Developing Marketing Strategies and Plans

Value Delivery Process

Value creation and delivery sequence into following phases:
1. Assessing market opportunity and customer value which involve environment scanning and
developing insights about customer needs and want
2. Choosing the value includes critical decisions to STP which essence / core strategic marketing.
3. Designing value relates to decision involving product strategy, new offering and pricing
4. Delivering value focuses on distribution and access issues.
5. Communicating value through integrated marketing communication, choosing among the
various choice in mass and personalized media.

What is the Value Chain?

 The value chain is a tool for identifying was 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.
 Primary Activities:
1. Inbound logistics are the receiving, storing and distributing of raw materials used in the
production process.
2. Operations are the stage at which the raw materials are turned into the final product.
3. Outbound logistics are the distribution of the final product to consumers.
4. Marketing and sales involve advertising, promotions, sales-force organization, distribution
channels, pricing and managing the final product to ensure it is targeted to the appropriate
consumer groups.
5. Service refers to the activities needed to maintain the product's performance after it has
been produced, including installation, training, maintenance, repair, warranty and after-
sale services.

 Support Activities:
1. Procurement is how the raw materials for the product are obtained.
2. Technology development can be used in the research and development stage, in how
new products are developed and designed, and in process automation.
3. Human resource management includes the activities involved in hiring and retaining the
proper employees to help design, build and market the product.
4. Firm infrastructure refers to an organization's structure and its management, planning,
accounting, finance and quality-control mechanisms.

Core Business Processes:

 Market-sensing process
 New-offering realization process
 Customer acquisition process
 Customer relationship management process
 Fulfilment management process
Core Competencies
 Many textile, chemical and computer firm do not manufacturer their own product because
offshore manufacturers are more competent.
 They focus on product design and development and marketing their core competencies
Characteristics of Core Competencies
1. A source of competitive advantage and make significant contribution to perceived customer
benefits.
2. Applications in a wide variety of markets
3. Difficult for competitors to imitate / copy

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
 Holistic marketers succeed by managing a superior value chain that deliver high level of
product quality, service and speed.
 They achieve profitable growth by expanding customer value, building customer loyalty.
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:

1. Strategic 2. Tactical
 Target marketing decisions  Product features
 Value proposition  Promotion
 Analysis of marketing  Pricing
opportunities  Sales channels
 service

Corporate Headquarters Planning Activities

All corporate HQ undertake four planning activities:
1. Define the corporate mission *SBU= strategic business unit
2. Establish strategic business units (SBUs)
3. Assign resources to each SBU
4. Assess growth opportunities

Define the Corporate Mission

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

SBUs
Characteristics of SBUs
 SBU is a profit centre which focuses on product offering and market segment.
 It is a single business or collection of related businesses that can be planned separately
from rest of the company
 It has its own set of competitors
 It has a leader responsible for strategic planning and profitability , who controls most of
the factors affecting profit.
Assign Resources to each SBU
 Once it has defined SBU management must decide how to allocate corporate resource to
each.
 Several portfolio planning models provides ways to make investment decisions.
 BCG’s growth share matrix use relative market share and annual rate of market growth as
criteria to make investment decision.

Assess / Review Growth Opportunities

 It includes planning new business and terminating older business.
 If there is a gap between future desired sales and projected sales, corporate management
will need to develop or acquire new business

How can it fill strategic planning gap?

 Identify opportunities for growth within current business (Intensive opportunities)
 Identify opportunities to build business related to current business (Integrative
opportunities)
 Identify opportunities to add attractive unrelated business (diversification opportunities)

What is Corporate Culture?

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

Market Opportunity Analysis (MOA)

 Can the benefits involved in the opportunity be articulated / spoken convincingly / credibly
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?
 Will the financial rate of return meet or exceed the company’s required threshold for
investment?
 Can the company deliver the benefits better than any actual or potential competitors?

Goal Formulation and Manages for Objective

 Once SWOT analysis performed, it can proceed to goal formulation, developing specific
goals for planning period
 For Manages for Objective system to work , unit’s objective must meet four criteria :
1. They must be arranged hierarchically from most little to important
2. Objectives should be quantitative (Increase ROI)
3. Goals should be realistic
4. Objectives must be consistent

Porter’s Generic strategies

 Overall cost leadership
 Firm work to achieve lowest production and distribution cost so they win market share. This
is achieved by having the lowest prices in the target market segment
 First dimension is achieving high asset utilization.
 second dimension is achieving low direct & indirect operating costs
 The third dimension is control over the value chain
 Disadvantage of lower customer loyalty, as price-sensitive customers will switch once a
lower-priced substitute is available
Differentiation
 The business concentrates on achieving superior performance in an important customer
benefit area value by large part of market. The firm seeking quality leadership. Ex. Make
Product with best component
 A differentiation strategy is appropriate where the target customer segment is not price-
sensitive, the market is competitive or saturated
 Differentiation strategy is not suitable for small companies. It is more appropriate for big
companies.
 These could include patents or unique technical expertise.

Focus
 The business focuses on one or more narrow market segment, get to know, and
differentiation within target market.
 In adopting a narrow focus, the company ideally focuses on a few target markets
 The firm typically looks to gain a competitive advantage through product innovation

Categories of Marketing Alliances

 Product or service alliance Ex. Citibank credit card + Jet Airways
 Promotional alliance Ex. Macdonal’s + Pepsi
 Logistics alliances
 Pricing collaborations Ex. Hotel + rental Car

Marketing Plan Contents

 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls