Marketing Management Session 3 & 4


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Marketing Management Session 3 & 4

  1. 1. Developing Marketing Strategies and Plans
  2. 2. Siemens AG has grown through new product innovation and strategic acquisitions
  3. 3. Nike Creates Value
  4. 4. Three V’s Approach to Marketing Define the value segment Define the value proposition Define the value network
  5. 5. ABN Amro’s value Proposition for its SB Accounts <ul><li>On a minimum monthly average balance of Rs.10,000 our saving bank account offers you something other savings accounts don’t: </li></ul><ul><ul><li>Value for money </li></ul></ul><ul><ul><li>Free cheque pick up from your home or office </li></ul></ul><ul><ul><li>Cash delivery to your home or office(upto Rs.10,000) </li></ul></ul><ul><ul><li>Extended banking hours (9am to 4.30pm) on week-days </li></ul></ul><ul><ul><li>Sunday banking (9am to 12 noon0 </li></ul></ul><ul><ul><li>Free home delivery of pay orders and demand drafts. </li></ul></ul><ul><ul><li>Free local pay orders </li></ul></ul>
  6. 6. <ul><ul><li>Free cheque return protection </li></ul></ul><ul><ul><li>Free metro cheque clearing </li></ul></ul><ul><ul><li>Free money transfers </li></ul></ul><ul><ul><li>Free standing instructions to pay regular bills (like your kid’s school fees) </li></ul></ul><ul><ul><li>Account opening from your home or office. </li></ul></ul><ul><li>ABN Amro calls it the Savings Advantage Account. </li></ul>
  7. 7. What is the Value Chain? <ul><li>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. </li></ul>
  8. 8. Cisco Systems Taps into Partner Expertise to Create Value
  9. 9. VALUE DELIVERY <ul><li>Standard Chartered Bank </li></ul><ul><li>Godrej GE </li></ul><ul><li>Virgin Atlantic </li></ul><ul><li>Fedex </li></ul>
  10. 10. Core Business Processes <ul><li>Market-sensing process </li></ul><ul><li>New-offering realization process </li></ul><ul><li>Customer acquisition process </li></ul><ul><li>Customer relationship management process </li></ul><ul><li>Fulfillment management process </li></ul>
  11. 11. Characteristics of Core Competencies <ul><li>A source of competitive advantage </li></ul><ul><li>Applications in a wide variety of markets </li></ul><ul><li>Difficult to imitate </li></ul>
  12. 12. Netflix’s Distinctive Capabilities
  13. 13. Firms Should Consider Key Questions <ul><li>Can we learn from the past? </li></ul><ul><li>How should the present be evaluated? </li></ul><ul><li>What do we envision for the future? </li></ul>
  14. 14. What is Holistic Marketing? <ul><li>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 coprosperity among key stakeholders. </li></ul>
  15. 15. Intel’s New Brand Identity: Leap Ahead
  16. 16. What is a Marketing Plan? <ul><li>A marketing plan is the central instrument for directing and coordinating the marketing effort. </li></ul><ul><li>It operates at a strategic and tactical level. </li></ul>
  17. 17. Levels of a Marketing Plan <ul><li>Strategic </li></ul><ul><ul><li>Target marketing decisions </li></ul></ul><ul><ul><li>Value proposition </li></ul></ul><ul><ul><li>Analysis of marketing opportunities </li></ul></ul><ul><li>Tactical </li></ul><ul><ul><li>Product features </li></ul></ul><ul><ul><li>Promotion </li></ul></ul><ul><ul><li>Merchandising </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Sales channels </li></ul></ul><ul><ul><li>Service </li></ul></ul>
  18. 18. The Strategic Planning, Implementation, and Control Processes
  19. 19. Corporate Headquarters’ Planning Activities <ul><li>Define the corporate mission </li></ul><ul><li>Establish strategic business units (SBUs) </li></ul><ul><li>Assign resources to each SBU </li></ul><ul><li>Assess growth opportunities </li></ul>
  20. 20. Good Mission Statements Focus on limited number of goals Stress major policies and values Define major competitive spheres Take a long-term view Short, memorable, meaningful
  21. 21. Major Competitive Spheres Industry Products Market segment Geographical Competence Vertical channels
  22. 22. Infosys Technologies Limited “ To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors, and society at large.”
