Managing the Marketing Effort. Nov 20th, 2009
2 of 15 This section covers: • Marketing organisation/management • Marketing implementation – drawing up a marketing plan • Controlling marketing activity
Marketing Management Decisions • When a company has decided what its basic goals and targets are, it needs a marketing plan • This plan should give a clear guideline about how it should move forward with its business VS $100 Billion Revenues (2008) $120 Billion+ Revenues (2008)
Marketing Organisation & Management Analysing Marketing Opportunities The Marketing EnvironmentMarket Research & Information SystemsMarket Segmentation, Tragetting & Positioning Marketing Mix DevelopmentProduct DecisionsPricing DecisionsPromotion DecisionsPlace DecisionsMarketing of Services Marketing Management DecisionsSWOTing your company
Marketing Management Responsibilities • To Identify Customer Needs • To Satisfy Customer Needs – achieved through the Marketing Mix / the 4Ps Have Strategic Vision – what business are you in? • There is a danger of Marketing Myopia (Levitt 1960). This refers to not being able to see the breath and width of your business’ opportunities.
Environmental Management • Environmental Management involves marketers’ efforts toward achieving organizational objectives by predicting and influencing the competitive, political-legal, economic, technological, and social-cultural environments. • Tools used in environmental management are: Michael Porter’s 5 Forces, PEST & SWOT
Tool 1: Michael Porter’s 5 Forces(these 5 forces determine industry profitability) 3. Threat of new entrants 1. Industry competitors Rivalry among existing firms 4. Power of suppliers 5. Power of buyers 2. Threat of substitutes
Tool 2:PEST- Analysis • Political • Economic • Social • Technical Give examples of each. These are the macro-environmental factors used in the environmental scanning component of strategic management.
Tool 3:SWOT-Analysis • One tool that helps with the investigation of your organisation is the SWOT analysis • Strengths (internally) • Weaknesses (internally) • Opportunities (in external environment) • Threats (in external environment)
Marketing Plan • A marketing plan is a written document that outlines the necessary actions to achieve one or more marketing objectives. It usually spans a period of between 1 and 5 years.
Contents of Marketing Plan • Executive Summary • Situational Analysis • Opportunities / Issue Analysis - SWOT Analysis • Objectives • Strategy • Action Programme (the operational marketing plan itself for the period under review) • Financial Forecast • Controls
Sample Marketing Plan • http://www.bankofireland.ie/html/gws/includes/business/pdfs/market_plan.pdf Plan doesn’t have to be in standard format • http://www.tourismireland.com/CMSPages/GetFile.aspx?guid=2e6477aa-98ef-48ac-a2d8-4b0ad1b018e3
Control Marketing Activities The Marketing Control Process Marketing Objectives Example: money for trade show vs sales from leads Performance Standards - measure Compare results against standard Corrections & Alterations
Next Week – Final Slides Services Marketing Specific characteristics of Services The Servuction System Model The Five Gap Model of Service Quality Defection Management and Customer Retention Management