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Developing Marketing
Strategies and Plans

Developing Marketing
Strategies and Plans

A strategy is a theory about how to gain competitive

advantages. A good strategy is a strategy that
actually generates such advantages.
Strategic management is the process of specifying an
organizations objectives, developing policies and
plans to achieve these objectives, and allocating
resources so as to implement the plans.

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Levels of Goals/Plans & Their Importance

Mission
Statement

External Message
Legitimacy for
investors, customers,
suppliers, community

Strategic Goals/Plans
Senior Management
(Organization as a whole)
Tactical Goals/Plans
Middle Management
(Major divisions, functions)

Internal Message
Legitimacy,
motivation,
guides,
rationale,
standards

Operational Goals/Plans
Lower Management
(Departments, individuals)
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Levels of a Marketing Plan

Strategic
Target marketing
decisions
Value proposition
Analysis of
marketing
opportunities

Tactical

Product features
Promotion
Merchandising
Pricing
Sales channels
Service

Part 1: Marketing Value and Customer Value

The value delivery process

Marketing and Customer Value

The value delivery process

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Part 1: Marketing Value and Customer Value

2) The Value Chain

Michael Porter of Harvard has proposed the value chain as
a tool for identifying ways to create more customer
value.
According to this model, every firm has combination of
activities performed to design, produce, market, deliver,
and support its product.
The value chain identifies nine strategically relevant
activities that create value and cost in a specific
business.
These nine value-creating activities consist of five
primary activities and four support activities.
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Part 1: Marketing Value and Customer Value

2) The Value Chain

The primary activities cover the sequence of:
1) bringing materials into the business (inbound
logistics),
2) converting them into final products (operations),
3) shipping out final products (outbound logistics),
4) marketing them (marketing and sales), and
5) servicing them (service).

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Part 1: Marketing Value and Customer Value

2) The Value Chain

The support activities:
1) technology development,
2) human resource management,
3) firm infrastructureare handled in certain
specialized departments, as well as elsewhere.
4) Procurement and hiring

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Part 1: Marketing Value and Customer Value

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Part 1: Marketing Value and Customer Value

2) The Value Chain

Core Business Processes Include:

1) The market sensing process.
2) The new offering realization process.

All the activities

involved in researching, developing, and launching new high-quality
offerings quickly and within budget.

3) The customer acquisition process.

All the activities involved

in defining target markets and prospecting for new customers.

4) The customer relationship management process.

5) The fulfillment management process. All the activities
involved in receiving and approving orders, shipping the goods on
time, and collecting payment.
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Part 1: Marketing Value and Customer Value

3) Core Competencies

To be successful, a firm also needs to look for competitive

advantages beyond its own operations, into the value chains of
suppliers, distributors, and customers.
Value delivery network also called A supply Chain
To carry out its core business processes, a company needs
resources.
In the past companies controlled most of the resources
Change regarding this concept is changing
Many companies today have partnered with specific suppliers
and distributors to create a superior value delivery network also
called a supply chain.

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3) Core Competencies
To carry out its core business processes, a company needs
resourceslabor power, materials, machines, information, and
energy.
Traditionally, companies owned and controlled most of the
resources that entered their businesses, but this situation is
changing.
Many companies today outsource less critical resources if they
can be obtained at better quality or lower cost.
Frequently, outsourced resources include cleaning services,
landscaping, and auto fleet management. Kodak even turned
over the management of its data processing department to IBM.
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4) What is Holistic Marketing?

Holistic marketing sees itself as integrating
the value exploration, value creation, and
value delivery activities with the purpose of
building long-term, mutually satisfying
relationships and co prosperity among key
stakeholders.

Holistic Marketing Framework

The holistic marketing framework is designed to
address three key management questions:
1. Value exploration - How can a company identify
new value opportunities?
2. Value creation- flow can a company efficiently
create more promising new value offerings?
3. Value delivery- How can a company use its
capabilities and infrastructure to deliver the
new value offerings more efficiently?

A Holistic Marketing Orientation And

Customer Value

Part 2: Corporate and Division Strategic Planning

Part 2: Corporate and Division Strategic Planning

1)
2)
3)
4)

Defining the corporate mission

Defining the business
Assessing growth opportunities
Organization and organizational culture

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planning, implementation, and control cycle

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1)

Defining the corporate mission

CORPORATE LEVEL
STRATEGY

Defining the corporate mission

Establishing SBUs
Allocating resources for SBUs
Planning for new business

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Corporate Mission
This seeks to embody the entire goals
of the organization and the objective of
its existence.
It seeks to provide a sense of purpose,
direction and opportunity

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5 questions that the firm must

ask itself

What is our business?

Who is our customer?
What does our customer need?
What will our business be?
What should our business be?

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Strategic Business Units

The purpose of identifying the company's
strategic business units is to develop separate
strategies and assign appropriate funding.

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SBU has three characteristics:

1. It is a single business or collection of related
businesses that can be planned separately
from the rest of the company.
2. It has its own set of competitors.
3.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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Assessing Growth Opportunities

1. planning new businesses,
2. downsizing, or
3. terminating older businesses.

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Assessing Growth Opportunities

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Assessing Growth Opportunities

1.
2.
3.
4.

INTENSIVE GROWTH
Integrative Growth
Diversification Growth
Downsizing and Divesting
Older Business

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Assessing Growth Opportunities

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Assessing Growth Opportunities

1.market-penetration strategy The
company first considers whether it could gain
more market share with its current products
in their current markets .
2.market-development strategy the
company considers whether it can find or
develop new markets for its current products.
3.product-development strategy the
company considers whether it can develop
new products of potential interest to its
current markets
4.diversification strategy the company will
also review opportunities to develop new
products for new markets.

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Success Probability for each of the 4 basic

strategies:
Diversification strategy 1 in 20
Market-development Strategy is 1 in 4
Product-development strategy 50-50
Market-penetration is the highest

Business Unit Strategic Planning

Strategic planning:

Developing a strategic fit between

organizational goals and capabilities, and
changing marketing opportunities

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Business Portfolio Analysis

Cash Cows SBUs that have a high market
share of a low sales growth market.
Stars SBUs that have a high market share of a
high sales growth market.
Question marks SBUs that have a low market
share of a high sales growth market.
Dogs SBUs that have a low market share of a
low sales growth market.

Planning Phase Situation Analysis

This is a complete analysis of the firms
situation which assesses internal strengths
and weaknesses and external threats and
opportunities (SWOT)
Internal analysis (controllable factors)
assess the firm itself to identify strengths
and weaknesses
External analysis (uncontrollable factors)
assess the firms external environment to
identify opportunities and threats

Planning Phase: Product

Positioning
The process where marketers try to
create a product image or identity in the
minds of their target market relative to
competitive products.

Implementation Phase
Process of putting the marketing plan
into action.
Involves great attention to detail

Evaluation
Involves measuring the results of the
actions from the implementation phase
and comparing them with goals set in
the planning phase.
sales analysis
market share analysis
expense to sales analysis

Strategic Formulation
1) Porters Generic Strategies
Overall cost leadership
Differentiation
Focus

2) Strategic Alliances
There are four forms of MDS.
1)Exporting
2)Licensing
3)Joint Venture
4)Direct Investment

Marketing Plan Contents

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