SlideShare une entreprise Scribd logo
1  sur  43
Télécharger pour lire hors ligne
Copyright © 2016 Pearson Education Ltd. 2-1
ChapterChapter
22
Developing
Marketing
Strategies and
Plans
Copyright © 2016 Pearson Education Ltd. 2-2
Learning ObjectivesLearning Objectives
1. How does marketing affect customer value?
2. How is strategic planning carried out at the
corporate and divisional levels?
3. How is strategic planning carried out at the
business unit level?
4. What does a marketing plan include?
Copyright © 2016 Pearson Education Ltd. 2-3
Marketing and customer ValueMarketing and customer Value
• The value delivery process
• The value chain
• Core competencies
• The central role of strategic planning
Copyright © 2016 Pearson Education Ltd. 2-4
The value delivery processThe value delivery process
CHOOSING THE VALUE
PROVIDING THE VALUE
COMMUNICATING THE VALUE
Copyright © 2016 Pearson Education Ltd. 2-5
The Value chainThe Value chain
• A tool for identifying ways to create more
customer value
– Every firm is a synthesis of activities
performed to design, produce, market, deliver,
and support its product
Copyright © 2016 Pearson Education Ltd. 2-6
Core business processesCore business processes
• Market-sensing process
• New-offering realization process
• Customer acquisition process
• Customer relationship management
process
• Fulfillment management process
Copyright © 2016 Pearson Education Ltd. 2-7
Core competenciesCore competencies
• A source of competitive advantage and
makes a significant contribution to
perceived customer benefits
• Applications in a wide variety of markets
• Difficult for competitors to imitate
Copyright © 2016 Pearson Education Ltd. 2-8
Maximizing Core competenciesMaximizing Core competencies
• (Re)define the business concept
• (Re)shaping the business scope
• (Re)positioning the company’s brand
identity
Copyright © 2016 Pearson Education Ltd. 2-9
Central role of strategicCentral role of strategic
planningplanning
• Managing the businesses as an
investment portfolio
• Assessing the market’s growth rate and
the company’s position in that market
• Establishing a strategy
Copyright © 2016 Pearson Education Ltd. 2-10
Marketing planMarketing plan
• The central instrument for directing and
coordinating the marketing effort
– Strategic
– Tactical
Copyright © 2016 Pearson Education Ltd. 2-11
Figure 2.1Figure 2.1
Strategic Planning, Implementation,Strategic Planning, Implementation,
and Control Processesand Control Processes
Copyright © 2016 Pearson Education Ltd. 2-12
Corporate and division strategicCorporate and division strategic
planningplanning
• Defining the corporate mission
• Establishing strategic business units
• Assigning resources to each strategic
business unit
• Assessing growth opportunities
Copyright © 2016 Pearson Education Ltd. 2-13
Defining theDefining the
corporate missioncorporate 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?
Copyright © 2016 Pearson Education Ltd. 2-14
Product Orientation vs.Product Orientation vs.
Market OrientationMarket 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 market
entertainment
Copyright © 2016 Pearson Education Ltd. 2-15
Good Mission statementsGood Mission statements
• Focus on a limited number of goals
• Stress the company’s major policies and
values
• Define the major competitive spheres
within which the company will operate
• Take a long-term view
• Are as short, memorable, and meaningful
as possible
Copyright © 2016 Pearson Education Ltd. 2-16
Establishing Strategic BusinessEstablishing Strategic Business
UnitsUnits
• A single business or collection of related
businesses
• Has its own set of competitors
• Has a leader responsible for strategic
planning and profitability
Copyright © 2016 Pearson Education Ltd. 2-17
Assigning ResourcesAssigning Resources
to Each SBUto Each SBU
• Management must decide how to allocate
corporate resources to each SBU
– Portfolio-planning models
– Shareholder/market value analysis
Copyright © 2016 Pearson Education Ltd. 2-18
Assessing growth opportunitiesAssessing growth opportunities
Copyright © 2016 Pearson Education Ltd. 2-19
• Intensive Growth
• Integrative Growth
• Diversification Growth
• Downsizing and Divesting Older Businesses
Assessing growth opportunitiesAssessing growth opportunities
Copyright © 2016 Pearson Education Ltd. 2-20
Intensive growthIntensive growth
• Corporate
management
should first review
opportunities for
improving existing
businesses
Copyright © 2016 Pearson Education Ltd. 2-21
Figure 2.3Figure 2.3
ESPN Growth OpportunitiesESPN Growth Opportunities
Copyright © 2016 Pearson Education Ltd. 2-22
INTEGRATIVE GROWTHINTEGRATIVE GROWTH
• A business can increase sales and profits
through backward, forward, or horizontal
integration within its industry
Copyright © 2016 Pearson Education Ltd. 2-23
Diversification growthDiversification growth
• Diversification growth makes sense when
good opportunities exist outside the
present businesses
–The industry is highly attractive and the
company has the right mix of business
strengths to succeed
Copyright © 2016 Pearson Education Ltd. 2-24
Downsizing and Divesting OlderDownsizing and Divesting Older
BusinessesBusinesses
• Companies must carefully prune, harvest,
or divest tired old businesses to release
needed resources for other uses and
reduce costs
Copyright © 2016 Pearson Education Ltd. 2-25
Organization and OrganizationalOrganization and Organizational
CultureCulture
• A company’s organization consists of its
structures, policies, and corporate culture, all of
which can become dysfunctional in a rapidly
changing business environment
Copyright © 2016 Pearson Education Ltd. 2-26
Organization and OrganizationalOrganization and Organizational
CultureCulture
• Corporate culture: “The shared
experiences, stories, beliefs, and norms
that characterize an organization”
Copyright © 2016 Pearson Education Ltd. 2-27
Marketing InnovationMarketing Innovation
• Innovation in marketing is critical
• Employees can challenge company
orthodoxy and stimulate new ideas
• Firms develop strategy by choosing their
view of the future
– Scenario analysis
Copyright © 2016 Pearson Education Ltd. 2-28
Figure 2.4Figure 2.4
The Business UnitThe Business Unit
Strategic-planning ProcessStrategic-planning Process
Copyright © 2016 Pearson Education Ltd. 2-29
SWOT AnalysisSWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Copyright © 2016 Pearson Education Ltd. 2-30
External environmentExternal environment
• Marketing opportunity: an area of buyer need
and interest that a company has a high
probability of profitably satisfying.
• Environmental threat: challenge posed by an
unfavorable trend or development that, in the
absence of defensive marketing action, would
lead to lower sales or profit
Copyright © 2016 Pearson Education Ltd. 2-31
Market Opportunity AnalysisMarket Opportunity Analysis
(MOA)(MOA)
• Can we articulate the benefits convincingly
to a defined target market(s)?
• Can we locate the target market(s) and
reach them with cost-effective media and
trade channels?
• Does our company possess or have access
to the critical capabilities and resources we
need to deliver the customer benefits?
Copyright © 2016 Pearson Education Ltd. 2-32
Market Opportunity AnalysisMarket Opportunity Analysis
(MOA)(MOA)
• Can we deliver the benefits better than
any actual or potential competitors?
• Will the financial rate of return meet or
exceed our required threshold for
investment?
Copyright © 2016 Pearson Education Ltd. 2-33
Figure 2.5Figure 2.5
Opportunity And Threat MatricesOpportunity And Threat Matrices
Copyright © 2016 Pearson Education Ltd. 2-34
Internal environmentInternal environment
• Strengths
• Weaknesses
Copyright © 2016 Pearson Education Ltd. 2-35
Goal formulation (MBO)Goal formulation (MBO)
• Unit’s objectives must be arranged
hierarchically
• Objectives should be quantitative
• Goals should be realistic
• Objectives must be consistent
Copyright © 2016 Pearson Education Ltd. 2-36
Strategic formulation:Strategic formulation:
PorterPorter’s Generic Strategies’s Generic Strategies
OVERALL COST LEADERSHIP
DIFFERENTIATION
FOCUS
Copyright © 2016 Pearson Education Ltd. 2-37
Strategic formulation:Strategic formulation:
Strategic alliancesStrategic alliances
• Categories of marketing alliances
– Product or service alliance
– Promotional alliance
– Logistics alliances
– Pricing collaborations
Copyright © 2016 Pearson Education Ltd. 2-38
Program Formulation andProgram Formulation and
ImplementationImplementation
• McKinsey’s Elements of Success
Strategy
Structure
SystemsStyle
Shared values
Staff
Skills
Copyright © 2016 Pearson Education Ltd. 2-39
Feedback and controlFeedback and control
• Peter Drucker: it is more important to “do
the right thing”—to be effective—than “to
do things right”—to be efficient
– The most successful companies, however,
excel at both
Copyright © 2016 Pearson Education Ltd. 2-40
Marketing Plan ContentsMarketing Plan Contents
 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Marketing tactics
 Financial projections
 Implementation controls
Copyright © 2016 Pearson Education Ltd. 2-41
Evaluating a Marketing PlanEvaluating a Marketing Plan
 Is the plan simple/succinct?
 Is the plan complete?
 Is the plan specific?
 Is the plan realistic?
Copyright © 2016 Pearson Education Ltd. 2-42
Other marketing plan contentsOther marketing plan contents
• Marketing research
• Specifications for internal and external
relationships
• Action plans and schedules
Copyright © 2016 Pearson Education Ltd. 2-43

