Chapter 1 | DEFINING MARKETING FOR THE 21st CENTURY

Marketing is everywhere. Formally or informally, people and organizations

engage in a vast number of activities that could be called marketing. Good marketing

has become increasingly vital for success. But what constitutes good marketing is

constantly evolving and changing.

Good marketing is no accident, but a result of careful planning and execution

using state-of-the-art tools and techniques. It becomes both an art and a science as

marketers strive to find creative new solutions to often-complex challenges amid

profound changes in the 21st century marketing environment.

The Importance of Marketing

Marketing plays a vital role in today’s business world. The first decade of the

21st century challenged firms to thrive financially and survive in the currently

dynamic economic environment. Marketing plays a key role in addressing those

challenges. Finance, operations, accounting, and other business aspects will be useless

without enough demand for products and services for the business make a profit.

Thus, financial success often depends on marketing ability.

What is Marketing?

Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offers that have value for customers,

clients, partners, and society at large. Marketing is about identifying and meeting
human and social needs. One of the shortest good definitions of marketing is “meeting

needs profitably.” Marketing management is the art and science of choosing target

markets and getting, keeping, and growing customers through creating, delivering,

and communicating superior customer value.

What Is Marketed?

GOODS - Physical goods constitute the bulk of most countries’ production and

marketing efforts.

SERVICES - include the work of airlines, hotels, car rental firms, barbers and

beauticians, maintenance and repair people, and accountants, bankers, lawyers,

engineers, doctors, software programmers, and management consultants. Many

market offerings mix goods and services, such as a fast-food meal.

EVENTS - time-based events, such as trade shows, artistic performances, and

company anniversaries, global sporting events such as the Olympics and the World

Cup.

EXPERIENCES - By orchestrating several services and goods, a firm can create,

stage, and market experiences. Walt Disney World’s Magic Kingdom allows

customers to visit a fairy kingdom, a pirate ship, or a haunted house. There is also a

market for customized experiences, such as a week at a baseball camp with retired

baseball greats, a four-day rock and roll fantasy camp, or a climb up Mount Everest

PERSONS - Artists, musicians, CEOs, physicians, high-profile lawyers and

financiers, and other professionals all get help from celebrity marketers.

PLACES - Cities, states, regions, and whole nations compete to attract tourists,

residents, factories, and company headquarters.

PROPERTIES - intangible rights of ownership to either real property (real estate) or

financial property (stocks and bonds).

ORGANIZATIONS - Organizations work to build a strong, favorable, and unique

image in the minds of their target publics.

INFORMATION The production, packaging, and distribution of information.

Information is essentially what books, schools, and universities produce, market, and

distribute at a price to parents, students, and communities.

IDEAS - Every market offering includes a basic idea. Products and services are

platforms for delivering some idea or benefit. Social marketers are busy promoting

such ideas as “Friends Don’t Let Friends Drive Drunk” and “A Mind Is a Terrible

Thing to Waste.”

Who Markets?

A marketer is someone who seeks a response—attention, a purchase, a vote,

a donation—from another party, called the prospect. If two parties are seeking to sell

something to each other, we call them both marketers.

Eight demand states are as follows:

1. Negative demand—Consumers dislike the product or service and may even

pay to avoid having it.

2. Nonexistent demand—Consumers may be unaware of or uninterested in the

product.

3. Latent demand—Consumers may share a strong need that cannot be satisfied

by an existing product.
 4. Declining demand—Consumers begin to buy the product or service less

frequently or not at all.

5. Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly,

daily, or even hourly basis.

6. Full demand—Consumers are adequately buying all products put into the

market place.

7. Overfull demand—more consumers would like to buy it than can be satisfied.

8. Unwholesome demand—Consumers may be attracted to products that have

undesirable social consequences.

