MARKETING MANAGEMENT

BE-MBA Fall Semester

(July – December2019)

Harjot Singh, LM TSM, TIET

8/14/2019
 DEVELOPING
MARKETING
STRATEGIES AND PLANS

2
Session 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?
Nike Creates Value
What is Value Chain?
The value chain is a tool for identifying ways to
create more customer value because every firm is a
synthesis of primary and support activities
performed to design, produce, market, deliver, and
support its product.
Three V’s Approach to Marketing
Define the value segment

Define the value proposition

Define the value network

Cisco Systems Taps into Partner Expertise to
Create Value
Characteristics of Core Competencies
• A source of competitive advantage
• Applications in a wide variety of markets
• Difficult to imitate
What is Holistic Marketing?
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
co-prosperity among key stakeholders.
FedEx

FedEx added Sunday

deliveries
based on customer
requests and
market demand
Intel’s New Brand Identity:
Leap Ahead
What is a Marketing Plan?
A marketing plan is the central instrument for
directing and coordinating the marketing effort.
It operates at a strategic and tactical level.
Levels of a Marketing Plan
• Strategic • Tactical
• Target marketing • Product features
decisions • Promotion
• Value proposition • Merchandising
• Analysis of marketing • Pricing
opportunities • Sales channels
• Service
Strategic Planning, Implementation,
and Control Processes
Corporate Headquarters’ Planning Activities

• Define the corporate mission

• Establish strategic business units (SBUs)
• Assign resources to each SBU
• Assess growth opportunities
Characteristics of SBUs
• It is a single business or collection of related
businesses
• It has its own set of competitors
• It has a leader responsible for strategic planning
and profitability
Good Mission Statements
Focus on limited number of goals

Stress major policies and values

Define major competitive spheres

Take a long-term view

Short, memorable, meaningful

Infosys Technologies Limited

“To achieve our objectives in an environment

of fairness, honesty, and courtesy towards
our clients, employees, vendors, and society
at large.”
Biocon

“To be an integrated biotechnology enterprise

of global distinction.”
eBay

“We help people trade anything on earth.

We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”
 Product Orientation vs. Market Orientation
Marketing Myopia

Company Product Market

Xerox We make copying We improve office
equipment productivity
Columbia We make movies We entertain
Pictures people
Encyclopedia We sell encyclopedias We distribute
Britannica information
Carrier We make air conditioners We provide climate
and furnaces control inside
homes
The Strategic Planning Gap
Ansoff’s Product-Market
Expansion Grid
• Market penetration
• Market development
• Product development
• Diversification
The Business Unit
Strategic Planning Process
Goal Formulation and MBO
(Management by Objectives)
• Unit’s objectives must be hierarchical
• Objectives should be quantitative
• Goals should be realistic
• Objectives must be consistent
Porter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus
The BCG Matrix (Growth-share matrix)

High

Low

High Low
The BCG Matrix (Growth-share matrix)
• Question Marks – State of most startups, require lot of
cash, think hard whether to keep pouring investment
• Stars – Successful question mark, market leader in a
high-growth market, positive cash flow not necessary,
spends substantially, usually profitable, future cash
cows
• Cash Cows – When market growth rate falls < 10%, star
becomes cash cow if it has largest relative market
share, produces cash, high profit margins
• Dogs – weak market share in low-growth markets, low
profits/losses, consider holding, phase down or out
The BCG Matrix – 4 Alternative Objectives

• Build – Increase market share, even foregoing

short-term earnings, to grow question marks into
stars
• Hold – Preserve SBU’s market share, appropriate
for strong cash cows
• Harvest – Increase SBU’s short-term cash flow,
appropriate for weak cash cows, can also use for
question marks and dogs
• Divest – Sell or liquidate businesses, use resources
elsewhere, appropriate for dogs and question
marks (not doing well)
The GE Matrix
The GE Matrix
GE Model (Multifactor Portfolio Matrix)
 33

References
• Keller, Kotler, Philips, K.L. Keller, A. Koshy and M.
Jha, Marketing Management – A South Asian
Perspective, Pearson Education
• Evans, Joel R. and Berman, Barry, Marketing,
Biztantra Publishers
SUGGESTIONS FOR TELECOM SERVICE PROVIDERS

• Telecom service providers need to put greater focus on

pre-paid consumers to prevent them from availing MNP
and churning.

• Telecom service providers need to focus more on the

functional dimension of service quality rather than the
technical dimension of service quality.

Thank You
• Service providers need to make greater efforts to retain
those customers who have been on the network for a
longer time and who have been contributing more to the
top line or bottom line.