Session 3   MG 220 BBA - 16 Aug 10
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Session 3 MG 220 BBA - 16 Aug 10

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Session 3

Session 3
Marketing Management
BBA Section C

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    Session 3   MG 220 BBA - 16 Aug 10 Session 3 MG 220 BBA - 16 Aug 10 Presentation Transcript

    • Part 1: Understanding Marketing Management
      > Marketing & Customer Value
      > Corporate and Division Strategic Planning
      > Business Unit Strategic Planning
      > Product Planning: The Nature and Contents of a Marketing Plan
      Class Presentation | Session 3 | 16 Aug 2010
    • Marketing & Customer ValueThe Value Delivery Process
      MG 220 Marketing Management
      2
    • Marketing & Customer ValueThe Value Delivery Process
      MG 220 Marketing Management
      3
    • Marketing & Customer ValueThe Value Chain
      A tool for identifying ways to create more customer value
      Every firm is a synthesis of activities performed to design, produce, market, deliver and support its product
      Primary Activities (producing & marketing)
      Support Activities (management of firm)
      MG 220 Marketing Management
      4
    • Marketing & Customer ValueThe Value Chain
      Firm should estimate its competitors’ costs and performances as ‘benchmarks’ against which it compares its own costs and performance
      Success depends on ‘core business processes’
      Market sensing
      Offering realization
      Customer Acquisition
      Customer Realization
      Fulfillment management
      MG 220 Marketing Management
      5
    • Marketing & Customer ValueThe Value Chain
      MG 220 Marketing Management
      6
    • Marketing & Customer ValueCore Competences
      Outsource the less critical
      Focus on Core Competency
      Characteristics of Core Competency:
      A Source of competitive advantage
      Has Application in a wide variety of markets
      Difficult for competitors to imitate
      MG 220 Marketing Management
      7
    • Marketing & Customer ValueA Holistic Marketing Orientation & Customer Value
      MG 220 Marketing Management
      8
      Customer
      Company
      Partners
      Designing
      Developing
      Delivering
    • Marketing & Customer ValueThe Central Role of Strategic Planning
      All the successful brands:
      Focus on Customers
      Respond effectively to changing customer needs
      Have well-staffed marketing departments
      And all other departments in their organizations understand: “CUSTOMER IS THE KING”
      MG 220 Marketing Management
      9
    • Marketing & Customer ValueThe Central Role of Strategic Planning
      Levels in Strategic Planning [Typical]
      Corporate Level
      Division Level
      Business Unit Level
      Product Level
      Marketing Plan is central instrument for directing and coordinating marketing effort
      Strategic marketing plan
      Lays out target markets & value proposition
      Tactical marketing plan
      Specifics of marketing activities
      MG 220 Marketing Management
      10
    • Marketing & Customer ValueThe Central Role of Strategic Planning
      MG 220 Marketing Management
      11
    • Corporate & Division Strategic PlanningActivities
      Four Planning Activities
      Defining the Corporate Mission
      Establishing Strategic Business Units
      Assigning Resources to each SBU
      Assessing Growth Opportunities
      MG 220 Marketing Management
      12
    • Corporate & Division Strategic Planning1. Defining the Corporate Mission
      Peter Drucker’s classic questions
      What is our business?
      Who is the customer?
      What is of value to our customer?
      What will our business be?
      What should our business be?
      MG 220 Marketing Management
      13
    • Corporate & Division Strategic Planning1. Defining the Corporate Mission (…contd.)
      Mission Statements
      Focus on LIMITED goals
      Stress company’s major policies & values
      Define the major competitive spheres:
      Industry (in which company operates)
      Products & Applications
      Competence
      Market Segment
      Vertical (channels)
      Geographical
      MG 220 Marketing Management
      14
    • Corporate & Division Strategic Planning2&3. Defining Business / Establishing SBUs
      A business is?
      Customer-satisfying process
      NOT: Goods-producing process
      MG 220 Marketing Management
      15
    • Corporate & Division Strategic Planning2&3. Defining Business / Establishing SBUs (…contd)
      A SBU:
      Single business or collection of related businesses which can be planned from the rest of the company
      It has its own set of competitors
      It has a manager who is responsible for strategic planning and profit performance and who controls most of the factors affecting profit
      MG 220 Marketing Management
      16
    • Corporate & Division Strategic Planning4. Assessing Growth Opportunities
      Strategic Planning Gap
      MG 220 Marketing Management
      17
    • Corporate & Division Strategic Planning4. Assessing Growth Opportunities (…contd)
      Intensive Growth
      Ansoff Product-Market Expansion Grid
      MG 220 Marketing Management
      18
    • Corporate & Division Strategic Planning4. Assessing Growth Opportunities (…contd)
      Integrative Growth
      ‘Integrations’
      Backward: Acquire Suppliers
      Forward: Acquire distributors/suppliers
      Horizontal: Acquire Competitors
      MG 220 Marketing Management
      19
    • Corporate & Division Strategic Planning4. Assessing Growth Opportunities (…contd)
      Diversification Growth
      When good opportunities can be found outside current business
      New line of business NOT products
      Downsizing & Divesting
      Pruning & harvesting current portfolio
      MG 220 Marketing Management
      20
    • Business Unit Strategic PlanningProcess
      MG 220 Marketing Management
      21
    • Business Unit Strategic PlanningSWOT Analysis
      SWOT
      Internal Environment Analysis
      Strengths
      Weaknesses
      External Environment Analysis
      Opportunities
      Threats
      MG 220 Marketing Management
      22
    • Business Unit Strategic PlanningGoal Formulation
      Setting objectives & MBO
      Managing by Objectives
      Goals should have these characteristics
      They must be arranged hierarchically from the most to least important
      Objectives should be stated quantitatively whenever possible
      Goals should be realistic
      Objectives must be consistent
      MG 220 Marketing Management
      23
    • Business Unit Strategic PlanningStrategic Formulation
      Goals: What a business wants to achieve
      Strategy: A game plan for getting there
      Porter’s Generic Strategies
      Overall Cost Leadership
      Differentiation
      Focus
      Strategic Alliances
      Product or Service Alliances (licensing to produce its product)
      Promotional Alliances (joint promotions)
      Logistics Alliances
      Pricing Collaborations (mutual price discounts)
      MG 220 Marketing Management
      24
    • Business Unit Strategic PlanningProgram Formulation & Implementation
      Great Marketing Strategy can fail:
      If poorly implemented
      Strategy is one the seven elements in business practice! (McKinsey)
      Strategy
      Structure
      Systems
      Style
      Skills
      Staff
      Shared Values
      MG 220 Marketing Management
      25
    • Business Unit Strategic PlanningFeedback & Control
      Need to track results and monitor new developments
      Need to continuously examine changing environment and to adopt to new goals and behaviors
      MG 220 Marketing Management
      26
    • Product Planning: Marketing PlanNature
      Marketing Plan
      A written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives
      MG 220 Marketing Management
      27
    • Product Planning: Marketing PlanContents
      Executive Summary & Table of Contents
      Situation Analysis
      Marketing Strategy
      Financial Projections
      Implementation Controls
      MG 220 Marketing Management
      28
    • Part 2: Capturing Market Insights
      > Gathering Information & Scanning the environment
      > Key Concepts in complete Chapter 3 will be covered
      Class Presentation | Session 4 | 18 Aug 2010