MARKETS

A market is a collection of buyers and sellers who transact over a particular

product or product class. Five basic markets and their connecting flows are shown in

Figure 1.1. Manufacturers go to resource markets (raw material markets, labor

markets, money markets), buy resources and turn them into goods and services, and

sell finished products to intermediaries, who sell them to consumers. Consumers sell

their labor and receive money with which they pay for goods and services. The

government collects tax revenues to buy goods from resource, manufacturer, and

intermediary markets and uses these goods and services to provide public services.

Figure 1.1 Structure of Flows in a Modern Exchange Economy

 Figure 1.2 shows the relationship between the industry and the market. Sellers

and buyers are connected by four flows. Sellers send goods and services and

communications such as ads and direct mail to the market; in return they receive

money and information such as customer attitudes and sales data. The inner loop

shows an exchange of money for goods and services; the outer loop shows an

exchange of information.

Figure 1.2 A Simple Marketing System

KEY CUSTOMER MARKETS

Consumer Markets - Companies selling mass consumer goods and services such as

juices, cosmetics, athletic shoes, and air travel spend a great deal of time establishing

a strong brand image by developing a superior product and packaging, ensuring its

availability, and backing it with engaging communications and reliable service.

Business Markets Companies - selling business goods and services often face well-

informed professional buyers skilled at evaluating competitive offerings. Business

buyers buy goods to make or resell a product to others at a profit.

Global Markets - Companies in the global marketplace must decide which countries

to enter; how to enter each (as an exporter, licenser, joint venture partner, contract

manufacturer, or solo manufacturer); how to adapt product and service features to

each country; how to price products in different countries; and how to design

communications for different cultures.

Nonprofit and Governmental Markets - Companies selling to nonprofit

organizations with limited purchasing power such as churches, universities, charitable

organizations, and government agencies need to price carefully.

MARKETPLACES, MARKETSPACES, AND METAMARKETS

Marketplace is physical, such as a store you shop in while the marketspace

is digital, as when you shop on the Internet. Metamarkets are the result of marketers

wrapping a system that simplifies carrying out related product/service activities. It is a

combination of marketplace and marketspace.

Core Marketing Concepts

 Needs, Wants, and Demands

Needs are the basic human requirements such as for air, food, water, clothing, and

shelter. Humans also have strong needs for recreation, education, and entertainment.

These needs become wants when they are directed to specific objects that might

satisfy the need. Wants are shaped by our society. Demands are wants for specific

products backed by an ability to pay.

 Target Markets, Positioning, and Segmentation

Marketers start by dividing the market into segments. They identify and profile

distinct groups of buyers who might prefer or require varying product and service
mixes by examining demographic, psychographic, and behavioral differences among

buyers.

After identifying market segments, the marketer decides which present the greatest

opportunities— which are its target markets. For each, the firm develops a market

offering that it positions in the minds of the target buyers as delivering some central

benefit(s).

 Offerings and Brands

Companies address customer needs by putting forth a value proposition, a set of

benefits that satisfy those needs. The intangible value proposition is made physical by

an offering, which can be a combination of products, services, information, and

experiences.

A brand is an offering from a known source. A brand name such as McDonald’s

carries many associations in people’s minds that make up its image: hamburgers,

cleanliness, convenience, courteous service, and golden arches.

 Value and Satisfaction

Value, a central marketing concept, is primarily a combination of quality, service,

and price, called the customer value triad. Value perceptions increase with quality and

service but decrease with price.

Satisfaction reflects a person’s judgment of a product’s perceived performance in

relationship to expectations. If the performance falls short of expectations, the

customer

is disappointed. If it matches expectations, the customer is satisfied. If it exceeds

them, the customer is delighted.

 Marketing Channels
 . Communication channels deliver and receive messages from target buyers and

include newspapers, magazines, radio, television, mail, telephone, billboards, posters,

fliers, CDs, audiotapes, and the Internet.

The marketer uses distribution channels to display, sell, or deliver the physical

product or service(s) to the buyer or user. These channels may be direct via the

Internet, mail, or mobile phone or telephone, or indirect with distributors, wholesalers,

retailers, and agents as intermediaries.

