Transcript LECTURE 02.ppt

LECTURE-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?
Marketing and Customer Value
Marketing involves satisfying customers needs
and wants.
The task of any business is to deliver customer
value at a profit while being socially
responsible.
Two Views Of The Value Delivery
Process
Traditional Physical Process Sequence
Make The Product
Design
Procure Make
Product
Sell The Product
Price
Sell
Advertise/
Distribute Service
Promote
Value Creation and Delivery Sequence
Choose The Value
Provide The Value
Market
Product Service
Customer
Value
Sourcing Distributing
Selection/
Develop- Develop- Pricing
Segmentation
Positioning
Making Servicing
Focus
ment
ment
Strategic Marketing
Communicate
The Value
Sales
Force
Tactical Marketing
Sales
Promotion
Advertising
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 Chain Analysis
The way in which primary and support
activities are combined in providing goods
and services and increasing profit margins.
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Support
Activities
Primary Activities
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Inbound
Logistics
Support
Activities
Primary Activities
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Operations
Inbound
Logistics
Support
Activities
Primary Activities
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Outbound
Logistics
Operations
Inbound
Logistics
Support
Activities
Primary Activities
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Primary Activities
Marketing
& Sales
Outbound
Logistics
Operations
Inbound
Logistics
Support
Activities
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Inbound
Logistics
Support
Activities
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Support
Activities
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Inbound
Logistics
Procurement
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Support
Activities
Technological Development
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Inbound
Logistics
Procurement
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Human Resource Management
Technological Development
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Procurement
Inbound
Logistics
Support
Activities
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Firm Infrastructure
Human Resource Management
Technological Development
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Procurement
Inbound
Logistics
Support
Activities
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Firm Infrastructure
Human Resource Management
Technological Development
Primary Activities
Service
Marketing
& Sales
Outbound
Logistics
Operations
Procurement
Inbound
Logistics
Support
Activities
Value Chain Analysis
Identifying Resources and Capabilities That Can Add Value
Core Business Processes
• Market-sensing process
• All the activities in gathering market intelligence,
disseminating it within the organization and acting on
the information.
• New-offering realization process
• All the activities in researching, developing &
launching new high quality offerings quickly and
within the budget.
Core Business Processes…
• Customer acquisition process
• All the activities in defining target markets &
prospecting new customers.
• Customer relationship management process
• All the activities in building deeper understanding,
relationships and offerings to individual customers.
• Fulfillment management process
• All the activities in receiving & approving orders,
shipping the goods on time and collecting payments
Characteristics of Core Competencies
• A source of competitive advantage
• Applications in a wide variety of markets
• Difficult to imitate
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.
Corporate Headquarters’
Planning Activities
•
•
•
•
Define the corporate mission
Establish strategic business units (SBUs)
Assign resources to each SBU
Assess growth opportunities
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
Marketing Plan Contents
 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls
Contents of a Marketing Plan
• Executive Summary
• Table Of Contents
• Situation Analysis (SWOT Analysis)
• Customers
• Competitors
• Company
• Context
• Marketing Strategy
• Mission
• Marketing & Financial Objective
• Product Lines
• Competitive positioning
• Financial Projections
• Sales forecast
• Expense Forecast
• Break Even Analysis
• Forecasted Sales Value
• Expected Marketing Cost
• Implementation Controls
• Outlines The Controls For
•
•
Monitoring & Adjusting
Spells out The Goals &
Budgets
Contingency Plan
Evaluating a Marketing Plan
 Is the plan simple?
 Is the plan specific?
 Is the plan realistic?
 Is the plan complete?
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
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, costeffective and environmentally responsible
products. We will add value to these products
by providing legendary customer service
through our Uncompromising Commitment
to Customer Satisfaction.”
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.”
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.”
Bibliography
 Marketing Management – A South Asian Perspective
by Philip Kotler, Kevin Lane Keller, Abraham Koshy &
Mithileshwar Jha, 13th Edition, Published by Pearson
Education, Inc.
 Strategic Marketing Management – Meeting The
Global Marketing Challenges by Carol H. Anderson &
Julian W. Vincze Published by Houghton Mifflin Company.
 Principles of Advertising & IMC by Tom Duncan 2nd
Edition, Published by McGraw-Hill Irwin.
 Principles of Marketing by Philip Kotler & Gary Armstrong
Thirteenth Edition, Published by Prentice Hall
"The secret of getting started is breaking your
complex, overwhelming tasks into small
manageable tasks, and then starting on the first
one.“
Mark Twain
The End…