882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 127

120310 1

ar e ngManagement

Sales amp Marketing

OrientationsThe Marketing Approach(Understanding Customer Requirements ampCreating Customer Value)

The Value ChainMarketing PlanSWOT Analysis

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 227

120310 2

SalesOrientation

Sales Orientation

The concept holds the consumers will not buy enough of the organizationsproducts unless the organization undertake a large selling and promotionaleffort

The selling concept is practiced most aggressively with unsought goods ndashgoods that buyers normally do not think of buying such as insurance policiesThe selling concept is also practiced in non profit areas by fund raiserscollege admission offices and political parties

Most firms practice the concept of selling when they have overcapacity Their aim is to sell what they make rather than make what the market wants

It focuses on creating sales transactions rather than building on long termprofitable relationships with its customers This can sometimes lead to a long

term impact on sales because dissatisfied customers do not buy againWorse yet while the average satisfied customer tells three others about goodexperiences the average dissatisfied customer tells ten others about his or her bad experience

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 327

120310 3

MarketingOrientation

Marketing Orientation

The marketing orientation holds that the key to achieving organizational goals consists

of the company being more effective than its competitors in creating delivering and

communicating customer value to its chosen target markets

Theodore Levitt of Harvard drew a perceptive contrast between selling and marketing

concepts ldquo Selling focuses on the needs of the seller marketing on the needs of the

buyerrdquo Selling is preoccupied with the sellerrsquos needs to convert his product into cashmarketing with the idea of satisfying the needs of the customer by means of the

product and the whole cluster of things associated with creating delivering and finally

consuming it

The marketing concept rests on four pillarsTarget market Customer needs Integrated

Marketing and profitability The selling concept takes an inside out perspective It starts

with the factory focuses on its existing products and calls for heavy selling and

promoting to produce profitable sales The marketing concept takes and outside-in

perspective It starts with a well defined market focuses on customer needs co-

ordinates activities that affect customers and produces profit by satisfying customers

This concept can be widely seen in Nokia phones Their models are market specific

and aimed at satisfying well defined segments of customers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 427

120310 4

Sales amp MarketingOrientations

Time

P r o

f i

t

Sales Orientation

Marketing Orientation

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 527

120310 5

KeyDifferentiators

Marketing and Sales Orientations

Marketing orientation gives long term profit because

customers do repeat purchases but sales orientation

gives short term profits

The market oriented firms conduct researches to find

out customer needs and wants unlike sales orientated

firms that conduct researches only to find out why

sales declined Marketing oriented firms believe that the customer

satisfaction is the thing that the customer wants unlike

sales oriented firms that believe in quality and profits

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 627

120310 6

The MarketingApproach

The marketing approach is all about understanding and satisfying

customer needs

It is a fundamental idea of marketing that organizations survive and

prosper through meeting the needs and wants of customers This

important perspective is commonly known as the Marketing Concept

The marketing concept is about matching a companys capabilities

with customer wants This matching process takes place in what is

called the marketing environment

Businesses do not undertake marketing activities alone They face

threats from competitors and changes in the political economic

social and technological environment All these factors have to be

taken into account as a business tries to match its capabilities with the

needs and wants of its target customers An organization that adopts the marketing concept accepts the needs

of potential customers as the basis for its operations Success is

dependent on satisfying customer needs

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 727

120310 7

The MarketingApproach

Need

A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad

WantA want is a desire for a specific product or service to satisfy the underlying need

For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the

need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay

Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses

DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it

For example many consumers around the globe want a Mercedes But relatively few

are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand

Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are

AttractiveWork wellAffordable

Available

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 827

120310 8

The Value Chain

Specific interlinked activities through which an

organization can create competitive advantage are

Collectively termed as Value Chain

The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus

generating a profit margin

The value chain comprises of two groups of activities

Primary Activities

Support Activities

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 927

120310 9

The Value Chain

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1027

120310 10

The Value Chain

Primary Activities Inbound logistics include the receiving warehousing

and inventory control of input materials Operations are the value-creating activities that

transform the inputs into the final product Outbound logistics are the activities required to get

the finished product to the customer includingwarehousing order fulfillment etc

Marketing amp Sales are those activities associated withgetting buyers to purchase the product including

channel selection advertising pricing etc Service activities are those that maintain and enhance

the products value including customer support repair services etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 227

