(Chap2 Kotler Keller)

Developing Marketing
Strategies and Plans
Ch 2 – Phillip Kotler & Kevin Lane Keller
Marketing and Customer Values *
Corporate and Division Strategic Planning *
Business Unit Strategic Planning *
Product Planning: the Nature and Contents
of a Marketing Plan
1. Marketing and Customer Values
Value delivery process
Value chain
Core competencies
Holistic marketing orientation and customer
• Central role of strategic planning
Value Delivery Process
• The traditional market vs. modern market
• Value creation & delivery sequence
 Choosing the value
 Providing the value
 Communicating the value
Improving Value Delivery
The Japanese Way:
• Zero Customer Feedback Time
(customer feedback should be collected continuously after purchase to
learn how to improve the product and its marketing
• Zero Product Improvement Time
(the company should evaluate all improvement ideas and introduce the
most valued and feasible improvements a.s.a.p.)
• Zero Purchasing Time
(the company should receive and required parts and supplies continuously
through JIT arrangement with suppliers)
• Zero Setup Time
(the company should be able to manufacture any of its products soon as
they are ordered, without facing high setup time or cost)
• Zero Defects
(the products should be of high quality and free of flaws)
The Value Chain
The Core Business Process
• Market Sensing
(all the activities involved in gathering market intelligence, disseminating it with the
organization, and acting on the organization)
• New Offering Realization Process
(all the activities involved in researching, development and launching new high-quality
offerings quickly and within budget)
• Customer Acquisition
(all the activities involved in defining target markets and prospecting of new customers)
• Customer Relationship Management
(all the activities involved in building deeper understanding, relationship and offerings
to individual customers)
• Fulfillment Management Process
(all the activities involved in receiving and approving orders, shipping the goods on
time and collecting payment)
Core Competencies
Core Competence: special technical and production
Characteristics of Core Competencies:
• A source of competitive advantage
• Applications in a wide variety of markets
• Difficult to imitate
• E.g. Southwest Airlines
A Holistic Marketing Orientation And
Customer Value
• Value Exploration: How can a company identify a
new opportunities
• Value Creation: How can a company efficiently
create more promising new value offering
• Value Delivery: How can a company use its
capabilities and infrastructure to deliver the new
value offerings more efficiently
Central Role Of
Strategic Planning *
• Successful marketing needs to:
 Understand customer value
Create customer value
Deliver customer value
Capture customer value
Sustain customer value
• Through Marketing Plan
 The central instrument for directing and coordinating the
marketing effort
 Operates in two levels (Strategic and Tactical)
2. Corporate & Division Strategic Planning
Corporate Headquarters’ Planning Activities:
• Define the Corporate Mission
• Establish Strategic Business Unit (SBU)
• Assign Resources to each SBU
• Assess Growth Opportunities
Defining the Corporate Mission
5 Characteristic of Good Mission Statement
• Focus on a limited number
• Stress major policies and values the company wants
to honor
• Mission statements define which competitive scopes
the company will operate in:
- Industry
- Products and Application
- Competence
- Market Segment
- Vertical
- Geographical
• Take long-term view
• Short, memorable, meaningful as possible
Establishing Strategic Business Unit (SBU)
• Single business or collection of related business that can be
planned for separately
• Has its own set of competitor
• Has a manager who is responsible for strategic planning and
Dimension that define Business:
• Customer Group
• Customer Need
• Technology
Assessing Growth Need
• Involves in planning new business, downsizing, or
terminating older business
• Growth Strategies:
 Identify opportunity to achieve further growth with current
business (marketing penetration strategy)
 Identify opportunity to build/acquire business that are related to
current business (market-develop strategy)
 Identify opportunity to add attractive business unrelated to current
business (diversification strategy)
 Backward, forward/horizontal integration
Organization & Its Culture *
• The success of strategic planning
depends on Organization
• Organization consists of:
 Corporate Culture
 Policies
 Structures
3. Business Unit Strategic Planning
Opportunity &
Strength &
& Control
• External Environment Analysis (Opportunity & Threat
• Marketing Opportunity Analysis (MOA)
 Can the benefit be articulated to a target market?
 Can the target market be reached with cost-effective media and trade
 Does the company have the critical capabilities to deliver the customer
 Can the company deliver these benefits better than any actual or
potential competitors?
 Will the rate of return meet the required threshold of investment?
• Internal Environmental Analysis (Strength &
Weakness Analysis)
“is one thing to spot attractive opportunities
and another to be able to take advantage of
these opportunities”
Goal Formulation
• Goals = objective specific to magnitude and time
• Trend of Mix Objectives
• Set the objective & Manages by Objectives (MBO)
that meet four criteria:
1. They must be arranged hierarchically
2. Objectives should be stated quantitatively whenever
3. Goals should be realistic
4. Objective must be consistent
Strategic Formulation *
Porter’s Generic Strategies
• Overall Cost Leadership; eg. Acer
• Differentiation; eg. Sony VAIO
• Focus; eg. Apple computer for designer
Strategic Alliances
Product or Services; eg. HSBC & Visa
Promotional; eg. Mc. D & Disney
Logistic; eg. Abbott Laboratories & 3M’s medical
Pricing Collaborations; eg. Hotel & car rental
4. Product Planning:
Nature & Contents of a Marketing Plan
Marketing Plan:
 a written document
 summarizes what the marketer has learned
about marketplace
 indicates how the firm plans to reach its
Contents of the Marketing Plan
1. Executive Summary and Table of Contents
2. Situation Analysis
3. Marketing Strategy
4. Financial Projections
5. Implementation Controls
END of CHAP. 2
Kotler & Ketler, 13th Ed. *