Marketing Management

MBA CP 205

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

Developing Marketing
Strategies and Plans

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

Developing Marketing Strategies and

Plans

Learning Objectives:
Know how marketing affects customer value.
Know how strategic planning is carried out at different
levels of the organization.
Know the nature and contents of a marketing plan.

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

Developing Marketing Strategies and

Plans

Marketing and Customer Value

The value delivery process:
Traditional Physical Process Sequence
Make the product

Design Procur
produc e
t

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Mak
e

Sell the product

Price

Sell

Advertise
Promote

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

Distribute

Service

Developing Marketing Strategies and

Plans

Value Creation and Delivery Sequence

Chose the value

Customer
segmentatio
n

Market
Value
selection/ positionin
focus
g

Strategic Marketing

03/26/15 13:39

Provide the value

Product
developmen
t

Communicate the value

Service
Pricing
development

Sourcing
Making

Distributing Sales force Sales

Advertising
Servicing
promotion

Tactical Marketing

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

Developing Marketing Strategies and

Plans
Improving the value delivery process the Japanese way
Zero customer
feedback time
Zero product
improvement time

Zero setup time

Zero
purchasing time

Zero defects

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

Developing Marketing Strategies and

Plans
3 Vs approach to Marketing
Define
Define the
the value
value
segment
segment

Define
Define the
the value
value
proposition
proposition

Define
Define the
the value
value
network
network
03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

Developing Marketing Strategies and

Plans
Firm Infrastructure
Support
activities

Human Resource Management

M
ar
gi
n

Technology development
Procurement

Inbound
Logistics

Operations

Outbound
logistics

Marketing
And
Sales

Service

g
ar
M

in

Primary activities

The Value within an organization

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

Developing Marketing Strategies and

Plans
Benchmark
s

Organizational
costs
and
performance
measures

03/26/15 13:39

Competitor
costs
and
performance
measures

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

Developing Marketing Strategies and

Plans
The core business
processes
Market
sensing

Customer
relationship
management

New offering
realization

Fulfillment
management

Customer
acquisition
03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

10

Developing Marketing Strategies and

Plans
Core competence
It refers to an activity that a firm performs better
relative to other internal activities.
Characteristics of Core competence

A source of competitive advantage.

Applications in a wide variety of markets.
Difficult to imitate.

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

11

Developing Marketing Strategies and

Plans
Holistic Marketing orientation and Customer value
The holistic marketing framework is designed to
address three key management questions:
1. Value exploration How can a company identify new
value opportunities?
2. Value creation How can a company create more
promising new value offerings efficiently?
3. Value delivery How can a company use its capabilities
and infrastructure to deliver the new offerings more
efficiently?
03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

12

Developing Marketing Strategies and

Plans

Value
Exploration

Value
Creation

Customer
Focus

Core
Competencies

Cognitive
Space

Competency
Space

Resource
Space

Customer
benefits

Business
Domain

Business
partners

Internal
resource
management

Business
Partner
management

Customer
relationship
management

Value
Delivery

Collaborative
Network

Holistic Marketing Orientation framework

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

13

Developing Marketing Strategies and

Plans
Strategic Planning requires action in three
areas
Managing a companys
business as an
Investment portfolio
Assess each
businesses strength

Establishing strategy

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

14

Developing Marketing Strategies and

Plans
Levels of a Marketing
Plan

Strategic

Tactical

Target marketing
decisions
Value proposition
Analysis of
marketing
opportunities

03/26/15 13:39

Product features
Promotion
Merchandising
Pricing
Sales channels
Service

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

15

Developing Marketing Strategies and

Plans
Four Organizational Levels

Corporate Level

Division Level

Business unit Level

Product Level
03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

16

Developing Marketing Strategies and

Plans
The Strategic Planning, Implementing and Control Processes
Planning

Implementing

Controlling

Measuring results

Corporate Planning
Organizing
Division Planning

Diagnosing results
Implementing

Business Planning
Taking corrective action
Product Planning

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

17

Developing Marketing Strategies and

Plans
Corporate and Division level Planning activities

Define the corporate mission.

Establish SBUs.
Assign resources to each SBU.
Assess growth opportunities.