The marketer also uses service channels that include warehouses, transportation

companies, banks, and insurance companies.

 Supply Chain

The supply chain is a longer channel stretching from raw materials to components

to finished products carried to final buyers.

 Competition

Competition includes all the actual and potential rival offerings and substitutes a

buyer might consider.

 Marketing Environment

The marketing environment consists of the task environment and the broad

environment. The task environment includes the actors engaged in producing,

distributing, and promoting the offering. These are the company, suppliers,

distributors, dealers, and target customers. In the supplier group are material suppliers

and service suppliers, such as marketing research agencies, advertising agencies,

banking and insurance companies, transportation companies, and telecommunications

companies.
Distributors and dealers include agents, brokers, manufacturer representatives, and

others who facilitate finding and selling to customers.

The broad environment consists of six components: demographic

environment, economic environment, social-cultural environment, natural

environment, technological environment, and political-legal environment.

Holistic Marketing

(Integrated Marketing, Internal, Performance, Social Initiatives)

A business marketing philosophy called Philosophy of Holism or Holistic

Marketing considers business and all its parts as one single entity and gives a shared
purpose to every activity and person related to that business. Business and its parts are
considered as one interconnected entity, just like a human as one integrated organism,
will always be greater than the sum of eyes, nose, heart, brain, legs, hands, etc., where
all its activities are directed towards on specified goal. Holistic marketing concept
enforces this interrelatedness and believes that a broad and integrated perspective is
essential to attain best result.

Integrated Marketing is an approach to create a unified and seamless

experience for consumer to interact with the brand by designing and directing all
communication (advertising, sales promotion, direct marketing, public relations, and
digital marketing) in such a way so that all work together as a unified force and
centers around a strong and focused brand image. A marketer devises marketing
activities and assembles marketing programs to create, communicate, and deliver
value for consumers such that “the whole is greater than the sum of its parts.”

Internal Marketing is the task of hiring, training, and motivating able

employees who want to serve customers well. There are two types of customers to
every business: internal and external. While focusing on external customers should be
a top priority for every business, internal customers should not be left unnoticed as
these internal customers (employees) play a vital role in marketing the brand and
products to the external customers of the business.

Internal Marketing treats employees and staffs as internal customers who must
be convinced of a company’s vision and worth just as aggressively as external
customers. It also involves crafting processes which make them understand their role
in the marketing process.

Performance marketing is a method of interactive advertising paid for not with

a set price, but with a variable price that depends on the performance of the ad. This
type of marketing refers to online marketing and advertising programs in which
advertisers and marketing companies are paid when a specific action is completed;
such as a sale, lead or click.

Performance marketing has two aspects: Financial Accountability and Socially

Responsible Marketing.

Financial Accountability aspect involves in investments in financial and

profitability terms, as well as in terms of building the brand and growing the customer
base.

The Socially Responsible Marketing aspect involves a broader concern of the

society at large. It requires the business to follow certain business ethics and focuses
on partnerships with philanthropic and community organizations. A business is
considered as a part of the society and is required to repay the same. Socially
responsible marketing encourage a positive impact on company’s stakeholders.

Social Initiatives

1. Corporate social marketing- A campaign intended to improve public health,

safety and the environment. Supporting behavior change campaigns.
2. Cause marketing- Promoting social issues through efforts such as
sponsorships, licensing agreements, and advertising.
3. Corporate philanthropy- Making gifts of money, goods, or time to help
nonprofit organizations, groups, or individuals
 4. Corporate community involvement- Providing in-kind or volunteer services in
the community
5. Socially responsible business practices- Adapting and conducting business
practices that protect the environment and human and animal rights

The Marketing Mix

Marketing Mix is about putting the right product or a combination thereof in the
place, at the right time, and at the right price. The difficult part is doing this well, as
you need to know every aspect of your business plan.

The image above is a simplistic diagram of the elements that are included in a
marketing mix.

A product is an item that is built or produced to satisfy the needs of a certain

group of people. The product can be intangible or tangible as it can be in the form of
services or goods. You must ensure to have the right type of product that is in demand
for your market. So during the product development phase, the marketer must do an
extensive research on the life cycle of the product that they are creating. A product
has a certain life cycle that includes the growth phase, the maturity phase, and the
sales decline phase. It is important for marketers to reinvent their products to
stimulate more demand once it reaches the sales decline phase.

The price of the product is basically the amount that a customer pays for to
enjoy it. It is also a very important component of a marketing plan as it determines
your firm’s profit and survival. Adjusting the price of the product has a big impact on
the entire marketing strategy as well as greatly affecting the sales and demand of the
product.

Placement or distribution is a very important part of the product mix

definition. You have to position and distribute the product in a place that is accessible
to potential buyers. This comes with a deep understanding of your target market.
Understand them inside out and you will discover the most efficient positioning and
distribution channels that directly speak with your market.

Promotion is a very important component of marketing as it can boost brand

recognition and sales. Your combination of promotional strategies and how you go
about promotion will depend on your budget, the message you want to communicate,
and the target market you have defined already in previous steps.

Thorough research is important to discover whether there are enough people in

your target market that is in demand for certain types of products and services. When
a business finds people who genuinely believe in the products or services that the
particular business creates, it’s is highly likely that the employees will perform the
best they can.

The systems and processes of the organization affect the execution of the
service. So, you have to make sure that you have a well-tailored process in place to
minimize costs.

In the service industries, there should be physical evidence that the service
was delivered. Additionally, physical evidence pertains also to how a business and its
products are perceived in the marketplace. It is the physical evidence of a business’
presence and establishment. A concept of this is branding.

Marketing Management Tasks

The following are the tasks of marketing management in which they will be
discussed in the succeeding lessons.

 Develop market strategies and plans

 Capture marketing insights
 Connect with customers
  Build strong brands
 Shape market offerings
 Deliver value
 Communicate value
 Create long-term growth

CHAPTER 2 | DEVELOPING MARKETING STRATEGIES AND PLANS

In this chapter, we will address the following questions:

 How does marketing affect customer value?
 How strategic planning is carried out at different levels of the
organization?
 What does a marketing plan include?

What is STRATEGY?
 The art and science of planning and marshalling resources for their most
efficient and effective use. (Business Dictionary)
What is PLAN?
 Written account of intended future course of action aimed to achieving
specific goals or objectives within a specific timeframe.

CUSTOMER VALUE
 It is linked closely to customer satisfaction and loyalty, is the perception of
what a product or service is worth to a customer versus the possible
alternatives.
 THE VALUE DELIVERY PROCESS
Traditional View of Marketing - The traditional view of marketing is that
the firm makes something and then sells it, with marketing taking place in the
selling process. This chapter begins by examining some of the strategic
marketing implications in creating customer value. We’ll look at several
perspectives on planning and describe how to draw up a formal marketing
plan. Developing Marketing Strategies and Plans succeeding in economies
marked by goods shortages where consumers are not fussy about quality,
features, or style—for example, basic staple goods in developing markets

New View of Marketing - The smart competitor must design and deliver
offerings for well-defined target markets. This realization inspired a new view
of business processes that places marketing at the beginning of planning.
Instead of emphasizing making and selling, companies now see themselves as
part of a value delivery process. Instead of emphasizing making and selling,
companies now see themselves as part of a value delivery process

THE VALUE DELIVERY PROCESS

VALUE CHAIN

- Harvard’s Michael Porter has proposed the

value chain as a tool for identifying ways to
create more customer value.
- According to this model, every firm is a
synthesis of activities performed to design,
produce, and market, deliver, and support its
product.
- The value chain identifies nine strategically relevant activities—five
primary and four support activities—that create value and cost in a
specific business.

