1. Developing marketing strategies and plans
LECTURE WEEK 2
Developing marketing strategies and plans

2. Lecture questions How does marketing affect customer value?
How is corporate and divisional strategic planning carried out?
How is business unit strategic planning carried out?
What is involved in developing a marketing plan?

3. Transitioning from sellers’ to buyers’ markets
Competition
Demanding customers
Choices for customers
Transformation of the value concept
Fragmented market segments

4. Sequences in the value delivery process
Figure 3.2 Repetitive sequences of the value delivery process
Source: M. R. V. Goodman, Durham University

5. Nirmalya Kumar’s 3Vs marketing approach
Define the value segment
Define the value proposition
Define the value network

6. The generic value chain
Figure 3.3 The generic value chain
Source: From M. E. Porter (1985) Competitive Advantage. Creating and Sustaining Superior Performance, New York: Free Press. Copyright © 1985 by Michael E. Porter. Reproduced with permission from The Free Press, a division of Simon & Schuster Adult Publishing Group

7. Core business processes
The market sensing process
The new offering realisation process
The customer acquisition process
The customer relationship management process
The fulfillment management process

8. Characteristics of core competencies
It is a source of competitive advantage
It has applications in a wide variety of markets
It is difficult for competitors to imitate

9. Steps in the business realignment process
(Re)define the business concept
(Re)shaping the business scope
(Re)positioning the brand identity

10. Questions answered by the holistic marketing framework
How can we identify new value opportunities?
How can we efficiently create more promising new value offerings?
How can we use capabilities and infrastructure to deliver the new value offerings more efficiently?

11. Organisational levels
Corporate level
Division level
Business unit level
Product level

12. What is a marketing plan?
The marketing plan is the central instrument for directing and coordinating the marketing effort.

13. Figure 3.5 The strategic planning, implementation and control processes

14. Planning activities Defining the corporate mission
Defining the business
Assigning resources to each SBU
Assessing growth opportunities

15. Definitions of business
Product definition
Market definition
BP sells fuels
Biersdorf sells cosmetics
Renault sells automobiles
Xerox makes copy equipment
BP sells energy
Biersdorf sells beauty
Renault supplies transport vehicles
Xerox improves office productivity

16. Major competitive spheres
Industry
Geographic
Product
Vertical
Competence
Market segment

17. Characteristics of SBUs
It is a single business, or a collection of related businesses, that can be planned separately from the rest
It has its own set of competitors.
It has a manager responsible for strategic planning and profit performance

18. Figure 3.6 The strategic planning gap

19. Strategies for managing change
Avoid the innovation title
Use the buddy system
Set the metrics in advance
Aim for quick hits first
Get data to back up your gut feelings

20. Figure 3.8 The business unit strategic-planning process

21. SWOT Analysis
Figure 3.9 Using SWOT analysis to monitor the internal and external position of an organisation

22. Market opportunity analysis
Can we articulate the benefits to a target audience?
Can we locate the target market and reach them with cost-effective media and trade channels?
Does our company possess or have access to the critical capabilities and resources we need?
Can we deliver the benefits better than the competition?
Will the rate of return meet or exceed our expectations?

23. Figure 3.10 Opportunity and threat matrices

24. Goal formulation and the MBO
Arrange objectives hierarchically from most to least important
Make goals quantitative if possible
Make goals realistic
Make goals consistent

25. Porter’s generic strategies
Overall cost leadership
Differentiation
Focus

26. Forms of strategic alliances
Product or service alliance
Promotional alliance
Logistics alliance
Pricing collaborations

27. Elements of strategy Strategy Shared values Structure Staff Systems
Skills
Style

28. Contents of a marketing plan
Executive summary and table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
For some tips on how to write a marketing plan go to:

29. Contents of a marketing plan
The Euromart marketing plan is based on an approach inspired by Professors Kashani and Turpin of the IMD in Switzerland:
Executive summary
Contextual analysis
Customer analysis
Competition analysis
Company strategic approach
Channel analysis (distribution and marketing communications)
Cash analysis
Marketing management implementation and control

30. Kotler on strategy
In this video clip, Philip Kotler discusses some key strategic marketing issues for practitioners

31. Recap: can you explain? How does marketing affect customer value?
How is corporate and divisional strategic planning carried out?
How is business unit strategic planning carried out?
What is involved in developing a marketing plan?