Session 3 MG 220 BBA - 16 Aug 10

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Session 3
Marketing Management
BBA Section C

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Session 3 MG 220 BBA - 16 Aug 10

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