session 3 mg 220 bba - 16 aug 10
DESCRIPTION
Session 3 Marketing Management BBA Section CTRANSCRIPT
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MG 220 Marketing ManagementBBA 09 – Sec C
Fall 2010
Muhammad Talha Salam, Asst. [email protected]
Access it online: www.slideshare.net/talhasalam
Part 1: Understanding Marketing Management
> Marketing & Customer Value> Corporate and Division Strategic
Planning> Business Unit Strategic Planning> Product Planning: The Nature and
Contents of a Marketing Plan
Class Presentation | Session 3 | 16 Aug 2010
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MG 220 Marketing Management 2Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueThe Value Delivery Process
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MG 220 Marketing Management 3Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueThe Value Delivery Process
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MG 220 Marketing Management 4Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueThe Value Chain
• A tool for identifying ways to create more customer value
• Every firm is a synthesis of activities performed to design, produce, market, deliver and support its product
• Primary Activities (producing & marketing)
• Support Activities (management of firm)
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MG 220 Marketing Management 5Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueThe Value Chain
• Firm should estimate its competitors’ costs and performances as ‘benchmarks’ against which it compares its own costs and performance
• Success depends on ‘core business processes’– Market sensing– Offering realization– Customer Acquisition– Customer Realization– Fulfillment management
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MG 220 Marketing Management 6Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueThe Value Chain
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MG 220 Marketing Management 7Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueCore Competences
• Outsource the less critical• Focus on Core Competency• Characteristics of Core Competency:– A Source of competitive advantage– Has Application in a wide variety of
markets– Difficult for competitors to imitate
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MG 220 Marketing Management 8Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueA Holistic Marketing Orientation & Customer Value
Customer Company Partners
Designing
Developing
Delivering
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MG 220 Marketing Management 9Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueThe Central Role of Strategic Planning
• All the successful brands:– Focus on Customers– Respond effectively to changing
customer needs– Have well-staffed marketing
departments– And all other departments in their
organizations understand: “CUSTOMER IS THE KING”
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MG 220 Marketing Management 10Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueThe Central Role of Strategic Planning
• Levels in Strategic Planning [Typical]– Corporate Level– Division Level– Business Unit Level– Product Level
• Marketing Plan is central instrument for directing and coordinating marketing effort– Strategic marketing plan
• Lays out target markets & value proposition
– Tactical marketing plan• Specifics of marketing activities
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MG 220 Marketing Management 11Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueThe Central Role of Strategic Planning
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MG 220 Marketing Management 12Access it online: www.slideshare.net/talhasalam
Corporate & Division Strategic PlanningActivities
• Four Planning Activities1. Defining the Corporate Mission2. Establishing Strategic Business Units3. Assigning Resources to each SBU4. Assessing Growth Opportunities
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MG 220 Marketing Management 13Access it online: www.slideshare.net/talhasalam
Corporate & Division Strategic Planning1. Defining the Corporate Mission
• Peter Drucker’s classic questions–What is our business?–Who is the customer?–What is of value to our customer?–What will our business be?–What should our business be?
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MG 220 Marketing Management 14Access it online: www.slideshare.net/talhasalam
Corporate & Division Strategic Planning1. Defining the Corporate Mission (…contd.)
