Developing Marketing

Strategies and Plans

Marketing and Customer ValueMarketing and

Customer ValueMarketing involves satisfying customer

needs and wants. The task of any business is to deliver customer value at a

profit.

The Value Delivery Process

The Value Delivery Process

There are basically two views of marketing.

1: The traditional view (i.e. TRADITIONAL PHYSICAL PROCESS

SEQUENCE)

2: The modern view(i.e. VALUE CREATION AND DELIVERY

SEQUENCE)

3 V’s Marketing Approach

The Value ChainThe Value Chain

Michael Porter gave a model of ‘the generic value chain’. According to him

“the value chain is 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.”

What is the value chain?What is the value chain?

The primary activities cover the sequence of:

1.Bringing materials into the business (inbound logistics)

2.Converting them into final products (operations)

3.Shipping out final products (outbound logistics)

4.Marketing them (marketing and sales)

5.Servicing them (service)

Core Competencies

Core Competencies

Holistic marketing is a marketing strategy which is developed for thinking about the business as a whole. Majorly, it is all about the three key management values that are the striking most factors. They are as follows:

1. Value Exploration2. Value Delivery3. Value Creation

The Central Role of Strategic Planning

Companies should have the capabilities to:

1) understanding customer value,

2) creating customer value,

3) delivering customer value,

4) capturing customer value, and

5) sustaining customer value.

Reference page# 39 & 40Reference page# 39 & 40

What is a Strategic Planning?

What is a Strategic Planning?

It is the managerial process that helps to develop a strategic and viable fit between the firm’s objectives, skills, resources with the market opportunities available.

Corporate and Division Strategic Planning

Corporate and Division Strategic Planning

While doing strategic planning, a marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at a strategic and tactical level.

How to go about it?

Defining the corporate missionDefining the corporate mission Establishing SBUsEstablishing SBUs Allocating resources for SBUsAllocating resources for SBUs Planning for new businessPlanning for new business

Corporate MissionCorporate Mission

The corporate mission of any The corporate mission of any organization seeks to embody the organization seeks to embody the

entire goals of the organization and entire goals of the organization and the objective of its existence.the objective of its existence.

Under the directions of the Federal Government, the Pakistani Army will defend Pakistan against external aggression or threat of war. Act in aid of civil power under subject of law when called upon to do so.

We are committed to being the best lodging and food service company in the world, by treating employees in ways that create extraordinary customer service and shareholder value.

Everything we do is inspired by our enduring mission:• To Refresh the World... in body, mind, and spirit.• To Inspire Moments of Optimism... through our

brands and our actions.• To Create Value and Make a Difference...

everywhere we engage.

Characteristics of good mission statements:

Characteristics of good mission statements:

Strategic Business Units

The purpose of identifying the company's strategic business units is to develop

separate strategies and assign appropriate funding.

Characteristics of SBUs’:Characteristics of SBUs’:Characteristics of SBUs’:Characteristics of SBUs’: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 who is responsible for strategic planning and profit performance and who controls most of the factors affecting profit.

Strategic Planning Gap:Strategic Planning Gap:

Business portfolio analysis:Business portfolio analysis:

• Cash Cows – SBU’s that have a high market share of a low sales growth market.

• Stars – SBU’s that have a high market share of a high sales growth market.

• Question marks – SBU’s that have a low market share of a high sales growth market.

• Dogs – SBU’s that have a low market share of a low sales growth market.

BCG growth-share matrix:

Product Market Expansion Grid:

1.Market-penetration strategy The company first considers whether it could gain more market share with its current products in their current markets . 2.Market-development strategy

The company considers whether it can find or develop new markets for its current products. 3. Product-development strategy The company considers whether it can develop new products of potential interest to its current markets4. Diversification strategy

The company will also review opportunities to develop new products for new markets.

Business Unit Strategic Plan:Business Unit Strategic Plan:

SWOT Analysis:SWOT Analysis:

Opportunities Threats

Strengths STSO

Weakness WTWO

Internal

External

BEN n JERRY’s SWOT Analysis:

Goal Formulation:Goal Formulation:

Once the company has performed a SWOT analysis, it can proceed to develop specific goals for the planning period. The unit’s objective must meet the following criteria:

• Unit’s objectives must be hierarchical• Objectives should be quantitative• Goals should be realistic• Objectives must be consistent

Strategic Formulation:Strategic Formulation:

Strategic Alliances:

The Marketing Plan:

It is a comprehensive written statement of what is expected from each business unit in the future. It is evolved from the company’s mission statement. It is usually prepared annually and combines strategies with timetables for action.

Contents of Marketing Plan:

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

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

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