chapter 12 marketing planning
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part four: managing marketing . chapter 12 marketing planning. an opening challenge. - PowerPoint PPT PresentationTRANSCRIPT
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CHAPTER 12MARKETING PLANNING
part four: managing marketing
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an opening challengeYour 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?
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agenda• organising for marketing• marketing planning• business mission and marketing objectives• marketing strategy• marketing operations• evaluation and control
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functional organisation
board
finance HR mktg ops
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geographic (regional)
head office
Scotland Wales N. England
S. England
function or product/brand
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product/brand
board
frozen food
baked goods
confec-tionery pet food
functions
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matrix organisation
marketing HR accounting
head ugstudies
head pgstudies
researchdegrees
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how to planAQ – re-set figure type
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blocks to marketing planning
• hierarchical management structures• vertical communications• horizontal communications• turf battles• power struggles • functional silos
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McKinsey 7S modelAQ – re-set figure type and enlarge figure
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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?
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the strategic gap
planning period
strategicgap
objective
currentprojection
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marketing planning
where are we now?
how are we goingto get there?
are we getting there?
have we arrived?
wheredo we want to be?
marketing analysis
marketing objectives
marketing strategy and tactics
marketing evaluationand control
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marketing analysis
e.g. PRESTCOM
e.g. SWOT
e.g. capability analysisor Porter’s five forces
e.g. segmentation
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Porter’s five forces
industry attractiveness
barriers to entry
threat of
substitutes
inter-rivalry of competitors
power of suppliers
power of
buyers
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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
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threat of substitutes
• the pricing of substitute products• switching costs• loyalty levels
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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
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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
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inter‐rivalry of competitorsthe intensity of rivalry may depend on:• number of competitors • cost structure • differential advantages of products/brands• switching costs• competitors’ strategic objectives • exit barriers
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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
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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!
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SMART
specific
measurable
achievable
relevant
timed
SMART
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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
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generic competitive strategies
(Porter, 1985)
broad segments niche
cost focus different-iation cost focus different-
iation
stuck inthe middle
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Ansoff’s matrix
products
markets
existing
existing new/related
new/related
marketpenetration
marketdevelopment
productdevelopment diversification
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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
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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
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market screening
• company’s experience of similar markets• cultural matches– e.g. language
• opportunities for standardisation– and thus reduced costs
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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
drivers: restrainers:
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marketing implementation (tactics)
moneymenminutes
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implementation:McKinsey’s seven Ss
sharedvalues
skills
strategy
style
systems
staff
structure
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typical marketing plan headings
1. executive summary2. current marketing situation3. objectives4. target markets5. marketing strategies6. marketing programmes7. resources and budgets8. implementation controls
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evaluation and control
plan
correct compare
measureact
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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
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reference
Porter (1985) – detail to be added (AQ)