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Developing Marketing Strategies and Plans

Marketing Management
A South Asian Perspective, 13th ed

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

Strategic
Target marketing decisions Value proposition Analysis of marketing opportunities

Tactical
Product features Promotion Merchandising Pricing Sales channels Service

Figure 2.4 The Strategic Planning, Implementation, and Control Processes

Planning at Different Levels

Corporate Planning
ENGINEERING/ ENGINEERING AUTOMOTIVE

TATA GROUP

CHEMICAL

SERVICES

Division Planning
TATA MOTORS TATA MOTORS

TELCON

TC SPRINGS

Business Unit Planning Product Planning

HRM

COMMERCIAL VEHICLES

PASSENGER BUSES

PASSENGER CARS

MARKETING

PRODUCTION

PRODUCT

PROMOTIONS

DISTRIBUTION

PRICE

ADVERTISING

SALES FORCE

PR

Corporate Headquarters Planning Activities Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunities

Good Mission Statements

Focus on limited number of goals Stress major policies and values

Define major competitive spheres

Take a long-term view Short, memorable, meaningful

Major Competitive Spheres

Industry
Geographical Vertical channels Products

Competence Market segment

Infosys Technologies Limited

To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors, and society at large.

Biocon

To be an integrated biotechnology enterprise of global distinction.

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.

Establish Strategic Business Units (SBU)

Company
PEPSI

Product
Cola for generation next

Market
We quench thirst

Product Oriented vs. Market Oriented definitions of a business

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

Assigning resources to each SBU

Share holder value analysis (SVA) Whether the market value of a company is greater with an SBU or without it? These value calculations assess the potential of a business Based on these potential resources are assigned to each SBU

Assessing Growth Opportunities

Projected Sales

Figure 2.5 The Strategic Planning Gap

Strategies Suggested by Ansoffs Product-Market Expansion Grid

Current Products
MarketCurrent penetration Markets strategy Market New development Markets strategy

New Products
Productdevelopment strategy Diversification strategy

Developing the Peoples Car TATA Nano

Integrative Growth
Backward integration Forward integration Horizontal integration

Figure 2.7 The Business Unit Strategic Planning Process

SWOT Analysis
Strengths Weaknesses Opportunities Threats

Checklist for Performing Strengths & Weaknesses Analysis

Performance
Major Strength Minor Strength Neutral
Minor Weakness Major Weakness

Importance
High Med Low

MARKETING
Company Reputation Market Share Product Quality Price Effectiveness FINANCE Availability of Capital Financial Stability MANUFACTURING Facilities Economies of Scale Capacity ORGANIZATION Visionary, Capable Leadership Flexible -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

FedEx
FedEx added Sunday deliveries based on customer requests and market demand

Goal Formulation and MBO

Once companys SWOT analysis is over. ..it can proceed to develop specific goals for the planning period. (Goal Formulation) Profitability Sales growth Market share improvement SBUs sets these objectives & then manages by objectives (MBO)

Strategic Formulation
Goals indicate what a business unit wants to achieve Strategy is a game plan for getting over there

Porters Generic Strategies

Overall Cost Leadership

Differentiation
Focus

Program Formulation & Implementation

TATA GROUP

CHEMICAL

SERVICES

ENGINEERING/ ENGINEERING AUTOMOTIVE

TELCON

TC SPRINGS

TATA MOTORS TATA MOTORS

COMMERCIAL VEHICLES

PASSENGER BUSES

PASSENGER CARS

MARKETING

PRODUCTION

HRM

PRODUCT

PROMOTIONS

DISTRIBUTION

PRICE

ADVERTISING

SALES FORCE

PR

Feedback & Control

Actual Performance Vs Targets (goals) Reports Corrective Measure (if required)

Marketing Plan Contents

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

Marketing Debate
What good is a mission statement?
Take a position: 1. Mission statements are critical to a successful marketing organization. or 2. Mission statements rarely provide useful marketing value.