120310 2

SalesOrientation

Sales Orientation

The concept holds the consumers will not buy enough of the organizationsproducts unless the organization undertake a large selling and promotionaleffort

The selling concept is practiced most aggressively with unsought goods ndashgoods that buyers normally do not think of buying such as insurance policiesThe selling concept is also practiced in non profit areas by fund raiserscollege admission offices and political parties

Most firms practice the concept of selling when they have overcapacity Their aim is to sell what they make rather than make what the market wants

It focuses on creating sales transactions rather than building on long termprofitable relationships with its customers This can sometimes lead to a long

term impact on sales because dissatisfied customers do not buy againWorse yet while the average satisfied customer tells three others about goodexperiences the average dissatisfied customer tells ten others about his or her bad experience

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 327

120310 3

MarketingOrientation

Marketing Orientation

The marketing orientation holds that the key to achieving organizational goals consists

of the company being more effective than its competitors in creating delivering and

communicating customer value to its chosen target markets

Theodore Levitt of Harvard drew a perceptive contrast between selling and marketing

concepts ldquo Selling focuses on the needs of the seller marketing on the needs of the

buyerrdquo Selling is preoccupied with the sellerrsquos needs to convert his product into cashmarketing with the idea of satisfying the needs of the customer by means of the

product and the whole cluster of things associated with creating delivering and finally

consuming it

The marketing concept rests on four pillarsTarget market Customer needs Integrated

Marketing and profitability The selling concept takes an inside out perspective It starts

with the factory focuses on its existing products and calls for heavy selling and

promoting to produce profitable sales The marketing concept takes and outside-in

perspective It starts with a well defined market focuses on customer needs co-

ordinates activities that affect customers and produces profit by satisfying customers

This concept can be widely seen in Nokia phones Their models are market specific

and aimed at satisfying well defined segments of customers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 427

120310 4

Sales amp MarketingOrientations

Time

P r o

f i

t

Sales Orientation

Marketing Orientation

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 527

120310 5

KeyDifferentiators

Marketing and Sales Orientations

Marketing orientation gives long term profit because

customers do repeat purchases but sales orientation

gives short term profits

The market oriented firms conduct researches to find

out customer needs and wants unlike sales orientated

firms that conduct researches only to find out why

sales declined Marketing oriented firms believe that the customer

satisfaction is the thing that the customer wants unlike

sales oriented firms that believe in quality and profits

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 627

120310 6

The MarketingApproach

The marketing approach is all about understanding and satisfying

customer needs

It is a fundamental idea of marketing that organizations survive and

prosper through meeting the needs and wants of customers This

important perspective is commonly known as the Marketing Concept

The marketing concept is about matching a companys capabilities

with customer wants This matching process takes place in what is

called the marketing environment

Businesses do not undertake marketing activities alone They face

threats from competitors and changes in the political economic

social and technological environment All these factors have to be

taken into account as a business tries to match its capabilities with the

needs and wants of its target customers An organization that adopts the marketing concept accepts the needs

of potential customers as the basis for its operations Success is

dependent on satisfying customer needs

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 727

120310 7

The MarketingApproach

Need

A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad

WantA want is a desire for a specific product or service to satisfy the underlying need

For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the

need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay

Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses

DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it

For example many consumers around the globe want a Mercedes But relatively few

are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand

Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are

AttractiveWork wellAffordable

Available

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 827

120310 8

The Value Chain

Specific interlinked activities through which an

organization can create competitive advantage are

Collectively termed as Value Chain

The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus

generating a profit margin

The value chain comprises of two groups of activities

Primary Activities

Support Activities

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 927

120310 9

The Value Chain

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1027

120310 10

The Value Chain

Primary Activities Inbound logistics include the receiving warehousing

and inventory control of input materials Operations are the value-creating activities that

transform the inputs into the final product Outbound logistics are the activities required to get

the finished product to the customer includingwarehousing order fulfillment etc

Marketing amp Sales are those activities associated withgetting buyers to purchase the product including

channel selection advertising pricing etc Service activities are those that maintain and enhance

the products value including customer support repair services etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 327

