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Developing Marketing Strategies and Plans

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Marketing ManagementA South Asian Perspective, 13th ed

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 2-2

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?


Market Opportunity Analysis (MOA) (cont.)

• 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?


Figure 2.4 The Strategic Planning, Implementation,

and Control Processes


Corporate Headquarters’ Planning Activities

• Define the corporate mission

• Establish strategic business units (SBUs)

• Assign resources to each SBU

• Assess growth opportunities


Good Mission Statements

Focus on limited number of goalsFocus on limited number of goals

Stress major policies and valuesStress major policies and values

Define major competitive spheresDefine major competitive spheres

Take a long-term viewTake a long-term view

Short, memorable, meaningfulShort, memorable, meaningful

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Infosys Technologies Limited

“To achieve our objectives in an environmentof fairness, honesty, and courtesy towardsour clients, employees, vendors, and societyat large.”


eBay

“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all—collectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.”


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 and profitability


Figure 2.7 The Business Unit Strategic Planning Process


SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats


What is a Marketing Plan?

A marketing plan is the central instrument for directing and

coordinating the marketing effort.

It operates at a strategic and tactical level.


Levels of a Marketing Plan

• Strategic• Target marketing

decisions• Value proposition• Analysis of

marketing opportunities

• Tactical• Product features• Promotion• Merchandising• Pricing• Sales channels• Service


Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls


Evaluating a Marketing Plan

Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?


Strategies Suggested by Ansoff’s Product-Market Expansion Grid

Present Product New Product

Present Market

Market Penetration : Amul selling milk to existing customer base.

Product Development : Amul Develops flavored Yogurt.

New Market

Market Development : Amul enters the markets of Mauritius, UAE, Australia and Singapore.

Diversification : Amul enters Pizza, Ice cream and Body warmers clothes business.


Value Creation and Delivery Process

•Choose the Value : Customer Segmentation, Market Selection, Value positioning

•Provide the Value : Product Development, Service Development, Pricing, Sourcing and Making, Distributing and Servicing

•Communicating the Value : Sales force, Sales promotion, Advertising


What is the Value Chain?

The value chain is a tool for identifying ways to create more customer value

because every firm is a blend of primary and support activities

performed to design, produce, market, deliver, and support its product.

There are nine strategically relevant activities – five primary and four

support activities.

Strategic Value Chain ActivitiesPrimary Activities : • Inbound Logistics : Bringing material into the Business

•Operations : Converting them into final products

•Outbound Logistics : Making them available for final customers

•Marketing and Sales : Promoting and selling.•Service : Providing necessary promised service.

Strategic Value Chain Activities

Secondary Activities : •Firm Infrastructure : Necessary infrastructure and resources•Human Resource : Qualified and experienced staff•Technology Development : Necessary environment for R & D•Procurement : Proper input in the organization.


Table 2.3 Product Orientation vs. Market Orientation

Company Product Market

Xerox We make copying equipment

We improve office productivity

Columbia Pictures

We make movies We entertain people

Encyclopedia Britannica

We sell encyclopedias We distribute information

Carrier We make air conditioners and furnaces

We provide climate control inside homes


Core Business Processes

• Market-sensing process

• New-offering realization process

• Customer acquisition process

• Customer relationship management process


Characteristics of Core Competencies

• A source of competitive advantage

• Applications in a wide variety of markets

• Difficult to imitate


What is Holistic Marketing?

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.


Goal Formulation and MBO

• Unit’s objectives must be hierarchical

• Objectives should be quantitative

• Goals should be realistic

• Objectives must be consistent


What is Corporate Culture?

Corporate culture is the shared experiences, stories, beliefs, and norms

that characterize an organization.


Porter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus


Categories of Marketing Alliances

Product or Service AlliancesProduct or Service Alliances

Promotional AlliancesPromotional Alliances

Logistics AlliancesLogistics Alliances

Pricing CollaborationsPricing Collaborations

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