Marketing Strategy

DEVELOPING MARKETING STRATEGIES & PLANS

MARKETING AND CUSTOMER VALUE HYPERCOMPETITION RATIONAL BUYER

ABUNDANT CHOICES

VALUE DELIVERY PROCESS

CHOOSING

DELIVERING

COMMUNICATING

VALUE DELIVERY PROCESS

SERVICE

DISTRIBUTE

PROMOTE

PRICE

MAK E

PROCUR E

DESIGN PRODUCT

SELL

SELL PRODUCT

MAKE PRODUCT

TRADITIONAL PHYSICAL PROCESS SEQUENCE

STRATEGIC MARKETING TACTICAL MARKETING

VALUE CREATION & DELIVERY SEQUENCE ADVERTISIN G

PROMOTION

SALES

PROVIDE THE VALUE SALES FORCE

DISTRIBUTING SERVICING

SOURCING MAKING

PRICING

CHOOSE THE VALUE

SERVICE DEVELOPMENT

VALUE POSITIONIN G PRODUCT DEVELOPMEN T

MARKET FOCUS

CUSTOMER SEGMENTATION

VALUE DELIVERY PROCESS (Cont.) COMMUNICATE THE VALUE

THE VALUE CHAIN 

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Tool for identifying ways to create more customer value Firm - Synthesis of activities performed to design, produce, market, deliver and support its products Identifies 9 strategically relevant activities that create value and cost 5 Primary Activities 4 Secondary Activities

FIRM INFRASTRUCTURE HUMAN RESOURCE MANAGEMENT

R A M

TECHNOLOGY DEVELOPMENT

IN G

PRIMARY ACTIVITIES

IN MA RG

SERVICE

MARKETING & SALES

OUTBOUND LOGISTICS

OPERATIONS

PROCUREMENT

INBOUND LOGISTICS

SUPPORT ACTIVITIES

THE VALUE CHAIN

CORE BUSINESS PROCESSES 

MARKETING SENSING PROCESS Gathering, Disseminating & Acting On Market Intelligence Information.

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NEW OFFERING REALIZATION PROCESS Researching, Developing & Launching new offerings

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CUSTOMER ACQUISITION PROCESS Defining target market & Prospecting new customers

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FULFFILLMENT MANAGEMENT PROCESS Receiving orders, Shipping & Collecting payments

CORE COMPETENCIES THREE DISTINCT CHARACTERISTICS:   

SOURCE OF COMPETITIVE ADVANTAGE WIDE APPLICATION DIFFICULT TO IMITATE

HOLISTIC MARKETING ORIENTATION Addresses 3 Management questions 

How can a company identifies new market opportunities?

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How can a company efficiently create more promising new value offering?

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How can a company use its capabilities and infrastructure to deliver the new value?

HOLISTIC MARKETING (cont.)

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Integration of Value Exploration, Value Creation and Value Delivery for long tern mutually satisfying relationships & coprosperity with key stake- holders. Key Activities: Value Exploration Value Creation Value Delivery

STRATEGIC PLANNING PLANNING Corporate Planning Division Planning Business Planning Product Planning

IMPLEMENTING

CONTROLLING

Organizing

Measuring Results

Implementin g

Diagnosing Results Taking Corrective Actions

CORPORATE & DIVISION STRATEGIC PLANNING    

Defining the Corporate Mission Establishing Strategic Business Unit Assigning resources to each SBU Assessing growth opportunities

Corporate Mission Mission statement is a brief description of a company’s fundamental purpose or focus. A mission statement answers the question, “Why do we exist?”

HUL Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

CORPORATE & DIVISION STRATEGIC PLANNING (cont) Characteristics of SBU 

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Single/collection of related Businesses that can be planned separately Its own set of competitors Has a separate manager responsible for strategic planning

Assessing Growth Opportunities  

Planning New Businesses Terminating old Businesses

Assessing Growth Opportunities (cont) 

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Intensive Growth- Opportunities to improve the current business. Ansoff Matrix (detail later) Integrative GrowthBackward, Forward or Horizontal Integration Diversification- Add attractive businesses that are unrelated to current business where company can leverage its strength Concentric Horizontal Conglomerate Downsizing – Divesting the tired old business

ANSOFF MATRIX  

Existing Products

New Products

Market Penetration

    Product Development    

    Market Development    

Diversification

Existing Markets

New Markets

BUSINESS UNIT STRATEGIC PLANNING 

Business Mission

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SWOT Analysis Involves monitoring the External and Internal marketing environment…for overall evaluation of Company’s Strength, Weakness, Opportunities and Threat

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Goal Formulation

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Strategy Formulation and Implementation

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Feedback & Control

SWOT ANALYSIS

GOAL FORMULATION After SWOT analysis Company proceeds to develop specific goals for the planning period

Goal – Objectives that are specific with respect to magnitude and time 

Arranged in Hierarchy (most to least important)

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Should be stated Quantitatively

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Should be realistic

STRATEGY FORMULATION Porter’s Generic Strategies

STRATEGIC ALLIANCES MARKETING ALLIANCES  Product & Service Alliances  Promotional Alliances  Pricing Collaborations

STRATEGY IMPLEMENTATION Once detailed strategies are developed, detailed support programs are worked out

FEEDBACK & CONTROL  

Track the results Monitor new Developments

PRODUCT PLANNING- MARKETING PLAN Written document that summarizes  What the marketer has learned about the marketplace  Indicates how the firm plans to reach the marketing objectives  Provides Tactical guidelines