Contenu connexe

Tendances

Kotler mm15e inppt_07
Kotler mm15e inppt_07Kotler mm15e inppt_07
Kotler mm15e inppt_07Ehab Yousry
 
Kotler mm 14e_05_ippt
Kotler mm 14e_05_ipptKotler mm 14e_05_ippt
Kotler mm 14e_05_ipptiothman10
 
Kotler mm15e inppt_08
Kotler mm15e inppt_08Kotler mm15e inppt_08
Kotler mm15e inppt_08Ehab Yousry
 
Chapter-2 Marketing: Company and Marketing Strategy Partnering to Build Custo...
Chapter-2 Marketing: Company and Marketing Strategy Partnering to Build Custo...Chapter-2 Marketing: Company and Marketing Strategy Partnering to Build Custo...
Chapter-2 Marketing: Company and Marketing Strategy Partnering to Build Custo...Yousif Solangi
 
Chapter2 marketing management
Chapter2 marketing managementChapter2 marketing management
Chapter2 marketing managementumar0007
 
creating-long-term-loyalty-relationships
creating-long-term-loyalty-relationships creating-long-term-loyalty-relationships
creating-long-term-loyalty-relationships Slide Hub
 
Kotler mm 14e 09 ippt
Kotler mm 14e 09 ipptKotler mm 14e 09 ippt
Kotler mm 14e 09 ipptEhab Yousry
 
Chapter 2 Developing Marketing Strategies and Plans
Chapter 2 Developing Marketing Strategies and PlansChapter 2 Developing Marketing Strategies and Plans
Chapter 2 Developing Marketing Strategies and PlansNishant Agrawal
 
Developing Marketing Strategies and Plans / Marketing Management By Kotler K...
Developing Marketing Strategies and Plans / Marketing Management By Kotler K...Developing Marketing Strategies and Plans / Marketing Management By Kotler K...
Developing Marketing Strategies and Plans / Marketing Management By Kotler K...Choudhry Asad
 
Chp 2 company & marketing strategy partnering to build customer relationship
Chp 2 company & marketing strategy partnering to build customer relationshipChp 2 company & marketing strategy partnering to build customer relationship
Chp 2 company & marketing strategy partnering to build customer relationshipMohammed Razib
 
Marketing Management - Chapter 6
Marketing Management - Chapter 6Marketing Management - Chapter 6
Marketing Management - Chapter 6Perkha Khan
 
Principles of Marketing - Chapter 4
Principles of Marketing - Chapter 4Principles of Marketing - Chapter 4
Principles of Marketing - Chapter 4Perkha Khan
 
marketing philip kotler chp#2
marketing philip kotler chp#2marketing philip kotler chp#2
marketing philip kotler chp#2Haider Javaid
 
Marketing Management - Chapter 1
Marketing Management - Chapter 1Marketing Management - Chapter 1
Marketing Management - Chapter 1Perkha Khan
 
CHAPTER 2 Marketing Management
CHAPTER 2 Marketing ManagementCHAPTER 2 Marketing Management
CHAPTER 2 Marketing ManagementPeleZain
 

Tendances (20)

Kotler mm15e inppt_07
Kotler mm15e inppt_07Kotler mm15e inppt_07
Kotler mm15e inppt_07
 
Kotler mm 14e_05_ippt
Kotler mm 14e_05_ipptKotler mm 14e_05_ippt
Kotler mm 14e_05_ippt
 
Kotler mm15e inppt_08
Kotler mm15e inppt_08Kotler mm15e inppt_08
Kotler mm15e inppt_08
 
Chapter-2 Marketing: Company and Marketing Strategy Partnering to Build Custo...
Chapter-2 Marketing: Company and Marketing Strategy Partnering to Build Custo...Chapter-2 Marketing: Company and Marketing Strategy Partnering to Build Custo...
Chapter-2 Marketing: Company and Marketing Strategy Partnering to Build Custo...
 
