Chapter 2

Chapter 2
Developing marketing strategies and marketing plan
Marketing strategy identifies:
- A firm’s target market(s) ( who are your perspective customers?)
- A related marketing mix – the four P’s and (what you want to sell
them and how, working out the marketing mix or 4p’s)
- The bases upon which firm plans to build a sustainable competitive
advantage. (how you plan to be in the competition )
Sustainable competitive advantage (SCA) is
(a) The firm can persistently do better than its competitors
(b) Cannot be easily copied,
(c) Can be sustained (maintained) over a long period of time
A firm can have more than one SCA. However, most firms have only one
(maximum two) SCA.

Developing customer value (how do firms win?)
(Firms can win (sustainable competitive advantage) by creating sus
period customer value. There are 4 strategies to achieve.)
- Customer excellence: loyal customers enable a firm to introduce new
products and change price points without the risk of losing them.
Think of all these loyalty programs around us.
- A)Retain loyal customers. B)Provide excellent customer service.
- Operational excellence: firms strive to get their customers the
merchandise they want, when they want it, in the required quantities
and at a lower delivered cost than that of their competitors.

eg: amazon. Lower cost and
delivery faster.
- Product excellence: building a strong brand and unique positioning in
the marketplace can be a strong deterrent to other competitors that
look to enter the market.
High perceived value + effective branding and positioning
- Locational excellence: Tim Hortons and Starbucks have developed a
strong competitive advantage with their location selection. This makes
it very difficult for competitors to enter the market and to find good
locations.
The three important things in retailing are location, location, location.
- Multiple sources of advantage
Eg, WestJet is a good example. Using multiple excellence to create
competitive advantage.
What is marketing plan

A written document composed of an analysis of :
(a) The current marketing situation
(b) Opportunities and threats for the firm
(c) Marketing objective and strategy in terms of the 4 P’s, action
programs and projected income or other financial statements.
- There are three phases of a strategic plan: planning, implementation,
control
Planning phase:
step 1 what business are we in? what are goals and how do we plan to
achieve these goals?
Step2: What environment we will be doing the business within? What
are the major micro and macro influence in this environment. What are
the current stage of the firm come to the competition, who are the key
player in markets supplier and distributers .
Implementation phase:
Step 3: segmentation: divide markets in portions. Targeting: the segments
you want to pursue. Positioning: how do you want to present yourself to
those target segments.
Proper execution is essential:
Even well-executed plan requires monitoring and updating, because the
needs of any market constantly change.
Step 1 : define the business mission & objectives
Mission statement: a broad description of a firm’s objectives and the
scope of activities it plans to take; it attempts to answer two main
questions: what type of business is it? And what does it need to
accomplish its goals and objectives?
Step 2 : conduct a situation analysis ( using swot)

External: companies cannot control.
Step 3: identify and evaluate opportunities by using STP.
Step 4：implement marketing mix and allocate resources
Product and value creation
Price and value for money
Exchange: product=money, price is only a part of value.
Place and value delivery
Product must be readily accessible when and where the customer wants it.
Promotion and value communication
Marketers inform customers and convince them to buy it.
Step 5: evaluate performance by using marketing metrics
Metrics are used to explain why things happened and to project the
future.
It can be difficult to find one measure to evaluate performance.

Marketing metrics include:
- Performance metrics and objective (compare sales, profits over time,
brand awareness)
- Financial performance metrics (sales, profit)
- Social responsibility performance metrics (impact to environment etc.)
Control phase allow firms to identify the problems and take correct
actions. Actual marketing plans are not sequential, can move back and
forward between 5 steps.
Portfolio analysis Boston consulting group matrix ( BCG)
How firms allocate resources and achieve the best competitive advantage.
Star eg, apple watch. The market is growing and you are strong in market.
Cash cows eg, iphone; Microsoft office software.
Question marks: apple tv. We might need to leave the market.
Dogs: ipod. Markets are declining and share is declining.
Disadvantages of this strategy:
1. It overemphasize the importance of market share. Market share is not

the only success indicator.
2. BCG fails to recognize the value of synergy.
Growth strategies
Market penetration: selling existing products to existing segments.
Eg, a “ sale/ promotion” is a market penetration strategy. Why?
Sales encourage current users to consume more of the current product
mix, but they also bring new customers to the business. Many strategies
can be used to get current consumers to consume more of your product.
Product development: new product / service to current target market
Market development strategy: existing marketing offering, new market
segments (domestic, international) not currently being served.
Eg, Costco in Australia.
Diversification: new product to new market segment not currently being

served.

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Chapter 2

Developing marketing strategies and marketing plan

Marketing strategy identifies:

- A firm’s target market(s) ( who are your perspective customers?)

them and how, working out the marketing mix or 4p’s)

- The bases upon which firm plans to build a sustainable competitive

advantage. (how you plan to be in the competition )

Sustainable competitive advantage (SCA) is

(a) The firm can persistently do better than its competitors

(b) Cannot be easily copied,

(c) Can be sustained (maintained) over a long period of time

(maximum two) SCA.

(Firms can win (sustainable competitive advantage) by creating sus

period customer value. There are 4 strategies to achieve.)

- Customer excellence: loyal customers enable a firm to introduce new

Think of all these loyalty programs around us.

- A)Retain loyal customers. B)Provide excellent customer service.

- Operational excellence: firms strive to get their customers the

and at a lower delivered cost than that of their competitors.

- Product excellence: building a strong brand and unique positioning in

the marketplace can be a strong deterrent to other competitors that

look to enter the market.

High perceived value + effective branding and positioning

- Locational excellence: Tim Hortons and Starbucks have developed a

strong competitive advantage with their location selection. This makes

The three important things in retailing are location, location, location.

- Multiple sources of advantage

Eg, WestJet is a good example. Using multiple excellence to create

What is marketing plan

(a) The current marketing situation

(b) Opportunities and threats for the firm

(c) Marketing objective and strategy in terms of the 4 P’s, action

programs and projected income or other financial statements.

- There are three phases of a strategic plan: planning, implementation,

achieve these goals?

Step2: What environment we will be doing the business within? What

player in markets supplier and distributers .

Step 3: segmentation: divide markets in portions. Targeting: the segments

you want to pursue. Positioning: how do you want to present yourself to

those target segments.

Proper execution is essential:

Even well-executed plan requires monitoring and updating, because the

needs of any market constantly change.

Step 1 : define the business mission & objectives

Mission statement: a broad description of a firm’s objectives and the

scope of activities it plans to take; it attempts to answer two main

questions: what type of business is it? And what does it need to

accomplish its goals and objectives?

Step 2 : conduct a situation analysis ( using swot)

Step 3: identify and evaluate opportunities by using STP.

Step 4：implement marketing mix and allocate resources

Product and value creation

Price and value for money

Exchange: product=money, price is only a part of value.

Place and value delivery

Promotion and value communication

Marketers inform customers and convince them to buy it.

Step 5: evaluate performance by using marketing metrics

It can be difficult to find one measure to evaluate performance.