120310 3

MarketingOrientation

Marketing Orientation

The marketing orientation holds that the key to achieving organizational goals consists

of the company being more effective than its competitors in creating delivering and

communicating customer value to its chosen target markets

Theodore Levitt of Harvard drew a perceptive contrast between selling and marketing

concepts ldquo Selling focuses on the needs of the seller marketing on the needs of the

buyerrdquo Selling is preoccupied with the sellerrsquos needs to convert his product into cashmarketing with the idea of satisfying the needs of the customer by means of the

product and the whole cluster of things associated with creating delivering and finally

consuming it

The marketing concept rests on four pillarsTarget market Customer needs Integrated

Marketing and profitability The selling concept takes an inside out perspective It starts

with the factory focuses on its existing products and calls for heavy selling and

promoting to produce profitable sales The marketing concept takes and outside-in

perspective It starts with a well defined market focuses on customer needs co-

ordinates activities that affect customers and produces profit by satisfying customers

This concept can be widely seen in Nokia phones Their models are market specific

and aimed at satisfying well defined segments of customers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 427

120310 4

Sales amp MarketingOrientations

Time

P r o

f i

t

Sales Orientation

Marketing Orientation

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 527

120310 5

KeyDifferentiators

Marketing and Sales Orientations

Marketing orientation gives long term profit because

customers do repeat purchases but sales orientation

gives short term profits

The market oriented firms conduct researches to find

out customer needs and wants unlike sales orientated

firms that conduct researches only to find out why

sales declined Marketing oriented firms believe that the customer

satisfaction is the thing that the customer wants unlike

sales oriented firms that believe in quality and profits

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 627

120310 6

The MarketingApproach

The marketing approach is all about understanding and satisfying

customer needs

It is a fundamental idea of marketing that organizations survive and

prosper through meeting the needs and wants of customers This

important perspective is commonly known as the Marketing Concept

The marketing concept is about matching a companys capabilities

with customer wants This matching process takes place in what is

called the marketing environment

Businesses do not undertake marketing activities alone They face

threats from competitors and changes in the political economic

social and technological environment All these factors have to be

taken into account as a business tries to match its capabilities with the

needs and wants of its target customers An organization that adopts the marketing concept accepts the needs

of potential customers as the basis for its operations Success is

dependent on satisfying customer needs

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 727

120310 7

The MarketingApproach

Need

A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad

WantA want is a desire for a specific product or service to satisfy the underlying need

For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the

need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay

Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses

DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it

For example many consumers around the globe want a Mercedes But relatively few

are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand

Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are

AttractiveWork wellAffordable

Available

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 827

120310 8

The Value Chain

Specific interlinked activities through which an

organization can create competitive advantage are

Collectively termed as Value Chain

The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus

generating a profit margin

The value chain comprises of two groups of activities

Primary Activities

Support Activities

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 927

120310 9

The Value Chain

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1027

120310 10

The Value Chain

Primary Activities Inbound logistics include the receiving warehousing

and inventory control of input materials Operations are the value-creating activities that

transform the inputs into the final product Outbound logistics are the activities required to get

the finished product to the customer includingwarehousing order fulfillment etc

Marketing amp Sales are those activities associated withgetting buyers to purchase the product including

channel selection advertising pricing etc Service activities are those that maintain and enhance

the products value including customer support repair services etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 427

120310 4

Sales amp MarketingOrientations

Time

P r o

f i

t

Sales Orientation

Marketing Orientation

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 527

120310 5

KeyDifferentiators

Marketing and Sales Orientations

Marketing orientation gives long term profit because

customers do repeat purchases but sales orientation

gives short term profits

The market oriented firms conduct researches to find

out customer needs and wants unlike sales orientated

firms that conduct researches only to find out why

sales declined Marketing oriented firms believe that the customer

satisfaction is the thing that the customer wants unlike

sales oriented firms that believe in quality and profits

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 627

120310 6

The MarketingApproach

The marketing approach is all about understanding and satisfying

customer needs

It is a fundamental idea of marketing that organizations survive and

prosper through meeting the needs and wants of customers This

important perspective is commonly known as the Marketing Concept

The marketing concept is about matching a companys capabilities

with customer wants This matching process takes place in what is

called the marketing environment

Businesses do not undertake marketing activities alone They face

threats from competitors and changes in the political economic

social and technological environment All these factors have to be

taken into account as a business tries to match its capabilities with the

needs and wants of its target customers An organization that adopts the marketing concept accepts the needs

of potential customers as the basis for its operations Success is

dependent on satisfying customer needs

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 727

120310 7

The MarketingApproach

Need

A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad

WantA want is a desire for a specific product or service to satisfy the underlying need