Chapter2 marketing management
Chapter2 marketing managementChapter2 marketing management
Chapter2 marketing management
 
creating-long-term-loyalty-relationships
creating-long-term-loyalty-relationships creating-long-term-loyalty-relationships
creating-long-term-loyalty-relationships
 
Kotler mm 14e 09 ippt
Kotler mm 14e 09 ipptKotler mm 14e 09 ippt
Kotler mm 14e 09 ippt
 
Chapter 2 Developing Marketing Strategies and Plans
Chapter 2 Developing Marketing Strategies and PlansChapter 2 Developing Marketing Strategies and Plans
Chapter 2 Developing Marketing Strategies and Plans
 
Developing Marketing Strategies and Plans / Marketing Management By Kotler K...
Developing Marketing Strategies and Plans / Marketing Management By Kotler K...Developing Marketing Strategies and Plans / Marketing Management By Kotler K...
Developing Marketing Strategies and Plans / Marketing Management By Kotler K...
 
Kotler mm 14e_10_ippt
Kotler mm 14e_10_ipptKotler mm 14e_10_ippt
Kotler mm 14e_10_ippt
 
Kotler mm14 ch01_dppt
Kotler mm14 ch01_dpptKotler mm14 ch01_dppt
Kotler mm14 ch01_dppt
 
Chp 2 company & marketing strategy partnering to build customer relationship
Chp 2 company & marketing strategy partnering to build customer relationshipChp 2 company & marketing strategy partnering to build customer relationship
Chp 2 company & marketing strategy partnering to build customer relationship
 
Marketing Management - Chapter 6
Marketing Management - Chapter 6Marketing Management - Chapter 6
Marketing Management - Chapter 6
 
Principles of Marketing - Chapter 4
Principles of Marketing - Chapter 4Principles of Marketing - Chapter 4
Principles of Marketing - Chapter 4
 
marketing philip kotler chp#2
marketing philip kotler chp#2marketing philip kotler chp#2
marketing philip kotler chp#2
 
Kotler mm 14e_17_ippt
Kotler mm 14e_17_ipptKotler mm 14e_17_ippt
Kotler mm 14e_17_ippt
 
Ch 3-Analyzing the Marketing Environment (marketing)
Ch 3-Analyzing the Marketing Environment (marketing)Ch 3-Analyzing the Marketing Environment (marketing)
Ch 3-Analyzing the Marketing Environment (marketing)
 
Marketing Management - Chapter 1
Marketing Management - Chapter 1Marketing Management - Chapter 1
Marketing Management - Chapter 1
 
CHAPTER 2 Marketing Management
CHAPTER 2 Marketing ManagementCHAPTER 2 Marketing Management
CHAPTER 2 Marketing Management
 
Creating brand equity
Creating brand equityCreating brand equity
Creating brand equity
 

Similaire à Kotler mm15e inppt_02

SDP- Strategic Marketing Process........
SDP- Strategic Marketing Process........SDP- Strategic Marketing Process........
SDP- Strategic Marketing Process........MuhammadAhmadMushtaq1
 
Kotler_mm15e_inppt_02.ppt
Kotler_mm15e_inppt_02.pptKotler_mm15e_inppt_02.ppt
Kotler_mm15e_inppt_02.pptShrutiSavant1
 
Armstrong mai12 inppt_02
Armstrong mai12 inppt_02Armstrong mai12 inppt_02
Armstrong mai12 inppt_02Jamie Pleasant
 
Chapte2 strategic marketing management
Chapte2 strategic marketing managementChapte2 strategic marketing management
Chapte2 strategic marketing managementDemier Company Limited
 
09 - Managing Strategy == Ch 9.pptx
09 - Managing Strategy == Ch 9.pptx09 - Managing Strategy == Ch 9.pptx
09 - Managing Strategy == Ch 9.pptxShahzaibSheikh30
 
Kknkkman-331-chapter-2-company-and-marketing-strategy-xIKU.pptx
Kknkkman-331-chapter-2-company-and-marketing-strategy-xIKU.pptxKknkkman-331-chapter-2-company-and-marketing-strategy-xIKU.pptx
Kknkkman-331-chapter-2-company-and-marketing-strategy-xIKU.pptxJihaneJihane10
 
Marketing Management
Marketing ManagementMarketing Management
Marketing ManagementRana6247780
 
developing-marketing-strategies-and-plans
developing-marketing-strategies-and-plansdeveloping-marketing-strategies-and-plans
developing-marketing-strategies-and-plansSlide Hub
 
Kotler_mm16e_inppt_02.pptx
Kotler_mm16e_inppt_02.pptxKotler_mm16e_inppt_02.pptx
Kotler_mm16e_inppt_02.pptxLavishSaini18
 
Kotler_pom16e_inppt_02(mbasubjects.com).pptx
Kotler_pom16e_inppt_02(mbasubjects.com).pptxKotler_pom16e_inppt_02(mbasubjects.com).pptx
Kotler_pom16e_inppt_02(mbasubjects.com).pptxReeDaSaeed
 
Chapter-2-Company-and-Marketing-Strategy-Partnering-to-Build-Customer-Relatio...
Chapter-2-Company-and-Marketing-Strategy-Partnering-to-Build-Customer-Relatio...Chapter-2-Company-and-Marketing-Strategy-Partnering-to-Build-Customer-Relatio...
Chapter-2-Company-and-Marketing-Strategy-Partnering-to-Build-Customer-Relatio...jimmyk12
 
Kotler_MM_02_ippt.pptx
Kotler_MM_02_ippt.pptxKotler_MM_02_ippt.pptx
Kotler_MM_02_ippt.pptxShershahAdnan
 
Ch 02 developing marketing strategies and plans 14e
Ch 02 developing marketing strategies and plans 14e Ch 02 developing marketing strategies and plans 14e
Ch 02 developing marketing strategies and plans 14e Nazmul Hasan Mahmud
 
Kotler_pom18_ppt_02.ppt.pptx
Kotler_pom18_ppt_02.ppt.pptxKotler_pom18_ppt_02.ppt.pptx
Kotler_pom18_ppt_02.ppt.pptxsuchita29
 
Kotler02
Kotler02Kotler02
Kotler02Student
 
Kotler_mm16e_inppt_01.pptx
Kotler_mm16e_inppt_01.pptxKotler_mm16e_inppt_01.pptx
Kotler_mm16e_inppt_01.pptxdakshgupta54
 

Similaire à Kotler mm15e inppt_02 (20)

SDP- Strategic Marketing Process........
SDP- Strategic Marketing Process........SDP- Strategic Marketing Process........
SDP- Strategic Marketing Process........
 
CHAP 2.pdf
CHAP 2.pdfCHAP 2.pdf
CHAP 2.pdf
 
Kotler_mm15e_inppt_02.ppt
Kotler_mm15e_inppt_02.pptKotler_mm15e_inppt_02.ppt
Kotler_mm15e_inppt_02.ppt
 
Kotlermm13 chapter 02
Kotlermm13 chapter 02Kotlermm13 chapter 02
Kotlermm13 chapter 02
 
Armstrong mai12 inppt_02
Armstrong mai12 inppt_02Armstrong mai12 inppt_02
Armstrong mai12 inppt_02
 
Chapte2 strategic marketing management
Chapte2 strategic marketing managementChapte2 strategic marketing management
Chapte2 strategic marketing management
 
Mrkt Chpt 2
Mrkt Chpt 2Mrkt Chpt 2
Mrkt Chpt 2
 
09 - Managing Strategy == Ch 9.pptx
09 - Managing Strategy == Ch 9.pptx09 - Managing Strategy == Ch 9.pptx
09 - Managing Strategy == Ch 9.pptx
 
Kknkkman-331-chapter-2-company-and-marketing-strategy-xIKU.pptx
Kknkkman-331-chapter-2-company-and-marketing-strategy-xIKU.pptxKknkkman-331-chapter-2-company-and-marketing-strategy-xIKU.pptx
Kknkkman-331-chapter-2-company-and-marketing-strategy-xIKU.pptx
 
Marketing Management
Marketing ManagementMarketing Management
Marketing Management
 
developing-marketing-strategies-and-plans
developing-marketing-strategies-and-plansdeveloping-marketing-strategies-and-plans
developing-marketing-strategies-and-plans
 
Chapter 2
Chapter 2Chapter 2
Chapter 2
 
Kotler_mm16e_inppt_02.pptx
Kotler_mm16e_inppt_02.pptxKotler_mm16e_inppt_02.pptx
Kotler_mm16e_inppt_02.pptx
 
Kotler_pom16e_inppt_02(mbasubjects.com).pptx
Kotler_pom16e_inppt_02(mbasubjects.com).pptxKotler_pom16e_inppt_02(mbasubjects.com).pptx
Kotler_pom16e_inppt_02(mbasubjects.com).pptx
 
Chapter-2-Company-and-Marketing-Strategy-Partnering-to-Build-Customer-Relatio...
Chapter-2-Company-and-Marketing-Strategy-Partnering-to-Build-Customer-Relatio...Chapter-2-Company-and-Marketing-Strategy-Partnering-to-Build-Customer-Relatio...
Chapter-2-Company-and-Marketing-Strategy-Partnering-to-Build-Customer-Relatio...
 
Kotler_MM_02_ippt.pptx
Kotler_MM_02_ippt.pptxKotler_MM_02_ippt.pptx
Kotler_MM_02_ippt.pptx
 
Ch 02 developing marketing strategies and plans 14e
Ch 02 developing marketing strategies and plans 14e Ch 02 developing marketing strategies and plans 14e
Ch 02 developing marketing strategies and plans 14e
 
Kotler_pom18_ppt_02.ppt.pptx
Kotler_pom18_ppt_02.ppt.pptxKotler_pom18_ppt_02.ppt.pptx
Kotler_pom18_ppt_02.ppt.pptx
 
Kotler02
Kotler02Kotler02
Kotler02
 
Kotler_mm16e_inppt_01.pptx
Kotler_mm16e_inppt_01.pptxKotler_mm16e_inppt_01.pptx
Kotler_mm16e_inppt_01.pptx
 

Plus de Ehab Yousry

The Accellion Service Guarantee Case study V2
The Accellion Service Guarantee Case study V2The Accellion Service Guarantee Case study V2
The Accellion Service Guarantee Case study V2Ehab Yousry
 
Kotler mm 14e 16 ippt
Kotler mm 14e 16 ipptKotler mm 14e 16 ippt
Kotler mm 14e 16 ipptEhab Yousry
 
Kotler mm 14e 15 ippt
Kotler mm 14e 15 ipptKotler mm 14e 15 ippt
Kotler mm 14e 15 ipptEhab Yousry
 
Kotler mm 14e 14 ippt
Kotler mm 14e 14 ipptKotler mm 14e 14 ippt
Kotler mm 14e 14 ipptEhab Yousry
 
Kotler mm 14e 13 ippt
Kotler mm 14e 13 ipptKotler mm 14e 13 ippt
Kotler mm 14e 13 ipptEhab Yousry
 
Kotler mm 14e 12 ippt
Kotler mm 14e 12 ipptKotler mm 14e 12 ippt
Kotler mm 14e 12 ipptEhab Yousry
 
Kotler mm 14e 11 ippt
Kotler mm 14e 11 ipptKotler mm 14e 11 ippt
Kotler mm 14e 11 ipptEhab Yousry
 
Kotler mm 14e 08 ippt
Kotler mm 14e 08 ipptKotler mm 14e 08 ippt
Kotler mm 14e 08 ipptEhab Yousry
 
Kotler mm 14e 07 ippt
Kotler mm 14e 07 ipptKotler mm 14e 07 ippt
Kotler mm 14e 07 ipptEhab Yousry
 
Kotler mm 14e 06 ippt
Kotler mm 14e 06 ipptKotler mm 14e 06 ippt
Kotler mm 14e 06 ipptEhab Yousry
 
Kotler mm 14e 05 ippt
Kotler mm 14e 05 ipptKotler mm 14e 05 ippt
Kotler mm 14e 05 ipptEhab Yousry
 

Plus de Ehab Yousry (15)

The Accellion Service Guarantee Case study V2
The Accellion Service Guarantee Case study V2The Accellion Service Guarantee Case study V2
The Accellion Service Guarantee Case study V2
 
Kotler mm 14e 16 ippt
Kotler mm 14e 16 ipptKotler mm 14e 16 ippt
Kotler mm 14e 16 ippt
 
Kotler mm 14e 15 ippt
Kotler mm 14e 15 ipptKotler mm 14e 15 ippt
Kotler mm 14e 15 ippt
 
Kotler mm 14e 14 ippt
Kotler mm 14e 14 ipptKotler mm 14e 14 ippt
Kotler mm 14e 14 ippt
 
Kotler mm 14e 13 ippt
Kotler mm 14e 13 ipptKotler mm 14e 13 ippt
Kotler mm 14e 13 ippt
 
Kotler mm 14e 12 ippt
Kotler mm 14e 12 ipptKotler mm 14e 12 ippt
Kotler mm 14e 12 ippt
 
Kotler mm 14e 11 ippt
Kotler mm 14e 11 ipptKotler mm 14e 11 ippt
Kotler mm 14e 11 ippt
 
