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Developing Marketing
Strategies and Plan
Vishnu Parmar, IBA
University of Sindh, Jamshoro
Marketing & Customer Value
 The delivery Value Process
 Tradition Physical Process Sequence
 Value Creation and Delivery Sequence
Sell the product
The Value-Delivery Process
Make the product
Procure
Design
product Make Price Sell Advertise/
promote Distribute Service
Choose the Value Provide the Value Communicate the Value
(a) Traditional physical process sequence
(b) Value creation & delivery sequence
Strategic marketing Tactical marketing
Marketing & Customer Value
 Value Creation and Delivery Sequence
 Choose the Product
 Customer Segmentation
 Market Selection / Focus
 Value Positioning
 Provide the Value
 Product Development
 Service Development
 Pricing
 Sourcing Making
 Distributing Service
Marketing & Customer Value
 Value Creation and Delivery Sequence
 Communicate the Value
 Sales force
 Sales Promotion
 Advertising
 Traditional view of business will not work in
economies where people face abundant
choices
Japanese Concept
1. Zero customer Feedback time
2. Zero Product Improvement Time
3. Zero Purchasing Time
4. Zero Setup Time
5. Zero Defects
The Value Chain
 Michael Porter of Harvard University
proposed the value chain as 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.
 The value chain identifies nine activities
consist of five primary activities and four
support activities.
Core Competencies
 A core competency has three
characteristics:
1. It is source of competitive advantage in that it
makes a significant contribution to perceived
customer benefits
2. It has application in a wide variety of markets,
and
3. It is difficult for competitors to imitate.
HOLISTIC RELATIONSHIP MARKETING FRAMEWORK
MARKET
SPACE
POTENTIAL
OPPORTUNITIES
BUSINESS
INVESTMENT
CUSTOMERS CORPORATION COLLABORATORS
CUSTOMER
FOCUS
CORE
COMPETENCIES
COLLABORATIVE
NETWORK
2) How can we define relevant market space?
3) What are the potential opportunities emerging
from the market space?
4) What business capabilities and infrastructure
required?
1) Who is involved?
4 COMPETITIVE PLATFORMS
Market
Offerings
COGNITIVE
SPACE
CUSTOMER
VALUE
BUSINESS
DOMAIN
COMPETENCY
SPACE
Business
Architecture
BUSINESS
PARTNERS
CRM ERP
RESOURCE
SPACE
SCM
Marketing
Activities
Operational
System
Exploring
Value
Creating
Value
Delivering
Value
Customer
Focus
Core
Competencies
Collaborative
Network
Strategic-Planning, Implementation, and
Control Process
Measuring
results
Diagnosing
results
Taking
corrective
action
Implementation
Planning
Corporate
planning
Division
planning
Business
planning
Product
planning
Organizing
Implementing
Control
Sales
10
5
0
Time (years)
The Strategic-Planning Gap
Desired
sales
Integrative growth
Intensive growth
Current
portfolio
Strategic-
planning
gap
Diversification growth
Three Intensive Growth Strategies: Ansoff’s
Product/Market Expansion Grid
4. Diversification
2. Market
development
New
markets
1. Market
penetration
Existing
markets
Existing
products
3. Product
development
New
products
1
4
2
3
High
Low
High Low
Attractiveness
Success Probability Opportunities
Opportunity Matrix
1. Company develops a more
powerful lighting system
2. Company develops a device
for measuring the energy
efficiency of any lighting
system
3. Company develops a device
for measuring illumination
level
4. Company develops a
software program to teach
lighting fundamentals to TV
studio personnel
Threat Matrix
1. Competitor develops a
superior lighting system
2. Major prolonged economic
depression
3. Higher costs
4. Legislation to reduce
number of TV studio
licenses
1
4
2
3
High
Low
High Low
Seriousness
Probability of Occurrence Threats
The Marketing Plan
Executive Summary & Table of Contents
Current Marketing Situation
Opportunity & Issue Analysis
Objectives
Marketing Strategy
Action Programs
Projected Profit-and-loss
Controls
The Boston Consulting Group’s
Growth-Share Matrix
20%-
18%-
16%-
14%-
12%-
10%-
8%-
6%-
4%-
2%-
0
Market
Growth
Rate
3
?
Question marks
?
