Developing Marketing Strategies and Plans-Prince Dudhatra-9724949948

8/7/2019 Developing Marketing Strategies and Plans-Prince Dudhatra-9724949948

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Chapter 02Chapter 02

Developing Marketing StrategiesDeveloping Marketing Strategies

And PlansAnd Plans

prince dudhatra-9724949948



Siemens AG has grown through new

product innovation and strategic

acquisitions

Siemens AG has grown through new

product innovation and strategic

acquisitions




What is the Value Chain?What is the Value Chain?

TheThe value chainvalue chain is a tool for identifyingis a tool for identifying

ways to create more customer valueways to create more customer value

because every firm is a synthesis of because every firm is a synthesis of primary and support activitiesprimary and support activities

performed to design, produce, market,performed to design, produce, market,

deliver, and support its product.deliver, and support its product.




®STP ------value positioningSTP ------value positioning

®Provide the valueProvide the value

®Communicate the valueCommunicate the value




Three V’s Approach to

Marketing

Three V’s Approach to

Marketing

Define the value segmentDefine the value segment

Define the value propositionDefine the value proposition

Define the value network Define the value network




Marg

in

M a

r g i n

The Generic Value ChainThe Generic Value Chain

Primary Activities

Su

pp

ort

Act

ivities

Procurement

Serv-ice

Technology Development

Human resource management

Firm infrastructure

Inbound

Logistics

Opera-

tions

Out-bound

Logistics

Market-

ing

and

sales




A Holistic Marketing

Orientation and Customer

Value

A Holistic Marketing

Orientation and Customer

Value




What is Holistic Marketing?What is Holistic Marketing?

Holistic marketingHolistic marketing sees itself assees itself as

integrating the value exploration,integrating the value exploration,

value creation, and value deliveryvalue creation, and value delivery

activities with the purpose of buildingactivities with the purpose of building

long-term, mutually satisfyinglong-term, mutually satisfying

relationships and coprosperity amongrelationships and coprosperity among

key stakeholders.key stakeholders.




Core CompetencyCore Competency

®WHAT IS IT?




Characteristics of Core CompetenciesCharacteristics of Core Competencies

®A source of competitive advantageA source of competitive advantage

®Applications in a wide variety of marketsApplications in a wide variety of markets

®

Difficult to imitateDifficult to imitate




What is a Marketing Plan?What is a Marketing Plan?

AA marketing planmarketing plan is the centralis the central

instrument for directing andinstrument for directing and

coordinating the marketing effort.coordinating the marketing effort.

It operates at aIt operates at a

strategic and tactical level.strategic and tactical level.




Levels of a Marketing PlanLevels of a Marketing Plan

® StrategicStrategic® Target marketingTarget marketing

decisionsdecisions

® Value propositionValue proposition

® Analysis of Analysis of

marketingmarketing

opportunitiesopportunities

® TacticalTactical® Product featuresProduct features

®

PromotionPromotion® MerchandisingMerchandising

® PricingPricing

® Sales channelsSales channels

® ServiceService




Good Mission StatementsGood Mission Statements

Focus on limited number of goalsFocus on limited number of goals

Stress major policies and valuesStress major policies and values

Define major competitive spheresDefine major competitive spheres

Take a long-term viewTake a long-term view

Short, memorable, meaningfulShort, memorable, meaningful




Major Competitive SpheresMajor Competitive Spheres

Industry

Products

Market

segment

Geographical

Competence

Vertical

channels




Corporate Headquarters

Planning

Corporate Headquarters

Planning

®Define the corporate missionDefine the corporate mission

®Establish strategic business unitsEstablish strategic business units

(SBUs)(SBUs)

®Assign resources to SBUsAssign resources to SBUs

®Plan new business, downsize older Plan new business, downsize older

businessesbusinesses




Strategic-Planning, Implementation,

and Control Process

Strategic-Planning, Implementation,

and Control Process

Measuringresults

Diagnosingresults

Takingcorrective

action

ImplementationImplementationPlanningPlanning

Corporate

planning

Divisionplanning

Businessplanning

Productplanning

Organizing

Implementing

ControlControl




BioconBiocon

“To be an integrated biotechnology enterpriseof global distinction.”




eBayeBay

“We help people trade anything on earth.

We will continue to enhance the onlinetrading experiences of all—collectors,

dealers, small businesses, unique item

seekers, bargain hunters, opportunity

sellers, and browsers.”




