2. Arab World Edition Kotler, Keller, Hassan, Baalbaki, and Shamma
Marketing Management
Arab World Edition
Kotler, Keller, Hassan, Baalbaki, and Shamma
Chapter 2
Developing Marketing
Strategies and Plans

3. 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?
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4. Marketing and Customer Value
Chapter Question 1:
How does marketing affect customer value?
Marketing and Customer Value
The task of any business is to deliver customer value at a profit. In a competitive market, a company can win only by fine-tuning the value delivery process and choosing, providing, and communicating superior value.
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5. The Value Delivery Process
Chapter Question 1:
How does marketing affect customer value?
The Value Delivery Process
The value creation and delivery sequence can be divided into three phases.
Choosing the value.
Providing the value.
Communicating the value.
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6. How does marketing affect customer value?
Chapter Question 1:
How does marketing affect customer value?
The Value Chain
The value chain is a tool for identifying ways to create more customer value. In the value chain model, every firm is a synthesis of primary and support activities.
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7. How does marketing affect customer value?
Chapter Question 1:
How does marketing affect customer value?
The Value Chain
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8. How does marketing affect customer value?
Chapter Question 1:
How does marketing affect customer value?
Core business processes
Market-sensing process
New-offering realization process
Customer acquisition process
Customer relationship management process
Fulfillment management process
Saudi Aramco manages business operations through cross-functional teams.
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9. How does marketing affect customer value?
Chapter Question 1:
How does marketing affect customer value?
Core Competencies
Three characteristics of core competencies:
A source of competitive advantage.
Applications in a wide variety of markets.
Difficult for competitors to imitate.
Competitive advantage
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10. Box 2.1: Becoming a Vigilant Organization
Chapter Question 1:
How does marketing affect customer value?
Box 2.1: Becoming a Vigilant Organization
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11. The Holistic Marketing Concept
Chapter Question 4:
How has marketing management changed?
The Holistic Marketing Concept
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12. A Holistic Marketing Orientation and Customer Value
Chapter Question 1:
How does marketing affect customer value?
A Holistic Marketing Orientation and Customer Value
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 prosperity among key stakeholders.
The holistic marketing framework is designed to address three key management questions, as follows.
1. Value exploration. How can a company identify new value opportunities?
2. Value creation. How can a company efficiently create more promising new value offerings?
3. Value delivery. How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently?
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13. Fig 2.2: A Holistic Marketing Framework
Chapter Question 1:
How does marketing affect customer value?
Fig 2.2: A Holistic Marketing Framework
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14. How does marketing affect customer value?
Chapter Question 1:
How does marketing affect customer value?
Strategic Planning
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15. The Central Role of Strategic Planning
Chapter Question 1:
How does marketing affect customer value?
The Central Role of Strategic Planning
Fig 2.3: The Strategic Planning, Implementation, and Control Process
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16. Corporate and Division Strategic Planning
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Corporate and Division Strategic Planning
All corporate headquarters undertake four planning activities: 1. Defining the corporate mission. 2. Establishing strategic business units (SBUs). 3. Assigning resources to each SBU. 4. Assessing growth opportunities. We’ll look at each process.
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17. Defining the Corporate Mission
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Defining the Corporate Mission
Good mission statements:
Focus on a limited number of goals
Stress major policies and values
Define major competitive spheres
Take a long-term view
Are short, memorable and meaningful
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18. Defining the Corporate Mission
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Defining the Corporate Mission
Mission statements define the major competitive spheres in which the company will operate:
Industry
Market segment
Products
Geographic
Competence
Vertical channels
Who we are?
What we offer?
Whom we serve?
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19. Example Mission Statement
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Example Mission Statement
Mayo Clinic: To inspire hope and contribute to health and well-being by providing the best care to every patient through integrated clinical practice, education and research. (24)
Sabic: Our mission is to responsibly provide quality products and services through innovation, learning and operational excellence while sustaining maximum value for our stakeholders.
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20. Vision vs. Mission Vision Statements Mission Statements
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Vision vs. Mission
Mission Statements
Vision Statements
Communicates the organization’s reason for being, and how it aims to serve its key stakeholders
Often integrates a summation of the firm’s values
Mission statements tend to be longer than vision statements
A future-oriented declaration of the organization’s purpose and aspirations.
Addresses what a firm wants to become
Vision statements tend to be relatively brief
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21. Business Vision Statement
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Business Vision
Statement
A statement that clearly defines the firm’s “reason” for being in business
Should significantly stretch the resources and capabilities of the farm
Should inspire people in the organization to achieve things they never thought possible
Should unite people in the organization toward the pursuit of one common goal
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22. Business Vision Statement A guiding philosophy
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Business Vision
Statement
A guiding philosophy
Consistent with organizational value
Influenced by the strengths and weaknesses of the business
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23. Chapter Question 2:
How is strategic planning done at different levels of the organization?