CORE BUSINESS PROCESSES

  These are the operational processes that refer to delivery of value to the
customer by providing products or services that meet their needs.

 The firm’s success depends not only on how well each department performs
its work, but also on how well the company coordinates departmental
activities to conduct core business processes.
The market-sensing process. All the activities in gathering and acting upon
information about the market
 The new-offering realization process. All the activities in researching,
developing, and launching new high-quality offerings quickly and
within budget.
 The customer acquisition process. All the activities in defining target
markets and prospecting for new customers
 The customer relationship management process. All the activities in
building deeper understanding, relationships, and offerings to
individual customers.
 The fulfillment management process. All the activities in receiving and
approving orders, shipping the goods on time, and collecting payment.

CORE COMPETENCIES
 These are the capability or advantage that distinguishes an enterprise from its
competitors
3 CHARACTERISTICS
  Traditionally, companies owned and controlled most of the resources that
entered their businesses— labor power, materials, machines, information, and
energy—but many today outsource less-critical resources if they can obtain
better quality or lower cost.
 The key, then, is to own and nurture the resources and competencies that make
up the essence of the business.
 Many textile, chemical, and computer/electronic product firms do not
manufacture their own products because offshore manufacturers are more
competent in this task. Instead, they focus on product design and development
and marketing, their core competencies.
 Competitive advantage also accrues to companies that possess distinctive
capabilities or excellence in broader business processes.
 Competitive advantage ultimately derives from how well the company has
fitted its core competencies and distinctive capabilities into tightly
interlocking “activity systems.” Competitors find it hard to imitate some
companies because they are unable to copy their so called “activity system”.
BUSINESS REALIGNMENT
 It maximizes the core competencies of a business.
3 STEPS

HOLISTIC MARKETING ORIENTATION and CUSTOMER VALUE

1. Value Exploration
2. Value Creation
3. Value Delivery
  On the other hand, Holistic marketers thus succeed by managing a superior
value chain that delivers a high level of product quality, service, and
speed. They achieve profitable growth by expanding customer share,
building customer loyalty, and capturing customer lifetime value.
 Holistic marketers address three key management questions: 1. Value
exploration—how a company identifies new value opportunities 2. Value
creation—how a company efficiently creates more promising new value
offerings 3. Value delivery—How a company uses its capabilities and
infrastructure to deliver the new value offerings more efficiently
THE CENTRAL ROLE OF STRATEGIC PLANNING
 It is an organization’s process of defining its strategy, or direction, and making
decisions on allocating its resources to pursue this strategy.
 Successful marketing thus requires capabilities such as understanding,
creating, delivering, capturing, and sustaining customer value. Only a select
group of companies have historically stood out as master marketers.
 These companies focus on the customer and are organized to respond
effectively to changing customer needs. They all have well-staffed marketing
departments, and their other departments accept that the customer is king.
 To ensure they select and execute the right activities, marketers must give
priority to strategic planning in three key areas: (1) managing a company’s
businesses as an investment portfolio, (2) assessing each business’s strength
by considering the market’s growth rate and the company’s position and fit in
that market, and (3) establishing a strategy. The company must develop a
game plan for achieving each business’s long-run objectives.
THE CENTRAL ROLE OF STRATEGIC PLANNING
  Most large companies consist of four organizational levels: (1) corporate, (2)
division, (3) business unit, and (4) product. Corporate headquarters is
responsible for designing a corporate strategic plan to guide the whole
enterprise; it makes decisions on the amount of resources to allocate to each
division, as well as on which businesses to start or eliminate. Each division
establishes a plan covering the allocation of funds to each business unit within
the division. Each business unit develops a strategic plan to carry that business
unit into a profitable future. Finally, each product level (product line, brand)
develops a marketing plan for achieving its objectives.
MARKETING PLAN
 It is the central instrument for directing and coordinating the marketing effort.
It operates at two levels: the strategic and tactical.
 The strategic marketing plan lays out the target market and the firm’s value
proposition, based on an analysis of the best market opportunities.
 The tactical marketing plan specifies the marketing tactics, including product
features, promotion, merchandising, pricing, sales channels, and service.

