marketing strategies and plans
TRANSCRIPT
ChapterChapter
2Developing
2Developing
Marketing Strategies Marketing Strategies and Plans
Dr Pusanisa ThechatakerngDr.Pusanisa [email protected]
2-1© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
In this chapter, wedd h f lladdress the following
questions:q
How does marketing affect customer value?How is strategic planning carried out at different levels of the organization?different levels of the organization?What does a marketing plan include?
2-2© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Opening Case Study ZARAOpening Case Study - ZARA
Known for trendy affordable clothes Zara’s secret? T t l t l f b i Total control of business Design > production > distributiong p
Lead-time advantage - lower inventory levelsg y
Frequent line changes - exclusivity for customers
2-3© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Opening Case Study ZARAOpening Case Study - ZARA
Zara’s “democratization of fashion”Advertising approach - its shop windowsExpansion plans - 4,000 stores worldwide
2-4© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Expansion plans 4,000 stores worldwide
Two Views of the Value Delivery Process
Figure 2.1
2-5© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Fig 2.2 The Generic Value Chain
Examine costs & performance ineach activity and improve it
2-6© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
y p
Marketing and Customer Valuecore competencies
Eg Volvo’s core competency is safety
Eg Nike does not manufacture own shoesA i fi t tAsian firms more competent
Nike’s 2 core competencies-shoe design & merchandising
2-7© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Marketing and Customer Valuecore competencies
i thi th t fi d ll d th t t th f ll i th diti
3
is something that a firm can do well and that meets the following three conditions
3 characteristics:1 competitive advantage 1. competitive advantage 2. applications in many marketspp y3. difficult for competitors to
imitate
2-8© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Marketing and Customer Valuecore competencies
Asian companies - core competence:p p
Expand quickly to capture global k t t itimarket opportunities
Become atomizersBeco e ato e sBecome asset light by using intangibles
2-9© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Marketing and Customer ValueThe Central Role of Strategic Planning
Strategic planning ensure correct marketingactivities are selected & executed
2-10© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Marketing and Customer ValueThe Central Role of Strategic PlanningThe Central Role of Strategic Planning
Figure 2.4 The Strategic Planning, Implementation, and Control Processes
2-11© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Corporate & Division Strategic Pl iPlanning
4 corporate planning activities:4 corporate planning activities:
1. Define corporate mission2. Establish strategic business units (SBUs)3 A ig t h SBU3. Assign resources to each SBU4. Assess growth opportunitiesg pp
2-12© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Corporate & Division Strategic PlanningPlanning
1. Define the Corporate Missionf p
What is our business? Who is the customer? What is of value to the customer? What is of value to the customer? What will our business be? 1st ? What should our business be?
2-13© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Table 2.1 Sample Mission Statement
2-14© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Corporate & Division Strategic PlanningPlanning
1. Define the Corporate Mission
Mission statements are the vision direction for company for next 10 to 20 years
33 major characteristics:1 Focus on limited number of goals1. Focus on limited number of goals2. Stress company’s major policies & values3. Define competitive spheres company will
operate in
2-15© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
operate in
Defining BusinessDefining Businessmarket definitions better than product definitionsa et de t o s bette t a p oduct de t o s
Customer-satisfying NOT goods-producingy g g p g
Table 2.2 Product-Oriented Versus Market-Oriented Definitions of a Business
2-16© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
2. Establish strategic business units (SBUs)
An SBU has 3 characteristics:An SBU has 3 characteristics:
1. SBU plan separate from company2. its own set of competitors3 has a manager for strategic 3. has a manager for strategic
planning and profit matters
2-17© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
3 Assign resources to each SBU3. Assign resources to each SBU
The purpose of identifying the company’s strategic business units is company s strategic business units is to develop separate strategies and assign appropriate funding
2-18© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
4 Assess growth opportunities4. Assess growth opportunities
l plan new business, ddownsize or terminate old business
How to fill the strategic-the strategic-planning gap? Figure 2.5
the strategic planning gap2-19© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
the strategic planning gap
INTENSIVE GROWTHrelated to a company's current operations
The company first considers… – more market share with current products & p
markets (market-penetration strategy)? – find new markets for current products find new markets for current products
(market-development strategy)?develop new products to current markets – develop new products to current markets (product-development strategy)?d l d t f k t – develop new products for new markets (diversification strategy)?
