, beliefs,

and norms that

characterize an organization.

Figure 2.3 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)

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?

Figure 2.4
Opportunity and Threat Matrices

Goal Formulation and MBO (Management by Objectives)

Unit’s objectives must be hierarchical
Objectives should be quantitative
Goals should be realistic
Objectives must be consistent

Porter’s Generic Strategies

Overall cost leadership

Differentiation

Focus

https://www.androidcentral.com/vertu-constellation

Categories of Marketing Alliances

Product or service alliance
Promotional alliance
Logistics alliances
Pricing collaborations

McKinsey’s Elements of Success

Strategy

Structure

Systems

Style

Shared values

Staff

Skills

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?

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?