1. A Framework for Marketing Management
Chapter 2
Developing and Implementing Marketing Strategies and Plans
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2. Copyright 2009, Prentice-Hall, Inc.
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?
How can management assess marketing performance?
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3. Two Views of the Value Delivery Process
Traditional Physical Process Sequence
Make the product
Sell the product
Value Creation and Delivery Sequence
Choose the value
Provide the value
Communicate the value
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4. Copyright 2009, Prentice-Hall, Inc.
Other Views
Kumar’s “3Vs”
Define the value segment or customers (and their needs)
Define the value proposition
Define the value network to deliver promised service
Webster—Marketing is:
Value-defining process like market research
Value-developing processes including new-product development, sourcing strategy, and vendor selection
Value-delivering processes such as advertising and managing distribution
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5. Copyright 2009, Prentice-Hall, Inc.
The Value Chain
Primary Activities
Inbound logistics
Operations
Outbound logistics
Marketing and sales
Service
Support Activities
Firm infrastructure
Human resource management
Technology development
Procurement
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6. Core Business Processes
The market sensing process
The new offering realization process
The customer acquisition process
The customer relationship management process
The fulfillment management process
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7. Characteristics of Core Competencies
A source of competitive advantage
Applications in a wide variety of markets
Difficult for competitors to imitate
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8. Holistic Marketing Orientation and Customer Value
Value exploration: How can a company identify new value opportunities?
Value creation: How can a company efficiently create more promising new value offerings?
Value delivery: How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently?
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9. A Holistic Marketing Framework
Value exploration
Value creation
Value delivery
Customer focus
Core competencies
Collaborative network
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10. Role of Strategic Planning
Managing a company’s businesses as an investment portfolio
Assessing each business’s strength
Establishing a strategy to achieve its long-run objectives
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11. Organizational Levels
Corporate level
Divisional level
Business unit level
Product level
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12. Copyright 2009, Prentice-Hall, Inc.
Marketing Plan
Central instrument for directing and coordinating the marketing effort
Two levels:
Strategic marketing plan—lays out the firm’s target markets and value propositions, based on the best market opportunities.
Tactical marketing plan—specifies the marketing tactics, including product features, promotion, pricing, and service.
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13. Corporate Planning Activities
Defining the corporate mission
Establishing strategic business units
Assigning resources to each unit
Assessing growth opportunities
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14. Defining the Corporate Mission
What is our business?
Who is the customer?
What is the value to the customer?
What will our business be?
What should our business be?
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15. Good Mission Statements
Focus on limited number of goals
Stress major policies and values
Define major competitive spheres
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16. Major Competitive Spheres
Industry
Products and applications
Competence
Market segment
Vertical
Geographical
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17. Dimensions That Define a Business
Customer groups
Customer needs
Technology
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18. Characteristics of an SBU
Single business or collection of related businesses
Own set of competitors
Manager responsible for strategic planning and profit performance
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19. Copyright 2009, Prentice-Hall, Inc.
Growth Opportunities
Intensive growth
Integrative growth
Diversification growth
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20. Copyright 2009, Prentice-Hall, Inc.
Organizations
Structure
Policies
Culture
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21. The Business Unit Strategic Planning Process
Business mission
SWOT analysis
Goal formulation
Strategy formulation
Program formulation
Implementation
Feedback and control
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22. Copyright 2009, Prentice-Hall, Inc.
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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23. Marketing Opportunity
An area of buyer need and interest that a company has a high probability of profitably satisfying.
Sources:
Supply something that is in short supply
Supply an existing product or service in a new or superior way
Totally new offering
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24. Copyright 2009, Prentice-Hall, Inc.
Environmental Threat
Challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to lower sales or profit.
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25. Effective Goal Formulation
Arranged hierarchically from most to least important
Stated quantitatively
Realistic
Consistent
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26. Porter’s Generic Strategies
Overall cost leadership
Differentiation
Focus
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27. McKinsey’s Seven “S” Elements
“Hardware”
Strategy
Structure
Systems
“Software”
Style
Skills
Staff
Shared values
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28. Marketing Plan Contents
Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
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29. Marketing Metrics and Marketing Dashboards
Marketing metrics is the set of measures that helps marketers quantify, compare, and interpret marketing performance.
Marketing dashboard is a visual display of real-time indicators that summarize a set of relevant internal and external measures to ensure proper functioning.
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30. Measuring Marketing Plan Performance
Sales analysis
Market share analysis
Marketing expense-to-sales ratio
Financial analysis
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
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Publishing as Prentice Hall
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