Marketing Management

By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha

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SUMMARY by

Chapter 2
Developing Marketing
Strategies And Plans
In this chapter, mainly the following points have been discussed
• How does marketing affect customer value?
• How is strategic planning carried out at different levels of the organization?
• What does a marketing plan include?

Developing the right marketing strategy over time, through discipline and a creative
Supply thought process can go a long way in the marketing management process. Firms must
constantly strive to improve every aspect of their strategy and the plans to guide the
Chain marketing process.

Many companies
today outsource less
The Value Delivery Process
In the new view of business processes, marketing is viewed at the beginning of the
critical resources if
planning stage. A smart competitor must design and deliver products for well-defined
they can obtain micro-markets and cater to their specific wants, perceptions and preferences. The Value
better quality or Creation and Delivery Sequence can be divided into two segments of marketing:
lower cost. Also, Strategic Marketing and Tactical Marketing.

many companies
partner with specific
suppliers and
distributors to
create a superior
value delivery
network, also Core Competencies
known as Supply Core Competency refers to areas of special technical and production expertise, whereas
Chain. distinctive capability describes excellence in broader business processes. Market-driven
organizations generally excel in three distinctive capabilities: market sensing, customer
linking and channel bonding.
 Chapter 2 - Developing Marketing Strategies And Plans
A firm must coordinate all the department activities to conduct its core business
processes, through cross-functional teams
• Market-sensing process
• New-offering realization process
Holistic • Customer Acquisition process
• Customer Relationship Management Process
Marketing • Fulfillment Management Process
Holistic marketing
orientation means, Value Chain
integrating the The value chain is a tool which is used for identifying ways to create more customer
value exploration, value. There are 9 strategically relevant activities – 5 primary and 4 support.

value creation and

value delivery
activities with the
purpose of building
long-term,
mutually satisfying
relationships and
co-prosperity Strategic Planning
among key
Companies need to focus on the customer and organize to respond effectively to their
stakeholders. It changing needs, to be known as master marketers. The marketing plan is the central
helps manage a instrument for directing and coordinating the marketing effort. The marketing plan
superior value operates at two levels: strategic and tactical.

chain that delivers • The strategic marketing plan lays out the target markets and the value
proposition the firm will offer, based on an analysis of the best market
a high level of
opportunities.
product quality, • The tactical marketing plan specifies the marketing tactics, including product
service and speed, features, promotion, merchandising, pricing, sales channels and service.
in addition to
expanding
customer share,
Corporate Headquarters
building customer All corporate headquarters undertake four planning activities
• Defining the corporate mission
loyalty and
• Establishing strategic business units
capturing customer • Assigning resources to each Strategic Business Unit
lifetime value. • Assessing growth opportunities

Innovation in marketing is critical. Senior management should identify and encourage

fresh ideas from a youth perspective, from people new to the field and organization, to
gain an understanding and a new approach to marketing.
 Chapter 2 - Developing Marketing Strategies And Plans

Mission Statement
The best Mission Statement reflects a vision, an almost impossible dream that provides
a direction for the company for the next 10 or 20 years. A good mission statement
focuses on limited number of goals, links the company’s policies and values and gives a
Strategic long term view. It is as short, relevant and meaningful as possible.

Business Unit
A Strategic Business Unit Strategic Planning
Business Unit is a
The Business Unit Strategic Planning process consists of the following steps
single business (or
a collection of 1. The Business Mission: Each business unit needs to define its specific mission
similar businesses) within the broader company mission.
that can be 2. SWOT Analysis: The overall analysis of a company’s Strengths, Weaknesses,
Opportunities and Threats is called SWOT analysis. It is a way of monitoring the
planned
external and internal marketing environment.
separately from
To evaluate opportunities, companies can use Market Opportunity Analysis.
the rest of the 3. Goal Formulation: Developing specific goals for a short term is known as Goal
company. By Formulation. They are specific with respect to magnitude and time. Goals must
identifying the be consistent and realistic and could be a mix of various objectives.
4. Strategy Formulation: Strategy is a game plan for achieving the goals. It consists
company’s SBUs, it
of a Marketing Strategy, Technology Strategy and a Sourcing Strategy.
is easy to develop 5. Program Formulation: The unit must plan programs in accordance with its goals
separate strategies and strategy and thus work upon the various departments, to strengthen them
and assign and integrate all of them together.
6. Implementation: Even a great marketing strategy can be sabotaged by a poor
appropriate
implementation. It must coordinate its tasks to implement its plan properly.
funding.
These tasks must be in line with the interests of the stakeholders as well.
7. Feedback and Control: The key to organizational health is willingness to
examine the changing environment and adopt new goals and behaviors. In the
rapidly changing market environment, even large organizations which are
subject to inertia can be changed through strong leadership.