Crafting Strategy and the Marketing Plan Arild Aspelund

Outline A simple model for marketing strategy Containing the roles of the key concepts A practical guide to the marketing strategy process Kotler’s view The marketing plan Rationale Content Dissemination and confidentiality

Marketing Strategy Resources & Capabilities Firm Market Strategy Segmentation Buying behavior Targeting Value Positioning

The Value Delivery Process

K&K’s Business Unit Strategic Model

Business Mission A good mission statement clearly defines the organization’s mission to all employees, stake holders, customers and suppliers Defines focus on a common mission! Focus on a limited number of goals! Stress major policies and values! Define major competitive spheres!

Mission statement - 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.”

Mission statement - IKEA Does it say that IKEA’s prices should be as low as possible? “The IKEA vision is to create a better everyday life for the many people. We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”

SWOT - Analysis Internal Factors Strengths Weaknesses Competitive strengths, resources and capabilities Weaknesses Competitive disadvantages, resource and capability gaps Three models for internal analysis The Value Workshop The Value Chain The Value Network

The Value Work Shop Stabell and Fjeldstad (1998)

Porter’s Value Chain

The Value Network Stabell and Fjeldstad (1998)

SWOT - Analysis External Factors Opportunities Threats Market research Attractiveness and success probability Threats Seriousness and probability of occurrence Market research Customer characteristics, segments, preferences, buying behavior, etc Two models for external analysis PESTEL - analysis Porter’s five forces (We will come back to these shortly)

Goal Formulation Goals should be realistic! Objectives should be quantitative! Objectives must be consistent! Create hierarchical sub-goals!

Strategy Formulation Porter’s generic strategies Overall cost leadership Differentiation Focus Define overall allocation and development of the firm’s organizational resources and capabilities Market strategies Value proposition Segmentation Targeting Positioning Customer behavior Define allocation and development of market resources and capabilities

Program Formulation, Implementation, Control and Feedback Specification of tactical issues Product features Promotion Merchandising Pricing Sales channels Service Development of a feasible time schedule associated with each task Organization and allocation of responsibilities Development of reliable measures of performance on all levels Report procedures Stop criteria

The Market Plan - Motivation Primarily internal focus Frequently used in programs for holistic marketing Communication of market knowledge throughout the organization A plan…with milestones… Economic measures, commitment and control

The Market Plan - Contents Executive Summary Value proposition, key market segments, targeting, positioning, forecasts and returns Situation Analysis Market summary with consumer behavior, SWOT, competition, value proposition, CSF Marketing Strategy Mission, goals, key market segments, targeting, positioning, marketing mix, marketing research Financial Break-even analysis, sales forecast, expense forecast Controls Implementation, organization, feed-back routines

The Market Plan - Dissemination It is rarely smart to disclose your market plan Not only due to competitors can see your evaluation of Value propositions Accuracy and amount of market information Future actions and investments Cost structure But also to protect your actions from transparency from customers It could be wise, however, to publish a version that you want the public and your competitors to see…

Summary and continuation A market strategy should start with a scan of the environment We have presented a framework for strategical market management that incorporates several frameworks of analysis and forms the basis for new marketing campaignes (these will be revisited in detail…) We have suggested a structure for a market plan And in the next episode of Marketing Management… A model for scanning the environment A practical guide for performing market research