Lectures Marketing management: Chapter 2 - ThS. Nguyễn Tiến Dũng

Lectures Marketing management - Chapter 2: Developing marketing strategies and plans provides students with the knowledge: Marketing and customer value, corporate and division strategic planning, business unit strategic planning, a marketing plan. Invite you to refer to the disclosures.

CHAPTER 2 DEVELOPING MARKETING STRATEGIES AND PLANS

Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn

Chapter Questions

● How does marketing affect customer value?

● How is strategic planning carried out at

different levels of the organization?

● What does a marketing plan include?

Chapter Main Contents

1 Marketing and Customer Value

2 Corporate and Division Strategic Planning

3 Business Unit Strategic Planning

4 A Marketing Plan

© Nguyễn Tiến Dũng Marketing Management 3

2.1 Marketing and Customer Value

● The Value Delivery Process

● The Value Chain

Value Delivery Process

© Nguyễn Tiến Dũng Marketing Management 5

What is the Value Chain?

The value chain is a tool for identifying was

to create more customer value because

every firm is a synthesis of primary and

support activities performed to design,

produce, market, deliver, and support its

product

© Nguyễn Tiến Dũng Marketing Management 7

Value Chain

Value Chain

© Nguyễn Tiến Dũng Marketing Management 9

Core Business Processes

● The market-sensing process

● gathering and acting upon information about the market

● The new-offering realization process

● researching, developing, and launching new high-quality offerings quickly and within budget

● The customer acquisition process

● defining target markets and prospecting for new customers

● The customer relationship management process

● building deeper understanding, relationships, and offerings to

individual customers

● The fulfillment management process

● receiving and approving orders, shipping the goods on time, and

collecting payment

Characteristics of Core Competencies

● A source of competitive advantage

● Applications in a wide variety of markets

● Difficult to imitate

© Nguyễn Tiến Dũng Marketing Management 11

● Pratt & Whitney

What is Holistic Marketing?

Holistic marketing sees itself as integrating

the value exploration, value creation, and

value delivery activities with the purpose of building long-term, mutually satisfying

relationships and co-prosperity among key stakeholders.

© Nguyễn Tiến Dũng Marketing Management 13

A holistic marketing orientation and customer value

● Integrating the value exploration, value creation, and value delivery

activities with the purpose of building long-term, mutually satisfying

relationships and co-prosperity among key stakeholders

Strategic Planning, Implementation and Control

Process

© Nguyễn Tiến Dũng Marketing Management 15

Marketing Plan

● The marketing plan is the central instrument for

directing and coordinating the marketing effort

● A strategic marketing plan:

● the target markets

● the value proposition that will be offered, based on an analysis of the best market opportunities

● A tactical marketing plan

● the marketing tactics,

● including product features, promotion,

merchandising, pricing, sales channels, and service

2 Corporate and Division Strategic Planning

● 2.1 Defining the corporate mission

● 2.2 Establishing strategic business units

(SBUs)

● 2.3 Assigning resources to each SBU

● 2.4 Assessing growth opportunities

© Nguyễn Tiến Dũng Marketing Management 17

2.1 Defining the Corporate Mission

“We help people trade anything on earth.

We will continue to enhance the online

trading experiences of all—collectors,

dealers, small businesses, unique item

seekers, bargain hunters, opportunity

sellers, and browsers ”

© Nguyễn Tiến Dũng Marketing Management 19

A Good Mission Statement?

1 They focus on a limited number of goals The statement “We want

to produce the highestqualityproducts, offer the most service, achieve the widest distribution, and sell at the lowest prices” claims too much.

2 They stress the company’s major policies and values They narrow

the range of individual discretion so employees act consistently on

important issues.

3 They define the major competitive spheres within which the

company will operate

4 They take a long-term view Management should change the mission

only when it ceases to be relevant.

5 They are as short, memorable, and meaningful as possible

Marketing consultant Guy Kawasaki advocates developing three- to four-word corporate mantras rather than mission statements.

© Nguyễn Tiến Dũng Marketing Management 21

2.2 Establishing Strategic Business Units (SBUs)

● It is a single business or collection of related

businesses that can be planned separately from the rest of the company

● It has its own set of competitors

● It has a manager who is responsible for

strategic planning and profit performance

and who controls most of the factors

affecting profit.

Made in USA

© Nguyễn Tiến Dũng Marketing Management 23

2.3 Assigning resources to each SBU

● Portfolio planning models:

BCG Matrix

© Nguyễn Tiến Dũng Marketing Management 25

GE Matrix

2.4 Assessing growth opportunities

© Nguyễn Tiến Dũng Marketing Management 27

Three Intensive Growth Strategies: Ansoff Matrix

© Nguyễn Tiến Dũng Marketing Management 29

3 Business Unit Strategic Planning

SWOT Analysis

© Nguyễn Tiến Dũng Marketing Management 31

● SW analysis

© Nguyễn Tiến Dũng Marketing Management 33

Goal Formulation

1 They must be arranged hierarchically, from most to

least important The business unit’s key objective for the period may be to increase the rate of return on

investment Managers can increase profit by increasing revenue and reducing expenses They can grow

revenue, in turn, by increasing market share and prices.

2 Objectives should be quantitative whenever

possible The objective “to increase the return on

investment (ROI)” is better stated as the goal “to

increase ROI to 15 percent within two years.”

3 Goals should be realistic Goals should arise from an

analysis of the business unit’s opportunities and

strengths, not from wishful thinking.

4 Objectives must be consistent It’s not possible to

maximize sales and profits simultaneously.

4 A Marketing Plan: Levels

● Strategic

marketing opportunities

A marketing plan: lauching a new product to the

● Marketing strategy: objectives, positioning, marketing-mix

● Financials: sales forecast, expense forecast …

● Controls

© Nguyễn Tiến Dũng Marketing Management 39

Evaluating a Marketing Plan