1. MARKETING MANAGEMENT 13th edition2
Developing
Marketing
Strategies and Plans
Kotler Keller

2. Strategic Planning
Strategic Planning is the Process of Developing and Maintaining a Strategic Fit Between the Organization’s Goals and Capabilities and Its Changing Marketing Opportunities.

3. The Value Delivery Process

4. Improving Value Delivery the Japanese Way
0 customer
feedback time
0 product
improvement time
0 setup time
purchasing time
0 defects

5. Porter’s Value Chain

6. Core Business Processes
Market
sensing
Customer
relationship
management
New offering
realization
Fulfillment
management
Customer
acquisition

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

8. What Is Strategy?
Strategy is creation of a unique and valuable position, involving a different set of activities.
Choosing to perform activities differently than rivals do.
Essence of strategy is choosing what not to do.

9. What Is Strategy? Serving few needs of many customers
Serving broad needs of few customers
Serving broad needs of many customers in a narrow market
Trade-offs create need for choice
Trade-offs protect against imitators

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

11. The Strategic Planning, Implementation, and Control Processes

12. Elements of a Strategy Statement
OBJECTIVE: Ends
SCOPE: Domain
ADVANTAGE: Means

13. Elements of a Strategy Statement: Objective
Definition of ends that strategy is designed to achieve.
Mission:
Statements of ultimate purpose
Underlying motivation for being in business
Values:
Ethical values under which company operates

14. Elements of a Strategy Statement: Scope
Domain of business.
Boundaries beyond which company will not venture.
Customers: Who is / Who is not
Offerings: What is / What is not
Geography: Where is / Where is not

15. Elements of a Strategy Statement: Advantage
Means by which company will achieve stated objectives.
Value proposition: Why should customers buy from us?
Competitive advantage: What makes us distinctive?

16. Strategy Statement Detailed understanding of customer needs
Segmenting customers
Choosing segments to serve
Creating value for the targeted segment
Analyze and monitor competitors’ current strategies
Predict how they might change

17. Steps in Strategic Planning
Business unit,
product,
and market
level
Corporate Level
Planning,
marketing,
and other
functional
Strategies
Setting Company
Objectives
and Goals
Defining the
Company
Mission
Designing
the Business
Portfolio

18. Corporate headquarters’ planning activities
Define the corporate mission
Establish SBUs
Assign resources to each SBU
Assess growth opportunities

19. Good Mission Statements
Focus on limited number of goals
Stress major policies and values
Define major competitive spheres

20. Fit Market Environment Distinctive Competencies
Defining the Company’s Business and Mission
A Mission Statement is a Statement of the Organization’s Purpose.
Characteristics of a Good Mission Statement:
Market Oriented
Realistic
Fit Market Environment
Distinctive Competencies
Motivating
Specific

21. Major Competitive Spheres
Industry
Geographical
Products
Vertical
channels
Competence
Market
segment

22. Product Orientation vs. Market Orientation
Company
Product
Market
Missouri-Pacific Railroad
We run a railroad
We are a people-and-goods mover
Xerox
We make copying equipment
We improve office productivity
Standard Oil
We sell gasoline
We supply energy
Columbia Pictures
We make movies
We entertain people

23. Characteristics of SBUs
It is a single business or collection of related businesses
It has its own set of competitors
It has a leader responsible for
Strategic planning
Profitability
Efficiency

24. Analyzing Current SBU’s
The Boston Consulting Group’s Growth-Share Matrix

25. Analyzing Current SBU’s: GE’s Strategic Business-Planning Grid
Business Strength
Strong
Average
Weak C
High A
Medium
Industry Attractiveness D B
Low

26. Five Forces Determining Segment Structural Attractiveness

27. Five Competitive Forces
Not all forces are always present or equally critical.
Strongest Force ^a Profitability
Example: Starbucks (specialty coffee retailing)
Which threat is most critical?
Force is the threat not whether it actually occurs.

