PowerPoint Presentation

chapter 12marketing planningpart four: managing marketing an opening challengeYour uncle runs a shoe factory that is struggling to compete with cheaper, developing-world manufacturers. He knows youve done a business course so he invites you to a management meeting to discuss the way forward. Do you have anything to contribute?agendaorganising for marketingmarketing planningbusiness mission and marketing objectivesmarketing strategymarketing operationsevaluation and controlfunctional organisationboardfinanceHRmktgops4geographic (regional)head officeScotlandWalesN. EnglandS. Englandfunction or product/brandproduct/brandboardfrozen foodbaked goodsconfec-tionerypet foodfunctionsmatrix organisationmarketingHRaccountinghead ugstudieshead pgstudiesresearchdegreeshow to planAQ re-set figure type

8blocks to marketing planninghierarchical management structuresvertical communicationshorizontal communicationsturf battlespower struggles functional silos

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

re-draw10seven key planning questionswhere 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 gapplanning periodstrategicgapobjectivecurrentprojectionmarketing planningwhere are we now?how are we goingto get there?are we getting there?have we arrived?wheredo we want to be?marketing analysismarketing objectivesmarketing strategy and tacticsmarketing evaluationand controlmarketing analysise.g. PRESTCOMenvironmentsituatione.g. SWOTcompetitione.g. capability analysisor Porters five forcescustomers and consumerse.g. segmentationPorters five forcesindustry attractivenessbarriers to entrythreat of substitutesinter-rivalry of competitorspower of supplierspower of buyersbarriers to entrycosts power of existing brandsmarket sizelaws and regulationsunavailability of key resourcesexisting companies with significant economies of scale competitor reactions

threat of substitutesthe pricing of substitute productsswitching costsloyalty levelsbargaining power of buyerscustomers (buyers) are powerful when:there are few large buyers in the marketplaceproducts are commoditised or standardisedthe company is not a key supplier from the customers perspective

bargaining power of supplierssuppliers are powerful when:there are few alternative sources of supplysuppliers could integrate along the supply chain and so become competitorsthere are high switching coststhe companys business is not key to the supplier

interrivalry of competitorsthe intensity of rivalry may depend on:number of competitors cost structure differential advantages of products/brandsswitching costscompetitors strategic objectives exit barriers

a good business mission statementidentify the companys philosophyi.e. its approach to businessspecify its productmarket domaincommunicate its key valuesbe closely linked to critical success factorstypical marketing objectivesincrease market/brand sharebecome no. 1 brand in xxx marketlaunch new productmove into new marketincrease awarenessre-position asall objectives should be SMART!

22SMARTspecificmeasurableachievablerelevanttimedSMARTmarketing strategyhas a broad view of how objectives will be reachedincorporates:branding, targeting, positioning, growth, competitive stancebreaks down into strategies for individual marketing mix elementsfollows on from objective settingincludes a framework for more detailed plansgeneric competitive strategies(Porter, 1985)broad segmentsnichecost focusdifferent-iationcost focusdifferent-iationstuck inthe middleAnsoffs matrixproductsmarketsexistingexistingnew/relatednew/relatedmarketpenetrationmarketdevelopmentproductdevelopmentdiversificationreasons to trade in overseas marketsas a growth strategyas part of a competitive strategy risk spreadingthe globalisation of marketsto offload excess capacityto extend the product life cyclemarket selection criteriamarkets potential for profit, saleslegal systemmarket accessibilitymarketing infrastructureproduct life cyclepotential economies of scalestrength of existing competitors level of risk

market screeningcompanys experience of similar marketscultural matchese.g. languageopportunities for standardisationand thus reduced costsinternational strategy: standardisationeconomies of scaleconsumer mobilitycommunications technologycost of investmentfalling trade barrierscultural insensitivityincome levelsculture and languageclimatediffering use conditionsgovernmentslocal market conditionslocal skillscompany history and operations

drivers:restrainers:30marketing implementation (tactics)7 Ps3 Msmoneymenminutesimplementation:McKinseys seven Sssharedvaluesskillsstrategystylesystemsstaffstructure32typical marketing plan headingsexecutive summarycurrent marketing situationobjectivestarget marketsmarketing strategiesmarketing programmesresources and budgetsimplementation controls

evaluation and controlplancorrectcomparemeasureactsummaryplans must be based on sound analysisunderstand the marketplans should be flexible and monitoredthe market changesstrategy is designed to meet objectivesobjectives should be SMARTtactics are the detail of the strategyhow it will be implementedreferencePorter (1985) detail to be added (AQ)