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Ii mm.02.10
 

Ii mm.02.10

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    Ii mm.02.10 Ii mm.02.10 Presentation Transcript

    • Marketing Management MBA CP 205
    • Developing Marketing Strategies and Plans
      • Learning Objectives:
      • Know how marketing affects customer value.
      • Know how strategic planning is carried out at different levels of the organization.
      • Know the nature and contents of a marketing plan.
      Developing Marketing Strategies and Plans
    • Marketing and Customer Value The value delivery process: Traditional Physical Process Sequence Make the product Sell the product Design product Procure Make Price Sell Advertise Promote Distribute Service Developing Marketing Strategies and Plans
    • Value Creation and Delivery Sequence Chose the value Provide the value Communicate the value Customer segmentation Market selection/ focus Value positioning Product development Service development Pricing Sourcing Making Distributing Servicing Sales force Sales promotion Advertising Strategic Marketing Tactical Marketing Developing Marketing Strategies and Plans
    • Improving the value delivery process the Japanese way Developing Marketing Strategies and Plans Zero customer feedback time Zero product improvement time Zero purchasing time Zero setup time Zero defects
    • 3 Vs approach to Marketing Developing Marketing Strategies and Plans Define the value segment Define the value proposition Define the value network
    • Inbound Logistics Operations Outbound logistics Marketing And Sales Service Firm Infrastructure Human Resource Management Technology development Procurement Support activities Primary activities Margin Margin The Value within an organization Developing Marketing Strategies and Plans
    • Developing Marketing Strategies and Plans Organizational costs and performance measures Competitor costs and performance measures Benchmarks
    • The core business processes Developing Marketing Strategies and Plans Market sensing Customer acquisition New offering realization Fulfillment management Customer relationship management
      • Core competence
      • It refers to an activity that a firm performs better relative to other internal activities.
      • Characteristics of Core competence
      • A source of competitive advantage.
      • Applications in a wide variety of markets.
      • Difficult to imitate.
      Developing Marketing Strategies and Plans
      • Holistic Marketing orientation and Customer value
      • The holistic marketing framework is designed to address three key management questions:
      • Value exploration – How can a company identify new value opportunities?
      • Value creation – How can a company create more promising new value offerings efficiently?
      • Value delivery – How can a company use its capabilities and infrastructure to deliver the new offerings more efficiently?
      Developing Marketing Strategies and Plans
    • Holistic Marketing Orientation framework Value Exploration Value Creation Value Delivery Customer Focus Core Competencies Collaborative Network Cognitive Space Competency Space Resource Space Customer benefits Business Domain Business partners Customer relationship management Internal resource management Business Partner management Developing Marketing Strategies and Plans
    • Strategic Planning requires action in three areas … Developing Marketing Strategies and Plans Managing a company’s business as an Investment portfolio Assess each businesses’ strength Establishing strategy
    • Levels of a Marketing Plan Developing Marketing Strategies and Plans
      • Strategic
        • Target marketing decisions
        • Value proposition
        • Analysis of marketing opportunities
      • Tactical
        • Product features
        • Promotion
        • Merchandising
        • Pricing
        • Sales channels
        • Service
    • Four Organizational Levels … Developing Marketing Strategies and Plans Corporate Level Division Level Business unit Level Product Level
    • The Strategic Planning, Implementing and Control Processes Corporate Planning Division Planning Business Planning Product Planning Organizing Implementing Measuring results Diagnosing results Taking corrective action Planning Implementing Controlling Developing Marketing Strategies and Plans
    • Corporate and Division level Planning activities Developing Marketing Strategies and Plans
      • Define the corporate mission.
      • Establish SBUs.
      • Assign resources to each SBU.
      • Assess growth opportunities.
    • Good Mission Statements Developing Marketing Strategies and Plans Focus on limited number of goals Stress major policies and values Define major competitive spheres
