strategic management

1. Kotler • Keller
Phillip Kevin Lane
Marketing Management • 14e

2. Developing Marketing
Strategies and Plans

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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
Value
Choose
Provide
Communicate

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The Value Chain
Procurement
Human Resource management
Technological Development
Infrastructure
Support
Activities
Primary
Activities
Service
Marketing
Outbound
Logistics
Operations
Inbound
Logistics
Margin

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Core Business Processes
Customer relationship
management
Customer
acquisition
Market-sensing
New-offering
realization
Fulfillment
management

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Core Competencies
Contributes to
perceived
customer benefits
Useful in a
wide variety
of markets
Difficult to
imitate

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Holistic Marketing
Value
Creation
Value
Delivery
Value
Exploration

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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
• Tactical
– Product features
– Promotion
– Merchandising
– Pricing
– Sales channels
– Service

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Corporate Strategic Planning
Define corporate mission
Establish SBU’s
Assign resources to SBU’s
Assess growth opportunities
1
2
3
4

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Defining the Corporate 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?

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Mission Statements
1. Focus on a limited number of goals
2. Stress major policies and values
3. Define major competitive spheres
4. Take a long-term view
5. Short, memorable, meaningful
Characteristics of good mission statements:

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

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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:
A single business or
collection of related
businesses
Unique competitors
Leader responsible
for planning and
profitability

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Defining Strategic Business Units
Technology
Customer groups
Customer needs

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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.
Strategic Business Units

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Assigning Resources
HIGH
MED
LOW
HIGH
MED
LOW
GE/McKinsey Matrix
Industry Attractiveness
Business
Position
Boston Consulting Group Matrix

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Assessing Growth Opportunities
Opportunities
New
Businesses
Eliminate
Businesses
Downsizing

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The Strategic-Planning Gap

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Intensive Growth
Products
Current
Markets
Market
Penetration
Market
Development
Product
Development
Diversification
New
Current
New
Product-Market Expansion Grid

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Integrative Growth
Business
Competitor
Supplier Wholesaler

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Diversification Growth

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Corporate Culture
… is the shared experiences, stories, beliefs, and
norms that characterize an organization.

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Marketing Innovation
Identify and encourage new ideas
Scenario Analysis

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Business Unit Strategic Planning

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Opportunity and Threat Matrices

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SWOT Analysis
T
Threat
External
Internal
S
Strength
W
Weakness
O
Opportunity

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Goal Formulation
Ranked
Realistic
Quantified
Consistent

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Strategy Formulation
Porter’s Generic Strategies
Strategic Alliances

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Program Formulation and Implementation

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Feedback and Control
Strong leadership

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Product Planning
Marketing Plans
Executive Summary and table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls