Kotler14e ippt ch2
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Transcript of Kotler14e ippt ch2
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2Developing Marketing
Strategies and Plans
1
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Chapter Questions
How does marketing affect customer value? How is strategic planning carried out at
different levels of the organization? What does a marketing plan include?
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Phases of Value Creation and Delivery
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Choosing the value
Providing the value
Communicating the value
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What is the Value Chain?
The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design,
produce, market, deliver, and support its product.
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Core Business Processes
Market-sensing process- gathering and acting upon information about the market
New-offering realization process- researching, developing, and launching new high-quality offerings quickly and within budget
Customer acquisition process- defining target market and prospecting for new customers
Customer relationship management process- building deeper understanding, relationships, and offerings to individual customers
Fulfillment management process- receiving and approving orders, shipping the goods on time and collecting payment
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Characteristics of Core Competencies
A source of competitive advantage Applications in a wide variety of markets Difficult to imitate
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Maximizing Core Competencies
(Re)define the business concept (Re)shaping the business scope (Re)positioning the company’s brand identity
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What is Holistic Marketing?
Holistic marketing sees itself as integrating the value exploration, value creation, and
value delivery activities with the purpose of building long-term, mutually satisfying
relationships and co-prosperity among key stakeholders.
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Questions to Address in Holistic Marketing
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What value opportunities are available?
How can we create new value offerings efficiently?
How can we delivery the new offerings efficiently?
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Figure 2.1 The Strategic Planning, Implementation, and Control Processes
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Table 2.1 Master Marketers
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What is a Marketing Plan?
A marketing plan is the central instrument for
directing and coordinating the marketing effort.
It operates at a strategic and tactical level.
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Levels of a Marketing Plan
Strategic Target marketing
decisions Value proposition Analysis of
marketing opportunities
Tactical Product features Promotion Merchandising Pricing Sales channels Service
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Corporate Headquarters’ Planning Activities
Define the corporate mission Establish strategic business units (SBUs) Assign resources to each SBU Assess growth opportunities
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Good Mission Statements
Focus on a limited number of goals Stress major policies and values Define major competitive spheres Take a long-term view Short, memorable, meaningful
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Table 2.2 Major Competitive Spheres
Industry Products Competence Market segment Vertical channels Geographic
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Product Orientation vs. Market Orientation
Company Product Market
Missouri-Pacific Railroad
We run a railroad We are a people-and-goods mover
Xerox We make copying equipment
We improve office productivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain people
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Dimensions Define a Business
Customer Groups
Customer Needs
Technology
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Characteristics of SBUs
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 and profitability
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Figure 2.2 The Strategic Planning Gap
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What is Corporate Culture?
Corporate culture is the shared experiences, stories, beliefs,
and norms that characterize an organization.
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Figure 2.3 The Business Unit Strategic Planning Process
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SWOT Analysis
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Strengths
Weaknesses
Opportunities
Threats
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Market Opportunity Analysis (MOA)
Can the benefits involved in the opportunity be articulated convincingly to a defined target market?
Can the target market be located and reached with cost-effective media and trade channels?
Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?
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Market Opportunity Analysis (MOA)
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?
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Figure 2.4 Opportunity and Threat Matrices
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Goal Formulation and MBO
Unit’s objectives must be hierarchical Objectives should be quantitative Goals should be realistic Objectives must be consistent
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Porter’s Generic Strategies
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Overall cost leadership
Differentiation
Focus
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Categories of Marketing Alliances
Product or service alliance Promotional alliance Logistics alliances Pricing collaborations
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McKinsey’s Elements of Success
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Strategy
Structure
SystemsStyle
Shared values
Staff
Skills
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Marketing Plan Contents
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Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls
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Evaluating a Marketing Plan
Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?
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For Review
How does marketing affect customer value? How is strategic planning carried out at
different levels of the organization? What does a marketing plan include?
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