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

18

Developing Marketing Strategies and

Plans
Good Mission Statements
Focus
Focus on
on limited
limited number
number of
of
goals
goals

Stress
Stress major
major policies
policies and
and
values
values
Define
Define major
major competitive
competitive
spheres
spheres
03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

19

Developing Marketing Strategies and

Plans
Major Competitive
Spheres

Industry

Geographical

Products

Vertical
channels

Competence
Market
segment

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

20

Developing Marketing Strategies and

Plans
Dimensions that define a
business
Customer
groups

Customer
needs
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Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

Technology

21

Developing Marketing Strategies and

Plans

Characteristics of SBUs
Large companies normally manage different businesses
and classify their businesses into Strategic Business
Units (SBUs). An SBU has three characteristics:
1. It is a single business or a collection of related
businesses that can be planned separately from rest of
the company.
2. It has its own set of competitors.
3. It has its own manager responsible for its strategic
planning, profitability and performance.
03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

22

Developing Marketing Strategies and

Plans
Assessing Growth Opportunities
It involves planning new businesses and down sizing or
terminating older businesses.
The companys business plans project total sales and
profits.
Strategic planning gap refers to the difference between
future desired sales and projected sales.
The firm will develop or acquire new businesses to fill
the gap through intensive, integrative or diversification
growth strategies.
03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

23

Developing Marketing Strategies and

Plans
Strategic Planning Gap
Desired
sales

Diversification growth
Integrative growth

Sales

Intensive growth

Strategicplanning
gap

Current
portfolio

Time (Years)
03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

24

Developing Marketing Strategies and

Plans

Current Products

Current Markets

New Markets

1. Market-Penetration
Strategy

New Products

3. Product-development
Strategy

2. Market-development
(Diversification strategy)
Strategy

Ansoffs Product-Market Expansion Matrix

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

25

Developing Marketing Strategies and

Plans
Business Unit Strategic Planning framework
External
environment
(Opportunity &
Threat) analysis

Business
mission

SWOT Analysis

Goal
formulation

Strategy
formulation

Program
formulation

Implementation

Feedback
and
control

Internal
environment
(strength/weak
ness analysis)

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

26

Developing Marketing Strategies and

Plans
SWOT
Analysis

Strengths

Weaknesses

Opportunities

Threats
03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

27

Developing Marketing Strategies and

Plans
Market Opportunity Analysis (MOA)
To evaluate opportunities, companies can use Market
Opportunity Analysis.
Can the benefits involved in the opportunity be articulated
convincingly to a defined target market?
Can the target market be located and reached with costeffective media and trade channels?

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Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

28

Developing Marketing Strategies and

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

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

29

Developing Marketing Strategies and

Plans
Success probability

High

Low

Low

Seriousness

Attractiveness

High

Opportunity matrix

03/26/15 13:39

Probability of occurrence

High

Low

High

Low

Threats matrix

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

30

Developing Marketing Strategies and

Plans
Four outcomes are possible:
1. An ideal business, is high in major opportunities and low
in major threats.
2. A speculative business, is high in both opportunities and
threats.
3. A mature business, is low in both opportunities and
threats.
4. A troubled business, is low in opportunities and high in
threats.
Internal analysis Ftw.
involves
identifying
firms internal
Abid Shaikh,
CMS,
JMI University,
strengths and weaknesses.
New Delhi

03/26/15 13:39

31

Developing Marketing Strategies and

Plans
Goal Formulation and MBO
Units objectives must be hierarchical.
Objectives must be quantitative.
Objectives should be realistic.
Objectives must be consistent.

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

32

Developing Marketing Strategies and

Plans
Strategy formulation Porters generic
strategies
Overall Cost Leadership

Differentiation

Focus

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

33

Developing Marketing Strategies and

Plans
Strategy formulation Strategic alliances
Product
Product or
or Service
Service
Alliances
Alliances
Promotional
Promotional Alliances
Alliances

Logistics
Logistics Alliances
Alliances

Pricing
Pricing
Collaborations
Collaborations
03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

34

Developing Marketing Strategies and

Plans
The nature and contents of a Marketing Plan
It is a written document that summarizes what the
marketer has learnt about the market place and
indicates how the firm plans to achieves its marketing
objectives.
Contents of a marketing plan are:

Executive summary and table of contents.

Situational analysis.
Marketing strategy.
Financial projections and
Implementation.

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

35

Developing Marketing Strategies and

Plans

Recap:
How marketing affects customer value.
How strategic planning is carried out at different levels of
the organization.
The nature and contents of a marketing plan.

03/26/15 13:39

Ftw. Abid Shaikh, CMS,

JMI University,
New Delhi

36