For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the

need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay

Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses

DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it

For example many consumers around the globe want a Mercedes But relatively few

are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand

Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are

AttractiveWork wellAffordable

Available

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 827

120310 8

The Value Chain

Specific interlinked activities through which an

organization can create competitive advantage are

Collectively termed as Value Chain

The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus

generating a profit margin

The value chain comprises of two groups of activities

Primary Activities

Support Activities

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 927

120310 9

The Value Chain

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1027

120310 10

The Value Chain

Primary Activities Inbound logistics include the receiving warehousing

and inventory control of input materials Operations are the value-creating activities that

transform the inputs into the final product Outbound logistics are the activities required to get

the finished product to the customer includingwarehousing order fulfillment etc

Marketing amp Sales are those activities associated withgetting buyers to purchase the product including

channel selection advertising pricing etc Service activities are those that maintain and enhance

the products value including customer support repair services etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 527

120310 5

KeyDifferentiators

Marketing and Sales Orientations

Marketing orientation gives long term profit because

customers do repeat purchases but sales orientation

gives short term profits

The market oriented firms conduct researches to find

out customer needs and wants unlike sales orientated

firms that conduct researches only to find out why

sales declined Marketing oriented firms believe that the customer

satisfaction is the thing that the customer wants unlike

sales oriented firms that believe in quality and profits

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 627

120310 6

The MarketingApproach

The marketing approach is all about understanding and satisfying

customer needs

It is a fundamental idea of marketing that organizations survive and

prosper through meeting the needs and wants of customers This

important perspective is commonly known as the Marketing Concept

The marketing concept is about matching a companys capabilities

with customer wants This matching process takes place in what is

called the marketing environment

Businesses do not undertake marketing activities alone They face

threats from competitors and changes in the political economic

social and technological environment All these factors have to be

taken into account as a business tries to match its capabilities with the

needs and wants of its target customers An organization that adopts the marketing concept accepts the needs

of potential customers as the basis for its operations Success is

dependent on satisfying customer needs

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 727

120310 7

The MarketingApproach

Need

A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad

WantA want is a desire for a specific product or service to satisfy the underlying need

For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the

need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay

Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses

DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it

For example many consumers around the globe want a Mercedes But relatively few

are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand

Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are

AttractiveWork wellAffordable

Available

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 827

120310 8

The Value Chain

Specific interlinked activities through which an

organization can create competitive advantage are

Collectively termed as Value Chain

The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus

generating a profit margin

The value chain comprises of two groups of activities

Primary Activities

Support Activities

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 927

120310 9

The Value Chain

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1027

120310 10

The Value Chain

Primary Activities Inbound logistics include the receiving warehousing

and inventory control of input materials Operations are the value-creating activities that

transform the inputs into the final product Outbound logistics are the activities required to get

the finished product to the customer includingwarehousing order fulfillment etc

Marketing amp Sales are those activities associated withgetting buyers to purchase the product including

channel selection advertising pricing etc Service activities are those that maintain and enhance

the products value including customer support repair services etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 627

120310 6

The MarketingApproach

The marketing approach is all about understanding and satisfying

customer needs

It is a fundamental idea of marketing that organizations survive and

prosper through meeting the needs and wants of customers This

important perspective is commonly known as the Marketing Concept

The marketing concept is about matching a companys capabilities

with customer wants This matching process takes place in what is

called the marketing environment

Businesses do not undertake marketing activities alone They face

threats from competitors and changes in the political economic

social and technological environment All these factors have to be

taken into account as a business tries to match its capabilities with the

needs and wants of its target customers An organization that adopts the marketing concept accepts the needs

of potential customers as the basis for its operations Success is

dependent on satisfying customer needs

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 727

120310 7

The MarketingApproach

Need

A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad

WantA want is a desire for a specific product or service to satisfy the underlying need

