Marketing Management 14e Developing Marketing Strategies and Plans Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 38 Discussion Questions 1. How does marketing affect customer value?
2. How is strategic planning carried out at different levels of the organization?
3. What does a marketing plan include? Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 4 of 38 The Value Delivery Approach Value Choose Provide Communicate Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 5 of 38 The Value Chain Procurement Human Resource management Technological Development Infrastructure Support Activities Primary Activities Service Marketing Outbound Logistics Operations Inbound Logistics M a r g i n
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 6 of 38 Core Business Processes Customer relationship management Customer acquisition Market-sensing New-offering realization Fulfillment management Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 7 of 38 Core Competencies Contributes to perceived customer benefits Useful in a wide variety of markets Difficult to imitate Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 8 of 38 Holistic Marketing Value Creation Value Delivery Value Exploration Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 9 of 38 Strategic Planning Businesses as investment portfolio Assessing each businesss strength Establish a strategy Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 10 of 38 Strategic Planning, Implementation, and Control Processes Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 11 of 38 Marketing Plan Directs and coordinates the marketing effort Product Line or Brand Level Strategic and Tactical levels Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 12 of 38 Levels of a Marketing Plan Strategic Analysis of marketing opportunities Target marketing decisions Value proposition Tactical Product features Promotion Merchandising Pricing Sales channels Service Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 38 Corporate Strategic Planning Define corporate mission Establish SBUs Assign resources to SBUs Assess growth opportunities 1 2 3 4 Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 14 of 38 Defining the Corporate Mission What is our business? Who is the customer? What is of value to the customer? What will our business be? What should our business be? Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 15 of 38 Mission Statements 1. Focus on a limited number of goals 2. Stress major policies and values 3. Define major competitive spheres 4. Take a long-term view 5. Short, memorable, meaningful Characteristics of good mission statements: Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16 of 38 To build total brand value by innovating to deliver customer value and customer leadership faster, better, and more completely than our competition Vague Mission Statement Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 17 of 38 GOOGLES Mission Statement To organize the worlds information and make it universally accessible and useful. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 18 of 38 Vague Philosophy We build brands and make the world a little happier by bringing our best to you. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 19 of 38 GOOGLEs Philosophy Never settle for the best. 1. Focus on the user and all else will follow. 2. Its best to do one thing really, really well. 3. Fast is better than slow. 4. Democracy on the web works. 5. You dont need to be at your desk to need an answer. 6. You can make money without doing evil. 7. There is always more information out there. 8. The need for information crosses all borders. 9. You can be serious without a suit. 10.Great just isnt good enough. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 20 of 38 Strategic Business Units (SBU) Three Characteristics of an SBU: A single business or collection of related businesses Unique competitors Leader responsible for planning and profitability Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 21 of 38 Defining Strategic Business Units Technology Customer groups Customer needs Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22 of 38 Company Product Definition Market Definition Union Pacific We run a railroad. We are a people-and-goods mover. Xerox We make copying equipment. We help improve office productivity. Hess Corporation We sell gasoline. We supply energy. Paramount Pictures We make movies. We market entertainment. Encyclopaedia Britannica We sell encyclopedias We distribute information. Carrier We make air conditioners and furnaces. We provide climate control in the home. Strategic Business Units Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 23 of 38 Assigning Resources HIGH MED LOW H I G H
M E D
L O W
GE/McKinsey Matrix Industry Attractiveness B u s i n e s s
P o s i t i o n
Boston Consulting Group Matrix Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24 of 38 Assessing Growth Opportunities Opportunities New Businesses Eliminate Businesses Downsizing Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 25 of 38 The Strategic-Planning Gap Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 26 of 38 Intensive Growth Products Current M a r k e t s
Market Penetration Market Development Product Development Diversification New C u r r e n t
N e w
Product-Market Expansion Grid Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 27 of 38 Integrative Growth Business Competitor Supplier Wholesaler Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 28 of 38 Diversification Growth Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 29 of 38 Corporate Culture is the shared experiences, stories, beliefs, and norms that characterize an organization. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 30 of 38 Marketing Innovation Identify and encourage new ideas Scenario Analysis Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 31 of 38 Business Unit Strategic Planning Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 32 of 38 Opportunity and Threat Matrices Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 33 of 38 SWOT Analysis T Threat E x t e r n a l
I n t e r n a l
S Strength W Weakness O Opportunity Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 34 of 38 Goal Formulation Ranked Realistic Quantified Consistent Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 35 of 38 Strategy Formulation Porters Generic Strategies Strategic Alliances Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 36 of 38 Program Formulation and Implementation Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 37 of 38 Feedback and Control Strong leadership Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 38 of 38 Product Planning Marketing Plans Executive Summary and table of contents Situation analysis Marketing strategy Financial projections Implementation controls