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Developing Marketing
Strategies and Plans
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communicating
superior
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not
work,
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logistics,
or
bringing
materials into the business;
Operations, or converting materials
into final products;
Outbound logistics, or shipping out
final products;
Marketing, which includes sales; and
Service.
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Procurement,
2)
Technology development,
3)
4)
of
general
management,
planning,
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On
Business Processes.
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New-offering
Realization
Process.
All
the
Customer
Acquisition
Process .
All
the
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Core Competencies
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Core Competencies
The key, then, is to own and nurture the
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Core competence
A core competency has three characteristics:
a)
b)
c)
It
is
difficult
for
competitors
to
imitate.
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Core competence
Competitive
Whartons
Sensing,
Customer Linking, and
Channel Bonding.
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Core Competence
In
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Core competence
Business realignment may be necessary to maximize
core competencies.
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2)
3)
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Core Competence
Holistic
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marketers
address
three
key
management
1) Value
ExplorationHow a company
identifies new value opportunities
2) Value
CreationHow
a
company
efficiently creates more promising
new value offerings
3) Value DeliveryHow a company uses
its capabilities and infrastructure to
deliver the new value offerings more
efficiently
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Marketing
thus
requires
capabilities such as understanding, creating,
delivering, capturing, and sustaining customer
value.
Only
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c)
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and
Tactical.
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The
complete
planning,
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created FedEx.
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consultant Guy.
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Google Philosophy
Never settle for the best.
1. Focus on the user and all else will follow.
2. Its best to do one thing really, really well.
3. Fast is better than slow.
4. Democracy on the Web works.
5. You dont 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 isnt good enough.
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additional
growth
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something
to
quench
their
thirst,
its
competition would include noncarbonated
soft drinks, bottled water, fruit juices,
tea, and coffee.
To better compete, Pepsi might decide to
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Company
Product
Definition
Market
Definition
Rail road
We run a railroad.
Xerox
We make copying
equipment.
We help improve
office productivity.
Total
We sell gasoline.
We supply energy.
Paramount Pictures
We make movies.
We market
entertainment.
Encyclopedia
Britannica
Carrier
We make air
conditioners and
furnaces.
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We provide climate
control in the home.
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growth
as
desirability?
the
single
indicator
of
its
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economies of scale,
high brand recognition,
channel dominance, and
the strongest bargaining position with customers and
suppliers.
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Stars
The
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d)Problem Children.
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Dogs
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investment
level,
but
any
tendency
to
automatically reinvest the cash they are
generating should be acceded.
Stars, on the other hand, should be of lesser
concern.
Given that the stars are adequately financed, a
limited number of the most promising problem
children can be selected for investment to try to
improve their shares.
The other problem children neither should nor
receive investment.
They should be hold, abandoned, or molded for
whatever cash they can produce.
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through
the
pursuit
of
focus
segmentation
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There
are
opportunities:
three
Growth
Intensive opportunities;
Integrative opportunities;
Diversification Opportunities.
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Figure
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first
option
is
to
identify
opportunities for growth within current
businesses (intensive opportunities).
current
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Companies
must
carefully
prune,
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Some define it as
Walk into any company and the first thing that strikes you is the
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Marketing Innovation
Innovation in marketing is critical.
Imaginative ideas on strategy exist in many
Each
group
can
challenge
company
orthodoxy and stimulate new ideas.
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SWOT Analysis
SWOT Analysis is the overall evaluation of
a
companys
strengths,
weaknesses,
opportunities, and threats is called SWOT
analysis.
Its a way of monitoring the external
and
internal
environment.
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marketing
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Macro-environmental
forces
(demographic
economic,
natural,
technological, political-legal, and sociocultural)
Micro-environmental
Actors:
customers,
competitors,
suppliers
distribution, dealers) that affect its
ability to earn profits.
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Spotting Opportunities
Marketers need to be good at spotting
opportunities.
Consider the following:
1) A company may benefit from converging industry trends and
efficient.
Consumers can use the Internet to find more books than
ever and search for the lowest price with a few clicks.
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Spotting Opportunities
3) A
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Spotting Opportunities
3) A
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Spotting Opportunities
5) A company may be able to deliver a
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Marketing Opportunity
A marketing opportunity is an area of buyer
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Marketing Opportunity
Can the target market (s) be located and
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An Environmental Threat
An
environmental
threat
is
a
challenge posed by an unfavorable
trend or development that would
lead, in the absence of defensive
marketing actions, to lower sales or
profits
Threats
should be classified
according to seriousness and
probability of occurrence.