 The complete planning, implementation, and control cycle of strategic

planning is shown in Figure. Next, we consider planning at each of these
four levels of the organization.
CORPORATE AND DIVISION STRATEGIC PLANNING

 Some corporations give their business units freedom to set their own sales and
profit goals and strategies. Others set goals for their business units but let them
develop their own strategies. Still others set the goals and participate in
developing individual business unit strategies.
 All corporate headquarters undertake four planning activities.

DEVELOPING MARKETING STRATEGIES & PLANS

Your marketing strategy should start with a customer problem. A successful

product or service solves a problem for the customer. Perform market research to find
out what your potential customers want. Use that research to determine how to
position the product to meet their needs. Then, you can create a marketing strategy to
attract your audience to this product. With this strategy, you want to create brand
awareness, generate new leads and ultimately sell your product or service.

Organizational culture
• Some defines it as the shared experiences, stories,
beliefs and norms that characterized an
organization.
• The basic pattern of shared assumptions, values,
and beliefs considered to be the correct way of
 thinking about and acting on problems and opportunities facing the
organization.
Corporate Cultures
 Is the shared experiences, beliefs, stories & norms that characterized an
organization. The way people dress, talk to one another, greet customers.
It develops from head of the organization up to the lower level.

Marketing Innovation
 Innovation in marketing is critical. Imaginative ideas exist in many places
within a company. Companies looking for innovative marketing ideas should
look to three underrepresented employee groups such as:
 employees with youthful or diverse perspectives,
 employees far away from corporate headquarters,
 And employees new to the industry.

Scenario Analysis
 Plausible representations of a firm possible future using assumptions about
some forces driving the market and diff uncertainties.

 Scenario analysis looks at future possibilities by asking “What if…” questions

about customers, competitors, markets.
Business Mission

 Each business unit must develop a specific mission that fits within the broader
company mission. For example, the specific mission for YouTube must fit
within the overall mission of Google.
Your business objectives are the results you hope to achieve as you run
and grow your business. As an entrepreneur, you are concerned with every
aspect of your business and need to have clear goals in mind for your company
 if you are to stay on track. Having a comprehensive list of business objectives
creates the guidelines that become the foundation for your business planning.
Business Unit Strategic Planning involves different aspects to be
consider in order to achieve the useful common business mission of every
company that may help in preparation of achieving it.

1. SWOT Analysis

To run a successful business, you should regularly analyze your

processes to ensure you are operating as efficiently as possible. While there are
numerous ways to assess your company, one of the most effective methods is to
conduct a SWOT analysis.
 A SWOT (strengths, weaknesses, opportunities and threats) analysis is
a planning process that helps your company overcome challenges and determine
what new leads to pursue.
The primary objective of a SWOT analysis is to help organizations
develop a full awareness of all the factors involved in making a business decision.
This method was created in the 1960s by Albert Humphrey of the Stanford Research
Institute, during a study conducted to identify why corporate planning consistently
failed. Since its creation, SWOT has become one of the most useful tools for
business owners to start and grow their companies. “It is impossible to accurately
map out a small business's future without first evaluating it from all angles, which
includes an exhaustive look at all internal and external resources and threats," Bonnie
Taylor, chief marketing strategist at CCS Innovations, told Business News Daily. "A
SWOT accomplishes this in four straightforward steps that even rookie business
owners can understand and embrace."

