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Developing Marketing strategies &Plans
INSTRUCTOR: KRISHAN GOPAL
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Value delivery process
• Traditional process: Design, procure,make, price, sell, advertise, promote,service
• Modern process:
INSTRUCTOR: KRISHAN GOPAL
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INSTRUCTOR: KRISHAN GOPAL
Three V’s Approach to Marketing
Define the value segment:STP
Define the value segment:STP
Providing the value
Providing the value
Communicating the value
Communicating the value
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INSTRUCTOR: KRISHAN GOPAL
What is the Value Chain?
The value chain is a tool for identifyingways to create more customer valuebecause every firm is a synthesis of
primary and support activities performed to design, produce, market,
deliver, and support its product.
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INSTRUCTOR: KRISHAN GOPAL
Figure 2.2 Porter’s Value Chain
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Characteristics of Core Competencies
• A source of competitive advantage• Applications in a wide variety of markets
• Difficult to imitate
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INSTRUCTOR: KRISHAN GOPAL
What is a Marketing Plan?
A marketing plan is the centralinstrument for directing and
coordinating the marketing effort.It operates at a
strategic and tactical level.
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INSTRUCTOR: KRISHAN GOPAL
Levels of a Marketing Plan
• Strategic• Target marketing
decisions• Value proposition• Analysis of
marketingopportunities
• Tactical• Product features
• Promotion• Merchandising• Pricing• Sales channels
• Service
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INSTRUCTOR: KRISHAN GOPAL
Figure 2.2 The Strategic Planning,Implementation,
and Control Processes
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INSTRUCTOR: KRISHAN GOPAL
Corporate Headquarters’Planning Activities
• Define the corporate mission• Establish strategic business units
(SBUs)• Assign resources to each SBU• Assess growth opportunities
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INSTRUCTOR: KRISHAN GOPAL
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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INSTRUCTOR: KRISHAN GOPAL
Motorola
“The purpose of Motorola is to honorablyserve the needs of the community by providing
products and services of superior quality at afair price to our customers; to do this so as toearn an adequate profit which is required for the total enterprise to grow; and by doing so,
provide the opportunity for our employees andshareholders to achieve their personalobjectives.”
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INSTRUCTOR: KRISHAN GOPAL
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 .”
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INSTRUCTOR: KRISHAN GOPAL
Table 2.3Product Orientation vs. Market Orientation
Company Product Market
Missouri-PacificRailroad
We run a railroad We are a people-and-goods mover
Xerox We make copyingequipment
We improve officeproductivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain people
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INSTRUCTOR: KRISHAN GOPAL
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
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Assigning resources to each SBU
INSTRUCTOR: KRISHAN GOPAL
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The Boston ConsultingGroup’s Growth-Share Matrix
20%-20%-18%-18%-
16%-16%-14%-14%-12%-12%-10%-10%-
8%-8%-6%-6%-4%-4%-2%-2%-
00
Mark et Growth Rate
3
?
Question marks
? ? ?
2
1
Cash cow
6
Dogs
87
10x 4x 2x 1.5x 1x10x 4x 2x 1.5x 1x
Relative Market Share.5x .4x .3x .2x .1x.5x .4x .3x .2x .1x
Stars
5
4
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Assessing Growth Opprotunities
INSTRUCTOR: KRISHAN GOPAL
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INSTRUCTOR: KRISHAN GOPAL
Ansoff’s Product-Market Expansion Grid
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INSTRUCTOR: KRISHAN GOPAL
Figure 2.5 The Business UnitStrategic Planning Process
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INSTRUCTOR: KRISHAN GOPAL
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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INSTRUCTOR: KRISHAN GOPAL
Market Opportunity Analysis (MOA)
• Can the benefits involved in the opportunitybe articulated convincingly to a defined targetmarket?
• Can the target market be located andreached with cost-effective media and tradechannels?
• Does the company possess or have accessto the critical capabilities and resourcesneeded to deliver the customer benefits?
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INSTRUCTOR: KRISHAN GOPAL
Market Opportunity Analysis (MOA)(cont.)
• Can the company deliver the benefitsbetter than any actual or potentialcompetitors?
• Will the financial rate of return meet or exceed the company’s requiredthreshold for investment?
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Goal Formulation
• Goals are objectives that are specificwith respect to magnitude and time.
• Arranged hierarchically• Should be quantitative• Realistic
INSTRUCTOR: KRISHAN GOPAL
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INSTRUCTOR: KRISHAN GOPAL
Strategy formulation
Porter’s Generic StrategiesOverall Cost Leadership
Differentiation
Focus
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Programme formulation &implementation
INSTRUCTOR: KRISHAN GOPAL
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Feedback & Control
INSTRUCTOR: KRISHAN GOPAL
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INSTRUCTOR: KRISHAN GOPAL
Marketing Plan Contents
Executive summaryTable of contentsSituation analysisMarketing strategyFinancial projections
Implementation controls
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INSTRUCTOR: KRISHAN GOPAL
Marketing Debate
What good is a mission statement?
Take a position:1. Mission statements are critical to asuccessful marketing organization.or 2. Mission statements rarely provideuseful marketing value.