CHAPTER 2 Developing Marketing Strategies and Plans Copyright

CHAPTER 2 Developing Marketing Strategies and Plans Copyright © 2016 Pearson Education, Inc. 2 -

THE VALUE DELIVERY PROCESS CHOOSING THE VALUE PROVIDING THE VALUE COMMUNICATING THE VALUE Copyright © 2016 Pearson Education, Inc. COPYRIGHT © 2016 PEARSON EDUCATION, INC. 2 -2

THE VALUE CHAIN • A tool for identifying ways to create more customer value – Every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product Copyright ©EDUCATION, 2016 Pearson. INC. Education, Inc. COPYRIGHT © 2016 PEARSON 1 -3 2 -3

THE VALUE CHAIN Copyright © 2016 Pearson Education, Inc. 2 -4

CORE COMPETENCIES • A source of competitive advantage • Applications in a wide variety of markets • Difficult for competitors to imitate Copyright ©EDUCATION, 2016 Pearson. INC. Education, Inc. COPYRIGHT © 2016 PEARSON 1 -5 2 -5

CENTRAL ROLE OF STRATEGIC PLANNING • Managing the businesses as an investment portfolio • Assessing the market’s growth rate and the company’s position in that market • Establishing a strategy Copyright ©EDUCATION, 2016 Pearson. INC. Education, Inc. COPYRIGHT © 2016 PEARSON 1 -6 2 -6

MARKETING PLAN • The central instrument for directing and coordinating the marketing effort – Strategic – Tactical Copyright © 2016 Pearson Education, Inc. 2 -7

MARKETING PLAN CONTENTS ü Executive summary ü Table of contents ü Situation analysis ü Marketing strategy ü Marketing tactics ü Financial projections ü Implementation controls Copyright © 2016 Pearson Education, Inc. 2 -8

FIGURE 2. 1 STRATEGIC PLANNING, IMPLEMENTATION, AND CONTROL PROCESSES Copyright ©EDUCATION, 2016 Pearson. INC. Education, Inc. COPYRIGHT © 2016 PEARSON 1 -9 2 -9

CORPORATE AND DIVISION STRATEGIC PLANNING • Defining the corporate mission • Establishing strategic business units • Assigning resources to each strategic business unit • Assessing growth opportunities Copyright © 2016 Pearson Education, Inc. 2 -10

DEFINING THE CORPORATE MISSION • • • 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? Copyright © 2016 Pearson Education, Inc. 2 -11

ESTABLISHING STRATEGIC BUSINESS UNITS • A single business or collection of related businesses • Has its own set of competitors • Has a leader responsible for strategic planning and profitability Copyright © 2016 Pearson Education, Inc. 2 -12

ASSESSING GROWTH OPPORTUNITIES Copyright © 2016 Pearson Education, Inc. 2 -13

INTENSIVE GROWTH STRATEGIES ANSOFF’S PRODUCT-MARKET EXPANSION GRID Copyright © 2016 Pearson Education, Inc. 2 -14

FIGURE 2. 4 THE BUSINESS UNIT STRATEGIC-PLANNING PROCESS Copyright © 2016 Pearson Education, Inc. 2 -15

SWOT ANALYSIS Strengths Weaknesses Opportunities Threats Copyright © 2016 Pearson Education, Inc. 2 -16

STRATEGIC FORMULATION: PORTER’S GENERIC STRATEGIES OVERALL COST LEADERSHIP DIFFERENTIATION FOCUS Copyright © 2016 Pearson Education, Inc. 2 -17