2Developing Marketing

Strategies and Plans

Chapter Questions

How does marketing affect customer value?How is strategic planning carried out at different levels of the organization?What does a marketing plan include?How can management issues assess marketing performance?

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The Value Delivery Process

Choose the value

Provide the value

Communicate the value

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3 V’s Approach to Marketing

Define the value segment (customers, needs and wants)

Define the value proposition(benefits)

Define the value network(to deliver promised product or service)

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What is the Value Chain?

The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design,

produce, market, deliver, and support its product.

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Characteristics of Core CompetenciesA source of competitive advantageApplications in a wide variety of marketsDifficult to imitate

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Maximizing Core Competencies

(Re)define the business concept

(Re)shape the business scope

(Re)position the company’s brand identity

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What is Holistic Marketing?

Holistic marketing integrates the value exploration, creation and delivery

activities with the purpose of building long-term, mutually satisfying relationships and

co-prosperity among key stakeholders.

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A Holistic Marketing Framework

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The Strategic Planning, Implementation, Control Processes

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Corporate and Division Strategic Planning

Define the corporate missionEstablish strategic business units (SBUs)Assign resources to each SBUAssess growth opportunities

What is a SBU?a single business or collection of related businesseshas its own set of competitorshas a leader responsible for strategic planning and profitability

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Good Mission StatementsFocus on a limited number of goalsStress major policies and valuesDefine major competitive spheres (industry, products, competencies, market segment, etc.)Take a long-term viewShort, memorable, meaningful

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Google

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Sample Mission StatementsDelivering an outstanding client experience based on excellence in sales, service and solutions; Achieving a superior, ethically based, long-term return for our shareholders; Leading in our chosen markets; Creating a challenging, rewarding and pleasant work environment.

Provide high quality banking services to both traditional customers in industrial, construction, trade sectors as well as to customers in other sectors of economy by operating in step with ongoing economic development and trends. The Bank will continue its innovation policy by adopting new high quality banking services shaped to fully satisfy the changing needs of all the segments of target market, to improve the degree of confidence and transparency in bank-client relationship, to keep leader's position in Armenian banking system and to provide with maximum returns to the shareholders.

We commit to offer Armenian citizens innovative and quality telecommunication services.

Extend business development and financial services to emerging entrepreneurs in search of productive opportunities to support families and communities striving for decent life for children in Armenia.

Accelerating social investments 2- 14

Growth Opportunities

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Ansoff’s Product-Market Expansion Grid

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The Business Unit Strategic Planning Process

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SWOT Analysis

Strengths Weaknesses

Opportunities Threats

Recommended supplementary source: http://www.marketingteacher.com

Review sample SWOT analyses for:1. Nestlé2. Burger King3. Sony

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Market Opportunity Analysis (MOA)Can the benefits involved in the opportunity be articulated convincingly to a defined target market?Can the target market be located and reached with cost-effective media and trade channels?Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?Can the company deliver the benefits better than any actual or potential competitors?Will the financial rate of return meet or exceed the company’s required threshold for investment?

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Opportunity and Threat Matrices

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Goal Formulation and MBO

Unit’s objectives must be hierarchicalObjectives should be quantitativeGoals should be realisticObjectives must be consistent

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Categories of Marketing Alliances

Product or service alliancePromotional allianceLogistics alliancesPricing collaborations

Partner Relationship Management (PRM) is the ability to form and manage partnership

to complement or leverage existing market capabilities and resources.

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What is Corporate Culture?

Corporate culture is the shared experiences, stories, beliefs,

and norms that characterize an organization.

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What is a Marketing Plan?

A marketing plan is the central instrument for

directing and coordinatingthe marketing effort.

It operates at a strategic and tactical level.

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Levels of a Marketing Plan

StrategicTarget marketing decisionsValue propositionAnalysis of marketing opportunities

TacticalProduct featuresPromotionMerchandisingPricingSales channelsService

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Marketing Plan Contents

Executive summaryTable of contentsSituation analysisMarketing strategyFinancial projectionsImplementation controls

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Evaluating a Marketing Plan

Is the plan simple?Is the plan specific?Is the plan realistic?Is the plan complete?

Recommended supplementary source: http://www.mplans.com

Review sample Marketing plans:1. Riverview Hotel2. Orti's Organic Bakery

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Measuring Marketing Performance

Marketing metrics Marketing dashboardMarketing Plan performanceProfitability analysis

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What are Marketing Metrics?

Marketing metrics are the set of measures that helps marketers quantify, compare, and interpret marketing performance.

External: Awareness, Market share, Relative price, Number of complaints, Customer satisfaction, Distribution, Total number of customers, Loyalty

Internal: Awareness of goals, Commitment to goals, Active support, Resource adequacy, Staffing levels, Desire to learn, Willingness to change, Freedom to fail, Autonomy

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Sample Customer-Performance Scorecard Measures

% of new customers to average # of customers% of lost customers to average # of customers% of win-back customers to average # of customers% of customers in various levels of satisfaction% of customers who would repurchase the product% of target market members with brand recall% of customers who say brand is most preferredAverage perception of company’s product/service quality relative to chief competitor

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Marketing Dashboard – Samples

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Marketing Plan PerformanceSales analysisSales variance analysisFactors to a gap in sales performanceMicro-sales analysisOverall market shareServed market shareRelative market shareMarketing expense-to-sales ratio componentsRate of return on net worth

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Marketing Measurement Pathway

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