MM.02.10

04/21/23 11:39 Ftw. Abid Shaikh, CMS, JMI University, New

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Marketing ManagementMBA CP 205


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Developing Marketing Strategies and Plans


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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.



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Marketing and Customer Value

The value delivery process:

Traditional Physical Process Sequence

Make the product Sell the product

Designproduct

Procure

Make

Price Sell AdvertisePromote

Distribute Service



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Value Creation and Delivery Sequence

Chose the value Provide the value Communicate the value

Customersegmentation

Market selection/focus

Value positioning

Product development

Service development

Pricing SourcingMaking

DistributingServicing

Sales force Sales promotion

Advertising

Strategic Marketing Tactical Marketing



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Improving the value delivery process the Japanese way


Zero customerfeedback time

Zero product improvement time

Zero purchasing time

Zero setup time

Zero defects


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3 Vs approach to Marketing


Define the value segment

Define the value segment

Define the value proposition

Define the value proposition

Define the value network

Define the value network


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InboundLogistics

OperationsOutboundlogistics

MarketingAnd

SalesService

Firm Infrastructure

Human Resource Management

Technology development

Procurement

Support activities

Primary activities

Margin

Mar

gin

The Value within an organization



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Organizational costs and

performance measures

Competitorcosts and

performance measures

Benchmarks


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The core business processes


Market sensing

Customer acquisition

New offering realization

Fulfillmentmanagement

Customer relationship management


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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.



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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?



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Holistic Marketing Orientation framework

ValueExploration

Value Creation

ValueDelivery

CustomerFocus

CoreCompetencies

CollaborativeNetwork

CognitiveSpace

CompetencySpace

ResourceSpace

Customerbenefits

BusinessDomain

Businesspartners

Customerrelationshipmanagement

Internalresource

management

BusinessPartner

management



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Strategic Planning requires action in three areas …


Managing a company’s business as an

Investment portfolio

Assess each businesses’ strength

Establishing strategy


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Levels of a Marketing Plan


Strategic Target marketing

decisions Value proposition Analysis of

marketing opportunities

Tactical Product features Promotion Merchandising Pricing Sales channels Service


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Four Organizational Levels …


Corporate Level

Division Level

Business unit Level

Product Level


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The Strategic Planning, Implementing and Control Processes

Corporate Planning

Division Planning

Business Planning

Product Planning

Organizing

Implementing

Measuring results

Diagnosing results

Taking corrective action

Planning Implementing Controlling



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Corporate and Division level Planning activities


Define the corporate mission. Establish SBUs. Assign resources to each SBU. Assess growth opportunities.


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Good Mission Statements


Focus on limited number of goals

Focus on limited number of goals

Stress major policies and values

Stress major policies and values

Define major competitive spheres

Define major competitive spheres


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Major Competitive Spheres

Industry

Products

Marketsegment

Geographical

CompetenceVerticalchannels


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Dimensions that define a business


Customer groups

TechnologyCustomer

needs


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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.



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Assessing Growth Opportunities

• It involves planning new businesses and down sizing or terminating older businesses.

• The company’s 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.



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Strategic – Planning Gap

Time (Years)

Sales Intensive growth

Integrative growth

Diversification growth

Desired sales

Currentportfoli

o

Strategic-planning gap



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Ansoff’s Product-Market Expansion Matrix

1. Market-Penetration Strategy

3. Product-development Strategy

2. Market-development Strategy

(Diversification strategy)

Current Markets

Current Products

New Markets

New Products



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Business Unit Strategic Planning framework

Businessmission

Externalenvironment

(Opportunity & Threat) analysis

Goalformula-

tion

Implemen-tation

Internalenvironment

(strength/weakness analysis)

Strategyformula-

tion

Programformula-

tion

Feedbackand

control

SWOT Analysis



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SWOT Analysis


Strengths

Weaknesses

Opportunities

Threats


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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 cost-effective media and trade channels?



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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 company’s required threshold for investment?



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1

3 4

2

4

1

3

2

High High

High High

Low

Low Low

Low

Success probability Probability of occurrence

Opportunity matrix Threats matrix

Att

racti

ven

ess

Seri

ou

sn

ess



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• 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 involves identifying firm’s internal strengths and weaknesses.



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Goal Formulation and MBO

• Unit’s objectives must be hierarchical.

• Objectives must be quantitative.

• Objectives should be realistic.

• Objectives must be consistent.



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Strategy formulation – Porter’s generic strategies


Overall Cost Leadership

Differentiation

Focus


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Strategy formulation – Strategic alliances


Product or Service Alliances

Product or Service Alliances

Promotional AlliancesPromotional Alliances

Logistics AlliancesLogistics Alliances

Pricing Collaborations

Pricing Collaborations


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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.



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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.


MM.02.10

Documents

jmi university

abid shaikh

new delhi

marketing plan

marketing managementmba

value segmentdefine

value creation

value propositiondefine