Developing and Implementing Marketing Strategies & Plans

•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 assess marketing performance?

• Tim Hortons started out as a single donut shop in 1964 growing to 2,527 (including 184 U.S. stores) in 2006, demonstrating its skill in marketing planning and execution

• The brand exemplifies the idealized Canadian national character:“That friendly, unpretentious, good neighbour

you’d want living down the block from you” (Cathy Whelan Molloy, VP Advertising and Merchandising)

• Franchisees ensure that all products, services and communications fit the company’s ideals

• Tim Hortons started out as a single donut shop in 1964 growing to 2,527 (including 184 U.S. stores) in 2006, demonstrating its skill in marketing planning and execution

• The brand exemplifies the idealized Canadian a character:“That friendly, unpretentious, good neighbour you’d

want living down the block from you” (Cathy Whelan Molloy, VP Advertising and Merchandising) .

• Franchisees ensure that all products, services and communications fit the company’s ideals

• “Roll Up the Rim to Win” and Timbits

• Far ahead of rivals such as Starbucks and Second Cup in “most often” coffee purchases

• Nonprofit children’s foundation sponsors an estimated 33,000 children in Timbit hockey leagues annually

• 2004 winner of Canadian Business poll of Canada’s best brands

Organizational costs and

performance measures

Competitorcosts and

performance measures

Market sensing

Customer relationship management

New offering realization

Customer acquisition

Fulfillment management

• Important difference between core competencies and competitive advantage:– Competitive advantages accrue due to companies that

possess distinctive capabilities

– Core competencies tend to refer to areas of special technical and production expertise

• Competitive advantage derives from its “activity systems”

• Companies with activity systems that are difficult to imitate include WestJet Airlines, Dell, and Magna International

• Core Competencies are usually– A source of competitive advantage

– Applicable in a wide variety of markets

– Difficult to imitate

• How can a company identify new value opportunities?

• How can a company efficiently create more promising new value offerings?

• How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently?

Defining the corporate

mission

Establishing SBUs

Assigning resources to SBUs

Assessing growth

opportunities

Focus on a limited number of goalsFocus on a limited number of goals

Stress major policies and valuesStress major policies and values

Define major competitive spheresDefine major competitive spheres

Industry

Products

Marketsegment

Geographical

CompetenceVertical

“Mountain Equipment Co-op provides quality products and services for self-propelled wilderness-oriented recreation, such as hiking and mountaineering, at the lowest reasonable price in an informative, respectful manner.

“We are a member-owned co-operative striving for social and environmental leadership.”

Idea about eBay: little information required“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all–collectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.”

Customer groups

TechnologyCustomer

needs

• It is a single business or collection of related businesses

• It has its own set of competitors

• It has a leader responsible for– Strategic planning– Profitability– Efficiency

Intensive growth

Integrativegrowth

Diversificationgrowth

Structure

Policies

Culture

• Toolkit Productions Inc. originated in Toronto (2001)

• Offered a new kind of theatre in a saturated marketplace

• Gap identified was the 20-30 year demographic

• Flashy productions in bars and nightclubs• Since expanded into corporate publicity and

film production

• Can the benefits involved in the opportunity be articulated to a defined target market?

• Can the target market be located and reached with cost-effective media and trade channels?

• Does the company have access to the critical capabilities and resources needed to deliver the customer benefits?– Includes the assessment of interdepartmental working relationships– Honeywell gets all internal departments to conduct a strengths and weaknesses analysis of each other– Each department is seen as both a supplier and customer to one other

• 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?

• To be effective, goals must be– Ordered in terms of priority (hierarchical)– Stated quantitatively– Realistic– Consistent

Overall cost leadership

Differentiation

Focus

StrategyStrategy StructureStructure

SystemsSystems StyleStyle

SkillsSkills StaffStaff

Shared valuesShared values

ExternalEnvironmental

Internal Environment

Need Balance

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

Sales analysis

Marketing expense-to-sales

analysis

Financial analysis

Market share analysis

Overall market share

Served market share

Relative market share

• Method 1: Increase the profit margin by increasing sales or cutting costs

• Method 2: Boost the asset turnover by increasing sales or reducing assets that are held against sales levels

What implications do Porter’s valuechain and the holistic marketing

orientation model have formarketing planning?