For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the

need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay

Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses

DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it

For example many consumers around the globe want a Mercedes But relatively few

are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand

Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are

AttractiveWork wellAffordable

Available

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 827

120310 8

The Value Chain

Specific interlinked activities through which an

organization can create competitive advantage are

Collectively termed as Value Chain

The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus

generating a profit margin

The value chain comprises of two groups of activities

Primary Activities

Support Activities

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 927

120310 9

The Value Chain

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1027

120310 10

The Value Chain

Primary Activities Inbound logistics include the receiving warehousing

and inventory control of input materials Operations are the value-creating activities that

transform the inputs into the final product Outbound logistics are the activities required to get

the finished product to the customer includingwarehousing order fulfillment etc

Marketing amp Sales are those activities associated withgetting buyers to purchase the product including

channel selection advertising pricing etc Service activities are those that maintain and enhance

the products value including customer support repair services etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 727

120310 7

The MarketingApproach

Need

A need is a basic requirement that an individual wishes to satisfy People have basicneeds for food shelter affection esteem and self-development Many of these needsare created from human biology and the nature of social relationships Customer needs are therefore very broad

WantA want is a desire for a specific product or service to satisfy the underlying need

For example consumers need to eat when they are hungry but what they want to eatand in what kind of environment will vary enormously For some eating at McDonaldssatisfies the need to meet hunger For others a micro waved ready-meal meets the

need Some consumers are never satisfied unless their food comes served with abottle of fine Chardonnay

Consumer wants are shaped by social and cultural forces the media and marketingactivities of businesses

DemandConsumer demand is a want for a specific product supported by an ability andwillingness to pay for it

For example many consumers around the globe want a Mercedes But relatively few

are able and willing to buy oneBusinesses therefore have not only to make products that consumers want but theyalso have to make them affordable to a sufficient number to create profitable demand

Businesses do not create customer needs or the social status in which customer needs are influenced It is not McDonalds that makes people hungry Howeverbusinesses do try to influence demand by designing products and services that are

AttractiveWork wellAffordable

Available

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 827

120310 8

The Value Chain

Specific interlinked activities through which an

organization can create competitive advantage are

Collectively termed as Value Chain

The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus

generating a profit margin

The value chain comprises of two groups of activities

Primary Activities

Support Activities

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 927

120310 9

The Value Chain

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1027

120310 10

The Value Chain

Primary Activities Inbound logistics include the receiving warehousing

and inventory control of input materials Operations are the value-creating activities that

transform the inputs into the final product Outbound logistics are the activities required to get

the finished product to the customer includingwarehousing order fulfillment etc

Marketing amp Sales are those activities associated withgetting buyers to purchase the product including

channel selection advertising pricing etc Service activities are those that maintain and enhance

the products value including customer support repair services etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 827

120310 8

The Value Chain

Specific interlinked activities through which an

organization can create competitive advantage are

Collectively termed as Value Chain

The aim of these activities is to generate value thatexceeds the cost of carrying out these activities thus

generating a profit margin

The value chain comprises of two groups of activities

Primary Activities

Support Activities

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 927

120310 9

The Value Chain

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1027

120310 10

The Value Chain

Primary Activities Inbound logistics include the receiving warehousing

and inventory control of input materials Operations are the value-creating activities that

transform the inputs into the final product Outbound logistics are the activities required to get

the finished product to the customer includingwarehousing order fulfillment etc

Marketing amp Sales are those activities associated withgetting buyers to purchase the product including

channel selection advertising pricing etc Service activities are those that maintain and enhance

the products value including customer support repair services etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 927

120310 9

The Value Chain

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1027

120310 10

The Value Chain

Primary Activities Inbound logistics include the receiving warehousing

and inventory control of input materials Operations are the value-creating activities that

transform the inputs into the final product Outbound logistics are the activities required to get

the finished product to the customer includingwarehousing order fulfillment etc

Marketing amp Sales are those activities associated withgetting buyers to purchase the product including

channel selection advertising pricing etc Service activities are those that maintain and enhance

the products value including customer support repair services etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1027

