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LECTURE WEEK 2

Developing marketing strategies and plans

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Lecture questions  How does marketing affect customer value?  How is corporate and divisional strategic planning carried out?

 How is business unit strategic planning carried out?  What is involved in developing a marketing

plan?

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Transitioning from sellers’ to buyers’ markets  Competition  Demanding customers  Choices for customers  Transformation of the value concept  Fragmented market segments

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Sequences in the value delivery process

Figure 3.2

Repetitive sequences of the value delivery process

Source: M. R. V. Goodman, Durham University Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Nirmalya Kumar’s 3Vs marketing approach  Define the value segment  Define the value proposition  Define the value network

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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The generic value chain

Figure 3.3

The generic value chain

Source: From M. E. Porter (1985) Competitive Advantage. Creating and Sustaining Superior Performance, New York: Free Press. Copyright © 1985 by Michael E. Porter. Reproduced with permission from The Free Press, a division of Simon & Schuster Adult Publishing Group Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Core business processes  The market sensing process  The new offering realisation process  The customer acquisition process  The customer relationship management process  The fulfillment management process

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Characteristics of core competencies  It is a source of competitive advantage  It has applications in a wide variety of markets  It is difficult for competitors to imitate

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Steps in the business realignment process (Re)define the business concept

(Re)shaping the business scope

(Re)positioning the brand identity

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Questions answered by the holistic marketing framework  How can we identify new value

opportunities?  How can we efficiently create more promising new value offerings?  How can we use capabilities and infrastructure to deliver the new value offerings more efficiently?

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Organisational levels Corporate level Division level Business unit level

Product level

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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What is a marketing plan?

The marketing plan is the central instrument for directing and coordinating the marketing effort.

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Figure 3.5

The strategic planning, implementation and control processes Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Planning activities  Defining the corporate mission  Defining the business

 Assigning resources to each SBU  Assessing growth opportunities

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Definitions of business Product definition

Market definition

 BP sells fuels

 BP sells energy

 Biersdorf sells cosmetics

 Biersdorf sells beauty

 Renault sells automobiles

 Renault supplies transport

 Xerox makes copy equipment

vehicles  Xerox improves office

productivity

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Major competitive spheres Industry Geographic Product

Vertical Competence Market segment Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Characteristics of SBUs  It is a single business, or a collection of related businesses, that can be planned separately from the rest  It has its own set of competitors.  It has a manager responsible for strategic

planning and profit performance

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Figure 3.6

The strategic planning gap Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Strategies for managing change Avoid the innovation title Use the buddy system Set the metrics in advance Aim for quick hits first Get data to back up your gut feelings Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Figure 3.8

The business unit strategic-planning process Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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SWOT Analysis

Using SWOT analysis to monitor the internal and external position of an organisation Figure 3.9

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Market opportunity analysis  Can we articulate the benefits to a target audience?  Can we locate the target market and reach them

with cost-effective media and trade channels?  Does our company possess or have access to the critical capabilities and resources we need?

 Can we deliver the benefits better than the competition?  Will the rate of return meet or exceed our expectations? Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Figure 3.10

Opportunity and threat matrices Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Goal formulation and the MBO  Arrange objectives hierarchically from most to

least important  Make goals quantitative if possible

 Make goals realistic  Make goals consistent

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Porter’s generic strategies Overall cost leadership

Differentiation

Focus

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Forms of strategic alliances Product or service alliance Promotional alliance

Logistics alliance

Pricing collaborations

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Elements of strategy Strategy Shared values

Structure

Staff

Systems

Skills

Style

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Contents of a marketing plan  Executive summary and table of contents  Situation analysis  Marketing strategy

 Financial projections  Implementation controls

For some tips on how to write a marketing plan go to: www.youtube.com/watch?v=-ul65NjOMzo&feature=related

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Contents of a marketing plan The Euromart marketing plan is based on an approach inspired by Professors Kashani and Turpin of the IMD in Switzerland:  Executive summary  Contextual analysis  Customer analysis  Competition analysis  Company strategic approach  Channel analysis (distribution and marketing

communications)  Cash analysis  Marketing management implementation and control Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Kotler on strategy In this video clip, Philip Kotler discusses some key strategic marketing issues for practitioners

www.youtube.com/watch?v=bilOOPuAvTY

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

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Recap: can you explain?  How does marketing affect customer value?  How is corporate and divisional strategic planning carried out?

 How is business unit strategic planning carried out?  What is involved in developing a marketing plan?

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009