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Ii)internal Environment
Analysis
Its
one
thing
to
find
attractive
opportunities, and another to be able to
take advantage of them.
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Cost or availability of
capital
Cash flow
Financial stability
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Facilities
economies
of scale
Capacity
able,
dedicated workplace
ability to produce on time
Technical manufacturing
skill
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Visionary,
capable leadership
Dedicated employees
Entrepreneurial
orientation
Flexible Or Responsive
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Performance
Market
Importance
ing
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Major
Minor
Streng Streng
th
th
Neutral Minor
Weak
ness
Major
Weakn
ess
High
Low
Med. Low
Company
reputation
_____
_____
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_____
Market
share
_____
_____
_____
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_____
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_____
Customer
satisfactio
n
______
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______
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Customer
retention
______
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Product
quality
______
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Service
quality
______
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Importance
Major
Streng
th
Minor
Strength
Neutral
Minor
Weakness
Major
Weaknes
s
High
Low
Med.
Low
Pricing
effectivenes
s
_____
_____
_____
_____
_____
_____
_____
_____
Distribution
effectivenes
s
_____
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Promotion
effectivenes
s
______
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Sales force
effectivenes
s
______
______
______
______
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Innovation
effectivenes
s
______
______
______
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Geographic
______Marketing
Chap- 2 Developing
Strategies
&
al coverage
______
______
______
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______
Plans
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Finance
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Major
Strengt
h
Minor
Strength
Neutral
Minor
Weakness
Major
Weaknes
s
High
Low
Med.
Low
Cost or
availability
of capital
_____
_____
_____
_____
_____
_____
_____
_____
Cash flow
_____
_____
_____
_____
_____
_____
_____
_____
Financial
stability
______
______
______
______
______
______
______
______
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Performance
Importance
Major
Stren
gth
Minor
Stren
gth
Neutra
l
Minor
Weakne
ss
Major
Weakn
ess
High
Low
Med.
Low
Facilities
_____
_____
_____
_____
_____
_____
_____
_____
Economies of
scale
_____
_____
_____
_____
_____
_____
_____
_____
Capacity
______
______
______
______
______
______
______
______
Able,
dedicated
workforce
______
______
______
______
______
______
______
______
Ability to
produce on
time
______
______
______
______
______
______
______
______
Technical
manufacturing
skill
______
______
______
______
______
______
______
______
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Performance
Importance
Major
Strengt
h
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Minor
Strengt
h
Neutral
Minor
Weakness
Major
Weakne
ss
High
Low
Med.
Low
Visionary,
capable
leadership
_____
_____
_____
_____
_____
_____
_____
_____
Dedicated
employees
_____
_____
_____
_____
_____
_____
_____
_____
Entrepren
eurial
orientatio
n
______
______
______
______
______
______
______
______
Flexible or
responsive
______
______
______
______
______
______
______
______
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Goal Formulation
Once the company has performed a SWOT analysis, it
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Goal Formulation
For an MBO system to work, the units objectives
must meet four criteria:
1)They
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Goal Formulation
2)
3)
4)
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Strategic Formulation
Goals Indicate what a business unit wants
to achieve;
Strategy is a game plan for getting there.
Every business must design a strategy for
achieving its goals consisting of
A marketing strategy and
A compatible technology strategy and
Sourcing strategy.
Chap- 2 Developing Marketing Strategies & Plans
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Porters Generic
Strategies
ii)Differentiation
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Strategic Alliances
Many strategic alliances take the form of MARKETING
ALLIANCES.
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poor implementation.
If the unit has decided to attain technological
leadership, it must:
Plan programs to strengthen its R&D department,
Gather technological intelligence,
Develop leading-edge products,
Train the technical sales force, and
Develop
ads
to
communicate
its
technological
leadership.
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Contents of a Marketing
Plan
ii)Situational Analysis
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Contents of a Marketing
Plan
v)Implementation Controls
The last section of the marketing plan outlines the controls for
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Applications
Marketing Debate
What Good Is a Mission Statement?
Mission statements are often the product of much deliberation
and discussion. At the same time, critics claim they sometimes
lack teeth and specificity, or do not vary much from firm to
firm and make the same empty promises.
Take A Position: Mission statements are critical to
successful marketing organization versus Mission
statements rarely provide useful marketing value.
Marketing Discussion
Marketing Planning
Consider Porters value chain and the holistic marketing
orientation model. What implications do they have for
marketing planning? How would you structure a
marketing plan to incorporate some of their concepts?
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