chapter 2 developing marketing strategies and plans

Phillip

Kevin Lane

Kotler • Keller
Marketing Management • 14e


Developing Marketing
Strategies and Plans


Discussion Questions
1. How does marketing affect customer
value?
2. How is strategic planning carried out
at different levels of the organization?
3. What does a marketing plan include?

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The Value Delivery Approach
Provide

Choose

Communicate

Value
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The Value Chain

Primary
Activities

Procurement
Human Resource management
Technological Development
Infrastructure

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Service
Margin

Support
Activities

Inbound
Outbound
Operations
Marketing
Logistics
Logistics

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Core Business Processes
Customer relationship
management
Fulfillment
management
Customer
acquisition

New-offering
realization
Market-sensing
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Core Competencies

Difficult to
imitate
Useful in a
wide variety
of markets

Contributes to
perceived

customer benefits
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Holistic Marketing

Value
Exploration

Value
Creation

Value
Delivery

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Strategic Planning
Businesses as
investment portfolio
Assessing each
business’s strength

Establish a strategy
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Strategic Planning, Implementation,
and Control Processes

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Marketing Plan
• Directs and coordinates the
marketing effort
• Product Line or Brand Level
• Strategic and Tactical levels

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Levels of a Marketing Plan
• Strategic
– Analysis of marketing
opportunities
– Target marketing
decisions
– Value proposition

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• Tactical
–
–
–
–
–
–

Product features
Promotion
Merchandising
Pricing
Sales channels
Service

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Corporate Strategic Planning

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1

Define corporate mission

2

Establish SBU’s

3

Assign resources to SBU’s

4

Assess growth opportunities

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Defining the Corporate Mission
Who is the
customer?
What is our
business?

What should
our business
be?
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What is of
value to the
customer?

What will our

business be?
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Mission Statements
Characteristics of good mission statements:
1.
2.
3.
4.
5.

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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Vague Mission Statement
To build total brand value by innovating to
deliver customer value and customer
leadership faster, better, and more
completely than our competition

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GOOGLE’S Mission Statement
To organize the world’s information
and make it universally accessible
and useful.

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Vague Philosophy
We build brands and make the world
a little happier by bringing our best
to you.

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GOOGLE’s Philosophy
Never settle for the best.
1. Focus on the user and all else will follow.
2. It’s best to do one thing really, really well.
3. Fast is better than slow.
4. Democracy on the web works.

5. You don’t need to be at your desk to need an answer.
6. You can make money without doing evil.
7. There is always more information out there.
8. The need for information crosses all borders.
9. You can be serious without a suit.
10.Great just isn’t good enough.
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Strategic Business Units (SBU)
Three Characteristics of an SBU:
Unique competitors

A single business or
collection of related
businesses

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Leader responsible
for planning and
profitability
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Defining Strategic Business Units
Customer groups

Customer needs
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Technology
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Strategic Business Units
Company

Product Definition

Market Definition

Union Pacific

We run a railroad.

We are a people-and-goods mover.

Xerox

We make copying
equipment.

We help improve office
productivity.

Hess
Corporation

We sell gasoline.

We supply energy.

Paramount
Pictures

We make movies.

We market entertainment.

Encyclopaedia
Britannica

We sell encyclopedias

We distribute information.

Carrier

We make air conditioners
and furnaces.

We provide climate control in the
home.

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Assigning Resources
HIGH

GE/McKinsey Matrix

MED
LOW

Business Position

Boston Consulting Group Matrix

LOW

MED

HIGH

Industry Attractiveness

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Assessing Growth Opportunities
New
Businesses

Opportunities

Downsizing
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Eliminate
Businesses
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The Strategic-Planning Gap

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