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2 Developing Marketing Strategies and Plans

Phases of Value Creation and Delivery

Choosing the value

Providing the value

Communicating the value

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What is Holistic Marketing?

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What is Holistic Marketing?

Holistic marketing sees itself as integrating the value exploration, value creation, and value delivery activities with the purpose of building long-term, mutually satisfying relationships and co-prosperity among key stakeholders.

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Questions to Address in Holistic Marketing

What value opportunities are available?

How can we create new value offerings efficiently?

How can we delivery the new offerings efficiently?

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What is Strategic Planning?

Process to establish priorities on what you will accomplish in the future Forces you to make choices on what you will do and what you will not do Pulls the entire organization together around a single game plan for execution Broad outline on where resources will get allocated

Fundamental Questions to Ask

Where are we now? (Assessment) Where do we need to be? (Gap / Future End State) How will we close the gap (Strategic Plan) How will we monitor our progress (Balanced Scorecard)

Strategic Planning Model A B C D E Where we want to be How we will do it How are we doing Where we are
Assessment Baseline Components Down to Specifics Evaluate

Environmental Scan Background Information Situational Analysis SWOT Strengths, Weaknesses, Opportunities, Threats

Situation Past, Present and Future Significant Issues Align / Fit with Capabilities

Mission & Vision Values / Guiding Principles Major Goals Specific Objectives

Performance Measurement Targets / Standards of Performance Initiatives and Projects Action Plans

Performance Management Review Progress Balanced Scorecard Take Corrective Actions Feedback upstream revise plans

Gaps

The Strategic Planning, Implementation, and Control Processes

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What is a Marketing Plan?

A marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at a strategic and tactical level.

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Levels of a Marketing Plan

Strategic

Tactical

Target marketing decisions Value proposition Analysis of marketing opportunities

Product features Promotion Merchandising Pricing Sales channels Service

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Major Components of the Strategic Plan / Down to Action

Strategic Plan Action Plans

Mission Vision Goals Objectives O1 AI2 M3 T1 AI3

Why we exist What we want to be

Evaluate Progress

What we must achieve to be successful O2

Specific outcomes expressed in measurable terms (NOT activities) Planned Actions to Achieve Objectives Indicators and Monitors of success Desired level of performance and timelines

Initiatives
Measures Targets

AI1

M1 M2 T1 T1

Good Mission Statements

Focus on a limited number of goals Stress major policies and values Define major competitive spheres Take a long-term view Short, memorable, meaningful
A clear, thoughtful mission statement provides a shared sense of purpose, direction, and opportunity.

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Examples Good and Bad Mission Statements

NASA To Explore the Universe and Search for Life and to Inspire the Next Generation of Explorers

Does a good job of expressing the core values of the organization. Also conveys unique qualities about the organization.

Walt Disney To Make People Happy

Too vague and unclear. Need more descriptive information about what makes the organization special.

Google

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Product Orientation vs. Market Orientation

Company
Missouri-Pacific Railroad Xerox Standard Oil

Product
We run a railroad

Market
We are a peopleand-goods mover We improve office productivity We supply energy

We make copying equipment We sell gasoline

Columbia Pictures

We make movies

We entertain people

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The Strategic Planning Gap

Internal Assessment: Organizational assets, resources, people, culture, systems, partnerships, suppliers, . . .

External Assessment: Marketplace, competitors, social trends, technology, regulatory environment, economic cycles .

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Strengths
Strengths Those things that you do well, the high value or performance points Strengths can be tangible: Loyal customers, efficient distribution channels, very high quality products, excellent financial condition Strengths can be intangible: Good leadership, strategic insights, customer intelligence, solid reputation, high skilled workforce Often considered Core Competencies Best leverage points for growth without draining your resources

Weaknesses
Weaknesses Those things that prevent you from doing what you really need to do Since weaknesses are internal, they are within your control Weaknesses include: Bad leadership, unskilled workforce, insufficient resources, poor product quality, slow distribution and delivery channels, outdated technologies, lack of planning, . . .

Opportunities
Opportunities Potential areas for growth and higher performance External in nature marketplace, unhappy customers with competitors, better economic conditions, more open trading policies, . . Internal opportunities should be classified as Strengths Timing may be important for capitalizing on opportunities

Threats
Threats Challenges confronting the organization, external in nature Threats can take a wide range bad press coverage, shifts in consumer behavior, substitute products, new regulations, . . . May be useful to classify or assign probabilities to threats The more accurate you are in identifying threats, the better position you are for dealing with the sudden ripples of change

Gap Analysis
Baseline / Org Profile
Challenges / SWOT

Gap = Basis for Long-Term Strategic Plan

Figure 2.2 The Strategic Planning Gap

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Product/Market Expansion Grid

PRODUCT

Existing Existing Market Penetration Market Development

New Product Development

MARKET

New

Diversification

Product/Market Expansion Grid

Diversification

Growth at Starbucks

To maintain its phenomenal growth in an increasingly over-caffeinated marketplace, Starbucks has brewed up an ambitious, multipronged growth strategy.

Product/Market Expansion Grid Based on Starbucks

Market Penetration: make more sales to current customers without changing products. How? Add new stores in current market areas; improve advertising, prices, menu, service. Market Development: identify and develop new markets for current products. How? Review new demographic (seniors/ethnic consumers) or geographic (Asian, European, Australian, & South American) markets.

Product/Market Expansion Grid Based on Starbucks

Product Development: offering modified or new products to current markets. How? Add food offerings, sell coffee in supermarkets, co-brand products. Diversification: start up or buy businesses outside current products and markets. How? Making and selling CDs, testing restaurant concepts, or branding casual clothing.

An example of applying the Product Market Expansion Grid (Malaysian Airlines)

Market Opportunity Analysis (MOA)

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? Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?
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Market Opportunity Analysis (MOA)

Can the company deliver the benefits better than any actual or potential competitors? Will the financial rate of return meet or exceed the companys required threshold for investment?

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Goal Formulation and MBO

Units objectives must be hierarchical Objectives should be quantitative Goals should be realistic Objectives must be consistent

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Porters Generic Strategies

Overall cost leadership

Differentiation

Focus

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Categories of Marketing Alliances

Product or service alliance Promotional alliance Logistics alliances Pricing collaborations

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Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

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Evaluating a Marketing Plan

Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?

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Marketing Plan Sample

http://www.mplans.com/sample_marketing_plans.php

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