28. Ansoff’s Product-Market Expansion Grid

29. The Business Unit Strategic Planning Process

30. SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats

31. Market Opportunity Analysis (MOA)
Can the benefits involved in the opportunity be articulated convincingly to a defined target market?
Can the target market be located and reached with cost-effective media and trade channels?
Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?

32. Market Opportunity Analysis (MOA)-2
Can the company deliver the benefits better than any actual or potential competitors?
Will the financial rate of return meet or exceed the company’s required threshold for investment?

33. Contents of a Marketing Plan
Executive Summary
Current Marketing Situation
Threats and Opportunity Analysis
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls

34. Evaluating a Marketing Plan
Is the plan simple?
Is the plan specific?
Is the plan realistic?
Is the plan complete?

35. MARKETING MANAGEMENT 13th edition11
Dealing with Competition
Kotler Keller

36. Industry Concept of Competition
Number of sellers and degree of differentiation
Entry, mobility, and exit barriers
Cost structure
Degree of vertical integration
Degree of globalization

37. Industry Concept of Competition
Pure Monopoly
Oligopoly
Monopolistic Competition
Pure Competition

38. Steps in Analyzing Competitors
Identifying the
company’s
competitors
Assessing competitor’s
objectives, strategies,
strengths and weaknesses,
and reaction patterns
Selecting which
competitors to
attack or avoid

39. Competitor Map

40. Analyzing Competitors
Share of market
Share of mind
Share of heart

41. Porter’s Generic Competitive Strategies
Overall Cost
Leadership
Focus
Differentiation
Middle of
the Road

42. Competitive Strategies: Value Disciplines
Companies Gain Leadership Positions by Delivering Superior Value to their Customers Through These Strategies:
Operational Excellence
Customer Intimacy
Product Leadership

43. Value Disciplines: Operational Excellence
Providing products at competitive prices
Delivering with minimal difficulty or inconvenience
Lead industry in
Price
Convenience

44. Value Disciplines: Customer Intimacy
Segmenting and targeting precisely and tailoring offerings to match exactly what is demanded.
Continuous tailoring and shaping of products to fit increasingly fine definition of customer.
Detailed customer knowledge
Operational flexibility
Quick response
Lifetime value vs transaction
Extreme Loyalty

45. Value Disciplines: Product Leadership
Offering leading-edge products
Enhance customer’s use or application of the product
Thus, make rivals’ goods obsolete
Continuous stream of state-of-the-art products requires:
Creativity
Quick commercialization
Relentlessly pursuing new solutions

46. Choosing Value Disciplines vs Choosing Customers
Choice of business discipline and customer category is a single choice.
Customer Categories:
Defines value by price, convenience, quality matrix (price dominant)
Concerned with obtaining precisely what they want
New, different, unusual products count most

47. Hypothetical Market Structure
10%
Market
Nichers
20%
Market
Follower
30%
Market
Challenger
40%
Market
Leader

48. Competitive Marketing Strategies
Firm With the Largest Market
Share
Expand the
Total Market
Protecting
Market Share
Expanding
Market Leader
Runner-Up Firms that Fight
to Increase Market Share
Attack the
Market Leader
Avoid the
Acquire Smaller
Firms
Attack Other
Market Challenger

49. Specific Attack Strategies
Price discounts
Lower-priced goods
Value-priced goods
Prestige goods
Product proliferation
Product innovation
Improved services
Distribution innovation
Manufacturing-cost reduction
Intensive advertising promotion

50. Competitive Marketing Strategies
Runner-Up Firms that Want
to Hold Their Share Without
Rocking the Boat
Follow
Closely
Follow at a
Distance
Market Follower
Firms that Serve Small Segments
Not Pursued by Other Firms
End-User
Specialist
Customer-Size
Service
Quality-
Price
Geographic
Market
Market Nicher

51. Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adapter

52. Market Nicher Strategies

53. Contents of a Marketing Plan
Executive Summary
Current Marketing Situation
Threats and Opportunity Analysis
Objectives and Issues
Marketing Strategy
Action Programs
Budgets
Controls