120310 10

The Value Chain

Primary Activities Inbound logistics include the receiving warehousing

and inventory control of input materials Operations are the value-creating activities that

transform the inputs into the final product Outbound logistics are the activities required to get

the finished product to the customer includingwarehousing order fulfillment etc

Marketing amp Sales are those activities associated withgetting buyers to purchase the product including

channel selection advertising pricing etc Service activities are those that maintain and enhance

the products value including customer support repair services etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1127

120310 11

The Value Chain

Support Activities Procurement - the function of purchasing the

raw materials and other inputs used in the value-creating activities

Technology Development - includes researchand development process automation and other technology development used to support thevalue-chain activities

Human Resource Management - the activities

associated with recruiting development andcompensation of employees

Firm Infrastructure - includes activities such asfinance legal quality management etc

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1227

120310 12

The Value Chain

Value Chain Analysis

In order to better understand the activities leading to a

competitive advantage one can begin with the generic value

chain and then identify the relevant firm-specific activities

Process flows can be mapped and these flows used toisolate the individual value-creating activities

Once the discrete activities are defined linkages between

activities should be identified A linkage exists if the

performance or cost of one activity affects that of another

Competitive advantage may be obtained by optimizing and

coordinating linked activities

The value chain also is useful in outsourcing decisions

Understanding the linkages between activities can lead to

more optimal make-or-buy decisions that can result in either a

cost advantage or a differentiation advantage

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1327

120310 13

The Value Chain

The Value System

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1427

120310 14

The Value Chain

The Value System

The firms value chain links to the value

chains of upstream suppliers and

downstream buyers The result is a

larger stream of activities known as

the value system The development of a

competitive advantage depends not only

on the firm-specific value chain but alsoon the value system of which the firm is

a part

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1527

120310 15

The MarketingPlan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1627

120310 16

The MarketingPlan

The Marketing Plan is a highly detailed heavilyresearched and hopefully well written report thatmany inside and possibly outside the organization willevaluate It is an essential document for both largecorporate marketing departments and for startup

companies Essentially the Marketing Plan forces the marketing personnel to look internally in

order to fully understand the results of past marketingdecisions

forces the marketing personnel to look externally in

order to fully understand the market in which theyoperate sets future goals and provides direction for future

marketing efforts that everyone within theorganization should understand and support

is a key component in obtaining funding to pursue

new initiatives

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1727

120310 17

The MarketingPlan

The Marketing Plan is generally undertaken for one of the following reasons

Needed as part of the yearly planning process within the marketing functional area

Needed for a specialized strategy to introduce something new such as new product planning entering new markets or trying a new strategy to fix an existing problem

Is a component within an overall business plan such as a new business proposal tothe financial community

There are many ways to develop and format a marketing plan The approach taken here isto present a 6-Part plan that includes Purpose and Mission Situational Analysis

Marketing Strategy and Objectives

Tactical Programs

Budgets Performance Analysis and Implementation

Additional Consideration

The marketing Plan Outline

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1827

120310 18

SWOT Analysis

A scan of the internal and external environmentis an important part of the strategic planningprocess Environmental factors internal to thefirm usually can be classified as strengths (S) or weaknesses (W) and those external to the firm

can be classified as opportunities (O) or threats(T) Such an analysis of the strategicenvironment is referred to as a SWOT analysis

The SWOT analysis provides information that is

helpful in matching the firms resources andcapabilities to the competitive environment inwhich it operates As such it is instrumental instrategy formulation and selection The followingdiagram shows how a SWOT analysis fits into anenvironmental scan

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1927

120310 19

SWOT Analysis

Environmental Scan

Internal

Analysis

External

Analysis

Strengths

Weaknesses

Opportunities

Threats

SWOT Matrix

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2027

120310 20

SWOT Analysis

Strengths

A firms strengths are its resources and

capabilities that can be used as a basis for

developing a competitive advantage Examples

of such strengths include

patents

strong brand names

good reputation among customers cost advantages from proprietary know-how

exclusive access to high grade natural resources

favorable access to distribution networks

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2127

120310 21

SWOT Analysis

Weaknesses

The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses

lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2227

120310 22

SWOT Analysis

Opportunities

The external environmental analysis may

reveal certain new opportunities for profitand growth Some examples of suchopportunities include

an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2327

120310 23

SWOT Analysis

Threats

Changes in the external environmental

also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the

firms products emergence of substitute products new regulations increased trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2427

