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Developing Marketing Strategies and Plans

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Chapter 1 Developing Marketing Strategies and Plans * Marketing Management The art and science of choosing target markets and getting, keeping and growing customers ... – PowerPoint PPT presentation

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Title: Developing Marketing Strategies and Plans


1
Chapter 1
  • Developing Marketing Strategies and Plans

2
Marketing Management
  • The art and science of choosing target markets
    and getting, keeping and growing customers
    through creating, delivering and communicating
    superior customer value.

3
Importance of marketing
  • Marketing is a very important aspect in business
    since it contributes greatly to the success of
    the organization. Production and distribution
    depend largely on marketing.
  • Finance, operations, accounting and other
    business functions will not really matter if
    there isnt sufficient demand for products and
    services so the company can make a profit.

4
  • Marketing and Customer Value

5
Marketing and customer value
  • Marketing Concept The marketing management
    concept is that achieving organizational goal
    depends on knowing the needs and wants of target
    markets and delivering the desired satisfaction
    better than competitors do.
  • Customer Value. The customers evaluation of the
    difference between all the benefits and all the
    costs of a market offering relative to those of
    competing offers.

6
Marketing and Customer Value
  • Marketing involves satisfying customers needs and
    wants.
  • The task of any business is to deliver customer
    value at a profit while being socially
    responsible.
  • In a competitive environment a company can win
    only by fine tuning the value delivery process.

7
Marketing and customer value
  • The value delivery process. The process through
    which an organization delivers the value
    customers are expecting. It consists of the
    following stages.
  • Choosing the value. The marketing staff must
    segment the market, select the appropriate market
    target, and develop the offerings value
    positioning.
  • Providing the value. Marketing must determine
    specific product features, prices, and
    distribution.
  • Communicating the value. Through sales force,
    sales promotion, advertising to announce and
    promote the product.

8
Marketing and customer value
Choose the value Provide the
value Communicate the value
9
Value chain
  • Michael Porter in 1985 introduced in his book
    The Competitive Advantage the concept of the
    Value Chain. He suggested that activities within
    the organization add value to the services and
    products that the organization produces, and all
    these activities should be run at optimum level
    if the organization is to gain any real
    competitive advantage.
  • If they are run efficiently the value obtained
    should exceed the costs of running them i.e.
    customers should return to the organization and
    transact freely and willingly.
  • Michael Porter suggested that the organization is
    split into primary activities and support
    activities.

10
Value chain
  • Supportive activities
  • Primary activities

Firm infrastructure
Human Resource Management
Technology Development
Procurement
seseee
Inbound logistics
Operations
Marketing sales
Outbound logistics
service
11
Value chain/primary activities
  • Primary activities
  • Inbound logistics Refers to goods being
    obtained from the organizations suppliers ready
    to be used for producing the end product.
  • Operations The raw materials and goods obtained
    are manufactured into the final product. Value is
    added to the product at this stage as it moves
    through the production line.
  • Outbound logistics Once the products have been
    manufactured they are ready to be distributed to
    distribution centers, wholesalers, retailers or
    customers.

12
Value chain/primary activities
  • Marketing and Sales Marketing must make sure
    that the product is targeted towards the correct
    customer group.
  • Services After the product/service has been sold
    what support services does the organization have
    to offer. This may come in the form of after
    sales training, guarantees and warranties.

13
Value chain/supportive activities
  • Supportive Activities
  • The support activities assist the primary
    activities in helping the organization achieve
    its competitive advantage. They include
  • Procurement This department must source raw
    materials for the organization and obtain the
    best price for doing so. For the price they must
    obtain the best possible quality
  • Technology development The use of technology to
    obtain a competitive advantage within the
    organization. This is very important in todays
    technological driven environment. Technology can
    be used in production to reduce cost thus add
    value.

14
Value chain/supportive activities
  • Human resource management The organization will
    have to recruit, train and develop the correct
    people for the organization if they are to
    succeed in their objectives. Staff will have to
    be motivated and paid the market rate if they
    are to stay with the organization and add value
    to it over their duration of employment.
  • Within the service sector e.g. airlines it is
    the staff who may offer the competitive
    advantage that is needed within the field.
  • Firm infrastructure Every organization needs to
    ensure that their finances, legal structure and
    management structure works efficiently and helps
    drive the organization forward.

15
Core competencies
  • Refers to areas of special technical and
    production expertise, distinctive capabilities.
  • Are the source of competitive advantage and
    enables the firm to introduce an array of new
    products or services.
  • A core competency is a specific factor that a
    business sees as being central to the way it, or
    its employees work. It fulfils three key
    criteria
  • It provides consumer benefits
  • It is not easy for competitors to imitate
  • It can be leveraged widely to many products and
    markets.

16
Core competencies
  • A core competency can take various forms,
    including technical/subject matter know-how, a
    reliable process and/or close relationships with
    customers and suppliers. It may also include
    product development or culture, such as employee
    dedication.
  • Core competencies are particular strengths
    relative to other organizations in the industry
    which provide the fundamental basis for the
    provision of added value.

