chapter 12 marketing planning

1. part four: managing marketing chapter 12marketing planning

2. 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?

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

4. functional organisation board finance HR mktg ops

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

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

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

8. how to planAQ – re-set figure type

9. blocks to marketing planning • hierarchical management structures • vertical communications • horizontal communications • turf battles • power struggles • functional silos

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

11. 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?

12. the strategic gap objective strategic gap current projection planning period

13. 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?

14. 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

15. Porter’s five forces power of buyers industry attractiveness power of suppliers barriers to entry inter-rivalry of competitors threat of substitutes

16. 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

17. threat of substitutes • the pricing of substitute products • switching costs • loyalty levels

18. 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

19. 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

20. 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

21. 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

22. 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!

23. SMART S M A R T specific measurable achievable relevant timed

24. 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

25. generic competitive strategies niche broad segments stuck in the middle cost focus different-iation cost focus different-iation (Porter, 1985)

26. market penetration market development existing products product development new/ related diversification existing new/related markets Ansoff’s matrix

27. 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

28. 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

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

30. 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:

31. marketing implementation (tactics) 3 Ms money men minutes 7 Ps

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

33. typical marketing plan headings • executive summary • current marketing situation • objectives • target markets • marketing strategies • marketing programmes • resources and budgets • implementation controls

34. evaluation and control act measure plan correct compare

35. 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

36. reference Porter (1985) – detail to be added (AQ)