mm - session 02

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Developing Marketing Strategies and

Plans

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Agenda

• How does marketing affect customer value?

• Strategic planning at different levels of the organization

• Components of a marketing plan

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Strategy

• Strategy is the direction and scope of an

organization over the long-term; which achieves

advantage for the organization through its

configuration of resources within a challenging

environment, to meet the needs of markets and to

fulf i l l stakeholder expectations" .

3

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Hierarchy of Strategy

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Marketing and Customer Value

• The value delivery process

• Two views of value delivery process

– Traditional physical process (make the

product and sell the product)

– Value creation and delivery process (Choose

the value by STP, provide the value,

communicate the value)

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Three ‘Vs” Approach to Marketing

• Value exploration – Company identifying new value

opportunities

•

Value creation – Company efficiently create more promising

new value offerings

• Value delivery – Company use its capabilities and

infrastructure to deliver new value offerings more efficiently

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The Value Chain

Value chain: A tool for identifying ways to create more

customer value because every firm is a synthesis of primary

and support activities performed to design, produce, market,

deliver, and support its product.

Many companies today have

partnered with specific

suppliers and distributors to

create a superior value delivery

network, also called as supply

chain

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Core Competencies

•

Competitive advantage ultimately derived from how well thecompany has fitted its core competencies into tightly

interlocking “activity systems”.

• Maximizing core competencies: Business realignment is the

key and involves three steps:

1. (re) defining the business concept

2. (re) shaping the business scope

3. (re) positioning the company’s brand identity

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The Role of Strategic Planning in Marketing

• Strategic planning helps in:

1. Managing a company’s business as an investment portfolio

2. Assessing each business’s strength by considering the

market’s growth rate and company’s fit in the market

3. Establishing a strategy

Strategic planning happens at dif ferent levels of an

organization: Corporate, division, business, product

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The Strategic planning Process

Corporate strategy

Mission, goals and objectives

Business unit strategy

Mission, goals and objectives

Functional unit strategy

Marketing goals

and objectives

Marketing strategy

Implementation

Evaluation and

control

Production goals

and objectives

Production strategy

Implementation

Evaluation and

control

Financial goals and

objectives

Financial strategy

Implementation

Evaluation and

control

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The Strategic Planning, Implementation,

and Control Processes

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Corporate Strategic Planning

All corporate headquarters undertake four planning activities:

1. Defining the corporate mission

2. Establishing the SBU’s

3. Assigning resources to each SBU

4. Assessing growth opportunities

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1. Defining Corporate MissionGood Mission Statements

Focus on limited number of goals

Stress major policies and values

Define major competitive spheres

Take a long-term view

Short, memorable, meaningful

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Organizational Mission vs. Vision

Mission

• A clear and concise statement

that explains the

organization’s reason for

existence

(what business are we in?)

Ex: To organize the world’s

information and make it

universally accessible anduseful

Vision• Future oriented and represents

where the organization is

headed and where it wants to

go

(what do we want to become?)

Ex: Never settle for the best

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Mission Statements Examples

• Infosys Technology Ltd. - To achieve our objectives in an

environment of fairness, honesty, and courtesy towards our clients,

employees, vendors, and society at large.

• Biocon - To be an integrated biotechnology enterprise

of global distinction

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2. Establishing SBUs

• An SBU has three characteristics:

1. It is a single business, or collection of 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 planning and performance

• GE has classified its businesses into 49 SBUs

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3. Assigning Resources to Each SBU

• Portfolio-planning models provide an analytical means for

making investment decisions

• Some of the models used are as follows:

– BCG’s Growth-Share matrix

– GE multifactor model

– Shareholder value analysis

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4. Assessing Growth Opportunities

• Involves planning new

businesses, downsizing, and

terminating older businesses

• Ansoff Matrix

• Strategies suggested:

– Market penetration

– Market development

– Product development

– Diversification

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Business Unit Strategic Planning

All corporate headquarters undertake four planning activities:

1. Business mission

2. SWOT analysis (External and internal environment

analysis)

3. Strategy formulation

4. Program formulation

5. Strategy implementation

6. Feedback and control

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Strategy FormulationPorter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus

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Product PlanningMarketing Plan

Each product level within a business unit must develop a

marketing plan for achieving its goals

The marketing plan is one of the most important outputs of

the marketing process

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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Marketing Plan Structure

1. Executive Summary (Synopsis, Major aspects of the marketing plan)

2. Situation Analysis (Analysis of the internal, customer and external

environment)

3. SWOT Analysis

4. Marketing Goals and Objectives

5. Marketing Strategy (Product, pricing, distribution, and IMC strategy)

6. Marketing implementation (Structural issues, tactical marketing

activities)

7. Evaluation and Control (Formal controls, informal controls,

Implementation schedule and timeline)

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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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