Customer Value


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Customer Value

  1. 1. MARKETING MANAGEMENT 12 th edition 2 Developing Marketing Strategies and Plans Kotler Keller
  2. 2. Chapter Questions <ul><li>How does marketing affect customer value? </li></ul><ul><li>How is strategic planning carried out at different levels of the organization? </li></ul><ul><li>What does a marketing plan include? </li></ul>
  3. 3. Figure 2.1 The Value Delivery Process S egmentation T argeting P ositioning
  4. 4. Nike Creates Value
  5. 5. Improving Value Delivery the Japanese Way 0 customer feedback time 0 product improvement time 0 setup time 0 defects 0 purchasing time
  6. 6. 3 V’s Approach to Marketing Define the value segment = define customers and needs Define the value proposition Define the value network
  7. 7. Figure 2.2 Porter’s Value Chain
  8. 9. Benchmarks Organizational costs and performance measures Competitor costs and performance measures
  9. 10. Core Business Processes Market sensing Fulfillment management Customer acquisition New offering realization Customer relationship management
  10. 11. Wal-Mart’s stock replenishment process is legendary
  11. 12. Characteristics of Core Competencies <ul><li>A source of competitive advantage </li></ul><ul><li>Applications in a wide variety of markets </li></ul><ul><li>Difficult to imitate </li></ul>
  12. 13. Netflix’s Distinctive Capabilities
  13. 14. Figure 2.3 A Holistic Marketing Framework needs Broad-focused Width:phys-virtual Horizontal partnerships REALIGN
  14. 15. Challenges Facing CMO’s Doing more with less Driving new business development Becoming a full business partner
  15. 16. Levels of a Marketing Plan <ul><li>Strategic </li></ul><ul><ul><li>Target marketing decisions </li></ul></ul><ul><ul><li>Value proposition </li></ul></ul><ul><ul><li>Analysis of marketing opportunities </li></ul></ul><ul><li>Tactical </li></ul><ul><ul><li>Product features </li></ul></ul><ul><ul><li>Promotion </li></ul></ul><ul><ul><li>Merchandising </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Sales channels </li></ul></ul><ul><ul><li>Service </li></ul></ul>
  16. 17. Figure 2.4 The Strategic Planning, Implementation, and Control Processes
  17. 18. Corporate headquarters’ planning activities <ul><li>Define the corporate mission </li></ul><ul><li>Establish SBUs </li></ul><ul><li>Assign resources to each SBU </li></ul><ul><li>Assess growth opportunities </li></ul>
  18. 19. Good Mission Statements Focus on limited number of goals Stress major policies and values Define major competitive spheres
  19. 20. Major Competitive Spheres Industry Products Market segment Geographical Competence Vertical channels 3M - DUPONT ST- JUDE SAES GETTERS HP GERBER ZARA P&G
  20. 21. GE’s breakthroughs in the process of desalination crosses multiple competitive spheres By 2015, two-thirds of the world will be water-stressed. Desalination plants like this one help to relieve water shortages.
  21. 22. Rubbermaid Commercial Products, Inc. “ Our vision is to be the Global Market Share Leader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost- effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our uncompromising Commitment to Customer Satisfaction.”
  22. 23. Motorola “ The purpose of Motorola is to honorably serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by doing so, provide the opportunity for our employees and shareholders to achieve their personal objectives.”
  23. 24. eBay “ We help people trade anything on earth. We will continue to enhance the online trading experiences of all – collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers .”
  24. 25. Table 2.2 Product Orientation vs. Market Orientation We entertain people We make movies Columbia Pictures We supply energy We sell gasoline Standard Oil We improve office productivity We make copying equipment Xerox We are a people-and-goods mover We run a railroad Missouri-Pacific Railroad Market Product Company
  25. 26. Dimensions That Define A Business Customer groups Technology Customer needs
  26. 27. Characteristics of SBUs <ul><li>It is a single business or collection of related businesses </li></ul><ul><li>It has its own set of competitors </li></ul><ul><li>It has a leader responsible for </li></ul><ul><ul><li>Strategic planning </li></ul></ul><ul><ul><li>Profitability </li></ul></ul><ul><ul><li>Efficiency </li></ul></ul>
  27. 28. Figure 2.5 The Strategic Planning Gap TDK blank CDs
  28. 29. Figure 2.6 Ansoff’s Product-Market Expansion Grid
  29. 30. Integration: backward - forward - horizontal Diversification: related - unrelated (samsung - walt disney)
  30. 31. The Growth of Starbucks
  31. 32. Organizations Structure Policies Culture
  32. 33. Merging Corporate Culture?
  33. 34. Figure 2.7 The Business Unit Strategic Planning Process
  34. 35. SWOT Analysis Strengths Weaknesses Opportunities Threats
  35. 36. Market Opportunity Analysis (MOA) <ul><li>Can the benefits involved in the opportunity be articulated convincingly to a defined target market? </li></ul><ul><li>Can the target market be located and reached with cost-effective media and trade channels? </li></ul><ul><li>Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits? </li></ul>
  36. 37. Market Opportunity Analysis (MOA)_2 <ul><li>Can the company deliver the benefits better than any actual or potential competitors? </li></ul><ul><li>Will the financial rate of return meet or exceed the company’s required threshold for investment? </li></ul>
  37. 38. FedEx FedEx added Sunday deliveries based on customer requests and market demand
  38. 39. Figure 2.8 Opportunity Matrix
  39. 40. Figure 2.8 Threat Matrix
  40. 41. Goal Formulation and MBO <ul><li>Requirements for using MBO </li></ul><ul><ul><li>Unit’s objectives must be hierarchical </li></ul></ul><ul><ul><li>Objectives should be quantitative </li></ul></ul><ul><ul><li>Goals should be realistic </li></ul></ul><ul><ul><li>Objectives must be consistent </li></ul></ul>
  41. 42. Porter’s Generic Strategies Overall Cost Leadership Differentiation Focus
  42. 43. The Star Alliance
  43. 44. Categories of Marketing Alliances Product or Service Alliances Promotional Alliances Logistics Alliances Pricing Collaborations
  44. 45. Feedback and Control
  45. 46. Marketing Plan Contents <ul><li>Executive summary </li></ul><ul><li>Table of contents </li></ul><ul><li>Situation analysis </li></ul><ul><li>Marketing strategy </li></ul><ul><li>Financial projections </li></ul><ul><li>Implementation controls </li></ul>
  46. 47. Evaluating a Marketing Plan <ul><li>Is the plan simple? </li></ul><ul><li>Is the plan specific? </li></ul><ul><li>Is the plan realistic? </li></ul><ul><li>Is the plan complete? </li></ul>
  47. 48. Marketing Debate <ul><li>What good is a mission statement? </li></ul><ul><li>Take a position: </li></ul><ul><li>Mission statements are critical to a </li></ul><ul><li>successful marketing organization. </li></ul><ul><li>2. Mission statements rarely provide </li></ul><ul><li>useful marketing value. </li></ul>
  48. 49. Marketing Debate <ul><li>What implications do Porter’s value </li></ul><ul><li>chain and the holistic marketing </li></ul><ul><li>orientation model have for </li></ul><ul><li>marketing planning? </li></ul>