Table 2.3Product Orientation vs. Market Orientation

Table 2.3Product Orientation vs. Market Orientation

Company Product Market

Xerox We make copyingequipment

We improve officeproductivity

ColumbiaPictures

We make movies We entertain people

Encyclopedia

Britannica

We sell encyclopedias We distribute

information

Carrier We make air conditionersand furnaces

We provide climatecontrol inside homes




Characteristics of SBUsCharacteristics of SBUs

® It is a single business or collection of It is a single business or collection of

related businessesrelated businesses

® It has its own set of competitorsIt has its own set of competitors

® It has a leader responsible for strategicIt has a leader responsible for strategic

planning and profitabilityplanning and profitability




The Boston Consulting Group’s

Growth-Share Matrix

The Boston Consulting Group’s

Growth-Share Matrix

20%-20%-

18%-18%-

16%-16%-

14%-14%-12%-12%-

10%-10%-

8%-8%-

6%-6%-4%-4%-

2%-2%-

00Marke

tG

row

th

Rate

3

?

Question marks

? ? ?

2

1

Cash cow

6

Dogs

8

710x 4x 2x 1.5x 1x10x 4x 2x 1.5x 1x

Relative Market Share.5x .4x .3x .2x .1x.5x .4x .3x .2x .1x

Stars

5

4




Market Attractiveness: Competitive-

Position Portfolio Classification

Market Attractiveness: Competitive-

Position Portfolio Classification

MARKETA

TTR

ACTIVE

NE

SS

MARKETA

TTR

ACTIVE

NE

SS

5.005.00

3.673.67

2.332.33

1.001.00Low

Low

Mediu

m

Medium

High

High

Relief valve

Flexiblediaphragms

Fuelpumps

Aerospacefittings

Clutches

Hydraulicpumps

Joints

StrongStrong MediumMedium WeakWeakBUSINESS STRENGTHBUSINESS STRENGTH

1.001.002.332.333.673.675.005.00

Invest/growInvest/grow Selectivity/earningsSelectivity/earnings Harvest/divestHarvest/divestprince dudhatra-9724949948



Sales

Sales

10105500

Time (yearsTime (years)

The Strategic-Planning GapThe Strategic-Planning Gap

Desiredsales

Desiredsales

Integrative growth

Intensive growth

CurrentportfolioCurrentportfolio

Strategic-Strategic-

planningplanninggapgap

DiversificationDiversification growthgrowth




Strategies Suggested by Ansoff’s

Product-Market Expansion Grid

Strategies Suggested by Ansoff’s

Product-Market Expansion Grid

®Market penetrationMarket penetration

®Market developmentMarket development

®Product developmentProduct development

®DiversificationDiversification




Strategic Formulation

Porter’s Generic Strategies

Strategic Formulation

Porter’s Generic Strategies

®Overall Cost leadershipOverall Cost leadership

®DifferentiationDifferentiation

® FocusFocus




Developing the People’s Car

‘TATA Nano’

Developing the People’s Car

‘TATA Nano’




Figure 2.7 The Business Unit

Strategic Planning Process

Figure 2.7 The Business Unit

Strategic Planning Process




Market Opportunity Analysis (MOA)Market Opportunity Analysis (MOA)

® Can the benefits involved in the opportunityCan the benefits involved in the opportunity

be articulated convincingly to a defined targetbe articulated convincingly to a defined target

market?market?® Can the target market be located andCan the target market be located and

reached with cost-effective media and tradereached with cost-effective media and trade

channels?channels?

® Does the company possess or have accessDoes the company possess or have access

to the critical capabilities and resourcesto the critical capabilities and resources

needed to deliver the customer benefits?needed to deliver the customer benefits?




FedEx added Sunday

deliveries

based on customer requests and

market demand

FedExFedEx




Porter’s Generic StrategiesPorter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus




The McKinsey 7-S FrameworkThe McKinsey 7-S Framework

SkillsSkills

SharedvaluesSharedvalues

Staff Staff

StyleStyle

StrategyStrategy

StructureStructure

SystemsSystems




The Marketing PlanThe Marketing Plan

Executive Summary & Table of Contents

Current Marketing Situation

Opportunity & Issue Analysis

Objectives

Marketing Strategy

Action Programs

Projected Profit-and-loss

Controlsprince dudhatra-9724949948

Developing Marketing Strategies and Plans-Prince Dudhatra-9724949948

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