Table 2.1: Product-Oriented versus Market-Oriented Definitions of a Business
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24. Establishing Strategic Business Units
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Establishing Strategic Business Units
A single business or collection of related businesses that can be planned separately from the rest of the company, with its own set of competitors and a manager who is responsible for strategic planning and profit performance.
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25. Establishing Strategic Business Units
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Establishing Strategic Business Units
An SBU has three characteristics, as follows. 1. It is a single business, or related businesses, that can be planned separately from the rest of the company. 2. It has its own set of competitors. 3. It has a manager responsible for strategic planning and profit performance.
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26. Assigning Resources to Each SBU
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Assigning Resources to Each SBU
Boston Consulting Group’s Growth-Share Matrix can be used to make investment decisions. Defines four types of SBUs:
1. Stars: high-growth market, high-share product.
2. Cash cows: low-growth market, high-share product.
3. Question marks: low-share product, high-growth market.
4. Dogs: low-share product, low-growth market.
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27. Assessing Growth Opportunities
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Assessing Growth Opportunities
Fig 2.5: Three Intensive Growth Strategies:
Ansoff’s Product–Market Expansion Grid
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28. Assessing Growth Opportunities
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Assessing Growth Opportunities
Fig 2.5: Three Intensive Growth Strategies:
Ansoff’s Product–Market Expansion Grid
Concentric Diversification – leveraging a company’s core technical know-how to diversify its current products into new markets
Horizontal Diversification – the introduction of products that are unrelated to a company’s core products to existing markets
Conglomerate Diversification – the purchasing of another company in order to diversify
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29. Business Unit Strategic Planning
Chapter Question 3:
What does a marketing plan include?
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Business Unit Strategic Planning
Business unit strategic-planning involves the steps shown in Fig 2.6
Fig 2.6: The Business Unit Strategic-Planning Process
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30. Step 1: The Business Mission
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Step 1: The Business Mission
Each business unit needs to define its specific mission within the broader company mission.
Step 2: SWOT Analysis
Strengths, Weaknesses, Opportunities, Threats
- For monitoring the external and internal marketing environment
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31. SWOT Analysis Chapter Question 2:
How is strategic planning done at different levels of the organization?
SWOT Analysis
Albert S. Humphrey in the 1960s
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32. Step 1: The Business Mission
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Step 1: The Business Mission
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33. Step 3: Goal Formulation
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Step 3: Goal Formulation
Unit’s objectives must be hierarchical
Objectives should be quantitative
Goals should be realistic
Objectives must be consistent
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34. Step 4: Strategic Formulation
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Step 4: Strategic Formulation
Porter’s Generic Strategies
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35. (Step 4: Strategic Formulation)
Chapter Question 2:
How is strategic planning done at different levels of the organization?
(Step 4: Strategic Formulation)
Strategic Alliances
There are four major categories of marketing alliances:
Product or service alliances
Promotional alliances
Logistics alliances
Pricing collaborations
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36. Step 5: Program Formulation and Implementation
Chapter Question 2:
How is strategic planning done at different levels of the organization?
Step 5: Program Formulation and Implementation
Depends on:
Clear formulation of marketing programs
Accurate cost planning
Competent implementation
Step 6: Feedback and Control
The key to organizational health is willingness to examine the changing environment and adopt new goals and behaviors.
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37. Chapter Question 3:
What does a marketing plan include?
Marketing Plan
A marketing plan is the central instrument for directing
and coordinating the marketing effort. It operates at a
strategic and tactical level.
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38. Levels of a Marketing Plan
Chapter Question 3:
What does a marketing plan include?
Levels of a Marketing Plan
Strategic
Target marketing decisions
Value proposition
Analysis of marketing opportunities
Tactical
Product features
Promotion
Merchandising
Pricing
Sales channels
Service
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39. Marketing Plan Contents
Chapter Question 3:
What does a marketing plan include?
Marketing Plan Contents
Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
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40. Evaluating a Marketing Plan
Chapter Question 3:
What does a marketing plan include?
Evaluating a Marketing Plan
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41. Credits Slide 1 Corbis: Ali Haider / epa
Slide 6 Alamy Images: Barry Iverson
Slide 8 George S. Day and Paul J. H. Schoemaker, Peripheral Vision: Detecting the Weak Signals That Will Make or Break Your Company (Boston: Harvard Business School Press, 2006)
Slide 10 P. Kotler, D. C. Jain, and S. Maesincee, “Formulating a Market Renewal Strategy,” in Marketing Moves (Part 1), Fig. 1-1 (Boston: Harvard Business School Press, 2002), p. 29. Copyright © 2002 by President and Fellows of Harvard College. All rights reserved
Slide 15 Orbit Company website, Mobily Saudi Arabia company website, eBay company website,
Slide 20 Salem Alforaih Photography, photographersdirect.com
Slide 21 Adapted and reprinted by permission, Harvard Business Review. From “Strategies for Diversification,” by Igor Ansoff, September–October Copyright © 1957 by the President and Fellows of Harvard College. All rights reserved
Slide 23 Getty Images: Justin Sullivan