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.

What value opportunities are available?

How can we create new value offerings

efficiently?

How can we delivery the new offerings

efficiently?
 Traditional Process
Make The Product Sell The product
promot distribu
Design Procure Make Price sell Service
e te

Value Creation and delivery Sequence

Choose the Value Provide the Value Communicate the Value

Cust Prd.&
Mkt Source
Segment position Service Pricing distribute Promote
ation Selection and Make
Devlp

Strategic Marketing Tactical Marketing

A core competency is a distinctive capability.
It has 3 characteristics
1. Source of competitive advantage and
makes significant contribution to perceived
consumer benefits.
2. It has applications in wide variety of
markets
3. Difficult for competition to imitate.
A strategy to identify and analyse a target
market and developing a marketing mix to
meet the needs of that market.

Marketing Plan : A written document that

specifies the activities to be performed to
implement and control an organization’s
marketing activities.
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
 Components of Strategic Planning

Organizations Vision and Goals

Analysing Organz’s Strengths & Weakness
Identifying Orgzn’s Opportunities & Threats

Corporate and Business unit strategies

Marketing Finance HR Operations
Objective Objective Objective Objective
Strategy Strategy Strategy Strategy
Mkt Plan Finance Plan HR Plan Opr Plan
Strategic Planning Levels
Provides framework within which
strategies are formulated

o Mission – Reason for existence – what an

organization does
o Vision – Some desired future state
o Values – Key values an organization is
committed to
o Major Goals – Measurable desired future
state an organization attempts to realize

2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1-10
 Business portfolio – the collection of businesses
and products that make up the company.
 Portfolio analysis – a tool by which management
identifies and evaluates the various businesses
making up the company.
 SBU – a division / product line of the company
that can be planned independently as a profit
centre from other company businesses.
 The company must
1) Analyze its current business portfolio and
decide which businesses should receive more,
less, or no investment.
2) Develop growth strategies for adding new
products or businesses to the portfolio.

9/19/2018
To assess:
 Profiles of products/businesses

 The cash demands of products

 The development cycles of products

 Resource allocation and divestment decisions

According to this technique, businesses or products are classified as

low or high performers depending upon their market growth rate
and relative market share.
 Relative market share - this serves as a measure of SBU strength
in the market
 Market growth rate - this provides a measure of market
attractiveness

9/19/2018
 20%- Stars Question marks
Market Growth Rate

18%- 4
16%-
14%-
12%- 5
3
? ?
2
1

10%-
8%- Cash cows Dogs
8
6%-
4%- 7
2%- 6
0
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative Market Share
9/19/2018
9/19/2018
 Leader expanding
industry
 Generates large profits
 Requires substantial
investments to sustain
growth
 Increase sales – e.g. new
markets, new channels of
distribution
 Increase market share

9/19/2018
 Low market share in
expanding industry
 Needs substantial
cash to improve its
position
 Increase sales (limit
to niche or increase
market share (limit
to niche)

9/19/2018
 Leader in mature or
declining industry
 Can generate funds for
other SBUs
 Maintain market share
e.g. ensure quality,
build customer loyalty,
develop substitute
brands

9/19/2018
 Low market share
in a mature or
declining industry
 Cost
disadvantages and
few growth
opportunities
 Harvest or Divest

9/19/2018
 Star – BUILD - Continue to increase market share – if
necessary at expense of short-term earnings

 Problem Child – HARVEST if weak, BUILD if strong.

 Cash Cow – HOLD - Maintain share and cost leadership until

further investment becomes marginal
 Maximize cash flow

 Dogs – DIVEST Plan an orderly withdrawal so as to maximize

cash flow or concentrate on niches that require limited effort

9/19/2018
The process of analyzing:
 Consumer characteristics & trends
 Resources of the Company
 Current and potential
Competitors
 Current and potential
Collaborators
 The Context or environmental
factors

9/19/2018
 Strengths= superior performance
Weaknesses= inferior performance.

Includes review of:

 Company’s resources & capabilities

 Company-specific competencies

 Opportunities: Social and economic conditions and

situations that look positive
 Threats: Marketplace conditions that reduce the
2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1-21
 Convert

Strength Weakness

M
a
t
c
h

Opportunity Threat
Convert
9/19/2018
 Product Market Expansion Grid
Current products
Market penetration strategies
markets
Current
• Increase market share
• Increase product usage
Increase frequency of use
Increase quantity used
New applications
Market development strategies
markets
• Expand markets for existing
New
products – new product
dimensions or packaging
• Geographic expansion
• Target new segments (price
variations)
• New Distribution Channels
New products
Product development strategies
• Product improvements
• Product-line extensions
• New products for same
market
Diversification strategies
• Vertical integration
Forward/backward integration
• Diversification into related bus
(concentric diversification)
• Diversification into unrelated
businesses (conglomerate
diversification)
• Market • Product
Penetration Development

Low Moderate

Medium High

• Market • Diversification
Development
 Growth • Gain Market
• Market
Penetration Share
• Sell more of the
current product
to the existing
market

Strategy Low Risk

•Win competitors’ customers

•Increase usage – amount, occasions
•Getting non-users
•Promotional offers
 ProductDevelopment : Eg. McDonalds Egg Burger,
Google developed new browser Chrome

 Market Development : Lucozade was earlier marketed

for sick children, later as a drink for athletes. Nirma,
HUL exporting to Africa

 Diversification – Virgin Brand, T-Series

 Penetration:
For example, by changing pricing, by adding minor
features (new and improved!), changing the packaging
(shampoo sachets), or highlighting alternative uses.
Cadbury India is pushing for chocolates to be used as small
gifts instead of more traditional sweets used during Diwali
festival.

 Product Development:
McDonald's introduced salads in their outlets in order to
retain its existing customers, many of whom were
becoming more health conscious. Salads are exactly
opposite of what McDonald's is known for! However,
regulatory pressures, changing consumer behavior, and
negative media coverage forced them to introduce more
healthy choices on the menu.

9/19/2018
 Market Development:
Introducing an existing product in different markets is
perhaps one of the most used strategies to extract full
benefit of a successful product. A very common example is
entering different geographical areas nationally and
internationally.

 Diversification:
When marketers introduce a totally new product to a
completely new market, they engage in diversification.
iPod was perhaps one of the most successful diversification
ever. With its launch Apple targeted a very large customer
group, very different from its traditional smaller cult-like
following.

9/19/2018
1. Executive Summary
2. Environmental Analysis
 Marketing Environment – both external and
internal
 Target Markets
 Current Marketing Objectives and performance
3. SWOT Analysis
4. Marketing Objectives
5. Marketing Strategies
 Target Market
 Marketing Mix
6. Implementation and Control