developing marketing strategies 210112-2
TRANSCRIPT
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Session 2
January 21, 2012
Developing MarketingStrategies
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Simultaneous strategies
1 1 1 = 6
2 2 2 = 6
3 3 3 = 6
4 4 4 = 65 5 5 = 6
6 6 6 = 6
7 7 7 = 68 8 8 = 6
9 9 9 = 6
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Marketing and customer value
Marketing is to satisfy the customers needs & wants Deliver customer value at a profit
Traditional Vs value chain creation
Segmentation
Mass Marketing
Specialized marketing
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Traditional physical process
Design theproduct
Process
Make Price
Sell
Advertise Distribute
Service
Makethepro
duct
Se
llt
heproduct
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Value chain and delivery system
Customersegmentation
Market
selectiontools
Valuepositioning
Productdevelopment
Servicedevelopment
Pricing
Sourcing /Making
Distribution /Servicing
Sales force
Salespromotion
Advertising
Cho
osethev
alue
Provide the valueCommun
icatethe
value
StrategicM
arketing
Tactical Marketing
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Value Chain
Value approach to marketing Define the value segment value defining process
Define the value proposition value developingprocess
Define the value network value delivering process
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Value Chain
Michael Porter proposed more value to customers
Inboundlogistics
Operations ServiceMarketing& Sales
Outboundlogistics
Procurement
Technological Development
Human Resource Management
Firms infrastructure
SupportA
ctivities
Primary Activities
M
argins
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Core competencies
Business own and nurture the resources andcompetencies that make up the essence of thebusiness It is a source of competitive advantage in that it makes a
significant contribution to perceive customers benefits.
It has applications in a wide variety of markets
It is difficult for competitors to imitate
Competitive advantage accrues to companies thatpossess distinctive capabilities
Core competencies refer to that areas of specialtechnical and production expertise
Distinctive capabilities describe excellence in broaderbusiness processes
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Marketing Plan It is the central instrument for directing and coordinating
the marketing efforts
It operates at two levels
Strategic Marketing Plan: It lays out the targetmarkets and the value proposition the firm will offerbased on the analysis of the best marketopportunities
Tactical Marketing Plan: It specifies marketingtactics, including product features, promotions,
merchandising, pricing, sales channels and service
Teams develop the marketing plan with inputs andagreements from every important function.
Management implement plans at appropriate levels,
monitors results and take necessary (corrective) steps
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Marketing Plan
It is a written document that summarizes that themarketer has learned about the market place andindicate how the firm plan to reach its marketingobjectives
It contains tactical guidelines for the marketing programsand financial allocations over a planning period
It is one of the most important outputs of the marketingprocess
Executive summary Situational analysis
Marketing strategy
Financial projections
Implementations and controls
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Corporate mission Corporate mission is a concise statement of the overall
purpose for an organization existence. The statement ofmission provides the nest starting point for strategicplanning when they are expressed in terms of thecustomer benefit the firms sees itself offering
A clear mission statement provides employees with ashared sense of purpose, direction and opportunity
Peter Drucker classic question
What is our business
Who is the customer What is the value to the customer
What will our business be
What should business be
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Corporate mission
Good mission statements Focus on limited number of goals
Stress the companys major policies and values
Define the major competitive spheres within which the
company will operate Take into account the long term view
Is short, memorable, and meaningful
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Corporate mission
Intensive growth Product (Market) development, penetration, diversification
Integrative growth
Backward (vendors), forward (stores), horizontal (competitors)growth
Diversification growth
Concentric diversification - technological or marketing synergieswith existing product lines appealing to new group of customers.Eg. Music industry start making tapes
Horizontal diversification product lines unrelated to currentproduct line. Eg. Music industry start making cassette holdingtrays
Conglomerate diversification no relationship with its currenttechnology, product, services. Eg. Music industry enter a new
business like application software
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Organizational culture
Organization comprises of culture, structure, andpolicies.
Structure and policies can change but culture is difficultto change. People have to adapt to the culture to
implement the strategy Culture is the way people talk, dress, greet customers
etc
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Managing change
A few strategies for managing change in the organizationinclude
Avoid the innovative title
Use of buddy system
Set the metric in advance Aim for a quick hit first
Get data to back up the gut feeling
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Strategic Business Units
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Assessing Growth
Current Products New Products
Current Markets PenetrationProductDevelopment
New MarketsMarketDevelopment Diversification
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SWOT analysis
Monitor key macro environment forces and microenvironment factors that can effect the profitability
EXTERNAL ENVIRONMENT (Opportunities / Threats)
Marketing opportunities are the areas of buyers needand the interest that a company has a high probability forprofitability
Supply something that is in short supply
Supply the existing products / services in a new / superior way
Supply a new products / services
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SWOT analysis
Monitor key macro environment forces and microenvironment factors that can effect the profitability
INTERNAL ENVIRONMENT (Strengths / Weaknesses)
Make a checklist to evaluate yourselfMarketing Company reputation Market share Customer satisfaction Product quality Service quality Pricing Distribution Promotion Sales force Innovation
Geographic
Finance Cost Availability of capital Cash flow Financial stability
Organizations Visionary Capable leadership Dedicated employees Entrepreneurial orientation
Flexible / responsive
Manufacturing Facilities Economies of scale Capacity
Able / dedicated workforce Production timelines Technical and
manufacturing skills
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Opportunities
Opportunities may take may forms Take into account converging industry trends and
introduce hybrid products. Eg phones with camera
Make the buying process convenient or efficient. Eg
Online purchase Meet the need for more information and advice. Eg food
/ news / health channels
Customize the standard form of products. Eg clothing
Introduce new capabilities. Eg youtube Deliver the products faster. Eg TCS Vs Pakistan post
Offer products at a lower price. Eg generic pharmaproducts
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Goal formulation
Goal formulation constitutes / is a mix of objectives, profitability,sales growth, market share improvement, risk , innovation,reputation, etc
Management by Objectives (MBO) system to work the objectivesmust meet certain criteria
They must be arranged in an hierarchy, from most to leastimportant
Objectives should be made quantifiable as much as possible
Objectives should be realistic (SMART)
Objectives must be consistent
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Strategic Formulation
Strategy is a game plan achieving the targets Marketing strategy
Technological strategy
Sourcing strategy
Michael Porter generic strategy Over all leadership
Differentiation
Focus
Same strategy for the same target market constitutes astrategic group.
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Strategic Alliance
To attain leadership firms require to form alliance Product or service alliance Pakola packaging Pepsi
products
Promotional alliance
Logistic alliance Pricing alliance
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End