Developing Marketing Strategies and Plans

Today’s Agenda Company Orientations Toward the Market Place Article Discussion : Unleashing the Power Of Marketing Marketing and Customer Value Nivea for Men : Developing a Marketing Plan

Company Orientations Toward The Market Place The Production Concept Consumers will prefer products that are widely available & inexpensive e.g. Lenovo, Haier etc. The Product Concept Consumer favor products that offer the most quality, performance, or innovative features e.g. Rolex etc. The Selling Concept Consumers & businesses, if left alone, won’t buy enough of the organization’s products e.g. Insurance, Encyclopedias etc. The Marketing Concept Emerged in mid 1950s Customer-Centered “Sense & Respond” e.g. Dell Computer etc.

Figure 1.4 Holistic Marketing Dimensions

The Holistic Marketing Concept Relationship Marketing Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-term engagement. Integrated Marketing Communication Integrated marketing communication (IMC) is a process for planning, executing and monitoring the brand messages that create customer relationship. Internal Marketing Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.

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? – Value Exploration How can we create new value offerings efficiently? – Value Creation How can we delivery the new offerings efficiently? – Value Delivery

Article Unleashing the Power of Marketing: When GE realized that its products would no longer sell themselves, it had to invent a formidable marketing function from scratch. What is your learning from the article?

Just 10 years ago General Electric had no substantial marketing organization. For decades the company had been so confident in its technologies that it seemed to believe the products could market themselves. People designated as marketers were assigned to sales support (lead generation and trade shows, for example) or communications (advertising and promotional materials). “We didn’t really know how to translate what we knew about customers into the next growth idea,” Gentile admits. To suc- ceed, GE would need a marketing engine that drove more-direct collaboration with customers and led to new markets—CEO Jeff Immelt issued a mandate that marketing should be a vital operating function across GE that spurred organic growth.

The framework centered on giving marketing a revenue-generating role in its own right. Marketing became the torchbearer for what was internally called “commercial innovation.” GE already had a long and rich history as a technology innovator. Now its innovation expanded to include ideas grounded in customer needs and market trends. Marketers took their place alongside technologists and had a voice earlier in the process, to ensure that GE’s offerings were differentiated and aimed at the right customer segments. Ecomagination delivered more than 90 new products and $70 billion in revenue in its first five years. In all these initiatives marketing gets into the game at the start, sizing “white space” opportunities, meshing unmet needs with new technologies, and moving the brand in new directions.

The frameworks do an excellent job of outlining marketing principles but not of translating them into action. We learned that four fundamental roles are needed to transform marketing into a strategic function: instigator, innovator, integrator, and implementer. We call them “marketer’s DNA.” Each role has become absolutely crucial at GE. GE’s marketing transformation is a work in progress. We continue to test new value propositions, to develop new customer-oriented metrics, and to explore opportunities for making digital connections with the marketplace. We have gained momentum through significant wins, but we have yet to achieve our true goal: “gold standard” marketing throughout the organization. The journey continues.

Marketing and Customer Value

Phases of Value Creation and Delivery Assessing market opportunities and customer value Choosing the value Designing value Delivering value Communicating value Growing and sustaining value

What is the Value Chain? The value chain as a tool for identifying 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.

Core Business Processes Core business processes include:  Market-sensing process - all the activities in gathering and acting upon information about the market  New-offering realization process - all the activities in researching, developing, and launching new high- quality offerings quickly and within budget  Customer acquisition process - all the activities in defining target markets and prospecting for new customers

Core Business Processes Core business processes include:  Customer relationship management process - entails all the activities in building deeper understanding, relationships, and offerings to individual customers  Fulfillment management process - includes all the activities in receiving and approving orders, shipping the goods on time, and collecting payment Firms also need to look into the value chains of their suppliers, distributors, and customers.

Characteristics of Core Competencies A source of competitive advantage Applications in a wide variety of markets Difficult to imitate

The Strategic Planning, Implementation, and Control Processes

CASE STUDY : NIVEA FOR MEN DEVELOPING A MARKETING PLAN

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. Each product level within a business unit must develop a marketing plan for achieving its goals.

Levels of a Marketing Plan Strategic Target marketing decisions Value proposition Analysis of marketing opportunities Tactical Product features Promotion Merchandising Pricing Sales channels Service

Next Class Your Marketing Department Scan Make a skeleton of the marketing plan on basis of : The Coca Cola Marketing Plan Kautilya Institute Development Management and Research

Thank You!