Developing Marketing Strategies and Plans

1 Developing Marketing Strategies and Plans2 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?Three V s Approach to MarketingDefine the value segmentDefine the value propositionDefine the value networkCore Business Processes Market-sensing process New-offering realization process Customer acquisition process Customer relationship management process Fulfillment management processCore Business Processes Product Development Management Supply Chain Management Customer Relationship Management(Srivastava, Shervani, and Fahey 1999 Journal of Marketing )A Holistic Marketing FrameworkLevels of a Marketing Plan Strategic Target Marketing decisions Value proposition Analysis of Marketing opportunities Tactical Product features Promotion Merchandising Pricing Sales channels ServiceFigure The Strategic Planning, Implementation, and Control ProcessesCorporate Headquarters Planning Activities Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunitiesGood Mission Statements Focus on a limited number of goals Stress major policies and values Define major competitive spheres Take a long-term view Short, memorable, meaningfulRubbermaid Commercial Products, Inc.

2 Our vision is to be the Global Market ShareLeader in each of the markets we serve. Wewill earn this leadership position byproviding to our distributor and end-usercustomers innovative, high-quality, cost-effective and environmentally responsibleproducts. We will add value to these productsby providing legendary customer servicethrough our Uncompromising Commitmentto Customer Satisfaction. Motorola The purpose of Motorola is to honorablyserve the needs of the community by providingproducts and services of superior quality at afair price to our customers; to do this so as toearn an adequate profit which is required forthe total enterprise to grow; and by doing so,provide the opportunity for our employees andshareholders to achieve their personalobjectives. eBay We help people trade anything on will continue to enhance the onlinetrading experiences of all collectors,dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.

3 Table Product Orientation vs. Market OrientationCompanyProductMarketUnion-Pac ific RailroadWe run a railroadWe are a people-and-goods moverXeroxWe make copying equipmentWe improve office productivityStandard OilWe sell gasolineWe supply energyColumbia Pictures We make moviesWe entertain peopleFigure The Strategic Planning GapAnsoff s Product-Market Expansion GridFigure Opportunity MatrixFigure Threat MatrixPorter s generic StrategiesOverall Cost LeadershipDifferentiationFocusCategories of Marketing AlliancesProduct or Service AlliancesPromotional AlliancesLogistics AlliancesPricing CollaborationsMarketing Plan Contents Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls