This document discusses key concepts in developing marketing strategies and plans. It covers value delivery processes, the value chain, core business processes, core competencies, holistic marketing, marketing plans, levels of marketing plans, corporate headquarters planning activities including defining mission and assessing growth opportunities, strategic business units, Porter's generic strategies, and categories of marketing alliances. The document provides definitions and explanations of these marketing concepts.

1. Developing Marketing
Strategies and Plans
Prepared By,
Mr. Nishant Agrawal

2. Value Delivery Process
Value creation and delivery sequence into following phases:
1. Assessing market opportunity and customer value which involve
environment scanning and developing insights about customer needs
and want
2. Choosing the value includes critical decisions to STP which essence /
core strategic marketing.
3. Designing value relates to decision involving product strategy, new
offering and pricing
4. Delivering value focuses on distribution and access issues.
5. Communicating value through integrated marketing communication ,
choosing among the various choice in mass and personalized media.

3. 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.
Primary Activities
1. Inbound logistics
2. Outbound Logistics
3. Operations (converting material into final products)
4. Marketing includes sales
5. Service
Support Activities:
1. Procurement
2. Technology Development
3. HRM
4. Firm infrastructure

4. Core Business Processes
Market-sensing process
New-offering realization process
Customer acquisition process
Customer relationship management process
Fulfillment management process

5. Core Competencies
Many textile , chemical and computer firm do not manufacturer their
own product because offshore manufacturers are more competent.
They focus on product design and development and marketing their core
competencies.
Characteristics of Core Competencies
1. A source of competitive advantage and make significant contribution to
perceived customer benefits.
2. Applications in a wide variety of markets
3. Difficult for competitors to imitate / copy

6. 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
 Holistic marketer succeed by managing a superior value chain that
deliver high level of product quality, service and speed.
 They achieve profitable growth by expanding customer value,
building customer loyalty.

7. 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.

8. Levels of a Marketing Plan
Strategic
Target marketing decisions
Value proposition
Analysis of marketing
opportunities
Tactical
Product features
Promotion
Pricing
Sales channels
Service

9. Corporate Headquarters Planning Activities
All corporate HQ undertake four planning activities:
1. Define the corporate mission
2. Establish strategic business units (SBUs)
3. Assign resources to each SBU
4. Assess growth opportunities

10. Define the Corporate Mission
Good mission statement have 5 characteristics:
1. Focus on a limited number of goals
2. Stress major policies and values
3. Define major competitive spheres
4. Take a long-term view
5. Short, memorable and meaningful

11. 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. 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. 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. 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. (SBUs)
Characteristics of SBUs
SBU is a profit centre which focuses on product offering and
market segment.
It is a single business or collection of related businesses that can
be planned separately from rest of the company
It has its own set of competitors
It has a leader responsible for strategic planning and
profitability , who controls most of the factors affecting profit.

16. Assign Resources to each SBU
Once it has defined SBU management must decide how to
allocate corporate resource to each.
Several portfolio planning models provides ways to make
investment decisions.
BCG’s growth share matrix use relative market share and annual
rate of market growth as criteria to make investment decision.

17. Assess / Review Growth Opportunities
It includes planning new business and terminating older business.
If there is a gap between future desired sales and projected sales,
corporate management will need to develop or acquire new business
How can it fill strategic planning gap ?
 Identify opportunities for growth within current business
(Intensive opportunities)
 Identify opportunities to build business related to current business
(Integrative opportunities)
 Identify opportunities to add attractive unrelated business
(diversification opportunities)

18. What is Corporate Culture?
Strategic planning happen within context of organization. A
company’s organization consists of its structures , policy and
corporate culture.
 Corporate culture is the “shared experiences, stories, beliefs,
and norms that characterize an organization”
Whereas manager can change structure and policies but the
company’s culture is very hard to change.

19. Business Unit Strategic Planning
Each business unit needs to specific mission within the broader
company mission.
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats

20. Market Opportunity Analysis (MOA)
Can the benefits involved in the opportunity be articulated / spoken
convincingly / credibly 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. 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. Goal Formulation and Manages for Objective
Once SWOT analysis performed ,it can proceed to goal formulation,
developing specific goals for planning period.
 For Manages for Objective system to work , unit’s objective must
meet four criteria :
1. They must be arranged hierarchically from most least to important
2. Objectives should be quantitative ( Increase ROI)
3. Goals should be realistic
4. Objectives must be consistent

23. Porter’s Generic Strategies
 Overall cost leadership
 Firm work to achieve lowest production and distribution cost so
they win market share. This is achieved by having the lowest
prices in the target market segment,
 first dimension is achieving a high asset utilization.
 second dimension is achieving low direct & indirect operating
costs
 The third dimension is control over the value chain
 Disadvantage of lower customer loyalty, as price-sensitive
customers will switch once a lower-priced substitute is available

24.  Differentiation
 The business concentrate on achieving superior performance in an
important customer benefit area value by large part of market. The
firm seeking quality leadership. Ex. Make Product with best
component
 A differentiation strategy is appropriate where the target customer
segment is not price-sensitive, the market is competitive or
saturated.
 Differentiation strategy is not suitable for small companies. It is
more appropriate for big companies.
 These could include patents or unique technical expertise

25.  Focus
 The business focuses on one or more narrow market segment, get to
know , differentiation within target market.
 In adopting a narrow focus, the company ideally focuses on a
few target markets
 The firm typically looks to gain a competitive advantage through
product innovation

26. Categories of Marketing Alliances
Product or service alliance Ex. Citibank credit card + Jet Airways
Promotional alliance Ex. Macdonal’s + Pepsi
Logistics alliances
Pricing collaborations Ex. Hotel + rental Car

27. Marketing Plan Contents Page No: 54
 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls

28. Assignments
1. Explain the basic philosophies of marketing.
2. Discuss the four corporate strategic planning activities with a suitable
example
3. Create a marketing plan for a product/ service of your choice.
4. Explain the steps of marketing plan
5. Explain the nature and scope of marketing management
6. What is marketing management? Explain different marketable entities
with suitable examples.
7. What is Managing Holistic Marketing Organization? Explain in detail