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Kotler02
- 2. 2-2 Copyright © 2009 Pearson Education, Inc. Publishing
Three V’s Approach to Marketing
Define the value segmentDefine the value segment
Define the value propositionDefine the value proposition
Define the value networkDefine the value network
- 3. 2-3 Copyright © 2009 Pearson Education, Inc. Publishing
What is the Value Chain?
The value chain is a tool for identifying
ways 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.
- 4. 2-4 Copyright © 2009 Pearson Education, Inc. Publishing
Figure 2.2 Porter’s Value Chain
- 5. 2-5 Copyright © 2009 Pearson Education, Inc. Publishing
Characteristics of Core Competencies
• A source of competitive advantage
• Applications in a wide variety of markets
• Difficult to imitate
- 6. 2-6 Copyright © 2009 Pearson Education, Inc. Publishing
What is a Marketing Plan?
A marketing plan is the central
instrument for directing and
coordinating the marketing effort.
It operates at a
strategic and tactical level.
- 7. 2-7 Copyright © 2009 Pearson Education, Inc. Publishing
Levels of a Marketing Plan
• Strategic
• Target marketing
decisions
• Value proposition
• Analysis of
marketing
opportunities
• Tactical
• Product features
• Promotion
• Merchandising
• Pricing
• Sales channels
• Service
- 8. 2-8 Copyright © 2009 Pearson Education, Inc. Publishing
Figure 2.2 The Strategic Planning,
Implementation,
and Control Processes
- 9. 2-9 Copyright © 2009 Pearson Education, Inc. Publishing
Corporate Headquarters’
Planning Activities
• Define the corporate mission
• Establish strategic business units
(SBUs)
• Assign resources to each SBU
• Assess growth opportunities
- 10. 2-10 Copyright © 2009 Pearson Education, Inc. Publishing
Good Mission Statements
Focus on limited number of goalsFocus on limited number of goals
Stress major policies and valuesStress major policies and values
Define major competitive spheresDefine major competitive spheres
Take a long-term viewTake a long-term view
Short, memorable, meaningfulShort, memorable, meaningful
- 11. 2-11 Copyright © 2009 Pearson Education, Inc. Publishing
Rubbermaid Commercial Products, Inc.
“Our vision is to be the Global Market Share
Leader in each of the markets we serve. We
will earn this leadership position by
providing to our distributor and end-user
customers innovative, high-quality, cost-
effective and environmentally responsible
products. We will add value to these products
by providing legendary customer service
through our uncompromising Commitment
to Customer Satisfaction.”
- 12. 2-12 Copyright © 2009 Pearson Education, Inc. Publishing
Motorola
“The purpose of Motorola is to honorably
serve the needs of the community by providing
products and services of superior quality at a
fair price to our customers; to do this so as to
earn an adequate profit which is required for
the total enterprise to grow; and by doing so,
provide the opportunity for our employees and
shareholders to achieve their personal
objectives.”
- 13. 2-13 Copyright © 2009 Pearson Education, Inc. Publishing
eBay
“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.”
- 14. 2-14 Copyright © 2009 Pearson Education, Inc. Publishing
Table 2.3
Product Orientation vs. Market Orientation
Company Product Market
Missouri-Pacific
Railroad
We run a railroad We are a people-
and-goods mover
Xerox We make copying
equipment
We improve office
productivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain
people
- 15. 2-15 Copyright © 2009 Pearson Education, Inc. Publishing
Characteristics of SBUs
• It is a single business or collection of
related businesses
• It has its own set of competitors
• It has a leader responsible for strategic
planning and profitability
- 16. 2-16 Copyright © 2009 Pearson Education, Inc. Publishing
Figure 2.3 The Strategic Planning Gap
- 17. 2-17 Copyright © 2009 Pearson Education, Inc. Publishing
Ansoff’s Product-Market Expansion Grid
- 18. 2-18 Copyright © 2009 Pearson Education, Inc. Publishing
Figure 2.5 The Business Unit
Strategic Planning Process
- 19. 2-19 Copyright © 2009 Pearson Education, Inc. Publishing
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
- 20. 2-20 Copyright © 2009 Pearson Education, Inc. Publishing
Market Opportunity Analysis (MOA)
• Can the benefits involved in the opportunity
be articulated convincingly to a defined target
market?
• Can the target market be located and
reached with cost-effective media and trade
channels?
• Does the company possess or have access
to the critical capabilities and resources
needed to deliver the customer benefits?
- 21. 2-21 Copyright © 2009 Pearson Education, Inc. Publishing
Market Opportunity Analysis (MOA)
(cont.)
• Can the company deliver the benefits
better than any actual or potential
competitors?
• Will the financial rate of return meet or
exceed the company’s required
threshold for investment?
- 22. 2-22 Copyright © 2009 Pearson Education, Inc. Publishing
Porter’s Generic Strategies
Overall Cost Leadership
Differentiation
Focus
- 23. 2-23 Copyright © 2009 Pearson Education, Inc. Publishing
Marketing Plan Contents
Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
- 24. 2-24 Copyright © 2009 Pearson Education, Inc. Publishing
Marketing Debate
What good is a mission statement?
Take a position:
1. Mission statements are critical to a
successful marketing organization.
or
2. Mission statements rarely provide
useful marketing value.