MG 220 Marketing Management BBA 09 – Sec C Fall 2010 Muhammad Talha Salam, Asst. Professor [email protected]Access it online: www.slideshare.net/talhasalam Part 1: Understanding Marketing Management > Marketing & Customer Value > Corporate and Division Strategic Planning > Business Unit Strategic Planning > Product Planning: The Nature and Contents of a Marketing Plan Class Presentation | Session 3 | 16 A
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> Marketing & Customer Value> Corporate and Division Strategic
Planning> Business Unit Strategic Planning> Product Planning: The Nature and
Contents of a Marketing Plan
Class Presentation | Session 3 | 16 Aug 2010
MG 220 Marketing Management 2Access it online: www.slideshare.net/talhasalam
Marketing & Customer ValueThe Value Delivery Process
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Marketing & Customer ValueThe Value Delivery Process
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Marketing & Customer ValueThe Value Chain
• A tool for identifying ways to create more customer value
• Every firm is a synthesis of activities performed to design, produce, market, deliver and support its product
• Primary Activities (producing & marketing)
• Support Activities (management of firm)
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Marketing & Customer ValueThe Value Chain
• Firm should estimate its competitors’ costs and performances as ‘benchmarks’ against which it compares its own costs and performance
• Success depends on ‘core business processes’– Market sensing– Offering realization– Customer Acquisition– Customer Realization– Fulfillment management
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Marketing & Customer ValueThe Value Chain
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Marketing & Customer ValueCore Competences
• Outsource the less critical• Focus on Core Competency• Characteristics of Core Competency:– A Source of competitive advantage– Has Application in a wide variety of
markets– Difficult for competitors to imitate
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Marketing & Customer ValueA Holistic Marketing Orientation & Customer Value
Customer Company Partners
Designing
Developing
Delivering
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Marketing & Customer ValueThe Central Role of Strategic Planning
• All the successful brands:– Focus on Customers– Respond effectively to changing
customer needs– Have well-staffed marketing
departments– And all other departments in their
organizations understand: “CUSTOMER IS THE KING”
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Marketing & Customer ValueThe Central Role of Strategic Planning
• Levels in Strategic Planning [Typical]– Corporate Level– Division Level– Business Unit Level– Product Level
• Marketing Plan is central instrument for directing and coordinating marketing effort– Strategic marketing plan
• Lays out target markets & value proposition
– Tactical marketing plan• Specifics of marketing activities
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Marketing & Customer ValueThe Central Role of Strategic Planning
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Corporate & Division Strategic PlanningActivities
• Four Planning Activities1. Defining the Corporate Mission2. Establishing Strategic Business Units3. Assigning Resources to each SBU4. Assessing Growth Opportunities
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Corporate & Division Strategic Planning1. Defining the Corporate Mission
• Peter Drucker’s classic questions–What is our business?–Who is the customer?–What is of value to our customer?–What will our business be?–What should our business be?
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Corporate & Division Strategic Planning1. Defining the Corporate Mission (…contd.)
• Mission Statements– Focus on LIMITED goals– Stress company’s major policies & values– Define the major competitive spheres:
• Industry (in which company operates)• Products & Applications• Competence• Market Segment• Vertical (channels)• Geographical
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Corporate & Division Strategic Planning2&3. Defining Business / Establishing SBUs
• A business is?– Customer-satisfying process– NOT: Goods-producing process
Company Product Market
Missouri-Pacific Railroad
We run a railroad We are a people-and-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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