Transcript Developing and Implementing Marketing Strategies and Plans

Developing and Implementing
Marketing Strategies & Plans
•How does marketing affect customer
value?
•How is strategic planning carried out at
different levels of the organization?
•What does a marketing plan include?
•How can management assess marketing
performance?
• Tim Hortons started out as a single donut shop in
1964 growing to 2,527 (including 184 U.S. stores)
in 2006, demonstrating its skill in marketing
planning and execution
• The brand exemplifies the idealized Canadian
national character:
“That friendly, unpretentious, good neighbour
you’d want living down the block from you”
(Cathy Whelan Molloy, VP Advertising and
Merchandising)
•
Franchisees ensure that all products, services and
communications fit the company’s ideals
• Tim Hortons started out as a single donut
shop in 1964 growing to 2,527 (including 184
U.S. stores) in 2006, demonstrating its skill in
marketing planning and execution
• The brand exemplifies the idealized
Canadian a character:
“That friendly, unpretentious, good neighbour you’d
want living down the block from you”
(Cathy Whelan Molloy, VP Advertising and Merchandising) .
• Franchisees ensure that all products,
services and communications fit the
company’s ideals
• “Roll Up the Rim to Win” and Timbits
• Far ahead of rivals such as Starbucks and
Second Cup in “most often” coffee purchases
• Nonprofit children’s foundation sponsors an
estimated 33,000 children in Timbit hockey
leagues annually
• 2004 winner of Canadian Business poll of
Canada’s best brands
Organizational
costs
and
performance
measures
Competitor
costs
and
performance
measures
Market sensing
Customer
relationship
management
New offering
realization
Fulfillment
management
Customer
acquisition
• Important difference between core
competencies and competitive advantage:
– Competitive advantages accrue due to companies that
possess distinctive capabilities
– Core competencies tend to refer to areas of special
technical and production expertise
• Competitive advantage derives from its
“activity systems”
• Companies with activity systems that are
difficult to imitate include WestJet Airlines,
Dell, and Magna International
• Core Competencies are usually
– A source of competitive advantage
– Applicable in a wide variety of markets
– Difficult to imitate
• How can a company identify new
value opportunities?
• How can a company efficiently create
more promising new value offerings?
• How can a company use its
capabilities and infrastructure to
deliver the new value offerings more
efficiently?
Defining the
corporate
mission
Establishing
SBUs
Assigning
resources
to SBUs
Assessing
growth
opportunities
Focus on a limited number of goals
Stress major policies and values
Define major competitive spheres
Industry
Geographical
Products
Vertical
Competence
Market
segment
“Mountain Equipment Co-op provides quality
products and services for self-propelled
wilderness-oriented recreation, such as
hiking and mountaineering, at the lowest
reasonable price in an informative, respectful
manner.
“We are a member-owned co-operative
striving for social and environmental leadership.”
Idea about eBay: little information required
“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.”
Customer
groups
Customer
needs
Technology
• 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
– Profitability
– Efficiency
Intensive
growth
Integrative
growth
Diversification
growth
Culture
Policies
Structure
Strengths
Weaknesses
Opportunities
Threats
• Toolkit Productions Inc. originated in Toronto
(2001)
• Offered a new kind of theatre in a saturated
marketplace
• Gap identified was the 20-30 year
demographic
• Flashy productions in bars and nightclubs
• Since expanded into corporate publicity and
film production
• Can the benefits involved in the opportunity be
articulated to a defined target market?
• Can the target market be located and reached
with cost-effective media and trade channels?
• Does the company have access to the critical
capabilities and resources needed to deliver the
customer benefits?
– Includes the assessment of interdepartmental
working relationships
– Honeywell gets all internal departments to conduct a
strengths and weaknesses analysis of each other
– Each department is seen as both a supplier
and customer to one other
• Can the company deliver the
benefits better than any actual or
potential competitors?
• Will the financial rate of return meet
or exceed the company’s required
threshold for investment?
• To be effective, goals must be
– Ordered in terms of priority (hierarchical)
– Stated quantitatively
– Realistic
– Consistent
Overall cost leadership
Differentiation
Focus
Strategy
Structure
Systems
Style
Skills
Staff
Shared values
External
Environmental
Need
Balance
Internal
Environment
 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls
Sales analysis
Market share
analysis
Marketing
expense-to-sales
analysis
Financial
analysis
Overall market share
Served market share
Relative market share
• Method 1: Increase the profit
margin by increasing sales or
cutting costs
• Method 2: Boost the asset turnover
by increasing sales or reducing
assets that are held against sales
levels
What implications do Porter’s value
chain and the holistic marketing
orientation model have for
marketing planning?