Developing Marketing Strategies 210112-2

8/2/2019 Developing Marketing Strategies 210112-2

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Session 2

January 21, 2012

Developing MarketingStrategies


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Simultaneous strategies

1 1 1 = 6

2 2 2 = 6

3 3 3 = 6

4 4 4 = 65 5 5 = 6

6 6 6 = 6

7 7 7 = 68 8 8 = 6

9 9 9 = 6


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Marketing and customer value

Marketing is to satisfy the customers needs & wants Deliver customer value at a profit

Traditional Vs value chain creation

Segmentation

Mass Marketing

Specialized marketing


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Traditional physical process

Design theproduct

Process

Make Price

Sell

Advertise Distribute

Service

Makethepro

duct

Se

llt

heproduct


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Value chain and delivery system

Customersegmentation

Market

selectiontools

Valuepositioning

Productdevelopment

Servicedevelopment

Pricing

Sourcing /Making

Distribution /Servicing

Sales force

Salespromotion

Advertising

Cho

osethev

alue

Provide the valueCommun

icatethe

value

StrategicM

arketing

Tactical Marketing


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Value Chain

Value approach to marketing Define the value segment value defining process

Define the value proposition value developingprocess

Define the value network value delivering process


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Value Chain

Michael Porter proposed more value to customers

Inboundlogistics

Operations ServiceMarketing& Sales

Outboundlogistics

Procurement

Technological Development

Human Resource Management

Firms infrastructure

SupportA

ctivities

Primary Activities

M

argins


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Core competencies

Business own and nurture the resources andcompetencies that make up the essence of thebusiness It is a source of competitive advantage in that it makes a

significant contribution to perceive customers benefits.

It has applications in a wide variety of markets

It is difficult for competitors to imitate

Competitive advantage accrues to companies thatpossess distinctive capabilities

Core competencies refer to that areas of specialtechnical and production expertise

Distinctive capabilities describe excellence in broaderbusiness processes


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Marketing Plan It is the central instrument for directing and coordinating

the marketing efforts

It operates at two levels

Strategic Marketing Plan: It lays out the targetmarkets and the value proposition the firm will offerbased on the analysis of the best marketopportunities

Tactical Marketing Plan: It specifies marketingtactics, including product features, promotions,

merchandising, pricing, sales channels and service

Teams develop the marketing plan with inputs andagreements from every important function.

Management implement plans at appropriate levels,

monitors results and take necessary (corrective) steps


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Marketing Plan

It is a written document that summarizes that themarketer has learned about the market place andindicate how the firm plan to reach its marketingobjectives

It contains tactical guidelines for the marketing programsand financial allocations over a planning period

It is one of the most important outputs of the marketingprocess

Executive summary Situational analysis

Marketing strategy

Financial projections

Implementations and controls


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Corporate mission Corporate mission is a concise statement of the overall

purpose for an organization existence. The statement ofmission provides the nest starting point for strategicplanning when they are expressed in terms of thecustomer benefit the firms sees itself offering

A clear mission statement provides employees with ashared sense of purpose, direction and opportunity

Peter Drucker classic question

What is our business

Who is the customer What is the value to the customer

What will our business be

What should business be


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Corporate mission

Good mission statements Focus on limited number of goals

Stress the companys major policies and values

Define the major competitive spheres within which the

company will operate Take into account the long term view

Is short, memorable, and meaningful


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Corporate mission

Intensive growth Product (Market) development, penetration, diversification

Integrative growth

Backward (vendors), forward (stores), horizontal (competitors)growth

Diversification growth

Concentric diversification - technological or marketing synergieswith existing product lines appealing to new group of customers.Eg. Music industry start making tapes

Horizontal diversification product lines unrelated to currentproduct line. Eg. Music industry start making cassette holdingtrays

Conglomerate diversification no relationship with its currenttechnology, product, services. Eg. Music industry enter a new

business like application software


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Organizational culture

Organization comprises of culture, structure, andpolicies.

Structure and policies can change but culture is difficultto change. People have to adapt to the culture to

implement the strategy Culture is the way people talk, dress, greet customers

etc


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Managing change

A few strategies for managing change in the organizationinclude

Avoid the innovative title

Use of buddy system

Set the metric in advance Aim for a quick hit first

Get data to back up the gut feeling


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Strategic Business Units


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Assessing Growth

Current Products New Products

Current Markets PenetrationProductDevelopment

New MarketsMarketDevelopment Diversification


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SWOT analysis

Monitor key macro environment forces and microenvironment factors that can effect the profitability

EXTERNAL ENVIRONMENT (Opportunities / Threats)

Marketing opportunities are the areas of buyers needand the interest that a company has a high probability forprofitability

Supply something that is in short supply

Supply the existing products / services in a new / superior way

Supply a new products / services


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SWOT analysis

Monitor key macro environment forces and microenvironment factors that can effect the profitability

INTERNAL ENVIRONMENT (Strengths / Weaknesses)

Make a checklist to evaluate yourselfMarketing Company reputation Market share Customer satisfaction Product quality Service quality Pricing Distribution Promotion Sales force Innovation

Geographic

Finance Cost Availability of capital Cash flow Financial stability

Organizations Visionary Capable leadership Dedicated employees Entrepreneurial orientation

Flexible / responsive

Manufacturing Facilities Economies of scale Capacity

Able / dedicated workforce Production timelines Technical and

manufacturing skills


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Opportunities

Opportunities may take may forms Take into account converging industry trends and

introduce hybrid products. Eg phones with camera

Make the buying process convenient or efficient. Eg

Online purchase Meet the need for more information and advice. Eg food

/ news / health channels

Customize the standard form of products. Eg clothing

Introduce new capabilities. Eg youtube Deliver the products faster. Eg TCS Vs Pakistan post

Offer products at a lower price. Eg generic pharmaproducts


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Goal formulation

Goal formulation constitutes / is a mix of objectives, profitability,sales growth, market share improvement, risk , innovation,reputation, etc

Management by Objectives (MBO) system to work the objectivesmust meet certain criteria

They must be arranged in an hierarchy, from most to leastimportant

Objectives should be made quantifiable as much as possible

Objectives should be realistic (SMART)

Objectives must be consistent


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Strategic Formulation

Strategy is a game plan achieving the targets Marketing strategy

Technological strategy

Sourcing strategy

Michael Porter generic strategy Over all leadership

Differentiation

Focus

Same strategy for the same target market constitutes astrategic group.


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Strategic Alliance

To attain leadership firms require to form alliance Product or service alliance Pakola packaging Pepsi

products

Promotional alliance

Logistic alliance Pricing alliance


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End

Documents

Developing Marketing Strategies 210112-2