Sessions 5 & 6

Developing Marketing Strategies and Plans

Topics

1.1 Marketing and customer value

1.2 Corporate and Division Strategic Planning

Reading Material: Marketing Myopia

Marketing and customer Value
• The value delivery process

• The value chain

• Core competencies
The Value Delivery Process
Assessing market opportunities and
customer value

Choosing the value

Designing the value

Delivering the value

Communicating the value

The Value chain
• A tool for identifying ways to create more customer value.

Porter, M. E. (2011). Competitive advantage of nations: creating and

sustaining superior performance. simon and schuster.
• https://www.edrawmax.com/article/nike-value-chain-analysis.html
Core business processes
• Market-sensing process

• New-offering realization process

• Customer acquisition process

• Customer relationship management process

• Fulfillment management process

Core competencies

• A source of competitive advantage and makes a significant

contribution to perceived customer benefits

• It has applications in a wide variety of markets.

• Difficult for competitors to imitate

Corporate and Business Unit
Planning
• Three key areas:

• Managing the company’s business as an investment portfolio

• Assessing the market’s growth rate and the company’s position in

that market

• Developing a viable business model

Source: https://www.generalist.com/briefing/tata
The Strategic Planning Process

Source: Marketing Management: Philip Kotler, Kevin Lane Keller, Alexander Chernev, Jagdish N.
Sheth and G. Shainesh. Pearson, 16th edition
Four Planning Activities

• Defining the corporate mission

• Building the corporate culture

• Establishing strategic business units

• Assigning resources
Defining the Corporate Mission
• A mission is a clear, concise, and enduring
Apple
statement of the reasons for an organization’s
“To bring the best user experience to
existence customers through innovative
hardware, software, and services.”
• Often referred to as its core purpose, a
company’s mission is a long-term goal that
provides company employees and management
with a shared sense of purpose, direction, and
opportunity.

• Change??
• To define its mission, a company should address Peter Drucker’s
Classic questions:

• 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?

Peter Drucker, Management: Tasks, Responsibilities, and Practices (New York: Harper and Row, 1973), chapter
7
Good mission statements have
five major characteristics.
• 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
Building the Corporate Culture

• What exactly is a corporate culture?

• Some define it as “the shared experiences, stories, beliefs,

and norms that characterize an organization.”

Mahindra Tech Culture
Driving positive change, celebrating each
moment, and empowering all to Rise
Establishing Strategic Business
Units
• A single business or collection of related businesses

• Has its own set of competitors

• Has a manager responsible for strategic planning and profitability

Defining Strategic Business
Units
• A specialized portfolio involves SBUs with fairly narrow assortments
consisting of one or a few product lines

• A diversified portfolio involves SBUs with fairly broad assortments

containing multiple product lines
 Allocating Resources
• Assess each SBU’s competitive advantage and the attractiveness of
the market in which it operates-
• Grow Focus on two factors (GE McKinsey matrix)
1. Opportunities presented by a particular industry
• Harvest 2. The company resources, which determine its ability to
take advantage of the identified opportunities.
• Hold
Source:
https://www.bcg.com/about/overview/our-history/growth-
share-matrix
Assessing growth opportunities

Source: Marketing Management: Philip Kotler and Kevin Lane Keller. Pearson, 15th edition
The Business Unit Strategic-planning
Process

Source: Marketing Management: Philip Kotler and Kevin Lane Keller. Pearson, 15th edition
 SWOT Analysis

https://bstrategyhub.com/swot-analysis-of-amul-2019-amul-swot-analysis/
https://mktoolboxsuite.com/swot-analysis-examples/ https://apacnewsnetwork.com/2023/02/indias-top-10-
Coca Cola, Airbus, and Zara unicorns-a-comprehensive-swot-analysis/
Goal formulation (MBO)
• Unit’s objectives must be arranged hierarchically

• Objectives should be quantitative

• Goals should be realistic

• Objectives must be consistent

Strategic formulation: Porter’s
Generic Strategies
OVERALL COST LEADERSHIP

Scope
DIFFERENTIATION

FOCUS

Source
M. Porter, Competitive Strategy, Free Press. New York. NY, 1980

Airlines?
Program Formulation and
Implementation
• McKinsey’s Elements of Success

Skills Strategy

Staff Structure

Style Systems

Shared values
Source: https://soniasparkles.com/2018/05/08/mckinsey-7s-model/
Feedback 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.