2. External Environment (Opportunity & Threat)

How to spot Opportunities?
 1. A company may benefit from converging industry trends and introduce hybrid
products or services that are new to the market.
2. A company may make a buying process more convenient or efficient
3. A company may meet the need for more information and advice.
4. A company can customize a product or service
5. A company can introduce new capability
6. A company may be able to deliver a product or service faster
7. A company may be able to offer a product at a much lower price

Internal Environment (Strengths & Weaknesses)

Businesses can evaluate their own strengths and weaknesses, business doesn’t
have to correct all its weaknesses, nor should it gloat about all its strengths.
3. Goal Formulation
Developing specific goals for the planning period, Goals are objectives that
are specific w/ respect to magnitude and time
To meet these objectives, it must meet the four criteria:
 They must be arranged hierarchically, from most top least important
 Objectives should be quantitative whenever possible
 Goals should be realistic
 Objectives must be consistent

4. Strategy formulation
Porters Generic Strategies
Michael Porter in 1985 in his book,
"Competitive Advantage: Creating
and Sustaining Superior
Performance." Porter called the
generic strategies "Cost Leadership"
(no frills), "Differentiation" (creating
uniquely desirable products and
services) and "Focus" (offering a
specialized service in a niche market). He then subdivided the Focus strategy into two
parts: "Cost Focus" and "Differentiation Focus.

The Cost Leadership Strategy

Porter's generic strategies are ways of gaining competitive advantage – in other

words, developing the "edge" that gets you the sale and takes it away from your
competitors. There are two main ways of achieving this within a Cost Leadership
strategy:

 Increasing profits by reducing costs, while charging industry-average prices.

 Increasing market share by charging lower prices, while still making a

reasonable profit on each sale because you've reduced costs.

The Differentiation Strategy

Differentiation involves making your products or services different from and

more attractive than those of your competitors. How you do this depends on the exact
nature of your industry and of the products and services themselves, but will typically
involve features, functionality, durability, support, and also brand image that your
customers value.

 To make a success of a Differentiation strategy, organizations need:

 Good research, development and innovation.
 The ability to deliver high-quality products or services.
 Effective sales and marketing, so that the market understands the benefits
offered by the differentiated offerings.

The Focus Strategy

Companies that use Focus strategies concentrate on particular niche markets and,
by understanding the dynamics of that market and the unique needs of customers
within it, develop uniquely low-cost or well-specified products for the market.
Because they serve customers in their market uniquely well, they tend to build strong
brand loyalty amongst their customers. This makes their particular market segment
less attractive to competitors.
As with broad market strategies, it is still essential to decide whether you will pursue
Cost Leadership or Differentiation once you have selected a Focus strategy as your
main approach: Focus is not normally enough on its own.
But whether you use Cost Focus or Differentiation Focus, the key to making a success
of a generic Focus strategy is to ensure that you are adding something extra as a result
of serving only that market niche. It's simply not enough to focus on only one market
segment because your organization is too small to serve a broader market (if you do,
you risk competing against better-resourced broad market companies' offerings).
The "something extra" that you add can contribute to reducing costs (perhaps
through your knowledge of specialist suppliers) or to increasing differentiation
(though your deep understanding of customers' needs).

Strategic Alliances

Strategic Alliances can be used to compliment or leverage current capabilities and

resources to the benefit of both parties. Alliances fall into four categories:

 Product or service alliance.

 Promotional alliances
 Logistic alliances
 Pricing collaborations.

5. Program Formulation & Implementation

Even a great marketing strategy can be sabotaged by poor implementation. If the unit
has decided to attain technological leadership, it must strengthen its R&D department,
gather technological intelligence, develop leading-edge products, train its technical
sales force, and communicate its technological leadership.
Proper formulation ensures that all the pieces fit together. But firms must also
examine the cost of the marketing programs to ensure that the expense is justified.

Following are the main differences between Strategy Formulation and Strategy
Implementation

Strategy Formulation Strategy Implementation

Strategy Formulation includes planning Strategy Implementation involves all

and decision-making involved in those means related to executing the
developing organization’s strategic goals strategic plans.
and plans.

