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Chapter 2 - Marketing Strategies & Plans, Firms must stick to a…
Chapter 2 - Marketing Strategies & Plans
The Nature and Contents of a Marketing Plan
The Role of Relationships
Affects how the company works with suppliers, distributors, and partners to achieve the plans objectives.
Influences how marketing staff work with each other and with other departments to deliver value and satisfy customers.
Influences the company's dealings with other stakeholders, including government regulators, the media, and the community at large.
From Marketing Plan to Marketing Action
Indicates Schedules/Timelines
Marketing Metrics for Monitoring and Evaluating Results
Outlines Budgets
The Role of Research
Market Segment(s)
Competition
Macroenvironment
Microenvironment
Learn about customer needs/requirements
Business Unit Strategic Planning
Goal Formulation
Quantitative - Measurable
Realistic - From Analysis
Hierarchical - Most to Least Important
Consistent - Trade-Offs, can't maximize revenue and profit simultaneously (short term profit vs long term growth)
Strategic Formulation - Marketing Strategy, Technology Strategy, and Sourcing Strategy
Porter's Generic Strategies
Differentiation
Focus
Overall Cost Leadership
Strategic Alliances
Promotional Alliances
Logistics Alliances
Product or Service Alliances
Pricing Collaborations
SWOT Analysis
Internal Environment Analysis
Weaknesses
Strengths
External Environment Analysis
Opportunities
MOA - Market Opportunity Analysis
Threats
Program Formulation & Implementation
The Business Mission
Feedback & Control - the key to organizational health is the willingness to examine the changing environment and adopt new goals and behaviors.
Corporate and Division Strategic Planning
Establishing strategic business units (SBU)
SBUs 3 Characteristics
It has its own set of competitors.
It has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit.
Single business, or a collection of related businesses, that can be planned separately from the rest of the company.
Identifying the company's SBUs is necessary to develop separate strategies and assign appropriate funding.
Defining the corporate mission
Peter Drucker's Classic Questions
What is of value to the customer?
Who is the customer?
What is our business?
What should our business be?
What will our business be?
Business definition of the mission
: describe the business as a customer-satisfying process.
Crafting A Mission Statement
Focus on company's major policies and values.
Define the major competitive spheres within which the company will operate.
Limited number of goals.
Take a long term view.
Are as short, memorable, and meaningful as possible.
Target Market Definition of the mission:
tends to focus on selling a product or service to a current market.
Strategic Market Definition of the mission:
focuses on the potential market.
Assessing growth opportunities
Intensive Growth
Market-Development Strategy:
find of develop new markets for current products
Product-Development Strategy:
develop new products for its current markets
Market-Penetration Strategy:
Current Products & Current Markets
Diversification Strategy:
develop new products for new markets
Integrative Growth
Backward
Horizontal
Forward
Diversification Growth
Downsizing and Divesting Older Businesses
Assigning resources/funding to each SBU
Organization & Organizational Culture
Adapting the culture is key to successfully implementing a new strategy
Customer-Centric culture can affect all aspects of an organization
Company Culture is hard to change
Marketing Innovation from within the company
Employees removed from company headquarters
Employees with youthful/diverse prospectives
Employees new to the industry
Marketing and Customer Value
The Value Chain
Primary Activities
Outbound Logistics: shipping out final products
Marketing: includes sales
Operations: converting materials into final products
Service
Inbound Logistics: bringing materials to the busniess
Support Activities
Procurement
Technology Development
Human Resource Management
Firm Infrastructure
3 Characteristics of a Core Competency
Has applications in a wide variety of markets.
It is difficult for competitors to imitate.
A source of competitive advantage and makes a significant contribution to perceived customer benefits.
The Value Delivery Process
Phase #2: Providing the Value
Product Feautures
Product Price
Product Distribution
Phase #3: Communicating the Value
Internet
Advertising
Sales Force
Phase #1: Choosing the Value
Developing the Offering's Value Positioning
Selecting appropriate target
Segment the Market
The Central Role of Strategic Planning
3 Key Areas to Prioritize Strategic Planning
Establish a strategy.
Assess market growth rate & company's position in that market.
Manage business as investment portfolio.
4 Organizational Levels
Division
Establishes Plan for Allocation of Funds to Business Units
Business Unit
Develops Strategic Plan to Profitable Future
Corporate
Design Strategic Plan
Guide Entire Enterprise
Resource Allocation to Divisions
Product
Develops Marketing Plan for Achieving its Objectives
Firms must stick to a strategy but also constantly improve it.
STP (segmentation, targeting, positioning)
Every firm is a synthesis of activities performed to: design, produce, market, deliver, and support its product.
The mission might change in response to new opportunities or market conditions.
A clear, thoughtful mission statement, is developed collaboratively with and shared with managers, employees, and often customers, provides a shared sense of purpose, direction, and opportunity.
A marketing plan is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives in 1 year. It provides direction and focus, it informs and motivates.
The task of any business is to deliver customer value at a profit.
A company can win by fine tuning the value delivery process and choosing, providing, and communicating superior value to increasingly well-informed buyers.
Shortcomings of current marketing plans are: lack of realism, insufficient competitive analysis, and a short-run focus.