2
1
Cash cow
6
Dogs
8
7
10x 4x 2x 1.5x 1x
Relative Market Share
.5x .4x .3x .2x .1x
Stars
5
4

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2479603.ppt

  • 1. Developing Marketing Strategies and Plan Vishnu Parmar, IBA University of Sindh, Jamshoro
  • 2. Marketing & Customer Value  The delivery Value Process  Tradition Physical Process Sequence  Value Creation and Delivery Sequence
  • 3. Sell the product The Value-Delivery Process Make the product Procure Design product Make Price Sell Advertise/ promote Distribute Service Choose the Value Provide the Value Communicate the Value (a) Traditional physical process sequence (b) Value creation & delivery sequence Strategic marketing Tactical marketing
  • 4. Marketing & Customer Value  Value Creation and Delivery Sequence  Choose the Product  Customer Segmentation  Market Selection / Focus  Value Positioning  Provide the Value  Product Development  Service Development  Pricing  Sourcing Making  Distributing Service
  • 5. Marketing & Customer Value  Value Creation and Delivery Sequence  Communicate the Value  Sales force  Sales Promotion  Advertising  Traditional view of business will not work in economies where people face abundant choices
  • 6. Japanese Concept 1. Zero customer Feedback time 2. Zero Product Improvement Time 3. Zero Purchasing Time 4. Zero Setup Time 5. Zero Defects
  • 7. The Value Chain  Michael Porter of Harvard University proposed the value chain as 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.  The value chain identifies nine activities consist of five primary activities and four support activities.
  • 8.
  • 9. Core Competencies  A core competency has three characteristics: 1. It is source of competitive advantage in that it makes a significant contribution to perceived customer benefits 2. It has application in a wide variety of markets, and 3. It is difficult for competitors to imitate.
  • 10. HOLISTIC RELATIONSHIP MARKETING FRAMEWORK MARKET SPACE POTENTIAL OPPORTUNITIES BUSINESS INVESTMENT CUSTOMERS CORPORATION COLLABORATORS CUSTOMER FOCUS CORE COMPETENCIES COLLABORATIVE NETWORK 2) How can we define relevant market space? 3) What are the potential opportunities emerging from the market space? 4) What business capabilities and infrastructure required? 1) Who is involved?
  • 11. 4 COMPETITIVE PLATFORMS Market Offerings COGNITIVE SPACE CUSTOMER VALUE BUSINESS DOMAIN COMPETENCY SPACE Business Architecture BUSINESS PARTNERS CRM ERP RESOURCE SPACE SCM Marketing Activities Operational System Exploring Value Creating Value Delivering Value Customer Focus Core Competencies Collaborative Network
  • 12. Strategic-Planning, Implementation, and Control Process Measuring results Diagnosing results Taking corrective action Implementation Planning Corporate planning Division planning Business planning Product planning Organizing Implementing Control
  • 13. Sales 10 5 0 Time (years) The Strategic-Planning Gap Desired sales Integrative growth Intensive growth Current portfolio Strategic- planning gap Diversification growth
  • 14. Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid 4. Diversification 2. Market development New markets 1. Market penetration Existing markets Existing products 3. Product development New products
  • 15. 1 4 2 3 High Low High Low Attractiveness Success Probability Opportunities Opportunity Matrix 1. Company develops a more powerful lighting system 2. Company develops a device for measuring the energy efficiency of any lighting system 3. Company develops a device for measuring illumination level 4. Company develops a software program to teach lighting fundamentals to TV studio personnel
  • 16. Threat Matrix 1. Competitor develops a superior lighting system 2. Major prolonged economic depression 3. Higher costs 4. Legislation to reduce number of TV studio licenses 1 4 2 3 High Low High Low Seriousness Probability of Occurrence Threats
  • 17. The Marketing Plan Executive Summary & Table of Contents Current Marketing Situation Opportunity & Issue Analysis Objectives Marketing Strategy Action Programs Projected Profit-and-loss Controls
  • 18. The Boston Consulting Group’s Growth-Share Matrix 20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%- 0 Market Growth Rate 3 ? Question marks ? 2 1 Cash cow 6 Dogs 8 7 10x 4x 2x 1.5x 1x Relative Market Share .5x .4x .3x .2x .1x Stars 5 4