Kotler mm 14e 08 ippt
Kotler mm 14e 08 ipptKotler mm 14e 08 ippt
Kotler mm 14e 08 ippt
 
Kotler mm 14e 07 ippt
Kotler mm 14e 07 ipptKotler mm 14e 07 ippt
Kotler mm 14e 07 ippt
 
Kotler mm 14e 06 ippt
Kotler mm 14e 06 ipptKotler mm 14e 06 ippt
Kotler mm 14e 06 ippt
 
Kotler mm 14e 05 ippt
Kotler mm 14e 05 ipptKotler mm 14e 05 ippt
Kotler mm 14e 05 ippt
 
Ch 4
Ch 4Ch 4
Ch 4
 
Ch 3
Ch 3Ch 3
Ch 3
 
Ch 2
Ch 2Ch 2
Ch 2
 
Ch 1
Ch 1Ch 1
Ch 1
 

Dernier

SVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfSVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfvikrs213
 
Digital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMDigital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMNazal Digital
 
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design CourseElevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Courseamirshaikhv21realtyp
 
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfSnapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfEastern Online-iSURVEY
 
Harnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing GrowthHarnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing Growthabinashdm2014
 
SEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedSEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedMumbai Pixels
 
The 2024 Next Gen Attention Study - www.livewire.group
The 2024 Next Gen Attention Study - www.livewire.groupThe 2024 Next Gen Attention Study - www.livewire.group
The 2024 Next Gen Attention Study - www.livewire.groupLivewire
 
Ice Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling ResearchIce Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling ResearchTINT Marketing
 
Increase Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarIncrease Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarSEO Optimizers
 
Unifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfUnifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfVWO
 
Friends of Search Future Proof Accounts.pptx
Friends of Search Future Proof Accounts.pptxFriends of Search Future Proof Accounts.pptx
Friends of Search Future Proof Accounts.pptxNavah Hopkins
 
Music and Ai Technology
Music and Ai TechnologyMusic and Ai Technology
Music and Ai Technologyehimaibooks
 
A navigation of two creative processes Study
A navigation of two creative processes StudyA navigation of two creative processes Study
A navigation of two creative processes Studystuwilson.co.uk
 
Top 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldTop 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldD Cloud Solutions
 
Cricket Playbook for Growth Marketers: Adjust x Glance report
Cricket Playbook for Growth Marketers: Adjust x Glance reportCricket Playbook for Growth Marketers: Adjust x Glance report
Cricket Playbook for Growth Marketers: Adjust x Glance reportSocial Samosa
 
Digital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services PreviewDigital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services PreviewDigital Gravity
 
Ppt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing coursPpt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing courstegveersingh09
 
Imposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneImposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneHerd
 
Product Demo: HubSpot's Coolest AI Tools for B2B Tech Companies
Product Demo: HubSpot's Coolest AI Tools for B2B Tech CompaniesProduct Demo: HubSpot's Coolest AI Tools for B2B Tech Companies
Product Demo: HubSpot's Coolest AI Tools for B2B Tech CompaniesKiwi Creative
 
Converting with Comedy: Research Parallels for CRO
Converting with Comedy: Research Parallels for CROConverting with Comedy: Research Parallels for CRO
Converting with Comedy: Research Parallels for CROVWO
 

Dernier (20)

SVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdfSVETLANA YONCHEVA Evolution of digital marketing.pdf
SVETLANA YONCHEVA Evolution of digital marketing.pdf
 
Digital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMDigital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEM
 
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design CourseElevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
Elevate Your Design Skills: Enroll in Pune's Premier UI/UX Design Course
 
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfSnapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
 
Harnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing GrowthHarnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing Growth
 
SEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedSEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to Succeed
 
The 2024 Next Gen Attention Study - www.livewire.group
The 2024 Next Gen Attention Study - www.livewire.groupThe 2024 Next Gen Attention Study - www.livewire.group
The 2024 Next Gen Attention Study - www.livewire.group
 
Ice Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling ResearchIce Cream Brand Harmony Study - TINT Emotional Profiling Research
Ice Cream Brand Harmony Study - TINT Emotional Profiling Research
 
Increase Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarIncrease Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads Webinar
 
Unifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfUnifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdf
 
Friends of Search Future Proof Accounts.pptx
Friends of Search Future Proof Accounts.pptxFriends of Search Future Proof Accounts.pptx
Friends of Search Future Proof Accounts.pptx
 
Music and Ai Technology
Music and Ai TechnologyMusic and Ai Technology
Music and Ai Technology
 
A navigation of two creative processes Study
A navigation of two creative processes StudyA navigation of two creative processes Study
A navigation of two creative processes Study
 
Top 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldTop 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern World
 
Cricket Playbook for Growth Marketers: Adjust x Glance report
Cricket Playbook for Growth Marketers: Adjust x Glance reportCricket Playbook for Growth Marketers: Adjust x Glance report
Cricket Playbook for Growth Marketers: Adjust x Glance report
 
Digital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services PreviewDigital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services Preview
 
Ppt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing coursPpt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing cours
 
Imposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneImposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not Alone
 
Product Demo: HubSpot's Coolest AI Tools for B2B Tech Companies
Product Demo: HubSpot's Coolest AI Tools for B2B Tech CompaniesProduct Demo: HubSpot's Coolest AI Tools for B2B Tech Companies
Product Demo: HubSpot's Coolest AI Tools for B2B Tech Companies
 
Converting with Comedy: Research Parallels for CRO
Converting with Comedy: Research Parallels for CROConverting with Comedy: Research Parallels for CRO
Converting with Comedy: Research Parallels for CRO
 

