Developing Marketing

Strategies and PlansBy Obaid Pervaiz Gill

How does marketing affect

customer value?

How is strategic planning carried

out at different levels of the

organization?

What does a marketing plan

include?

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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

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

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

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)

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2-7

Organizational

costs

and

performance

measures

Competitor

costs

and

performance

measures

2-8

Market

Sensing

Order fulfillment

management

Customer

acquisition

New offering

realization

Customer

relationship

management

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

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)

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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)

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Strategic

Target marketing

decisions

Value proposition

Analysis of marketing

opportunities

Tactical

Product features

Promotion

Merchandising

Pricing

Sales channels

Service

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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)

Focus on limited number of goals

Stress major policies and values

Define major competitive spheres

Honda (Relativism)

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Industry (3M)

Products (AccuCheck)

Competence (Texas Instruments)

Market segment (Mother Care)

Vertical channels (NishatTextiles)

Geographical (Nestle‟)

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“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.”

2-17

“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.”

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“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.”

2-19

Customer

needs

Target marketStrategic Market

Pepsi

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

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Corporate culture is the set of shared values,

norms, behaviours and traditions.

DaimlerChrysler (conventional v/s bohemian)

Google (innovation centric culture)

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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?

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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)

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Requirements for using MBO

Unit‟s objectives must be hierarchical

Objectives should be quantitative

Goals should be realistic

Objectives must be consistent

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Overall cost leadership (ZTE ADSL Modems)

Differentiation (Samsung Galaxy)

Focus (Emporio Armani Clothing)

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Product or Service Alliances (Intel + Sony)

Promotional Alliances (McDonald‟s + Disney)

Logistics Alliances (Star Alliance)

Pricing collaborations (Hertz + Holiday Inn)

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Executive summary

Table of contents

Situation analysis

Marketing strategy

Financial projections

Implementation controls

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Is the plan simple?

Is the plan specific?

Is the plan realistic?

Is the plan complete?

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.

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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?

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