marketing research chaper marketing research chaper 3..ppt

marketing research chaper 3.

2. Marketing Management
Arab World Edition
Kotler, Keller, Hassan, Baalbaki, and Shamma
Chapter 2
Developing Marketing
Strategies and Plans

3. Copyright © 2012 Pearson Education 2-3
Chapter Questions
1.How does marketing affect customer value?
2.How is strategic planning carried out at different levels
of the organization?
3.What does a marketing plan include?

4. Marketing and Customer Value
The task of any business is to deliver customer value at a
profit.
In a competitive market, a company can win only by fine-
tuning the value delivery process and choosing, providing,
and communicating superior value.
Chapter Question 1:
How does marketing affect
customer value?
Copyright © 2012 Pearson Education 2-4

5. The Value Delivery Process
The value creation and delivery sequence can be divided into
three phases.
1.Choosing the value.
2.Providing the value.
3.Communicating the value.
Chapter Question 1:
How does marketing affect
customer value?
Copyright © 2012 Pearson Education 2-5

6. The Value Chain
The value chain is a tool for identifying ways to create more
customer value.
In the value chain model, every firm is a synthesis of primary
and support activities.
Chapter Question 1:
How does marketing affect
customer value?
Copyright © 2012 Pearson Education 2-6

7. The Value Chain
Chapter Question 1:
How does marketing affect
customer value?
Copyright © 2012 Pearson Education 2-7

8. •Market-sensing process
•New-offering realization process
•Customer acquisition process
•Customer relationship management process
•Fulfillment management process
Chapter Question 1:
How does marketing affect
customer value?
Core business processes
Saudi Aramco manages business
operations through cross-functional teams.
Copyright © 2012 Pearson Education 2-8

9. Core Competencies
Three characteristics of core competencies:
1.A source of competitive advantage.
2.Applications in a wide variety of markets.
3.Difficult for competitors to imitate.
Competitive advantage
Chapter Question 1:
How does marketing affect
customer value?
Copyright © 2012 Pearson Education 2-9

10. Box 2.1: Becoming a Vigilant Organization
Chapter Question 1:
How does marketing affect
customer value?
Copyright © 2012 Pearson Education 2-10

11. The Holistic Marketing Concept
Chapter Question 4:
How has marketing
management changed?
Copyright © 2012 Pearson Education 1-11

12. A Holistic Marketing Orientation
and Customer Value
Holistic marketing sees itself as integrating
the value exploration,
value creation,
and value delivery activities
with the purpose of building long-term, mutually satisfying relationships and
prosperity among key stakeholders.
Chapter Question 1:
How does marketing affect
customer value?
Copyright © 2012 Pearson Education 2-12

13. Chapter Question 1:
How does marketing affect
customer value?
Fig 2.2: A Holistic Marketing Framework
Copyright © 2012 Pearson Education 2-13

14. Chapter Question 1:
How does marketing affect
customer value?
Copyright © 2012 Pearson Education 2-14
Strategic Planning

15. The Central Role of Strategic Planning
Chapter Question 1:
How does marketing affect
customer value?
Fig 2.3: The Strategic Planning, Implementation, and Control Process
Copyright © 2012 Pearson Education 2-15

16. Corporate and Division Strategic
Planning
All corporate headquarters undertake four planning activities:
1. Defining the corporate mission.
2. Establishing strategic business units (SBUs).
3. Assigning resources to each SBU.
4. Assessing growth opportunities.
We’ll look at each process.
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-16

17. Defining the Corporate Mission
Good mission statements:
•Focus on a limited number of goals
•Stress major policies and values
•Define major competitive spheres
•Take a long-term view
•Are short, memorable and meaningful
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-17

18. Defining the Corporate Mission
Mission statements define the
major competitive spheres in
which the company will
operate:
•Industry
•Market segment
•Products
•Geographic
•Competence
•Vertical channels
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-18

19. Example Mission Statement
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-19
Mayo Clinic: To inspire hope and contribute
to health and well-being by providing the
best care to every patient through
integrated clinical practice, education and
research. (24)
Sabic: Our mission is to responsibly provide
quality products and services through
innovation, learning and operational
excellence while sustaining maximum value
for our stakeholders.

20. Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-20
Vision vs. Mission
Communicates the
organization’s reason
for being, and how it
aims to serve its key
stakeholders
Often integrates a
summation of the
firm’s values
Mission statements
tend to be longer than
vision statements
A future-oriented
declaration of the
organization’s purpose
and aspirations.
Addresses what a
firm wants to become
Vision statements
tend to be relatively
brief

21. Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-21
Business Vision
Statement
A statement that clearly defines the
firm’s “reason” for being in business
–Should significantly stretch the
resources and capabilities of the farm
–Should inspire people in the
organization to achieve things they
never thought possible
–Should unite people in the organization
toward the pursuit of one common goal

22. Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-22
Business Vision
Statement
•A guiding philosophy
•Consistent with organizational value
•Influenced by the strengths and
weaknesses of the business

