Chapter 12 marketing planning
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part four: managing marketing . chapter 12 marketing planning. an opening challenge.

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Chapter 12 marketing planning

part four: managing marketing

chapter 12marketing planning


An opening challenge

an opening challenge

Your uncle runs a shoe factory that is struggling to compete with cheaper, developing-world manufacturers. He knows you’ve done a business course so he invites you to a management meeting to discuss the way forward.

Do you have anything to contribute?


Agenda

agenda

  • organising for marketing

  • marketing planning

  • business mission and marketing objectives

  • marketing strategy

  • marketing operations

  • evaluation and control


Functional organisation

functional organisation

board

finance

HR

mktg

ops


Geographic regional

geographic (regional)

head office

Scotland

Wales

N. England

S. England

function or

product/brand


Product brand

product/brand

board

frozen food

baked goods

confec-tionery

pet food

functions


Matrix organisation

matrix organisation

marketing

HR

accounting

head ug

studies

head pg

studies

research

degrees


How to plan aq re set figure type

how to planAQ – re-set figure type


Blocks to marketing planning

blocks to marketing planning

  • hierarchical management structures

  • vertical communications

  • horizontal communications

  • turf battles

  • power struggles

  • functional silos


Mckinsey 7s model aq re set figure type and enlarge figure

McKinsey 7S modelAQ – re-set figure type and enlarge figure


Seven key planning questions

seven key planning questions

  • where are we now?

  • how did we get here?

  • where will we be (if we continue to do the same things)?

    • identifies the strategic gap

  • where do we want to be?

  • how are we going to get there?

  • are we getting there?

  • have we arrived?


The strategic gap

the strategic gap

objective

strategic

gap

current

projection

planning period


Marketing planning

marketing planning

where are we now?

marketing analysis

where

do we want to be?

marketing objectives

how are we going

to get there?

marketing strategy

and tactics

are we getting there?

marketing evaluation

and control

have we arrived?


Marketing analysis

marketing analysis

environment

e.g. PRESTCOM

competition

e.g. capability analysis

or Porter’s five forces

customers

andconsumers

e.g. segmentation

situation

e.g. SWOT


Porter s five forces

Porter’s five forces

power of buyers

industry attractiveness

power of suppliers

barriers to entry

inter-rivalry of competitors

threat of substitutes


Barriers to entry

barriers to entry

  • costs

  • power of existing brands

  • market size

  • laws and regulations

  • unavailability of key resources

  • existing companies with significant economies of scale

  • competitor reactions


Threat of substitutes

threat of substitutes

  • the pricing of substitute products

  • switching costs

  • loyalty levels


Bargaining power of buyers

bargaining power of buyers

customers (buyers) are powerful when:

  • there are few large buyers in the marketplace

  • products are commoditised or standardised

  • the company is not a key supplier from the customer’s perspective


Bargaining power of suppliers

bargaining power of suppliers

suppliers are powerful when:

  • there are few alternative sources of supply

  • suppliers could integrate along the supply chain and so become competitors

  • there are high switching costs

  • the company’s business is not key to the supplier


Inter rivalry of competitors

inter‐rivalry of competitors

the intensity of rivalrymay depend on:

  • number of competitors

  • cost structure

  • differential advantages of products/brands

  • switching costs

  • competitors’ strategic objectives

  • exit barriers


A good business mission statement

a good business mission statement

  • identify the company’s philosophy

    • i.e. its approach to business

  • specify its product–market domain

  • communicate its key values

  • be closely linked to critical success factors


Typical marketing objectives

typical marketing objectives

  • increase market/brand share

  • become no. 1 brand in xxx market

  • launch new product

  • move into new market

  • increase awareness

  • re-position as…

    all objectives should be SMART!


Smart

SMART

S

M

A

R

T

specific

measurable

achievable

relevant

timed


Marketing strategy

marketing strategy

  • has a broad view of how objectives will be reached

  • incorporates:

    • branding, targeting, positioning, growth, competitive stance

  • breaks down into strategies for individual marketing mix elements

  • follows on from objective setting

  • includes a framework for more detailed plans


Generic competitive strategies

generic competitive strategies

niche

broad segments

stuck in

the middle

cost focus

different-iation

cost focus

different-iation

(Porter, 1985)


Ansoff s matrix

market

penetration

market

development

existing

products

product

development

new/

related

diversification

existing

new/related

markets

Ansoff’s matrix


Reasons to trade in overseas markets

reasons to trade in overseas markets

  • as a growth strategy

  • as part of a competitive strategy

  • risk spreading

  • the globalisation of markets

  • to offload excess capacity

  • to extend the product life cycle


Market selection criteria

market selection criteria

  • market’s potential for profit, sales

  • legal system

  • market accessibility

  • marketing infrastructure

  • product life cycle

  • potential economies of scale

  • strength of existing competitors

  • level of risk


Market screening

market screening

  • company’s experience of similar markets

  • cultural matches

    • e.g. language

  • opportunities for standardisation

    • and thus reduced costs


International strategy standardisation

economies of scale

consumer mobility

communications technology

cost of investment

falling trade barriers

cultural insensitivity

income levels

culture and language

climate

differing use conditions

governments

local market conditions

local skills

company history and operations

international strategy: standardisation

restrainers:

drivers:


Marketing implementation tactics

marketing implementation (tactics)

3 Ms

money

men

minutes

7 Ps


Implementation mckinsey s seven ss

structure

strategy

systems

shared

values

skills

style

staff

implementation:McKinsey’s seven Ss


Typical marketing plan headings

typical marketing plan headings

  • executive summary

  • current marketing situation

  • objectives

  • target markets

  • marketing strategies

  • marketing programmes

  • resources and budgets

  • implementation controls


Evaluation and control

evaluation and control

act

measure

plan

correct

compare


Summary

summary

  • plans must be based on sound analysis

    • understand the market

  • plans should be flexible and monitored

    • the market changes

  • strategy is designed to meet objectives

  • objectives should be SMART

  • tactics are the detail of the strategy

    • how it will be implemented


Reference

reference

Porter (1985) – detail to be added (AQ)


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