2-20© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
market-penetration strategycafés serving gourmet coffee directly to customers in Seattle 1
1market-development strategysame as above throughout North America & worldwide
112
product development strategy
diversification strategy
product development strategyIncrease customers’ purchases with new in-store merchandise (CDs) 3
2-21© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Frappuccino® bottled drinks, Starbucks brand ice cream & purchase of tea retailer Tazo® Tea into grocery store aisles 4
INTEGRATIVE GROWTHINTEGRATIVE GROWTHa firm acquires some other element of the chain of
di t ib ti f hi h it i bdistribution of which it is a member.
INTEGRATIVE GROWTH: backward forward INTEGRATIVE GROWTH: backward, forward or horizontal integration within its industry
acquire suppliers -backward integrationacquire retailer-forward integrationacquire competitors-horizontal integrationacquire competitors horizontal integration
If unsuccessful diversification
2-22© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
If unsuccessful, diversification
DIVERSIFICATION GROWTHDIVERSIFICATION GROWTH
When good opportunities are g ppfound outside present businessesbusinessesGood opportunity is when i d t i tt ti & industry is attractive & company has strengths to be successful
2-23© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Organization and Organizational Culture
Corporate culture “ h h d i i b li f“the shared experiences, stories, beliefs& norms that characterize an& norms that characterize anorganization”
corporate culture, structure & li i k h & policies are key when implement new strategy
2-24© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Organization and Organizational Culture
What drive successful Asian businesses?
4 organizational factors
1. Market orientation/direction 2. Innovativeness3. Corporate culture3. Corporate culture4. Organizational climate
2-25© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Organization and Organizational Culture
How to adopt new view of crafting strategies?Get fresh ideas from: – employees with youthful perspectives employees with youthful perspectives – employees who are out stationed
l h i d– employees who are new to industry
Choose among different views of the futureg
2-26© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic Planning - the business mission
E h b i i d d fi i Each business unit needs to define its specific mission within the broader
2-27© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
company mission
Business Unit Strategic Planning – SWOT Analysis
SWOTAnalysis
opportunities
Overall evaluation of a company’s company s strengths weaknesses
threats strengthsSWOTAnalysis
opportunities & threats
y
monitor external & internal
weaknesses
2-28© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
environmentweaknesses
Business Unit Strategic Planning –g gEXTERNAL ENVIRONMENT (OPPORTUNITY & THREAT) ANALYSIS
A business unit has to opportunitiesidentify opportunities and
threats. How?threats strengthsSWOT
AnalysisBy monitoring key macroenvironment &
weaknesses
macroenvironment & microenvironment factors that affect ability to earn that affect ability to earn profits
2-29© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic Planning – SWOT Analysis
3 main sources of market opportunities
1. Supply something that is in short supply
2. Supply existing product in new way
3. Totally new product or service
2-30© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic Planning – Market Opportunity Analysis (MOA)
2. Can target markets be reached with cost-effective
media & trade channels?3 Possess
Market Opportunity 1. Can benefits
i
3. Possess resources to
deliver benefits?Market Opportunity
Analysis (MOA)To evaluate opportunities
T d t i tt ti &
convincetarget markets?
To determine attractiveness & probability of success
4. Are benefits better than
competitors?
5. Is it profitable?
2-31© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
competitors?
2-32© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic Planning –INTERNAL ENVIRONMENT (STRENGTHS/WEAKNESSES) ANALYSIS
opportunitiesChecklist to evaluate INTERNAL strengths & weaknesses
threats strengthsSWOTAnalysis
weaknesses
Go for opportunities where it has required strengths? it has required strengths?
Go for opportunities where it has to develop certain
2-33© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
it has to develop certain strengths?