17
Marketing Plan
  • A marketing plan is a written document that
    details the necessary actions to achieve one or
    more marketing objectives. It can be for a
    product or, a brand, or a product line. Marketing
    plans cover between one and five years.

18
The Marketing Plan
  • The central point in planning for marketing
    decisions is the Marketing Plan. the plan serves
    several functions including
  • Forcing marketing personnel to look internally in
    order to fully understand the results of past
    marketing decisions.
  • Forcing marketing personnel to look externally in
    order to fully understand the market in which
    they operate.
  • Setting future goals and providing direction for
    future marketing efforts that everyone within the
    organization should understand and support.
  • Serving as a key component in obtaining funding
    to pursue new initiatives.

19
Marketing Plan
  • Situation analysis-customers/competitors
  • Market opportunity and Issues
  • Objectives
  • Marketing strategy
  • Target markets
  • Positioning
  • Marketing Mix-4Ps
  • Setting marketing budget
  • Review and implement
  • Evaluate and Control
  • Contingency Plan

20
Situation analysis-customers/competitors
  • The situational analysis is designed to take a
    snapshot of where things stand at the time the
    plan is presented.
  • Customers Analysis-Collection and evaluation of
    data associated with customer needs and market
    trends through customer satisfaction measurement
    and field testing.
  • Competitors Analysis- Identify your major
    competitors-compare your business with the
    competitors (strength/weaknesses)

21
Situation analysis
22
Situation analysis cont
  • Internal analysis
  • Company culture
  • Company image
  • Key staff
  • Position on the experience curve
  • Market share
  • Financial resources

23
Situation analysis cont
  • External analysis
  • Customer
  • Competitors
  • Market trends
  • Suppliers
  • Economic environment
  • Political environment
  • Technology

24
Market opportunity and Issues
  • Match your strength with the opportunity
    available in the market.
  • Critical Issues-PEST analysis
  • Political Economic- Social- Technological

25
Marketing strategy and objectives
  • This section consists of three major issues
  • Marketing Strategy
  • Financial Objectives
  • Marketing Objectives
  • Marketing Strategy Is a process that can allow
    an organization to concentrate its limited
    resources on the greatest opportunities to
    increase sales and achieve a sustainable
    competitive advantage.
  • A marketing strategy should be centered around
    the key concept that customer satisfaction is the
    main goal.

26
Marketing Strategy and objectives cont
  • Determine Financial Objectives
  • For many organizations the ultimate goal of the
    marketing plan is the effect it will have on the
    bottom line.
  • Customer sales
  • by volume and growth percentage (To achieve a
    healthy and continuous growth in profit. )
  • by segments
  • Margins
  • Profitability
  • Ratios (expenses versus profit)

27
Marketing Strategy and objectives cont
  • Determine Marketing Objectives
  • The marketing objectives section will indicate
    targets to be achieved across several marketing
    decision areas.
  • Target market objectives
  • market share ( for example To attain a 15
    increase in market shares within the annual and
    achieve positive growth in the sales of the
    PRODUCT! )
  • Total sale
  • Segment sale

28
Target Markets/ Positioning
  • Segment your market- divide your market into
    subgroups-and target the segment that matched
    with your capabilities (Resources)
  • Positioning Is the act of designing the
    companys offering and image to occupy a
    distinctive place in the mind of the target
    market.
  • Position your brand in the minds and eyes of
    consumers better than your competitors.

29
Tactical Marketing Programs
  • This is the heart of the marketing plan. It
    contains descriptions of detailed tactics to be
    carried out to achieve the objectives and goals
    established
  • Product- features- design- finishing- packaging-
    labeling
  • Price- check the price of substitute
    products-value based-cost based
  • Place- make the availability of your product
    possible.
  • Intensive distribution-exclusive
    distribution-selective distribution. Direct
    marketing-indirect marketing
  • Promotion- advertisement- sales person- position
    your brand

30
Setting the Marketing Budget
  • This section should lay out spending
    requirements necessary for meeting the plan's
    objectives
  • Outline spending requirements for each tactical
    marketing decision
  • Breakdown each category
  • e.g., types of advertising, types of services
    offered, marketing research expense, etc.
  • Show detailed spending timetable by
  • Month
  • Year
  • Show spending by
  • Product (if plan is for more than one)
  • Segment/Geographic area
  • Distribution Network/Channel

31
Review and Implementation
  • Marketing implementation is the process of
    turning plans into action describing who does
    what, when, and how. Effective implementation
    requires skills in allocating, monitoring,
    organizing, and interacting at all levels of the
    marketing effort.
  • A brilliant strategic marketing plan counts for
    little if not implemented properly.
  • Strategy addresses the what, and why of marketing
    activities, implementation addresses the who,
    where, when and how.
  • Evaluate and control check your plan with
    regular interval of time, because markets have
    altering (changing) behavior.
  • Control the plan spilt your annual plan in
    quarters, and check your sales, market share and
    growth at the end of each quarter, if it is the
    same as it was planned then carry on but if not
    then change strategies.

32
Contingency Plan
  • There should be a plan B (alternative plan) in
    case of any natural disasters or any social
    activity or rapid technological boost.
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