120310 24

SWOT Analysis

The SWOT Matrix

A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit

between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity

To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2527

120310 25

SWOT Analysis

Strengths Weaknesses

OpportunitiesS-O strategies W-O strategies

ThreatsS-T strategies W-T strategies

The SWOT Matrix

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2627

120310 26

SWOT Analysis

S-O strategies pursue opportunities that are agood fit to the companys strengths

W-O strategies overcome weaknesses topursue opportunities

S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats

W-T strategies establish a defensive plan toprevent the firms weaknesses from making it

highly susceptible to external threats

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2727

120310 27

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 1927

120310 19

SWOT Analysis

Environmental Scan

Internal

Analysis

External

Analysis

Strengths

Weaknesses

Opportunities

Threats

SWOT Matrix

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2027

120310 20

SWOT Analysis

Strengths

A firms strengths are its resources and

capabilities that can be used as a basis for

developing a competitive advantage Examples

of such strengths include

patents

strong brand names

good reputation among customers cost advantages from proprietary know-how

exclusive access to high grade natural resources

favorable access to distribution networks

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2127

120310 21

SWOT Analysis

Weaknesses

The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses

lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2227

120310 22

SWOT Analysis

Opportunities

The external environmental analysis may

reveal certain new opportunities for profitand growth Some examples of suchopportunities include

an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2327

120310 23

SWOT Analysis

Threats

Changes in the external environmental

also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the

firms products emergence of substitute products new regulations increased trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2427

120310 24

SWOT Analysis

The SWOT Matrix

A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit

between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity

To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2527

120310 25

SWOT Analysis

Strengths Weaknesses

OpportunitiesS-O strategies W-O strategies

ThreatsS-T strategies W-T strategies

The SWOT Matrix

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2627

120310 26

SWOT Analysis

S-O strategies pursue opportunities that are agood fit to the companys strengths

W-O strategies overcome weaknesses topursue opportunities

S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats

W-T strategies establish a defensive plan toprevent the firms weaknesses from making it

highly susceptible to external threats

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2727

120310 27

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2027

120310 20

SWOT Analysis

Strengths

A firms strengths are its resources and

capabilities that can be used as a basis for

developing a competitive advantage Examples

of such strengths include

patents

strong brand names

good reputation among customers cost advantages from proprietary know-how

exclusive access to high grade natural resources

favorable access to distribution networks

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2127

120310 21

SWOT Analysis

Weaknesses

The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses

lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2227

120310 22

SWOT Analysis

Opportunities

The external environmental analysis may

reveal certain new opportunities for profitand growth Some examples of suchopportunities include

an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2327

120310 23

SWOT Analysis

Threats

Changes in the external environmental

also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the

firms products emergence of substitute products new regulations increased trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2427

120310 24

SWOT Analysis

The SWOT Matrix

A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit

between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity

To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2527

120310 25

SWOT Analysis

Strengths Weaknesses

OpportunitiesS-O strategies W-O strategies

ThreatsS-T strategies W-T strategies

The SWOT Matrix

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2627

120310 26

SWOT Analysis

S-O strategies pursue opportunities that are agood fit to the companys strengths

W-O strategies overcome weaknesses topursue opportunities

S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats

W-T strategies establish a defensive plan toprevent the firms weaknesses from making it

highly susceptible to external threats

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2727

120310 27

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2127

120310 21

SWOT Analysis

Weaknesses

The absence of certain strengths may be viewed as a weakness For example each of the following may be considered weaknesses

lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

In some cases a weakness may be the flip side of a strength Takethe case in which a firm has a large amount of manufacturingcapacity While this capacity may be considered a strength thatcompetitors do not share it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm fromreacting quickly to changes in the strategic environment

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2227

120310 22

SWOT Analysis

Opportunities

The external environmental analysis may

reveal certain new opportunities for profitand growth Some examples of suchopportunities include

an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2327

120310 23

SWOT Analysis

Threats

Changes in the external environmental

also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the

firms products emergence of substitute products new regulations increased trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2427

