Discussion Outline

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Discussion Outline

• What is Marketing Planning?
• Planning to Create Value
• Corporate vs. SBU Planning
• Strategic vs. Tactical Planning
• SWOT Analysis as a Planning Tool
• Internal Environment (Strengths/Weaknesses)
• External Environment (Opportunities/Threats)
• Alternative Views of Strategy
• Elements of the Strategic Plan

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The Value Delivery Process(Value Chain or Supply
Chain)
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Value Derives From Core Competencies

• Core Competency
• Something that we do really well which creates
  significant contribution to perceived customer
  benefits
• Has broad application
• Is difficult to imitate
• Porter identified 5 core competencies
• Examples
• Wal-Mart stock replenishment (VMI) and RFID
• Cut costs by 20 and stock-out by 16
• Blockbuster video home delivery
• Radio Shack electronics retailing

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Figure 2.1 Porters Value ChainValue Derives
from 5 Core Competencies
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Corporate headquarters planning activities

• Define the corporate mission
• Establish SBUs
• Assign resources to each SBU
• Assess growth opportunities

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Characteristics of SBUs

• It is a single business or collection of related
  businesses
• think Corporate Division or Segment
• It has its own set of competitors
• It has its own strategies and resources
• It has a leader responsible for
• Strategic planning
• Profitability
• Efficiency

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SBU Planning Activities
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Levels of a Marketing Plan

• Strategic
• Target marketing decisions
• Value proposition
• Analysis of marketing opportunities

• Tactical
• Product features
• Promotion
• Merchandising
• Pricing
• Sales channels
• Service

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Ex. Halo Research

• Strategic
• Seniors, living alone, with health issues
• Provides peace of mind and independent lifestyle
• 3m-36m person market, worth 2billion in 5 years

• Tactical
• Strap design and functionality
• Doctors, AAARP, trade shows
• 30-35 per unit monthly, 400 setup
• Home health care providers, third party
  distributors
• Outsource 24/7 call center

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Discussion Outline

• What is Marketing Planning?
• Planning to Create Value
• Corporate vs. SBU Planning
• Strategic vs. Tactical Planning
• SWOT Analysis as a Planning Tool
• Internal Environment (Strengths/Weaknesses)
• External Environment (Opportunities/Threats)
• Alternative Views of Strategy
• Elements of the Strategic Plan

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SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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Ex. Halo Research
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Ex. Halo Research

• Strengths
• Comprehensive solution
• Innovative patents
• Working prototype
• Solid plan of action
• Weaknesses
• Lack of funding
• Liability issues
• No experience in market
• No brand equity

• Opportunities
• Huge market
• Wealthy target
• Healthcare mandates
• Lots of expansion and buyout opps
• Threats
• Direct competition
• Indirect competition
• Power players
• FDA/Medicare/Insurance

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Discussion Outline

• What is Marketing Planning?
• Planning to Create Value
• Corporate vs. SBU Planning
• Strategic vs. Tactical Planning
• SWOT Analysis as a Planning Tool
• Internal Environment (Strengths/Weaknesses)
• External Environment (Opportunities/Threats)
• Alternative Views of Strategy
• Elements of the Strategic Plan

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Porters Generic Strategies
Overall Cost Leadership
Differentiation
Focus
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Ansoffs Product-Market Expansion Grid
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Market Share/ Market Growth MatrixBoston
Consulting Group
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• The Marketing Environment and associated
  Marketing Strategy elements.

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Discussion Outline

• What is Marketing Planning?
• Planning to Create Value
• Corporate vs. SBU Planning
• Strategic vs. Tactical Planning
• SWOT Analysis as a Planning Tool
• Internal Environment (Strengths/Weaknesses)
• External Environment (Opportunities/Threats)
• Alternative Views of Strategy
• Elements of the Strategic Plan

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Marketing Plan Contents

• Executive summary
• Table of contents
• Situation/Market Analysis
• Marketing Strategy
• Financial Projections
• Implementation Controls

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Useful Resources

• Palo Alto Software
• Business Plan Pro
• www.bplans.com
• Marketing Plan Pro
• www.mplans.com
• Useful for sample plans and free tools
• Academic versions available

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Evaluating a Marketing Plan

• Is the plan simple?
• Is the plan specific?
• Is the plan realistic?
• Is the plan complete?