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Developing Marketing
Strategies and Plans

Marketing Management, 13th ed

Chapter Questions
How does marketing affect customer
value?
How is strategic planning carried out at
different levels of the organization?
What does a marketing plan include?

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3 Vs Approach to Marketing
Define
Define the
the value
value segment
segment
(needs
(needs and
and wants)
wants)
Define
Define the
the value
value proposition
proposition
(benefits)
(benefits)
Define
Define the
the value
value network
network to
to
deliver
deliver promise
promise services.
services.

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What is the Value Chain?


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

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Core Business Processes


Market-sensing process (marketing intelligence).
New-offering realization process (research and
development).
Customer acquisition process (defining target
markets and consumers).
Customer relationship management process
(deeper understanding of consumers).
Fulfillment management process (receiving and
approving, orders, shipping, and collecting
payments).

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Characteristics of Core Competencies


A source of competitive advantage
(technical, production expertise, distribution,
financial strength, etc.)
Applications in a wide variety of markets
Difficult to imitate

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Becoming a Vigilant Organization


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

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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
coprosperity among key stakeholders.

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A Holistic Marketing Orientation


and Customer Value
Holistic marketers succeed by
managing a superior value chain that
delivers a high level of product quality,
service, and speed.
Holistic marketers achieve profitable
growth by expanding customer share,
building customer loyalty, and capturing
customer lifetime value
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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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
efficiently create more promising new
value offerings?
3.Value delivery-How can a company use its
capabilities and infrastructure to deliver
the new value offerings more efficiently
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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A Holistic Marketing Framework

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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

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Product features
Promotion
Merchandising
Pricing
Sales channels
Service

Corporate Headquarters
Planning Activities
Define the corporate mission
Establish strategic business units
(SBUs)
Assign resources to each SBU (The
GE/McKinsey matrix-classifies each
SBU according to the extent of its
competitive advantage and
attractiveness of its industry, BCGs
growth-share matrix
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Corporate Headquarters
Planning Activities cont
Assess growth opportunities (planning
new businesses, downsizing and
terminating older businesses)

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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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

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Major Competitive Spheres


Industry (consumer(s) and/or industrial(s)
Products and applications(range and
applications)
Competence (technological, production, etc.)
Market segment (type of market or customer)
Vertical channels (number of channel levels,
from raw materials to final product and
distribution)
Geographic (range of regions, countries, or
country groups)

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Rubbermaid Commercial Products, Inc.


Our vision is to be the Global Market Share
Leader in each of the markets we serve. We
will earn this leadership position by
providing to our distributor and end-user
customers innovative, high-quality, costeffective and environmentally responsible
products. We will add value to these products
by providing legendary customer service
through our Uncompromising Commitment
to Customer Satisfaction.
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Motorola
The purpose of Motorola is to honorably
serve the needs of the community by providing
products and services of superior quality at a
fair price to our customers; to do this so as to
earn an adequate profit which is required for
the total enterprise to grow; and by doing so,
provide the opportunity for our employees and
shareholders to achieve their personal
objectives.
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eBay

We help people trade anything on earth.


We will continue to enhance the online
trading experiences of allcollectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.

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Product Orientation vs. Market Orientation


Company

Product

Market

Missouri-Pacific
Railroad

We run a railroad

We are a peopleand-goods mover

Xerox

We make copying
equipment

We improve office
productivity

Standard Oil

We sell gasoline

We supply energy

Columbia Pictures

We make movies

We entertain
people

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Dimensions that Define a Business


Customer groups
Customer needs
Technology

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Characteristics of SBUs
It is a single business or collection of
related businesses
It has its own set of competitors
It has a leader responsible for strategic
planning and profitability

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Ansoffs Product-Market
Expansion Grid

Market penetration strategy


Market development strategy
Product development strategy
Diversification strategy

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What is Corporate Culture?


Corporate culture is the shared
experiences, stories, beliefs, and
norms that characterize an
organization.

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Tactics for Managing Change

Avoid the innovation title for the team


Use the buddy system
Set the metrics in advance
Aim for quick hits first
Get data to back up your gut

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SWOT Analysis

Strengths
Weaknesses
Opportunities
Threats

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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)


(cont.)
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


(manages by objectives)

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 Leadershiplowest
production and distribution costs to be
able to price lower than competitors and
to obtain larger market share.
Differentiationuniquely achieving
superior performance in an important
customer benefit area.
Focuson one or more narrow market
segments

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Categories of Marketing
Alliances
Product
Product or
or Service
Service Alliancesjointly
Alliancesjointly
market
market complementary
complementary products
products
Promotional
Promotional Alliancespromotion
Alliancespromotion
of
of another
another companys
companys products
products
Logistics
Logistics Allianceslogistical
Allianceslogistical services
services
for
for another
another companys
companys products.
products.

Pricing
Pricing Collaborationsone
Collaborationsone or
or more
more
companies
companies join
join in
in special
special price
price reduction.
reduction.

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The Strategic Planning Gap

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Ansoffs Product-Market Expansion


Grid

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The Business Unit Strategic


Planning Process

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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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Challenges Facing CMOs

Doing more with less

Driving new business


development
Becoming a
full business partner

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Study Question 1
The ________ is a tool for identifying
ways to create more customer value.
A. value chain
B.customer survey
C.brand loyalty index
D.promotion channel
E.supplier database
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Study Question 2
A good way to describe the ________ would be to
discuss all the activities involved in building deeper
understanding, relationships, and offerings to individual
customers.
A. customer acquisition process
B. customer relationship management
process
C. customer prospecting process
D. customer fulfillment management process
E. customer equity process
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Study Question 3
Core competencies tend to refer to areas of special
technical and production expertise, whereas ________
tend to describe excellence in broader business
processes.
A.
B.
C.
D.
E.

process benchmarks
distinctive capabilities
core business values
value statements
mission statements
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Study Question 4
The ________ is the central instrument for directing
and coordinating the marketing effort.
A.
B.
C.
D.
E.

strategic plan
marketing plan
tactical plan
customer-value statement
corporate mission

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Study Question 5
The ________ lays out the target markets and the
value proposition that will be offered, based on an
analysis of the best market opportunities.
A.
B.
C.
D.
E.

organizational plan
strategic marketing plan
corporate tactical plan
corporate mission
customer-value statement

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