Kotler mm15e inppt_02

  • 1. Copyright © 2016 Pearson Education Ltd. 2-1 ChapterChapter 22 Developing Marketing Strategies and Plans
  • 2. Copyright © 2016 Pearson Education Ltd. 2-2 Learning ObjectivesLearning Objectives 1. How does marketing affect customer value? 2. How is strategic planning carried out at the corporate and divisional levels? 3. How is strategic planning carried out at the business unit level? 4. What does a marketing plan include?
  • 3. Copyright © 2016 Pearson Education Ltd. 2-3 Marketing and customer ValueMarketing and customer Value • The value delivery process • The value chain • Core competencies • The central role of strategic planning
  • 4. Copyright © 2016 Pearson Education Ltd. 2-4 The value delivery processThe value delivery process CHOOSING THE VALUE PROVIDING THE VALUE COMMUNICATING THE VALUE
  • 5. Copyright © 2016 Pearson Education Ltd. 2-5 The Value chainThe Value chain • A tool for identifying ways to create more customer value – Every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product
  • 6. Copyright © 2016 Pearson Education Ltd. 2-6 Core business processesCore business processes • Market-sensing process • New-offering realization process • Customer acquisition process • Customer relationship management process • Fulfillment management process
  • 7. Copyright © 2016 Pearson Education Ltd. 2-7 Core competenciesCore competencies • A source of competitive advantage and makes a significant contribution to perceived customer benefits • Applications in a wide variety of markets • Difficult for competitors to imitate
  • 8. Copyright © 2016 Pearson Education Ltd. 2-8 Maximizing Core competenciesMaximizing Core competencies • (Re)define the business concept • (Re)shaping the business scope • (Re)positioning the company’s brand identity
  • 9. Copyright © 2016 Pearson Education Ltd. 2-9 Central role of strategicCentral role of strategic planningplanning • Managing the businesses as an investment portfolio • Assessing the market’s growth rate and the company’s position in that market • Establishing a strategy
  • 10. Copyright © 2016 Pearson Education Ltd. 2-10 Marketing planMarketing plan • The central instrument for directing and coordinating the marketing effort – Strategic – Tactical
  • 11. Copyright © 2016 Pearson Education Ltd. 2-11 Figure 2.1Figure 2.1 Strategic Planning, Implementation,Strategic Planning, Implementation, and Control Processesand Control Processes
  • 12. Copyright © 2016 Pearson Education Ltd. 2-12 Corporate and division strategicCorporate and division strategic planningplanning • Defining the corporate mission • Establishing strategic business units • Assigning resources to each strategic business unit • Assessing growth opportunities
  • 13. Copyright © 2016 Pearson Education Ltd. 2-13 Defining theDefining the corporate missioncorporate 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?
  • 14. Copyright © 2016 Pearson Education Ltd. 2-14 Product Orientation vs.Product Orientation vs. Market OrientationMarket 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 market entertainment
  • 15. Copyright © 2016 Pearson Education Ltd. 2-15 Good Mission statementsGood Mission statements • Focus on a limited number of goals • Stress the company’s major policies and values • Define the major competitive spheres within which the company will operate • Take a long-term view • Are as short, memorable, and meaningful as possible
  • 16. Copyright © 2016 Pearson Education Ltd. 2-16 Establishing Strategic BusinessEstablishing Strategic Business UnitsUnits • A single business or collection of related businesses • Has its own set of competitors • Has a leader responsible for strategic planning and profitability
  • 17. Copyright © 2016 Pearson Education Ltd. 2-17 Assigning ResourcesAssigning Resources to Each SBUto Each SBU • Management must decide how to allocate corporate resources to each SBU – Portfolio-planning models – Shareholder/market value analysis
  • 18. Copyright © 2016 Pearson Education Ltd. 2-18 Assessing growth opportunitiesAssessing growth opportunities
  • 19. Copyright © 2016 Pearson Education Ltd. 2-19 • Intensive Growth • Integrative Growth • Diversification Growth • Downsizing and Divesting Older Businesses Assessing growth opportunitiesAssessing growth opportunities
  • 20. Copyright © 2016 Pearson Education Ltd. 2-20 Intensive growthIntensive growth • Corporate management should first review opportunities for improving existing businesses
  • 21. Copyright © 2016 Pearson Education Ltd. 2-21 Figure 2.3Figure 2.3 ESPN Growth OpportunitiesESPN Growth Opportunities
  • 22. Copyright © 2016 Pearson Education Ltd. 2-22 INTEGRATIVE GROWTHINTEGRATIVE GROWTH • A business can increase sales and profits through backward, forward, or horizontal integration within its industry
  • 23. Copyright © 2016 Pearson Education Ltd. 2-23 Diversification growthDiversification growth • Diversification growth makes sense when good opportunities exist outside the present businesses –The industry is highly attractive and the company has the right mix of business strengths to succeed
  • 24. Copyright © 2016 Pearson Education Ltd. 2-24 Downsizing and Divesting OlderDownsizing and Divesting Older BusinessesBusinesses • Companies must carefully prune, harvest, or divest tired old businesses to release needed resources for other uses and reduce costs
  • 25. Copyright © 2016 Pearson Education Ltd. 2-25 Organization and OrganizationalOrganization and Organizational CultureCulture • A company’s organization consists of its structures, policies, and corporate culture, all of which can become dysfunctional in a rapidly changing business environment
  • 26. Copyright © 2016 Pearson Education Ltd. 2-26 Organization and OrganizationalOrganization and Organizational CultureCulture • Corporate culture: “The shared experiences, stories, beliefs, and norms that characterize an organization”
  • 27. Copyright © 2016 Pearson Education Ltd. 2-27 Marketing InnovationMarketing Innovation • Innovation in marketing is critical • Employees can challenge company orthodoxy and stimulate new ideas • Firms develop strategy by choosing their view of the future – Scenario analysis
  • 28. Copyright © 2016 Pearson Education Ltd. 2-28 Figure 2.4Figure 2.4 The Business UnitThe Business Unit Strategic-planning ProcessStrategic-planning Process
  • 29. Copyright © 2016 Pearson Education Ltd. 2-29 SWOT AnalysisSWOT Analysis Strengths Weaknesses Opportunities Threats
  • 30. Copyright © 2016 Pearson Education Ltd. 2-30 External environmentExternal environment • Marketing opportunity: an area of buyer need and interest that a company has a high probability of profitably satisfying. • Environmental threat: challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit
  • 31. Copyright © 2016 Pearson Education Ltd. 2-31 Market Opportunity AnalysisMarket Opportunity Analysis (MOA)(MOA) • Can we articulate the benefits convincingly to a defined target market(s)? • Can we locate the target market(s) and reach them with cost-effective media and trade channels? • Does our company possess or have access to the critical capabilities and resources we need to deliver the customer benefits?
  • 32. Copyright © 2016 Pearson Education Ltd. 2-32 Market Opportunity AnalysisMarket Opportunity Analysis (MOA)(MOA) • Can we deliver the benefits better than any actual or potential competitors? • Will the financial rate of return meet or exceed our required threshold for investment?
  • 33. Copyright © 2016 Pearson Education Ltd. 2-33 Figure 2.5Figure 2.5 Opportunity And Threat MatricesOpportunity And Threat Matrices
  • 34. Copyright © 2016 Pearson Education Ltd. 2-34 Internal environmentInternal environment • Strengths • Weaknesses
  • 35. Copyright © 2016 Pearson Education Ltd. 2-35 Goal formulation (MBO)Goal formulation (MBO) • Unit’s objectives must be arranged hierarchically • Objectives should be quantitative • Goals should be realistic • Objectives must be consistent
  • 36. Copyright © 2016 Pearson Education Ltd. 2-36 Strategic formulation:Strategic formulation: PorterPorter’s Generic Strategies’s Generic Strategies OVERALL COST LEADERSHIP DIFFERENTIATION FOCUS
  • 37. Copyright © 2016 Pearson Education Ltd. 2-37 Strategic formulation:Strategic formulation: Strategic alliancesStrategic alliances • Categories of marketing alliances – Product or service alliance – Promotional alliance – Logistics alliances – Pricing collaborations
  • 38. Copyright © 2016 Pearson Education Ltd. 2-38 Program Formulation andProgram Formulation and ImplementationImplementation • McKinsey’s Elements of Success Strategy Structure SystemsStyle Shared values Staff Skills
  • 39. Copyright © 2016 Pearson Education Ltd. 2-39 Feedback and controlFeedback and control • Peter Drucker: it is more important to “do the right thing”—to be effective—than “to do things right”—to be efficient – The most successful companies, however, excel at both
  • 40. Copyright © 2016 Pearson Education Ltd. 2-40 Marketing Plan ContentsMarketing Plan Contents  Executive summary  Table of contents  Situation analysis  Marketing strategy  Marketing tactics  Financial projections  Implementation controls
  • 41. Copyright © 2016 Pearson Education Ltd. 2-41 Evaluating a Marketing PlanEvaluating a Marketing Plan  Is the plan simple/succinct?  Is the plan complete?  Is the plan specific?  Is the plan realistic?
  • 42. Copyright © 2016 Pearson Education Ltd. 2-42 Other marketing plan contentsOther marketing plan contents • Marketing research • Specifications for internal and external relationships • Action plans and schedules
  • 43. Copyright © 2016 Pearson Education Ltd. 2-43

Notes de l'éditeur

  1. We can divide the value creation and delivery sequence into three phases. First, choosing the value is the “homework” marketers must do before any product exists. They must segment the market, select the appropriate target, and develop the offering’s value positioning. The formula “segmentation, targeting, positioning (STP)” is the essence of strategic marketing. The second phase is providing the value. Marketing must identify specific product features, prices, and distribution. The task in the third phase is communicating the value by utilizing the Internet, advertising, sales force, and any other communication tools to announce and promote the product. The value delivery process begins before there is a product and continues through development and after launch.
  2. Nine strategically relevant activities—five primary and four support activities— create value and cost in a specific business. The primary activities are (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; and (5) service. Specialized departments handle the support activities—(1) procurement, (2) technology development, (3) human resource management, and (4) firm infrastructure. (Infrastructure covers the costs of general management, planning, finance, accounting, legal, and government affairs.)
  3. The firm’s success depends not only on how well each department performs its work, but also on how well the company coordinates departmental activities to conduct core business processes. These processes include: • 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 goods on time, and collecting payment
  4. Competitive advantage also accompanies distinctive capabilities or excellence in broader business processes. Wharton’s George Day sees market-driven organizations as excelling in three distinctive capabilities: market sensing, customer linking, and channel bonding.
  5. Peabody Energy implemented a new global organizational structure—creating geographic business units in the Americas, Australia, and Asia—to reflect its growing global footprint. Changes in business fortunes often necessitate realignment and restructuring, as Panasonic and other Japanese technology and electronic companies found.
  6. Most large companies consist of four organizational levels: (1) corporate, (2) division, (3) business unit, and (4) product. Corporate headquarters is responsible for designing a corporate strategic plan to guide the whole enterprise; it makes decisions on the amount of resources to allocate to each division as well as on which businesses to start or eliminate. Each division establishes a plan covering the allocation of funds to each business unit within the division. Each business unit develops a strategic plan to carry that business unit into a profitable future. Finally, each product level (product line, brand) develops a marketing plan for achieving its objectives.
  7. The marketing plan operates at two levels: strategic and tactical. The strategic marketing plan lays out the target markets and the firm’s value proposition, based on an analysis of the best market opportunities. The tactical marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service.
  8. Only a select group of companies have historically stood out as master marketers (see Table 2.1). These companies focus on the customer and are organized to respond effectively to changing needs. They all have well-staffed marketing departments, and their other departments accept that the customer is king. They also often have strong marketing leadership in the form of a successful CMO.
  9. Whether they let their business units set their own goals and strategies or collaborate in doing so, all corporate headquarters undertake these four planning activities.
  10. These simple-sounding questions are among the most difficult a company will ever face. Successful companies continuously ask and answer them.
  11. Companies often define themselves in terms of products: They are in the “auto business” or the “clothing business.” Market definitions of a business, however, describe the business as a customer satisfying process. Products are transient; basic needs and customer groups endure forever. Transportation is a need: the horse and carriage, automobile, railroad, airline, ship, and truck are products that meet that need. A target market definition tends to focus on selling a product or service to a current market. A strategic market definition, however, also focuses on the potential market.
  12. A clear, thoughtful mission statement, developed collaboratively with and shared with managers, employees, and often customers, provides a shared sense of purpose, direction, and opportunity. At its best it reflects a vision, an almost “impossible dream,” that provides direction for the next 10 to 20 years.
  13. Large companies normally manage quite different businesses, each requiring its own strategy. The purpose of identifying the company’s strategic business units is to develop separate strategies and assign appropriate funding. Senior management knows its portfolio of businesses usually includes a number of “yesterday’s has-beens” as well as “tomorrow’s winners.”
  14. Portfolio-planning models like these have largely fallen out of favor as oversimplified and subjective. Newer methods rely on shareholder value analysis and on whether the market value of a company is greater with an SBU or without it. These value calculations assess the potential of a business based on growth opportunities from global expansion, repositioning or retargeting, and strategic outsourcing.
  15. Assessing growth opportunities includes planning new businesses, downsizing, and terminating older businesses. If there is a gap between future desired sales and projected sales, corporate management will need to develop or acquire new businesses to fill it. Figure 2.2 illustrates this strategic-planning gap for a hypothetical manufacturer of blank DVD discs called Cineview. The lowest curve projects expected sales from the current business portfolio over the next five years. The highest describes desired sales over the same period.
  16. Evidently, the company wants to grow much faster than its current businesses will permit. How can it fill the strategic planning gap? The first option is to identify opportunities for growth within current businesses (intensive opportunities). The second is to identify opportunities to build or acquire businesses related to current businesses (integrative opportunities). The third is to identify opportunities to add attractive unrelated businesses (diversification opportunities).
  17. One useful framework is a “product-market expansion grid,” which considers the strategic growth opportunities for a firm in terms of current and new products and markets. The company first considers whether it could gain more market share with its current products in their current markets, using a market-penetration strategy. Next it considers whether it can find or develop new markets for its current products, in a market-development strategy. Then it considers whether it can develop new products for its current markets with a product-development strategy. Later the firm will also review opportunities to develop new products for new markets in a diversification strategy.
  18. ESPN has pursued a variety of growth opportunities. Through its singular focus on sports programming and news, ESPN grew from a small regional broadcaster into the biggest name in sports. In the early 1990s, the company crafted a well-thought-out plan: Wherever sports fans watched, read, and discussed sports, ESPN would be there. It pursued this strategy by expanding its brand and now encompasses 10 cable channels, a Web site, a magazine, a few restaurants (ESPN Zone), more than 600 local radio affiliates, original movies and television series, book publishing, a sports merchandise catalog and online store, music and video games, and a mobile service.
  19. Merck formed joint ventures as far back as 1989 with Johnson & Johnson to sell over-the-counter pharmaceuticals and 1991 with DuPont to expand basic research. In 1997, Merck and Rhône-Poulenc S.A. (now Sanofi-Aventis S.A.) combined their animal health and poultry genetics businesses to form Merial Limited, a fully integrated animal health company. Finally, Merck acquired Schering-Plough in 2009.
  20. From its origins as an animated film producer, The Walt Disney Company has moved into licensing characters for merchandised goods, publishing general interest fiction books under the Hyperion imprint, entering the broadcast industry with its own Disney Channel as well as ABC and ESPN, developing theme parks and vacation and resort properties, and offering cruise and commercial theatre experiences.
  21. To focus on its travel and credit card operations, American Express spun off American Express Financial Advisors, which provided insurance, mutual funds, investment advice, and brokerage and asset management services (it was renamed Ameriprise Financial). American International Group (AIG) agreed to sell two of its subunits—American General Indemnity Co. and American General Property Insurance Co.—to White Mountains Insurance Group as part of a long-term growth strategy to discard redundant assets and focus on its core operations.
  22. Whereas managers can change structures and policies (though with difficulty), the company’s culture is very hard to change. Yet adapting the culture is often the key to successfully implementing a new strategy.
  23. Walk into any company and the first thing that strikes you is the corporate culture—the way people dress, talk to one another, and greet customers.
  24. Imaginative ideas on strategy exist in many places within a company. Senior management should identify and encourage fresh ideas from three generally underrepresented groups: employees with youthful or diverse perspectives, employees far removed from company headquarters, and employees new to the industry. Scenario analysis, which develops plausible representations of a firm’s possible future using assumptions about forces driving the market and different uncertainties. Managers think through each scenario with the question, “What will we do if it happens?,” adopt one scenario as the most probable, and watch for signposts that might confirm or disconfirm it.
  25. The business unit strategic-planning process consists of the steps shown in Figure 2.4
  26. The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats is called SWOT analysis. It’s a way of monitoring the external and internal marketing environment.
  27. There are three main sources of market opportunities. The first is to offer something that is in short supply. This requires little marketing talent, as the need is fairly obvious. The second is to supply an existing product or service in a new or superior way. How? The problem detection method asks consumers for their suggestions, the ideal method has them imagine an ideal version of the product or service, and the consumption chain method asks them to chart their steps in acquiring, using, and disposing of a product. This last method can often lead to a totally new product or service, which is the third main source of market opportunities. To deal with environmental threats, the company needs contingency plans.
  28. To evaluate opportunities, companies can use market opportunity analysis (MOA) to ask questions like those posed on this slide and the next one.
  29. To evaluate opportunities, companies can use market opportunity analysis (MOA) to ask questions like those posed on this slide and the previous one.
  30. By using the SWOT analysis and market opportunity analysis, we can create opportunity and threat matrices. In the opportunity matrix in Figure 2.5 (a), the best marketing opportunities facing the TV-lighting-equipment company appear in the upper-left cell (#1). The opportunities in the lower-right cell (#4) are too minor to consider. The opportunities in the upper-right cell (#2) and the lower-left cell (#3) are worth monitoring in the event that any improve in attractiveness and potential.
  31. It’s one thing to find attractive opportunities and another to be able to take advantage of them. Each business needs to evaluate its internal strengths and weaknesses.
  32. Once the company has performed a SWOT analysis, it can proceed to goal formulation, developing specific goals for the planning period. Goals are objectives that are specific with respect to magnitude and time.
  33. Michael Porter has proposed three generic strategies that provide a good starting point for strategic thinking: overall cost leadership, differentiation, and focus. With overall cost leadership, firms work to achieve the lowest production and distribution costs so they can underprice competitors and win market share. With differentiation, the business concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market. With focus, the business focuses on one or more narrow market segments, gets to know them intimately, and pursues either cost leadership or differentiation within the target segment. According to Porter, competing firms directing the same strategy to the same target market constitute a strategic group. The firm that carries out the strategy best will make the most profits.
  34. Even giant companies often cannot achieve leadership, either nationally or globally, without forming alliances with domestic or multinational companies that complement or leverage their capabilities and resources. Many strategic alliances take the form of marketing alliances. These fall into four major categories. Product or service alliances—One company licenses another to produce its product, or two companies jointly market their complementary products or a new product. Promotional alliances—One company agrees to carry a promotion for another company’s product or service. Logistics alliances—One company offers logistical services for another company’s product. Pricing collaborations—One or more companies join in a special pricing collaboration.
  35. According to McKinsey & Company, strategy is only one of seven elements—all of which start with the letter s—in successful business practice. The first three—strategy, structure, and systems—are considered the “hardware” of success. The next four—style, skills, staff, and shared values—are the “software.” The first “soft” element, style, means company employees share a common way of thinking and behaving. The second, skills, means employees have the skills needed to carry out the company’s strategy. Staffing means the company has hired able people, trained them well, and assigned them to the right jobs. The fourth element, shared values, means employees share the same guiding values. When these elements are present, companies are usually more successful at strategy implementation.
  36. A company’s strategic fit with the environment will inevitably erode because the market environment changes faster than the company’s seven Ss. Thus, a company might remain efficient yet lose effectiveness. organizations can be changed through strong leadership, preferably in advance of a crisis. The key to organizational health is willingness to examine the changing environment and adopt new goals and behaviors.
  37. Although the exact length and layout varies from company to company, most marketing plans cover one year in anywhere from 5 to 50 pages. Smaller businesses may create shorter or less formal marketing plans, whereas corporations generally require highly structured documents. A marketing plan usually contains the sections listed in the slide.
  38. In the Marketing Memo, these questions are suggested for evaluating the quality of the marketing plan.
  39. The marketing plan should outline what marketing research will be conducted and when, as well as how the findings will be applied. Although the marketing plan shows how the company will establish and maintain profitable customer relationships, it also affects both internal and external relationships. The marketing plan typically outlines budgets, schedules, and marketing metrics for monitoring and evaluating results.