Session 4

Marketing Myopia
https://hbr.org/video/3590615227001/the-explainer-marketing-myopia

1. Fateful Purposes-Railroads
2. Product Obsolescence Grocery stores, Dry Cleaning
( Growth Industry? Or Growth Opportunities. Courage of
conviction Retail pride!)
3. Population Myth
4. Product and Selling Orientation ( Low cost Car Assembly line)
5. Dangers of R&D ( Superior product will sell!)
6. The Visceral feeling of greatness ( not just survive,
survive gallantly) CEO must drive this.

Thats not to say it doesnt have its limits.

In 2010, Craig Smith at INSEAD, Minette
Drumwright at UT Austin, and Mary Gentile
at Babson, published a paper called The
New Marketing Myopia.
Product Orientation vs.
Market Orientation
 Customer value, Strategic planning and Marketing Plan

How does marketing affect customer value?

How is strategic planning carried out at different levels of the
organization?
What does a marketing plan include?
 Phases of Value Creation and Delivery

Assessing market opportunities and customer

value
Choosing the value

Designing value

Delivering value

Communicating value

Growing and sustaining value

Value Chain

Benchmarking:Within and
Market offering Across
 Core Business Processes

Core business processes include:

Market-sensing process
New-offering realization process
Customer acquisition process
Customer relationship management process
Fulfillment management process
Firms also need to look into the value chains of their suppliers,
distributors, and customers.

Coordination
Cross
functional
Teams
-Tata Nano?
 Core Competencies

A source of competitive advantage

Applications in a wide variety of markets
Difficult to imitate

Market sensing,
customer linking and
channel bonding!
Vigilant Firms

Walmart, IKEA,
Apple, Mother Dairy
 Maximizing Core Competencies

(Re)define the business concept

(Re)shaping the business scope
(Re)positioning the companys brand identity Business of News
(Titan, Tanisq) or Advertising or
Marketing
Solutions
Value Exploration-Key Questions

What value opportunities are available?

How can we create new value offerings

efficiently?

How can we deliver the new offerings

efficiently?
Strategic Planning
The Strategic Planning, Implementation, and
Control Processes
Business as investment portfolio
Assessing market and companys position
Establishing a strategy
Master Marketers
 Marketing Plan

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 decisions Product features
Value proposition Promotion
Analysis of marketing Merchandising
opportunities Pricing
Sales channels
Service
 Corporate Headquarters Planning Activities

Define the corporate mission

Establish strategic business units (SBUs)
Assign resources to each SBU
Assess growth opportunities
 Good Mission Statements

Focus on a limited number of goals

Stress major policies and values
Define major competitive spheres
Take a long-term view
Short, memorable, meaningful
 Characteristics of SBUs

It is a single business or collection of related businesses ( LCV, HCV )

It has its own set of competitors
It has a leader responsible for strategic planning and profitability
SBU Evaluation- BCG Matrix
FMCG-others

Hotels,Agri Business

Cigarettes

Infotech
Shareholder value analysis
Market value of the firm with or without SBU
Valuation based on global expansion, re-positioning,
re-targeting and strategic outsourcing
Opportunity Assessment :The Strategic Planning
Gap

Product Market Expansion Grid

The Business Unit Strategic Planning Process
 Market Opportunity Analysis (MOA)

Can the benefits involved in the opportunity be articulated

convincingly to a defined target market?
Can the target market be located and reached with cost-effective
media and trade channels?
Does the company possess or have access to the critical capabilities
and resources needed to deliver the customer benefits?
Can the company deliver the benefits better than any actual or
potential competitors?
Will the financial rate of return meet or exceed the companys
required threshold for investment?

Jinri Toutiaio ( Daily Headlines)

Aggregation from4000 websites
80 million users
900million revenue
11 b valuation
 Goal Formulation

Units objectives must be hierarchical

Objectives should be quantitative
Goals should be realistic
Objectives must be consistent

Topline growth or bottom-line growth?

Market share or Reach?
Porters Generic Strategies

Overall cost leadership

Price/Distribution

Differentiation Superior
performance/Customer Benefit

Focus - Niche
 Categories of Marketing Alliances

Product or service alliance ( The Star Alliance)

Promotional alliance ( NOVA IVF/ TOI Fertile
conversations Campaign)
Logistics alliances ( Allied Distributors )
Pricing collaborations ( Airlines/Hotel + Car rental )

Partnership Relations Management

Program Formulation and Implementation McKinseys
Elements of Success

Skills Strategy
Feedback
And Control
Staff Structure
Doing right
things the
Style Systems right way!

HMTs inertia

Shared values
Marketing Plan Contents

Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls
Evaluating a Marketing Plan

Is the plan simple?

Is the plan specific?
Is the plan realistic?
Is the plan complete?