“do the right thing right”

Developing Market Offerings

• Strategy involves choosing a well-defined market in which the

company will compete and determining the value it intends to
create in this market.

• Tactics, also called the marketing mix, make the company’s

strategy come alive
Developing the Marketing
Strategy

• Two components:

• Target market

• Value proposition
Identifying the Target Market: The 5-C
Framework

Source: Marketing Management: Philip Kotler, Kevin Lane Keller, Alexander Chernev, Jagdish N.
Sheth and G. Shainesh. Pearson, 16th edition
 Developing a Value Proposition
• Customer value
• Collaborator value
• Company value

• An optimal value
proposition balances the
value for customers,
collaborators, and the The 3-V Market Value Principle
company Source: Chernev, A. (2019). Strategic marketing
management: Theory and practice. Cerebellum Press.

Source: Marketing Management: Philip Kotler, Kevin Lane Keller, Alexander Chernev, Jagdish N. Sheth and G. Shainesh. Pearson, 16th edition
 Designing the Marketing Tactics
• The market offering is the actual good that the company deploys in
order to fulfill a particular customer need.

Marketing Tactics: The Seven Tactics

(7Ts) Defining the Market Offering

Source: Chernev, A. (2019). Strategic marketing management: Theory and practice. Cerebellum Press.
Source: Marketing Management: Philip Kotler, Kevin Lane Keller, Alexander Chernev, Jagdish N. Sheth and G. Shainesh. Pearson, 16th edition
 Marketing Tactics as a Process of Designing,
Communicating, and Delivering Customer
Value

From the
customer’s
perspective;
Attractiveness,
Awareness;
Availability of the
offering.

Source: Chernev, A. (2019). Strategic marketing management: Theory and practice. Cerebellum Press.

Source: Marketing Management: Philip Kotler, Kevin Lane Keller, Alexander Chernev, Jagdish N. Sheth and G. Shainesh. Pearson, 16th edition
 The Market Value Map

It is a visual representation of the

key components of a company’s
business model and the ways in
which they are related to each
other.

Source: Chernev, A. (2019). Strategic marketing management: Theory and practice. Cerebellum Press.
Source: Marketing Management: Philip Kotler, Kevin Lane Keller, Alexander Chernev, Jagdish N. Sheth and G. Shainesh. Pearson, 16th edition
 Planning and Managing Market
Offerings

The G-S T I C Action-Planning Flowchart

Source: Marketing Management: Philip Kotler, Kevin Lane Keller, Alexander Chernev, Jagdish N.
Sheth and G. Shainesh. Pearson, 16th edition
Developing a Marketing Plan

• The marketing plan directs and coordinates all company efforts.

• Three main functions:

• Describes the company’s goal and proposed course of action

• Informs the relevant stakeholders about the goal and action plan

• Persuades the relevant decision makers of the viability of the goal and the
proposed course of action
Content and Organization of the
Marketing Plan

Source: Marketing Management: Philip Kotler, Kevin Lane Keller, Alexander Chernev, Jagdish N.
Sheth and G. Shainesh. Pearson, 16th edition
Updating the Marketing Plan
• Marketing plans are not static; they need updating in order to remain
relevant
Conducting a Marketing Audit

• An effective marketing audit should be:

• Comprehensive

• Systematic

• Unbiased

• Periodic
Evaluating a Marketing Plan
• Is the plan simple/succinct?
• Is the plan complete?
• Is the plan specific?
• Is the plan realistic?
 COURSE PROJECT

• To develop a marketing plan.