Business Unit Strategic Planning – goal formulation
Goalsobjectives specific to objectives specific to
magnitude/greatness & time
G l f l tiGoal formulationgoals for planning period done after g p g p
doing SWOT analysis
2-34© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic Planning – goal formulation
Managing by Objectives (MBO) is successful if:
1.Objectives arranged hierarchically
2.Objectives are quantitative where possible
3 Goals are realistic3.Goals are realistic
4 Objectives are consistent4.Objectives are consistent
2-35© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic Planning – strategic formulation
Goals indicate what business wants to achieveStrategy is a game plan for getting Strategy is a game plan for getting there
k ti t tmarketing strategycompatible technology strategysourcing strategy
2-36© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic Planning – strategic formulation
PORTER’S GENERIC STRATEGIES
Overall costleadership
FocusDifferentiationleadership
achieve lowest focuses onsuperiorf icosts to price lower
than competitors & win large market
narrow marketsegments
performance inarea valued by l f win large market
sharelarge part of market
2-37© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic
STRATEGIC ALLIANCES
Planning – strategic formulationSTRATEGIC ALLIANCESCompanies need strategic partners to be effective.
A celebration at a Star Alliance brings together 16 airlines that cover most of
the globeMany strategic alliances take the form of marketing alliances.
the globe
4 major categories:1 Product or service alliances1. Product or service alliances2. Promotional alliances3. Logistics alliances4. Pricing collaborations
2-38© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic Planning – strategic formulation
STRATEGIC ALLIANCES4 major categories:1. Product or service alliances1. Product or service alliances2. Promotional alliances3. Logistics alliances
i i ll b i4. Pricing collaborations
Visa has promotional alliance with Hong Kong Disneyland
2-39© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic Planning -Program Formulation & Implementation
STEP ONEOnce strategies
developed work out detailed programs
STEP TWOOnce marketing
programs marketing must estimate costsprograms formulated
marketing must estimate costs
STEP THREEActivity-based
cost (ABC) accounting applied
whether results to justify the costaccounting applied
STEP FOURImplementing not lose sight of stakeholders & their needs
2-40© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
p gstrategy not lose sight of stakeholders & their needs
Business Unit Strategic Planning – feedback and control
Marketplace will change –review & revise implementation, programs, strategies or objectives
HAIER is a good example:Started with inferior-quality productsStarted with inferior quality products
Later, sales went upChina’s leading maker of washing machines
Faces competition in Chinese marketFaces competition in Chinese marketPartner with Sanyo in production alliancesMakes digital TVs with LG ElectronicsDiversify into finance computers cell phones
2-41© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Diversify into finance, computers, cell phones
Business Unit Strategic gPlanning - Contents of a Marketing Plan
1 Is the plan simple?
marketing plan
1. Is the plan simple?
2 I th l ifi ?
A summarized writtendocument about 2. Is the plan specific?document aboutmarketplace &plans to reach
3. Is the plan realistic?plans to reach marketing objectives
4. Is the plan complete?
2-42© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Business Unit Strategic gPlanning - Contents of a Marketing Plan
iExecutive summary & table of contents
Situation analysisSituation analysis
Marketing strategyg gy
Financial projections
Implementation controls
2-43© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
Final discussionMarketing Debate — What Good is a Mission Statement?Virtually all firms have mission statements to help guide and inspire employees as well as signal what is important to the firm to those outside the employees as well as signal what is important to the firm to those outside the firm. Mission statements are often the product of much deliberation and discussion. At the same time, some critics claim that mission statements Sometimes lack “teeth” and specificity. Moreover, critics also maintain that in many cases, mission statements do not vary much from firm to firm and make the same empty promises.make the same empty promises.
Take a position: Mission statements are critical to a successful marketing i i Mi i l id f l k i lorganization, or Mission statements rarely provide useful marketing value.
Marketing DiscussiongConsider Porter’s value chain and the holistic marketing orientation model. What implications do they have for marketing planning? How would you structure a marketing plan to incorporate some of their
2-44© Kotler, Keller, Ang, Leong & Tan Marketing Management
An Asian Perspective
How would you structure a marketing plan to incorporate some of their concepts?