Lecture: Developing Marketing Strategies and Marketing Plan

Chapter Overview

• Topic: Developing marketing strategies and a marketing plan
• Purpose: Guide for companies to market their services/products effectively and measure results
• Comparison: Companies vs. Individuals in planning
  • Companies must have a detailed business and marketing plan
  • Individuals rarely document their long-term goals

PepsiCo: A Case Study

• Company Overview: Conglomerate, direct competitor of Coca-Cola
• Market Expansion: Beyond beverages into salty snacks and healthier options
  • Acquisition of healthier snack companies
  • Developed seltzer drinks (e.g., Bubly)
  • Secured exclusive contracts (e.g., Southwest Airlines)
• Strategic Positioning: Extensive product lines, strong celebrity endorsements
  • Michael Jackson, Cardi B, Beyoncé, Michael Bublé, etc.
• Competitive Analysis: Pepsi vs. Coca-Cola
  • Pepsi diversified, Coca-Cola focusing on beverages

Learning Objectives

1. Define a marketing strategy
2. Describe elements of a marketing plan
3. Analyze a marketing situation using SWOT analysis
4. Describe how firms choose consumer groups (segmentation, targeting, positioning)
5. Outline implementation of marketing mix (4 Ps)
6. Summarize portfolio analysis for marketing performance
7. Describe business growth strategies

What is a Marketing Strategy?

• Components: Identifies target markets, related marketing mix (4 Ps), and sustainable competitive advantage
• Sustainable Competitive Advantage: Long-term, hard-to-copy advantage over competitors
  • Example: Pepsi’s brand distinction
  • Four Ps: Product, price, place, promotion

Customer Value Strategies

• Customer Excellence: Retaining loyal customers and providing outstanding service
  • Example: Disney’s Magic Band system
  • Loyalty Programs, exemplary customer service
• Operational Excellence: Efficient operations, supply chain management, strong supplier relationships
  • Example: Amazon’s Prime shipping
• Product Excellence: High perceived value, branding, and positioning
  • Example: Top global brands like Apple, Google, Microsoft
• Locational Excellence: Importance of location for retailers and service providers
  • Example: Starbucks’ strategic locations blocking competitors

Marketing Plan Development

• Steps: Five major steps divided into planning, implementation, and control phases
  • Planning Phase: Define mission and vision, conduct SWOT analysis
  • Implementation Phase: STP analysis, implement marketing mix based on 4 Ps
  • Control Phase: Evaluate performance using metrics

Evaluating Opportunities (STP Analysis)

• Segmentation: Divide market into groups of customers with similar needs
  • Example: Hertz’s car segments
• Targeting: Evaluating and selecting which market segments to pursue
• Positioning: Defining marketing mix for clear market positioning

Implementing Marketing Mix (4 Ps)

• Product: Successful creation of valuable products/services
• Price: Pricing strategy to capture value
• Place: Effective distribution to make products accessible
• Promotion: Integrated Marketing Communications (advertising, PR, direct marketing, social media)

Growth Strategies

• Market Penetration: Increase market share within existing markets
• Market Development: Expanding into new market segments
• Product Development: Offering new products to current market
• Diversification: Introducing new products to new markets
  • Related & Unrelated Diversification: Shared elements vs. entirely new areas

Example Cases

• Disney Plus vs. Netflix: Direct-to-consumer model for streaming services
• Amazon & Whole Foods: Entry into physical grocery market via acquisition
• Hershey: Questioning long-term viability of chocolate as main product line

Conclusion & Tips

• Importance of Marketing Plans: Detailed, well-structured plans are crucial
• Appendix Advice: Utilize chapter appendices for writing marketing plans for future use
  • Example: Personal SWOT analysis for career planning