23. Table 2.1: Product-Oriented versus Market-Oriented Definitions of a Business
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-23

24. Establishing Strategic Business
Units
A single business or collection of related businesses
that can be planned separately from the rest of the
company, with its own set of competitors and a
manager who is responsible for strategic planning
and profit performance.
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-24

25. Establishing Strategic Business
Units
An SBU has three characteristics, as follows.
1. It is a single business, or related businesses, that can be
planned separately from the rest of the company.
2. It has its own set of competitors.
3. It has a manager responsible for strategic planning and
profit performance.
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-25

26. Assigning Resources to Each SBU
Boston Consulting Group’s
Growth-Share Matrix can be
used to make investment
decisions. Defines four types
of SBUs:
1. Stars: high-growth market,
high-share product.
2. Cash cows: low-growth
market, high-share product.
3. Question marks: low-share
product, high-growth market.
4. Dogs: low-share product,
low-growth market.
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-26

27. Assessing Growth Opportunities
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-27
Fig 2.5: Three Intensive Growth Strategies:
Ansoff’s Product–Market Expansion Grid

28. Assessing Growth Opportunities
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-28
Fig 2.5: Three Intensive Growth Strategies:
Ansoff’s Product–Market Expansion Grid
•Concentric Diversification – leveraging a company’s core
technical know-how to diversify its current products into
new markets
•Horizontal Diversification – the introduction of products that
are unrelated to a company’s core products to existing
markets
•Conglomerate Diversification – the purchasing of another
company in order to diversify

29. Business Unit Strategic Planning
Chapter Question 3:
What does a marketing
plan include?
Copyright © 2012 Pearson Education 2-29
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Fig 2.6: The Business Unit Strategic-Planning Process
Business unit strategic-planning involves the steps shown in Fig 2.6

30. Step 1: The Business Mission
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-30
Each business unit needs to define its specific mission within
the broader company mission.
Step 2: SWOT Analysis
Strengths, Weaknesses, Opportunities, Threats
- For monitoring the external and internal marketing
environment

31. Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-31
SWOT Analysis
Albert S. Humphrey in the 1960s

32. Step 1: The Business Mission
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-32

33. Step 3: Goal Formulation
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-33
•Unit’s objectives must be hierarchical
•Objectives should be quantitative
•Goals should be realistic
•Objectives must be consistent

34. Step 4: Strategic Formulation
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-34
Porter’s Generic
Strategies

35. (Step 4: Strategic Formulation)
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-35
Strategic Alliances
There are four major categories of marketing alliances:
•Product or service alliances
•Promotional alliances
•Logistics alliances
•Pricing collaborations

36. Step 5: Program Formulation and
Implementation
Chapter Question 2:
How is strategic planning
done at different levels of
the organization?
Copyright © 2012 Pearson Education 2-36
Depends on:
•Clear formulation of marketing programs
•Accurate cost planning
•Competent implementation
Step 6: Feedback and Control
The key to organizational health is willingness to examine the
changing environment and adopt new goals and behaviors.

37. Marketing Plan
Chapter Question 3:
What does a marketing
plan include?
Copyright © 2012 Pearson Education 2-37
A marketing plan is the central instrument for directing
and coordinating the marketing effort. It operates at a
strategic and tactical level.

38. Levels of a Marketing Plan
Strategic
•Target marketing decisions
•Value proposition
•Analysis of marketing
opportunities
Tactical
•Product features
•Promotion
•Merchandising
•Pricing
•Sales channels
•Service
Chapter Question 3:
What does a marketing
plan include?
Copyright © 2012 Pearson Education 2-38

39. Marketing Plan Contents
 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls
Chapter Question 3:
What does a marketing
plan include?
Copyright © 2012 Pearson Education 2-39

40. Evaluating a Marketing Plan
Chapter Question 3:
What does a marketing
plan include?
Copyright © 2012 Pearson Education 2-40

41. Credits
•Slide 1 Corbis: Ali Haider / epa
•Slide 6 Alamy Images: Barry Iverson
•Slide 8 George S. Day and Paul J. H. Schoemaker, Peripheral Vision:
Detecting the Weak Signals That Will Make or Break Your Company
(Boston: Harvard Business School Press, 2006)
•Slide 10 P. Kotler, D. C. Jain, and S. Maesincee, “Formulating a Market
Renewal Strategy,” in Marketing Moves (Part 1), Fig. 1-1 (Boston: Harvard
Business School Press, 2002), p. 29. Copyright © 2002 by President and
Fellows of Harvard College. All rights reserved
•Slide 15 Orbit Company website, www.orbit-iq.com; Mobily Saudi Arabia
company website, www.mobily.com.sa; eBay company website,
www.ebay.com
•Slide 20 Salem Alforaih Photography, photographersdirect.com
•Slide 21 Adapted and reprinted by permission, Harvard Business Review.
From “Strategies for Diversification,” by Igor Ansoff, September–October
1957. Copyright © 1957 by the President and Fellows of Harvard College.
All rights reserved
•Slide 23 Getty Images: Justin Sullivan