    • Developing Marketing Strategies and Plans Major Competitive Spheres Industry Products Market segment Geographical Competence Vertical channels
    • Dimensions that define a business Developing Marketing Strategies and Plans Customer groups Technology Customer needs
      • Characteristics of SBUs
      • Large companies normally manage different businesses and classify their businesses into Strategic Business Units (SBUs). An SBU has three characteristics:
      • It is a single business or a collection of related businesses that can be planned separately from rest of the company.
      • It has its own set of competitors.
      • It has its own manager responsible for its strategic planning, profitability and performance.
      Developing Marketing Strategies and Plans
      • Assessing Growth Opportunities
      • It involves planning new businesses and down sizing or terminating older businesses.
      • The company’s business plans project total sales and profits.
      • Strategic planning gap refers to the difference between future desired sales and projected sales.
      • The firm will develop or acquire new businesses to fill the gap through intensive, integrative or diversification growth strategies.
      Developing Marketing Strategies and Plans
    • Strategic – Planning Gap Time (Years) Sales Intensive growth Integrative growth Diversification growth Desired sales Current portfolio Strategic-planning gap Developing Marketing Strategies and Plans
    • Ansoff’s Product-Market Expansion Matrix 1. Market-Penetration Strategy 3. Product-development Strategy 2. Market-development Strategy (Diversification strategy) Current Markets Current Products New Markets New Products Developing Marketing Strategies and Plans
    • Business Unit Strategic Planning framework Business mission External environment (Opportunity & Threat) analysis Goal formula- tion Implemen- tation Internal environment (strength/weak ness analysis) Strategy formula- tion Program formula- tion Feedback and control SWOT Analysis Developing Marketing Strategies and Plans
    • SWOT Analysis Developing Marketing Strategies and Plans Strengths Weaknesses Opportunities Threats
      • Market Opportunity Analysis (MOA)
      • To evaluate opportunities, companies can use ‘Market Opportunity Analysis’.
      • Can the benefits involved in the opportunity be articulated convincingly to a defined target market?
      • Can the target market be located and reached with cost-effective media and trade channels?
      Developing Marketing Strategies and Plans
      • Market Opportunity Analysis (MOA – Contd.)
      • Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?
      • Can the company deliver the benefits better than any actual or potential competitors?
      • Will the financial rate of return meet or exceed the company’s required threshold for investment?
      Developing Marketing Strategies and Plans
    • 1 3 4 2 4 1 3 2 High High High High Low Low Low Low Success probability Probability of occurrence Opportunity matrix Threats matrix Attractiveness Seriousness Developing Marketing Strategies and Plans
      • Four outcomes are possible:
      • An ideal business , is high in major opportunities and low in major threats.
      • A speculative business , is high in both opportunities and threats.
      • A mature business , is low in both opportunities and threats.
      • A troubled business , is low in opportunities and high in threats.
      • Internal analysis involves identifying firm’s internal strengths and weaknesses.
      Developing Marketing Strategies and Plans
      • Goal Formulation and MBO
      • Unit’s objectives must be hierarchical.
      • Objectives must be quantitative.
      • Objectives should be realistic.
      • Objectives must be consistent.
      Developing Marketing Strategies and Plans
    • Strategy formulation – Porter’s generic strategies Developing Marketing Strategies and Plans Overall Cost Leadership Differentiation Focus
    • Strategy formulation – Strategic alliances Developing Marketing Strategies and Plans Product or Service Alliances Promotional Alliances Logistics Alliances Pricing Collaborations
      • The nature and contents of a Marketing Plan
      • It is a written document that summarizes what the marketer has learnt about the market place and indicates how the firm plans to achieves its marketing objectives.
      • Contents of a marketing plan are:
      • Executive summary and table of contents.
      • Situational analysis.
      • Marketing strategy.
      • Financial projections and
      • Implementation.
      Developing Marketing Strategies and Plans
      • Recap:
      • How marketing affects customer value.
      • How strategic planning is carried out at different levels of the organization.
      • The nature and contents of a marketing plan.
      Developing Marketing Strategies and Plans