8/11/2019 Marketing Ch 2
1/38
Kotler KellerPhillip Kevin Lane
Marketing Management 14e
8/11/2019 Marketing Ch 2
2/38
Developing Marketing
Strategies and Plans
8/11/2019 Marketing Ch 2
3/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 38
Discussion Questions
1. How does marketing affect customer
value?
2. How is strategic planning carried outat different levels of the organization?
3. What does a marketing plan include?
8/11/2019 Marketing Ch 2
4/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 4 of 38
The Value Delivery Approach
Value
Choose
Provide
Communicate
8/11/2019 Marketing Ch 2
5/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 5 of 38
The Value Chain
Procurement
Human Resource management
Technological Development
Infrastructure
Support
Activities
Primary
ActivitiesServiceMarketing
Outbound
LogisticsOperations
Inbound
LogisticsMargin
8/11/2019 Marketing Ch 2
6/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 6 of 38
Core Business ProcessesCustomer relationship
management
Customer
acquisition
Market-sensing
New-offeringrealization
Fulfillment
management
8/11/2019 Marketing Ch 2
7/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 7 of 38
Core Competencies
Contributes toperceived
customer benefits
Useful in awide variety
of markets
Difficult to
imitate
8/11/2019 Marketing Ch 2
8/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 8 of 38
Holistic Marketing
Value
Creation
ValueDelivery
Value
Exploration
8/11/2019 Marketing Ch 2
9/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 9 of 38
Strategic Planning
Businesses as
investment portfolio
Assessing each
businesss strength
Establish a strategy
8/11/2019 Marketing Ch 2
10/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 10 of 38
Strategic Planning, Implementation,
and Control Processes
8/11/2019 Marketing Ch 2
11/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 11 of 38
Marketing Plan
Directs and coordinates the
marketing effort
Product Line or Brand Level Strategic and Tactical levels
8/11/2019 Marketing Ch 2
12/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 12 of 38
Levels of a Marketing Plan
Strategic
Analysis of marketing
opportunities
Target marketing
decisions
Value proposition
Tactical
Product features
Promotion
Merchandising
Pricing
Sales channels
Service
8/11/2019 Marketing Ch 2
13/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 38
Corporate Strategic Planning
Define corporate mission
Establish SBUs
Assign resources to SBUs
Assess growth opportunities
1
2
3
4
8/11/2019 Marketing Ch 2
14/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 14 of 38
Defining the Corporate Mission
What is our
business?
Who is the
customer?What is of
value to the
customer?
What will our
business be?
What should
our business
be?
8/11/2019 Marketing Ch 2
15/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 15 of 38
Mission Statements
1. Focus on a limited number of goals
2. Stress major policies and values3. Define major competitive spheres
4. Take a long-term view
5. Short, memorable, meaningful
Characteristics of good mission statements:
8/11/2019 Marketing Ch 2
16/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16 of 38
To build total brand value by innovating to
deliver customer value and customer
leadership faster, better, and more
completely than our competition
Vague Mission Statement
8/11/2019 Marketing Ch 2
17/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 17 of 38
GOOGLES Mission Statement
To organize the worlds information
and make it universally accessible
and useful.
8/11/2019 Marketing Ch 2
18/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 18 of 38
Vague Philosophy
We build brands and make the world
a little happier by bringing our best
to you.
8/11/2019 Marketing Ch 2
19/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 19 of 38
GOOGLEs Philosophy
Never settle for the best.
1. Focus on the user and all else will follow.
2. Its best to do one thing really, really well.
3. Fast is better than slow.
4. Democracy on the web works.
5. You dont need to be at your desk to need an answer.
6. You can make money without doing evil.
7. There is always more information out there.8. The need for information crosses all borders.
9. You can be serious without a suit.
10.Great just isnt good enough.
8/11/2019 Marketing Ch 2
20/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 20 of 38
Strategic Business Units (SBU)
Three Characteristics of an SBU:
A single business orcollection of related
businesses
Unique competitors
Leader responsible
for planning and
profitability
8/11/2019 Marketing Ch 2
21/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 21 of 38
Defining Strategic Business Units
Technology
Customer groups
Customer needs
8/11/2019 Marketing Ch 2
22/38Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22 of 38
Company Product Definition Market Definition
Union Pacific We run a railroad. We are a people-and-goods mover.
XeroxWe make copying
equipment.
We help improve office
productivity.
Hess
CorporationWe sell gasoline. We supply energy.
Paramount
PicturesWe make movies. We market entertainment.
Encyclopaedia
BritannicaWe sell encyclopedias We distribute information.
CarrierWe make air conditioners
and furnaces.
We provide climate control in the
home.
Strategic Business Units
8/11/2019 Marketing Ch 2
23/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 23 of 38
Assigning Resources
HIGHMEDLOW
HIGH
MED
LOW
GE/McKinsey Matrix
Industry Attractiveness
Business
Position
Boston Consulting Group Matrix
8/11/2019 Marketing Ch 2
24/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24 of 38
Assessing Growth Opportunities
Opportunities
NewBusinesses
EliminateBusinesses
Downsizing
8/11/2019 Marketing Ch 2
25/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 25 of 38
The Strategic-Planning Gap
8/11/2019 Marketing Ch 2
26/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 26 of 38
Intensive Growth
Products
Current
Markets
Market
Penetration
Market
Development
Product
Development
Diversification
New
Cu
rrent
New
Product-Market Expansion Grid
8/11/2019 Marketing Ch 2
27/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 27 of 38
Integrative Growth
Business
Competitor
Supplier Wholesaler
8/11/2019 Marketing Ch 2
28/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 28 of 38
Diversification Growth
8/11/2019 Marketing Ch 2
29/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 29 of 38
Corporate Culture
is the shared experiences, stories, beliefs, and
norms that characterize an organization.
8/11/2019 Marketing Ch 2
30/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 30 of 38
Marketing Innovation
Identify and encourage new ideas
Scenario Analysis
8/11/2019 Marketing Ch 2
31/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 31 of 38
Business Unit Strategic Planning
8/11/2019 Marketing Ch 2
32/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 32 of 38
Opportunity and Threat Matrices
8/11/2019 Marketing Ch 2
33/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 33 of 38
SWOT Analysis
TThreatExternal
Internal
SStrength WWeakness
OOpportunity
l l
8/11/2019 Marketing Ch 2
34/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 34 of 38
Goal Formulation
Ranked
Realistic
QuantifiedConsistent
l
8/11/2019 Marketing Ch 2
35/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 35 of 38
Strategy Formulation
Porters Generic Strategies
Strategic Alliances
P F l i d I l i
8/11/2019 Marketing Ch 2
36/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 36 of 38
Program Formulation and Implementation
F db k d C l
8/11/2019 Marketing Ch 2
37/38
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 37 of 38
Feedback and Control
Strong leadership
P d Pl i
8/11/2019 Marketing Ch 2
38/38
Product Planning
Marketing Plans
Executive Summary and table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
Recommended