Textbook Notes (369,082)
Canada (162,376)
Marketing (884)
MKT 702 (34)
Chapter 2

Chapter 2 Developing Marketing Strategies and Plans.docx

4 Pages
155 Views

Department
Marketing
Course Code
MKT 702
Professor
Rob Wilson

This preview shows page 1. Sign up to view the full 4 pages of the document.
Description
MKT702 Marketing Management CHAPTER 2 Developing Marketing Strategies and Plans MARKETING AND CUSTOMER VALUE The Value-Delivery Process  Smart competitor must design and deliver offerings for well-defined target markets at the beginning of planning process  Value creation and delivery can be divided into three phases i. Choosing the value – segment the market, select appropriate market target, and develop the offering’s value positioning ii. Providing the value – determine specific product features, prices, and distribution iii. Communicating the value – utilizing the sales force, sales promotion, advertising, and other promotional tools to inform and promote the product The Value Chain  Value chain: tool for identifying ways to create more customer value  Nine strategically relevant activities that create value and cost in a specific business o Primary activities 1. Inbound logistics, or bringing materials into the business 2. Operations, or converting materials into final products 3. Outbound logistics, or shipping out final products 4. Marketing, which includes sales 5. Service o Specialized departments handle support activities 1. Procurement 2. Technology development 3. Human resource management 4. Firm infrastructure (e.g. cost of general management, planning, finance, accounting, legal, and government affairs)  Task is to examine costs and performance in each value-creating activity by using competitors as benchmarks  Success depends on how well various departmental activities are coordinated to conduct core business processes o Marketing-sensing process – all activities involved in gathering market intelligence, disseminating it within the organization, and acting on the information o New offering-realization process – all activities involved in researching, developing, and launching new high-quality offerings quickly and within budget o Customer-acquisition process – all activities involved in defining target markets and prospecting for new customers o Customer relationship management process – all activities involved in building deeper understanding with, relationships with, and offerings to individual customers o Fulfillment management process – all activities involved in receiving and approving orders, shipping goods on time, and collecting payments  Value-delivery network (supply chain): company’s supply chain and how it partners with specific suppliers and distributors to make products and bring them to markets Core Competencies  Core competency has three characteristics: i. Source of competitive advantage in that it makes a significant contribution to perceived customer benefits ii. Applications in a wide variety of markets iii. Difficult for competitors to imitate  Competitive advantage derives from how well company has fitted its core competencies and distinctive capabilities into tightly interlocking “activity system”  Business realignment may be necessary to maximize core competencies i. (Re)defining business concept or “big idea” ii. (Re)shaping the business scope iii. (Re)positioning the company’s brand identity A Holistic Marketing Orientation and Customer Value  Holistic marketing succeed by managing superior value chain that delivers high level of product quality, service, and speed o Profitable growth by expanding customer share, building customer loyalty, and capturing customer life-time value MKT702 Marketing Management  Three key management questions i. Value exploration – how can a company identify new value opportunities? ii. Value creation – how can a company efficiently create more promising new value offerings? iii. Value delivery – how can a company use its capabilities and infrastructure to deliver new value offerings more efficiently? The Central Role of Strategic Planning  Strategic planning calls for action in three key areas i. Managing a company’s businesses as an investment portfolio ii. Assessing each business’s strength by considering the market’s growth rate and the company’s position and fit in that market iii. Establishing a strategy  Strategic planning at different organizational levels o Corporate level responsible for designing corporate strategic plan to guide the whole enterprise  Makes decisions on amount of resources to allocate to each division and which business to start or eliminate o Division level establishes plan covering allocation of funds to each business unit within the division o Business unit level develops strategic plan to carry business unit into profitable future o Product level within each business unit develops marketing plan for achieving its objectives in its product market  Marketing plan: directing and coordinating in its product market o Strategic marketing planning: lays out target markets and value proposition that will be offered, based on analysis of best market opportunities o Tactical marketing plan: specifies marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and services CORPORATE AND DIVISION STRATEGIC PLANNING Defining the Corporate Mission  Mission statement: provides employees with a shared sense of purpose, direction, and opportunity  Five characteristics of mission statement i. Focus on a limited number of goals ii. Stress the company’s major policies and values iii. Define major competitive spheres within which the company will operate iv. Take a long-term view v. They are short, memorable, and meaningful as possible Establishing Strategic Business Units  Market definition describes the business as customer-satisfying process, not a goods-producing process  Target market definition tends to focus on selling product or service to current market  Strategic market definition focuses on potential market  Business can be defined in terms of three dimensions: customer groups, customer needs, and technology  Strategic business unit (SBUs): single business or collection of related businesses that can be planned separately from the rest of the company, with its own set of competitors and a manager who is responsible for strategic planning and profit performance Assigning Resources to Each SBU  Newer methods rely on shareholder value analysis, and on whether market value of a company is greater with an SBU or without it o These values calculate potential of business based on growth opportunities from global expansion, repositioning or retargeting, and strategic outsourcing Assessing Growth Opportunities  Intensive growth opportunities identifies opportunities to achieve further growth within current business o Useful framework is “product-market expansion grid” which considers strategic growth opportunities for firm in terms of current and new products and markets  Market penetration strategy – considers whether it can gain more market share with current products in current market MKT702 Marketing Management  Market-development strategy – considers whether it can find or develop new markets for its current product  Product-development strategy – considers whether it can develop new products
More Less
Unlock Document

Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit