Developing Marketing Strategies and Plans. By Obaid Pervaiz Gill
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1 Developing Marketing Strategies and Plans By Obaid Pervaiz Gill
2 How does marketing affect customer value? How is strategic planning carried out at different levels of the organization? What does a marketing plan include? 2-2
3 The key to winning customers is to fine tune the offering. (Gymboree, Janie & Jack; Hot Topic, Torrid) Traditional physical process sequence (make the product, sell the product) Value creation and deliver sequence (choose the value STP, provide the value 4Ps, communicate the value advertising and promotion Nike (low cost but high price) 2-3
4 Zero customer feedback time (continuous learning); Megabus Zero product improvement time (introduce rapid improvements); ios 5 Zero purchasing time (just in time); Walmart Zero setup time (Being order ready); Qualcomm Zero defects (High quality); Toyota 2-4
5 Define the value segment (what are the needs of customers) Define the value proposition (how will those need be addressed) Define the value network (how the solutions will be provided) Milk Pak (nutritious and hygienic) 2-5
6 Michael Porter s value chain Includes primary activities; inbound logistics, operations, outbound logistics, marketing and sales, service Includes support activities; procurement, technology development, HRM, firm infrastructure It provides an opportunity to create more customer value (tailoring intricacies) 2-6
7 Organizational costs and performance measures Competitor costs and performance measures 2-7
8 Market Sensing New offering realization Customer relationship management Order fulfillment management Customer acquisition 2-8
9 A source of competitive advantage Applications in a wide variety of markets Difficult to imitate HTC (rooted in technological innovation) Nike (leads through design and merchandising) Netflix (recommends movies for return orders) 2-9
10 A company should be visionary and should not deviate from their distinctive set of values (Johnson & Johnson, responsibility to customer, employees, community and stakeholders respectively) A company should express its vision in enlightened terms (Xerox, improving office productivity) A visionary company has had developed a vision and acts to implement on it (IBM, network centric) 2-10
11 Doing more with less (time and resources; financial and non-financial) Driving new business development (developing successful ventures along with current ones) Becoming a full business partner (ownership of business; literal and figurative) 2-11
12 Strategic Target marketing decisions Value proposition Analysis of marketing opportunities Tactical Product features Promotion Merchandising Pricing Sales channels Service 2-12
13 Define the corporate mission Establish SBUs (large, competition, planners) Assign resources to each SBU (GE Matrix/BCG Matrix) Assess growth opportunities (Intensive (Ansoff), Integrative, Diversification) 2-13
14 Focus on limited number of goals Stress major policies and values Define major competitive spheres Honda (Relativism) 2-14
15 Industry (3M) Products (Accu Check) Competence (Texas Instruments) Market segment (Mother Care) Vertical channels (Nishat Textiles) Geographical (Nestle ) 2-15
16 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, costeffective and environmentally responsible products. We will add value to these products by providing legendary customer service through our uncompromising Commitment to Customer Satisfaction. 2-16
17 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. 2-17
18 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. 2-18
19 Customer needs Pepsi Strategic Market Target market 2-19
20 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 Profitability Efficiency 2-20
21 Corporate culture is the set of shared values, norms, behaviours and traditions. DaimlerChrysler (conventional v/s bohemian) Google (innovation centric culture) 2-21
22 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? 2-22
23 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? A case of Tata Nano (World s most affordable car) 2-23
24 Requirements for using MBO Unit s objectives must be hierarchical Objectives should be quantitative Goals should be realistic Objectives must be consistent 2-24
25 Overall cost leadership (ZTE ADSL Modems) Differentiation (Samsung Galaxy) Focus (Emporio Armani Clothing) 2-25
26 Product or Service Alliances (Intel + Sony) Promotional Alliances (McDonald s + Disney) Logistics Alliances (Star Alliance) Pricing collaborations (Hertz + Holiday Inn) 2-26
27 Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls 2-27
28 Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete? 2-28
29 Adopting the learning from the case, devise a marketing plan for the ruins of Moen Jo Daro, considering your class, MBA as a philanthropic organization. 2-29
30 Will you engage in mass marketing or one to one marketing and why? Do you think direct marketing is a useful approach? If yes then when it should be used? Do you think National Trust has used direct marketing innovatively? If yes then how? 2-30
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