  23. 23. Biocon “ To be an integrated biotechnology enterprise of global distinction.”
  24. 24. eBay “ We help people trade anything on earth. We will continue to enhance the online trading experiences of all — collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers .”
  25. 25. Product Orientation vs. Market Orientation We provide climate control inside homes We make air conditioners and furnaces Carrier We distribute information We sell encyclopedias Encyclopedia Britannica We entertain people We make movies Columbia Pictures We improve office productivity We make copying equipment Xerox Market Product Company
  26. 26. Dimensions That Define a Business Customer groups Technology Customer needs
  27. 27. Characteristics of SBUs <ul><li>It is a single business or collection of related businesses </li></ul><ul><li>It has its own set of competitors </li></ul><ul><li>It has a leader responsible for strategic planning and profitability </li></ul>
  28. 28. Strategies Suggested by Ansoff’s Product-Market Expansion Grid <ul><li>Market penetration </li></ul><ul><li>Market development </li></ul><ul><li>Product development </li></ul><ul><li>Diversification </li></ul>
  29. 29. Developing the People’s Car ‘TATA Nano’
  30. 30. What is Corporate Culture? <ul><li>Corporate culture is the shared experiences, stories, beliefs, and norms that characterize an organization. </li></ul>
  31. 31. The Business Unit Strategic Planning Process
  32. 32. SWOT Analysis Strengths Weaknesses Opportunities Threats
  33. 33. Market Opportunity Analysis (MOA) <ul><li>Can the benefits involved in the opportunity be articulated convincingly to a defined target market? </li></ul><ul><li>Can the target market be located and reached with cost-effective media and trade channels? </li></ul><ul><li>Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits? </li></ul>
  34. 34. Market Opportunity Analysis (MOA) (cont.) <ul><li>Can the company deliver the benefits better than any actual or potential competitors? </li></ul><ul><li>Will the financial rate of return meet or exceed the company’s required threshold for investment? </li></ul>
  35. 35. FedEx FedEx added Sunday deliveries based on customer requests and market demand
  36. 36. Porter’s Generic Strategies Overall Cost Leadership Differentiation Focus
  37. 37. Categories of Marketing Alliances Product or Service Alliances Promotional Alliances Logistics Alliances Pricing Collaborations
  38. 38. Marketing Plan Contents <ul><li>Executive summary </li></ul><ul><li>Table of contents </li></ul><ul><li>Situation analysis </li></ul><ul><li>Marketing strategy </li></ul><ul><li>Financial projections </li></ul><ul><li>Implementation controls </li></ul>
  39. 39. Evaluating a Marketing Plan <ul><li>Is the plan simple? </li></ul><ul><li>Is the plan specific? </li></ul><ul><li>Is the plan realistic? </li></ul><ul><li>Is the plan complete? </li></ul>
  40. 40. Marketing Debate <ul><li>What good is a mission statement? </li></ul><ul><li>Take a position: </li></ul><ul><li>Mission statements are critical to a </li></ul><ul><li>successful marketing organization. </li></ul><ul><li>or </li></ul><ul><li>2. Mission statements rarely provide </li></ul><ul><li>useful marketing value. </li></ul>
  41. 41. EXERCISE <ul><li>Each student is in effect a “product”. Like all product’s you (they) must be marketed for success. Write your own “mission statement” about your career and a “goal statement” of where you see yourselves in 5 years, 10 years, and after 20 years. </li></ul>
  42. 42. Marketing Discussion <ul><li>What implications do Porter’s value </li></ul><ul><li>chain and the holistic marketing </li></ul><ul><li>orientation model have for </li></ul><ul><li>marketing planning? </li></ul>