Developing marketing strategies and plan

Sandeep.S BRIM

Traditional view of marketing

Traditional view of marketing firm makes something and then sells it Marketing happening at the second half Mass marketing Suited when people are not worried about choices When the customers are not informed

Concept of value creation & delivery

Now mass market in splintered into many micro markets Companies are now designing and delivering offerings for well defined target markets Marketing is divided into two parts now 1. Strategic 2. Tactical

Three Vs Approach to Marketing

Define the value segment Define the value proposition Define the value network

What is the Value Chain?

The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.

Figure 2.2 Porters Value Chain

Core Business Processes

Market-sensing process New-offering realization process Customer acquisition process Customer relationship management process

Fulfillment management process

Characteristics of Core Competencies

1. A source of competitive advantage 2. Applications in a wide variety of markets 3. Difficult to imitate
Nikes core competency is not in manufacturing 1. Shoe design 2. Manufacturing

Competitive advantage by distinctive capabilities

Netflix competitive advantages Online movie rental system No late fees Overnight delivery A deep catalogue of 65000 movie titles Easy and innovative movie search Customer involvement , creating buzz

Becoming a Vigilant Organization

Can we learn from the past? How should the present be evaluated? What do we envision for the future?

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.

Holistic marketing
1. 2. 3. Value exploration Value creation Value delivery

Understanding Creating Delivering Capturing Sustaining

Customer value

Strategic planning

Strategic planning
Each company must find the game plan for long run survival and growth that makes the most sense given its specific situation, opportunities , objectives and resources.

It is the process of developing and maintaining a strategic fit between the organisations goals and capabilities and its changing marketing opportunities

 Companies usually prepare annual plans, long range plans, and strategic plans. The annual and long range plans deals with the companys current business and how to keep them going. In contrast, the strategic plan involves adapting the firm to take advantage of opportunities in its constantly changing environment

Strategic planning in organisation

The aim of strategic planning is to shape the companys businesses and products so that they yield target profit and growth. Strategic planning happens at four levels 1. Corporate 2. Division 3. Business 4. product

Level of Planning in organisations

1. Corporate head quarters
Corporate strategic plan, it makes decision on the amount of resources to be allocated to each divisions

2. Divisions ( national, regional)

It establishes a plan covering allocation of funds to each business units within the divisions

3. Business units
A strategic plan to carry that business unit into a profitable one

4. Products line and brand

A tactical level marketing plan to achieve its objective in product market

Levels of planning
1. The company starts the strategic planning process by defining its overall mission and purpose. 2. This mission is broken down into objectives and goals 3. Company headquarters then decides what portfolio of business and product is best for the company 4. Each business units and products develops detailed marketing and other departmental plans that support the company wide plan. 5. Thus marketing planning occurs at the business unit, product and market levels

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.

Levels of a Marketing Plan

Strategic
Target marketing decisions Value proposition Analysis of marketing opportunities

Tactical
Product features Promotion Merchandising Pricing Sales channels Service

The Strategic Planning, Implementation, and Control Processes

All corporate head quarters undertake 4 planning activities 1. 2. 3. 4. Defining the corporate mission Establishing the SBUs Assigning resources to each SBUs Assessing growth opportunities

Mission statements
Is a statement of the organisations purpose. What it wants to achieve in the larger environment. Mission statements should be market oriented and defined in terms of satisfying basic customer needs. Nokia- isnt selling phones , it is connecting people

Drucker on mission statement

What is our business? Who is the customer? What is of value to the customer? What will our business be? What should our business be?

Successful companies continuously raise them and answer them thoughtfully and thoroughly

Good Mission Statements

1. 2. 3. 4. 5. Focus on a limited number of goals Stress major policies and values Define major competitive spheres Take a long-term view Short, memorable, meaningful

Eg: amazon.com changed its mission statement from worlds largest online bookstore to worlds largest online store. Ebay changed its mission from running online auctions for collectors to running online auctions to all kind of goods

Major Competitive Spheres

Industry Products Competence Market segment Vertical channels Geographic