120310 24

SWOT Analysis

The SWOT Matrix

A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit

between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity

To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2527

120310 25

SWOT Analysis

Strengths Weaknesses

OpportunitiesS-O strategies W-O strategies

ThreatsS-T strategies W-T strategies

The SWOT Matrix

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2627

120310 26

SWOT Analysis

S-O strategies pursue opportunities that are agood fit to the companys strengths

W-O strategies overcome weaknesses topursue opportunities

S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats

W-T strategies establish a defensive plan toprevent the firms weaknesses from making it

highly susceptible to external threats

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2727

120310 27

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2227

120310 22

SWOT Analysis

Opportunities

The external environmental analysis may

reveal certain new opportunities for profitand growth Some examples of suchopportunities include

an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2327

120310 23

SWOT Analysis

Threats

Changes in the external environmental

also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the

firms products emergence of substitute products new regulations increased trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2427

120310 24

SWOT Analysis

The SWOT Matrix

A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit

between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity

To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2527

120310 25

SWOT Analysis

Strengths Weaknesses

OpportunitiesS-O strategies W-O strategies

ThreatsS-T strategies W-T strategies

The SWOT Matrix

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2627

120310 26

SWOT Analysis

S-O strategies pursue opportunities that are agood fit to the companys strengths

W-O strategies overcome weaknesses topursue opportunities

S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats

W-T strategies establish a defensive plan toprevent the firms weaknesses from making it

highly susceptible to external threats

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2727

120310 27

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2327

120310 23

SWOT Analysis

Threats

Changes in the external environmental

also may present threats to the firm Someexamples of such threats include shifts in consumer tastes away from the

firms products emergence of substitute products new regulations increased trade barriers

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2427

120310 24

SWOT Analysis

The SWOT Matrix

A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit

between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity

To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2527

120310 25

SWOT Analysis

Strengths Weaknesses

OpportunitiesS-O strategies W-O strategies

ThreatsS-T strategies W-T strategies

The SWOT Matrix

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2627

120310 26

SWOT Analysis

S-O strategies pursue opportunities that are agood fit to the companys strengths

W-O strategies overcome weaknesses topursue opportunities

S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats

W-T strategies establish a defensive plan toprevent the firms weaknesses from making it

highly susceptible to external threats

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2727

120310 27

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2427

120310 24

SWOT Analysis

The SWOT Matrix

A firm should not necessarily pursue the more lucrativeopportunities Rather it may have a better chance atdeveloping a competitive advantage by identifying a fit

between the firms strengths and upcomingopportunities In some cases the firm can overcome aweakness in order to prepare itself to pursue acompelling opportunity

To develop strategies that take into account the SWOTprofile a matrix of these factors can be constructedThe SWOT matrix (also known as a TOWS Matrix)

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2527

120310 25

SWOT Analysis

Strengths Weaknesses

OpportunitiesS-O strategies W-O strategies

ThreatsS-T strategies W-T strategies

The SWOT Matrix

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2627

120310 26

SWOT Analysis

S-O strategies pursue opportunities that are agood fit to the companys strengths

W-O strategies overcome weaknesses topursue opportunities

S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats

W-T strategies establish a defensive plan toprevent the firms weaknesses from making it

highly susceptible to external threats

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2727

120310 27

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2527

120310 25

SWOT Analysis

Strengths Weaknesses

OpportunitiesS-O strategies W-O strategies

ThreatsS-T strategies W-T strategies

The SWOT Matrix

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2627

120310 26

SWOT Analysis

S-O strategies pursue opportunities that are agood fit to the companys strengths

W-O strategies overcome weaknesses topursue opportunities

S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats

W-T strategies establish a defensive plan toprevent the firms weaknesses from making it

highly susceptible to external threats

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2727

120310 27

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2627

120310 26

SWOT Analysis

S-O strategies pursue opportunities that are agood fit to the companys strengths

W-O strategies overcome weaknesses topursue opportunities

S-T strategies identify ways that the firm canuse its strengths to reduce its vulnerability toexternal threats

W-T strategies establish a defensive plan toprevent the firms weaknesses from making it

highly susceptible to external threats

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2727

120310 27

882019 Session 2 - MABD

httpslidepdfcomreaderfullsession-2-mabd 2727

120310 27