A FRAMEWORK for

MARKETING MANAGEMENT

Chapter 2
Developing and Implementing
Marketing Strategies and Plans

Kotler Keller
 Chapter Questions

How does marketing affect customer

value?
How is strategic planning carried out
at different levels of the organization?
What does a marketing plan include?
How can management assess
marketing performance?
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 Two Views of the
Value Delivery Process

Traditional Process Value Creation and Delivery

Sequence Sequence

Make product Choose the value

Sell product Provide the value
Communicate the value

Which one is more costly?

o Nike

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 Five Core Business Processes
to create value
Market sensing: All the activities in gathering, disseminating
and utilizing information.
Customer relationship management: All the activities in
building deeper understanding for new customers.
New offering realization: All the activities in searching,
developing, and launching new-high quality offerings quickly and
within budget.
Fulfillment management: All the activities in receiving and
approving orders, shipping the goods on time, and collecting
payment.
Customer acquisition: All the activities in defining target
markets and retaining them.
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 The Generic Value Chain
(Michael Porter)

Support Activities Primary Activities

Firm infrastructure Inbound logistics
(Google) Operations
Human resource Outbound logistics
management Marketing and sales
(Microsoft) Service (before and
Technology after sales)
development (Dells technical support
services)

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 Characteristics of Core Competencies

A source of competitive advantage

Most of the traditional resources such as labor, materials, and
energy are easily owned by companies except core competencies.

Applications in a wide variety of markets

Difficult to imitate
e.g. Nike: Design and merchandising, and
Mercedes: High quality and reliable cars.

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 Holistic Marketing Framework

How can a company identify new value opportunities?

e. g. Volkswagen/Praton joint venture ~ Islamic
Cars
How can a company efficiently create more promising
new value offerings?
e.g. Apple ~ iPod
How can a company use its capabilities and
infrastructure to deliver the new value offerings more
efficiently?
e. g. Volkswagen vs. Praton
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 A Holistic Marketing Framework

Value exploration Customer focus

Value creation Core competencies
Value delivery Collaborative network
with suppliers and
middlemen.
e.g. Toyota ~ Al Futtaim

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 Corporate Planning Activities

Defining the corporate mission

Establishing SBUs
Assigning resources to SBUs
Assessing growth opportunities

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Product Orientation vs. Market
Orientation

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 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.
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 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.

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 eBay

We help people trade anything on earth.

We will continue to enhance the online
trading experiences of allcollectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.

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 Characteristics of an SBU

It is a single business or collection of

related businesses
e.g. ULKER ~ chocolate, Biscuits, Dairy products.
It has its own set of competitors
It has a leader responsible for:
Profitability

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 Growth Opportunities

Pg. 85 Figure 2.4

Market penetration strategy (CM-CP)
e.g. Penetrating the same market through advertising
and promotions.
Market development strategy (NM-CP)
e.g. Etisalat, Emirates, Starbucks, KFC, McDonalds.
Product development strategy (CM-NP)
e.g. Nokia, Sony, P&G
Diversification strategy (NM-NP)
e.g. Walt Disney (Animated film producer) ~ Broadcast
industry with WD channel
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 The Business Unit
Strategic-Planning Process

Business mission
SWOT analysis
Goal formulation
Strategy formulation
Program formulation
Implementation
Feedback and control

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 SWOT Analysis

Strengths
Weaknesses
Opportunities
Threats

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 Market Opportunity Analysis (MOA)

Can the benefits involved in the

opportunity be articulated to a defined
target market?
Can the target market be located and
reached with cost-effective media and
trade channels?
Does the company have access to the
critical capabilities and resources needed
to deliver the customer benefits?
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Market Opportunity Analysis (MOA)

Can the company deliver the benefits

better than any actual or potential
competitors?
Will the financial rate of return meet or
exceed the companys required threshold
for investment?

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 Marketing Plan Contents

Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls

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