In short, Strategy Formulation is placing In short, Strategy Implementation is

the Forces before the action. managing forces during the action.

Strategy Formulation is an Strategic Implementation is mainly an

Entrepreneurial Activity based on Administrative Task based on strategic
strategic decision-making. and operational decisions.

Strategy Formulation emphasizes on Strategy Implementation emphasizes on

effectiveness. efficiency.

Strategy Formulation is a rational Strategy Implementation is basically an

process. operational process.

Strategy Formulation requires co- Strategy Implementation requires co-

ordination among few individuals. ordination among many individuals.

Strategy Formulation requires a great Strategy Implementation requires specific

deal of initiative and logical skills. motivational and leadership traits.

Strategic Formulation precedes Strategy Strategy Implementation follows Strategy

Implementation. Formulation.

Great strategies can lead to failure unless they are implemented properly.
 6. Feedback & Control

Changes in the market are inevitable. Companies must be aware of pending

changes and also have the will to change course. To maximize the return on a
marketing plan, there need to be controls in place to monitor the plan's progress. As a
marketing plan moves along, the controls are constantly analyzed to determine how
the plan's actual performance compares to the projections. Any changes that need to
be made are done based on the analysis of marketing controls. Understanding what
the controls in a marketing plan are will help you develop effective performance
measurement indicators.

Monitor Customer Feedback

Marketing is designed to persuade consumers to purchase a product or invest

in a service. One control put into place in any marketing plan is the monitoring of
customer feedback through polls and surveys. You can reach customers indirectly by
hosting online polls on the Internet that ask specific questions about your latest
marketing plan. Conversely, surveys can be done with marketing groups or via
individual interviews by phone or in person.
Adjust your marketing plan according to the results of your research. For
example, if your marketing campaign includes a new company mascot and customer
feedback indicates that the mascot is not popular, then the mascot should be removed
from the marketing plan.

Marketing Plan
 Is a written document that summarizes what the marketer has learned about
the market place and indicates how the firm plans to reach its marketing
objectives, it contains the following section:
1. Executive Summary and table of contents
 2. Situation analysis
3. Opportunities/Issue Analysis/ SWOT
4. Marketing strategy
5. Action Program
6. Financial projections
7. Implementation controls
A marketing plan may be part of an overall business plan. Solid marketing strategy is
the foundation of a well-written marketing plan. While a marketing plan contains a
list of actions, without a sound strategic foundation, it is of little use to a business.
Evaluating a Marketing Plan must always consider and ask; Is the plan simple? Is the
plan specific? Is the plan realistic? Is the plan complete?
The Role of Research
To develop innovative products, successful strategies
and action programs need to update information about the
environment, the competition and also to identify areas of
improvement. Research also helps the marketer learn more
about their customers’ requirements, expectations,
perceptions, satisfaction & loyalty.
From Marketing Plan to Marketing Action
The marketing plan should define how progress toward
objectives will be measured. They typically use budgets,
schedules and marketing metrics for monitoring and evaluating
results.
Must be ready to update and adapt marketing plans at any
time.

Don’t find customers for your products, find products for your customer.
-Seth Godin
References:
Marketing Management— 14th ed. by Philip Kotler and Kevin Lane Keller
http://library.aceondo.net/ebooks/Business_Management/Marketing_Management_14th.Editi

on.pdf

Feedough.com, The Entrepreneur Guide: Holistic Marketing

Kotler- Keller Marketing Management

Marketing- Schools.org: Performance Marketing

The Marketing Mix.co.uk

https://www.entrepreneur.com/article/43018
https://smallbusiness.chron.com/examples-controls-marketing-plan-11575.html
https://siteeconomics.blogspot.com/2016/05/program-formulation-and-
implementation.html
https://www.managementstudyguide.com/strategy-formulation-vs-
implementation.htm
https://www.mindtools.com/pages/article/newSTR_82.htmv