part four: managing marketing

CHAPTER 12 MARKETING PLANNING

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

• • • • • • organising for marketing marketing planning business mission and marketing objectives marketing strategy marketing operations evaluation and control

functional organisation

board finance HR mktg ops

geographic (regional) head office Scotland Wales N. England S. England function or product/brand

product/brand board frozen food functions baked goods confec tionery pet food

matrix organisation marketing HR accounting head ug studies head pg studies research degrees

how to plan AQ – re-set figure type

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

seven key planning questions

1. where are we now? 2. how did we get here?

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

– identifies the strategic gap 4. where do we want to be? 5. how are we going to get there? 6. are we getting there?

7. have we arrived?

the strategic gap objective strategic gap current projection planning period

marketing planning where are we now?

marketing analysis where do we want to be?

how are we going to get there?

are we getting there?

marketing objectives marketing strategy and tactics marketing evaluation and control have we arrived?

marketing analysis e.g. PRESTCOM e.g. capability analysis or Porter’s five forces e.g. segmentation e.g. SWOT

Porter’s five forces power of suppliers industry attractiveness 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

• • • the pricing of substitute products switching costs loyalty levels

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

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

the intensity of rivalry may depend on: • number of competitors • cost structure • differential advantages of products/brands • switching costs • competitors’ strategic objectives • exit barriers

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

• • • • • • 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 specific measurable achievable relevant timed

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 broad segments cost focus stuck in the middle different iation cost focus niche different iation (Porter, 1985)

existing

products

new/ related

Ansoff’s matrix market penetration market development product development

existing

diversification markets

new/related

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’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

• • • company’s experience of similar markets cultural matches – e.g. language opportunities for standardisation – and thus reduced costs

international strategy: standardisation

drivers:

• economies of scale • consumer mobility • communications technology • cost of investment • falling trade barriers • cultural insensitivity

restrainers:

• income levels • culture and language • climate • differing use conditions • • governments local market conditions • local skills • company history and operations

marketing implementation (tactics) money men minutes

implementation: McKinsey’s seven Ss structure strategy systems shared values skills style staff

typical marketing plan headings

1. executive summary 2. current marketing situation 3. objectives 4. target markets 5. marketing strategies 6. marketing programmes 7. resources and budgets 8. implementation controls

evaluation and control act measure plan correct compare

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

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