Transcript What is a marketing plan?

Slide 3.1
Chapter 3
Developing marketing
strategies and plans
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.2
Chapter questions
1. How does marketing affect customer value?
2. How is corporate and divisional strategic
planning carried out?
3. How is business unit strategic planning
carried out?
4. What is involved in developing a marketing
plan?
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.3
Transitioning from sellers’ to
buyers’ markets
• Competition
• Demanding customers
• Choices for customers
• Transformation of the value concept
• Fragmented market segments
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.4
Sequences in the value delivery
process
Figure 3.2
Repetitive sequences of the value delivery process
Source: M. R. V. Goodman, Durham University
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.5
Nirmalya Kumar’s
3Vs marketing approach
• Define the value segment
• Define the value proposition
• Define the value network
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.6
The generic value chain
Figure 3.3
The generic value chain
Source: From M. E. Porter (1985) Competitive Advantage. Creating and Sustaining Superior Performance, New York: Free Press. Copyright © 1985 by Michael E. Porter.
Reproduced with permission from The Free Press, a division of Simon & Schuster Adult Publishing Group
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.7
Core business processes
• The market sensing process
• The new offering realisation process
• The customer acquisition process
• The customer relationship management
process
• The fulfillment management process
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.8
Characteristics of
core competencies
• It is a source of competitive advantage
• It has applications in a wide variety of
markets
• It is difficult for competitors to imitate
See what C. K. Prahalad has to say about
the core competencies of the firm:
www.youtube.com/watch?v=WfP-VICbLRA
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.9
Steps in the business realignment
process
(Re)define the business concept
(Re)shaping the business scope
(Re)positioning the brand identity
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.10
Questions answered by the
holistic marketing framework
• How can we identify new value
opportunities?
• How can we efficiently create more
promising new value offerings?
• How can we use capabilities and
infrastructure to deliver the new value
offerings more efficiently?
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.11
Organisational levels
Corporate level
Division level
Business unit level
Product level
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.12
What is a marketing plan?
The marketing plan is the central instrument
for directing and coordinating the marketing
effort.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.13
Figure 3.5
The strategic planning, implementation and control processes
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.14
Planning activities
• Defining the corporate mission
• Defining the business
• Assigning resources to each SBU
• Assessing growth opportunities
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.15
Questions to ask
when defining a 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?
Questions to ask when defining a mission:
www.youtube.com/watch?v=XtyCt83JLNY&feat
ure=related
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.16
Mission statements
‘To create the safest and most exciting car
experience for modern families.’ – Volvo
‘We help people trade practically anything on
earth. We will continue to enhance the online
trading experience of all – collectors, dealers,
small businesses, unique item seekers, bargain
hunters, opportunity sellers, and browsers.’
– eBay
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.17
Characteristics of
good mission statements
• State limited number of goals
• Stress company’s major policies,
values and culture
• Define major competitive spheres
• Take a long-term view
• Stated in brief, with flexibility and
distinction
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.18
Definitions of business
Product definition
• BP sells fuels
Market definition
• BP sells energy
• Biersdorf sells cosmetics
• Biersdorf sells beauty
• Renault sells automobiles
• Renault supplies
transport vehicles
• Xerox makes copy
equipment
• Xerox improves office
productivity
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.19
Major competitive spheres
Industry
Geographic
Product
Vertical
Competence
Market
segment
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.20
Characteristics of SBUs
• It is a single business, or a collection of
related businesses, that can be planned
separately from the rest
• It has its own set of competitors.
• It has a manager responsible for strategic
planning and profit performance
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.21
Figure 3.6
The strategic planning gap
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.22
Strategies for managing change
Avoid the innovation title
Use the buddy system
Set the metrics in advance
Aim for quick hits first
Get data to back up your gut feelings
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.23
Dimensions of
business innovation
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Offerings
Platform
Solutions
Customers
Customer
experience
• Value capture
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Processes
Organisation
Supply chain
Presence
Networking
Brand
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.24
Figure 3.8
The business unit strategic-planning process
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.25
SWOT Analysis
Using SWOT analysis to monitor the internal and external position of an
organisation
Figure 3.9
McDonald’s advises that care should be taken when conducting SWOT
analysis: www.youtube.com/watch?v=V6NhsoVSD88&feature=channel
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.26
Market opportunity analysis
• Can we articulate the benefits to a target
audience?
• Can we locate the target market and reach them
with cost-effective media and trade channels?
• Does our company possess or have access to
the critical capabilities and resources we need?
• Can we deliver the benefits better than the
competition?
• Will the rate of return meet or exceed our
expectations?
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.27
Figure 3.10
Opportunity and threat matrices
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.28
Goal formulation and the MBO
• Arrange objectives hierarchically from most to
least important
• Make goals quantitative if possible
• Make goals realistic
• Make goals consistent
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.29
Porter’s generic strategies
Overall cost
leadership
Differentiation
Focus
To see an interesting video clip that summarises the dichotomy
between differentiation and low cost go to:
www.youtube.com/watch?v=enWEwAxhYY&feature=PlayList&p=DAA8BC0955BC0A5D&playnext_from=PL
&playnext=1&index=13
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.30
Forms of strategic alliances
Product or service alliance
Promotional alliance
Logistics alliance
Pricing collaborations
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.31
Elements of strategy
Strategy
Shared
values
Structure
Staff
Systems
Skills
Style
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.32
Contents of a marketing plan
• Executive summary and table of contents
• Situation analysis
• Marketing strategy
• Financial projections
• Implementation controls
For some tips on how to write a marketing
plan go to:
www.youtube.com/watch?v=ul65NjOMzo&feature=related
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.33
Contents of a marketing plan
The Euromart marketing plan is based on an
approach inspired by Professors Kashani and
Turpin of the IMD in Switzerland:
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Executive summary
Contextual analysis
Customer analysis
Competition analysis
Company strategic approach
Channel analysis (distribution and marketing
communications)
• Cash analysis
• Marketing management implementation and control
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.34
Kotler on strategy
In this video clip, Philip Kotler discusses
some key strategic marketing issues for
practitioners
www.youtube.com/watch?v=bilOOPuAvTY
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.35
Marketing debate
What good is a mission statement?
Take a position:
• Mission statements are critical to a
successful marketing organisation.
• Mission statements rarely provide useful
marketing value.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 3.36
Recap: can you explain?
• How does marketing affect customer value?
• How is corporate and divisional strategic
planning carried out?
• How is business unit strategic planning carried
out?
• What is involved in developing a marketing
plan?
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009