Developing marketing strategies and plans 02


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Developing marketing strategies and plans 02

  1. 1. Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha logo copy.tif SUMMARY by Chapter 2 Developing Marketing Strategies And Plans In this chapter, mainly the following points have been discussed • How does marketing affect customer value? • How is strategic planning carried out at different levels of the organization? • What does a marketing plan include? Developing the right marketing strategy over time, through discipline and a creativeSupply thought process can go a long way in the marketing management process. Firms must constantly strive to improve every aspect of their strategy and the plans to guide theChain marketing process.Many companiestoday outsource less The Value Delivery Process In the new view of business processes, marketing is viewed at the beginning of thecritical resources if planning stage. A smart competitor must design and deliver products for well-definedthey can obtain micro-markets and cater to their specific wants, perceptions and preferences. The Valuebetter quality or Creation and Delivery Sequence can be divided into two segments of marketing:lower cost. Also, Strategic Marketing and Tactical Marketing.many companiespartner with specificsuppliers anddistributors tocreate a superiorvalue deliverynetwork, also Core Competenciesknown as Supply Core Competency refers to areas of special technical and production expertise, whereasChain. distinctive capability describes excellence in broader business processes. Market-driven organizations generally excel in three distinctive capabilities: market sensing, customer linking and channel bonding.
  2. 2. Chapter 2 - Developing Marketing Strategies And Plans A firm must coordinate all the department activities to conduct its core business processes, through cross-functional teams • Market-sensing process • New-offering realization processHolistic • Customer Acquisition process • Customer Relationship Management ProcessMarketing • Fulfillment Management ProcessHolistic marketingorientation means, Value Chainintegrating the The value chain is a tool which is used for identifying ways to create more customervalue exploration, value. There are 9 strategically relevant activities – 5 primary and 4 support.value creation andvalue deliveryactivities with thepurpose of buildinglong-term,mutually satisfyingrelationships andco-prosperity Strategic Planningamong key Companies need to focus on the customer and organize to respond effectively to theirstakeholders. It changing needs, to be known as master marketers. The marketing plan is the centralhelps manage a instrument for directing and coordinating the marketing effort. The marketing plansuperior value operates at two levels: strategic and tactical.chain that delivers • The strategic marketing plan lays out the target markets and the value proposition the firm will offer, based on an analysis of the best marketa high level of opportunities.product quality, • The tactical marketing plan specifies the marketing tactics, including productservice and speed, features, promotion, merchandising, pricing, sales channels and addition toexpandingcustomer share, Corporate Headquartersbuilding customer All corporate headquarters undertake four planning activities • Defining the corporate missionloyalty and • Establishing strategic business unitscapturing customer • Assigning resources to each Strategic Business Unitlifetime value. • Assessing growth opportunities Innovation in marketing is critical. Senior management should identify and encourage fresh ideas from a youth perspective, from people new to the field and organization, to gain an understanding and a new approach to marketing.
  3. 3. Chapter 2 - Developing Marketing Strategies And Plans Mission Statement The best Mission Statement reflects a vision, an almost impossible dream that provides a direction for the company for the next 10 or 20 years. A good mission statement focuses on limited number of goals, links the company’s policies and values and gives aStrategic long term view. It is as short, relevant and meaningful as possible.Business UnitA Strategic Business Unit Strategic PlanningBusiness Unit is a The Business Unit Strategic Planning process consists of the following stepssingle business (ora collection of 1. The Business Mission: Each business unit needs to define its specific missionsimilar businesses) within the broader company mission.that can be 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 theplanned external and internal marketing environment.separately from To evaluate opportunities, companies can use Market Opportunity Analysis.the rest of the 3. Goal Formulation: Developing specific goals for a short term is known as Goalcompany. By Formulation. They are specific with respect to magnitude and time. Goals mustidentifying the 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 consistscompany’s SBUs, it of a Marketing Strategy, Technology Strategy and a Sourcing easy to develop 5. Program Formulation: The unit must plan programs in accordance with its goalsseparate strategies and strategy and thus work upon the various departments, to strengthen themand assign and integrate all of them together. 6. Implementation: Even a great marketing strategy can be sabotaged by a poorappropriate implementation. It must coordinate its tasks to implement its plan properly.funding. These tasks must be in line with the interests of the stakeholders as well. 7. Feedback and Control: The key to organizational health is willingness to examine the changing environment and adopt new goals and behaviors. In the rapidly changing market environment, even large organizations which are subject to inertia can be changed through strong leadership.