You are on page 1of 2

Chapter 2: Developing Marketing Strategies and Plans

The key to a marketing strategy is that it should be disciplined and flexible.

The Value Delivery Process

In the new view of business processes, marketing is viewed at the beginning of the planning stage. A smart
competitor must design and deliver products for well-defined micro-markets and cater to their specific
wants, perceptions and preferences. The Value Creation and Delivery Sequence can be divided into two
segments of marketing: Strategic Marketing and Tactical Marketing.

Value Chain

The value chain is a tool which is used for identifying ways to create more customer value. There are 9
strategically relevant activities – 5 primary and 4 support. A firm must coordinate all the department
activities to conduct its core business processes, through cross-functional teams.

Core Competencies

Core Competency refers to areas of special technical and production expertise, whereas distinctive
capability describes excellence in broader business processes. Market-driven organizations generally excel
in three distinctive capabilities: market sensing, customer linking and channel bonding.

Strategic Planning

Companies need to focus on the customer and organize to respond effectively to their changing needs, to
be known as master marketers. The marketing plan operates at two levels:

 The strategic marketing plan lays out the target markets and the value proposition the firm will
offer, based on an analysis of the best market opportunities.
 The tactical marketing plan specifies the marketing tactics, including product features, promotion,
merchandising, pricing, sales channels and service.

Corporate and Division Strategic Planning

All corporate headquarters undertake four planning activities:

 Defining the corporate mission


 Establishing strategic business units
 Assigning resources to each Strategic Business Unit
 Assessing growth opportunities

Business Unit Strategic Planning

1. The Business Mission: Each business unit needs to define its specific mission within the broader
company mission.
2. SWOT Analysis: The overall analysis of a company’s Strengths, Weaknesses, Opportunities and
Threats is called SWOT analysis. It is a way of monitoring the external and internal marketing
environment.
3. Goal Formulation: Developing specific goals for a short term is known as Goal Formulation. Goals
must be consistent and realistic and could be a mix of various objectives.
4. Strategy Formulation: Strategy is a game plan for achieving the goals. It consists of a Marketing
Strategy, Technology Strategy and a Sourcing Strategy.
5. Program Formulation: The unit must plan programs in accordance with its goals and strategy and
thus work upon the various departments, to strengthen them and integrate all of them together.
6. Implementation: Even a great marketing strategy can be sabotaged by a poor implementation. It
must coordinate its tasks to implement its plan properly.
7. Feedback and Control: The key to organizational health is willingness to examine the changing
environment and adopt new goals and behaviors.