• Mission Statements– Focus on LIMITED goals– Stress company’s major policies & values– Define the major competitive spheres:
• Industry (in which company operates)• Products & Applications• Competence• Market Segment• Vertical (channels)• Geographical
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MG 220 Marketing Management 15Access it online: www.slideshare.net/talhasalam
Corporate & Division Strategic Planning2&3. Defining Business / Establishing SBUs
• A business is?– Customer-satisfying process– NOT: Goods-producing process
Company Product Market
Missouri-Pacific Railroad
We run a railroad We are a people-and-goods mover
Xerox We make copying equipment
We improve office productivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain people
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MG 220 Marketing Management 16Access it online: www.slideshare.net/talhasalam
Corporate & Division Strategic Planning2&3. Defining Business / Establishing SBUs (…contd)
• A SBU:– Single business or collection of related
businesses which can be planned from the rest of the company
– It has its own set of competitors– It has a manager who is responsible for
strategic planning and profit performance and who controls most of the factors affecting profit
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MG 220 Marketing Management 17Access it online: www.slideshare.net/talhasalam
Corporate & Division Strategic Planning4. Assessing Growth Opportunities
• Strategic Planning Gap
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MG 220 Marketing Management 18Access it online: www.slideshare.net/talhasalam
Corporate & Division Strategic Planning4. Assessing Growth Opportunities (…contd)
• Intensive Growth– Ansoff Product-Market Expansion Grid
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MG 220 Marketing Management 19Access it online: www.slideshare.net/talhasalam
Corporate & Division Strategic Planning4. Assessing Growth Opportunities (…contd)
• Integrative Growth– ‘Integrations’– Backward: Acquire Suppliers– Forward: Acquire distributors/suppliers– Horizontal: Acquire Competitors
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MG 220 Marketing Management 20Access it online: www.slideshare.net/talhasalam
Corporate & Division Strategic Planning4. Assessing Growth Opportunities (…contd)
• Diversification Growth–When good opportunities can be found
outside current business– New line of business NOT products
• Downsizing & Divesting– Pruning & harvesting current portfolio
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MG 220 Marketing Management 21Access it online: www.slideshare.net/talhasalam
Business Unit Strategic PlanningProcess
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MG 220 Marketing Management 22Access it online: www.slideshare.net/talhasalam
Business Unit Strategic PlanningSWOT Analysis
• SWOT– Internal Environment Analysis• Strengths• Weaknesses
– External Environment Analysis• Opportunities• Threats
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MG 220 Marketing Management 23Access it online: www.slideshare.net/talhasalam
Business Unit Strategic PlanningGoal Formulation
• Setting objectives & MBO• Managing by Objectives• Goals should have these characteristics
1. They must be arranged hierarchically from the most to least important
2. Objectives should be stated quantitatively whenever possible
3. Goals should be realistic4. Objectives must be consistent
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MG 220 Marketing Management 24Access it online: www.slideshare.net/talhasalam
Business Unit Strategic PlanningStrategic Formulation
• Goals: What a business wants to achieve• Strategy: A game plan for getting there• Porter’s Generic Strategies
– Overall Cost Leadership– Differentiation– Focus
• Strategic Alliances– Product or Service Alliances (licensing to produce its
product)– Promotional Alliances (joint promotions)– Logistics Alliances– Pricing Collaborations (mutual price discounts)
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MG 220 Marketing Management 25Access it online: www.slideshare.net/talhasalam
Business Unit Strategic PlanningProgram Formulation & Implementation
• Great Marketing Strategy can fail:• If poorly implemented
• Strategy is one the seven elements in business practice! (McKinsey)– Strategy– Structure– Systems– Style– Skills– Staff– Shared Values
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MG 220 Marketing Management 26Access it online: www.slideshare.net/talhasalam
Business Unit Strategic PlanningFeedback & Control
• Need to track results and monitor new developments
• Need to continuously examine changing environment and to adopt to new goals and behaviors
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MG 220 Marketing Management 27Access it online: www.slideshare.net/talhasalam
Product Planning: Marketing PlanNature
• Marketing Plan• A written document that summarizes
what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives
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MG 220 Marketing Management 28Access it online: www.slideshare.net/talhasalam
Product Planning: Marketing PlanContents
• Executive Summary & Table of Contents
• Situation Analysis• Marketing Strategy• Financial Projections• Implementation Controls
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MG 220 Marketing ManagementBBA 09 – Sec C
Fall 2010
Muhammad Talha Salam, Asst. [email protected]
Access it online: www.slideshare.net/talhasalam
Part 2: Capturing Market Insights
> Gathering Information & Scanning the environment
> Key Concepts in complete Chapter 3 will be covered
Class Presentation | Session 4 | 18 Aug 2010