2

Developing Marketing
Strategies and Plans

Marketing Management
A South Asian Perspective, 13th ed
 Chapter Questions

• How does marketing affect customer

value?
• How is strategic planning carried out at
different levels of the organization?
• What does a marketing plan include?

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 Three V’s Approach to Marketing

Define
Define the
the value
value segment
segment

Define
Define the
the value
value proposition
proposition

Define
Define the
the value
value network
network

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 What is the Value Chain?

The value chain is a tool for identifying

ways 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.

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 Cisco Systems Taps into Partner
Expertise to Create Value

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 Characteristics of Core Competencies

• A source of competitive advantage

• Applications in a wide variety of markets
• Difficult to imitate

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 Nike Creates Value

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 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 and coprosperity among
key stakeholders.

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 Figure 1.4 Holistic Marketing Dimensions

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 Intel’s New Brand Identity:
Leap Ahead

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 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.

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 Figure 2.4 The Strategic Planning,
Implementation,
and Control Processes

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 Corporate and Division Strategic
Planning Activities

• Define the corporate mission

• Establish strategic business units
(SBUs)
• Assign resources to each SBU
• Assess growth opportunities

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 I. Good Mission Statements

Focus
Focus on
on limited
limited number
number of
of goals
goals

Stress
Stress major
major policies
policies and
and values
values

Define
Define major
major competitive
competitive spheres
spheres

Take
Take aa long-term
long-term view
view

Short,
Short, memorable,
memorable, meaningful
meaningful

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 Infosys Technologies Limited

“To achieve our objectives in an environment

of fairness, honesty, and courtesy towards
our clients, employees, vendors, and society
at large.”

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 Amazon.com

“World’s largest online bookstore.”

“ World’s largest online store.”

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 eBay

“We help people trade anything on earth.

We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”

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 II. Establishing SBU’s
Product Orientation vs. Market Orientation

Company Product Market

Xerox We make copying We improve office
equipment productivity
Columbia We make movies We entertain
Pictures people
Encyclopedia We sell encyclopedias We distribute
Britannica information
Carrier We make air conditioners We provide climate
and furnaces control inside
homes
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 Dimensions That Define a Business

Customer
groups

Customer
Technology
needs

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 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

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 III. Assigning Resources to SBU’s

• GE/ Mc Kinsey Matrix

• BCG’s Growth Share Matrix
• Shareholder Value Analysis (SVA)

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 IV. The Strategic Planning Gap

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 Intensive Growth Strategies
Suggested by Ansoff’s Product-Market
Expansion Grid

• Market penetration
• Market development
• Product development
• Diversification

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Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 2-25
 Integrative Growth Strategies

• Backward, Forward and Horizontal

Integration.

Diversification Growth Strategies

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 Business Unit
Strategic Planning Process

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 SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

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 FedEx

FedEx added
Sunday deliveries
based on customer
requests and
market demand

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 Goal Formulation and MBO

• Unit’s objectives must be hierarchical

• Objectives should be quantitative
• Goals should be realistic
• Objectives must be consistent

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 Porter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus

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 Categories of Marketing Alliances

Product
Product or
or Service
Service Alliances
Alliances

Promotional
Promotional Alliances
Alliances

Logistics
Logistics Alliances
Alliances

Pricing
Pricing Collaborations
Collaborations

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 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.

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 Marketing Discussion

 What implications do Porter’s value

chain and the holistic marketing
orientation model have for
marketing planning?

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