marketing and digital strategy · •swot/tows analysis •conclusion objectives •mission and...

Sola Kayode

[email protected]

Marketing and Digital Strategy

April 2020 Session

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Introduction: Sola Kayode- Tutor at Simon Page since 2014

- Healthcare Entrepreneur

- Foundation in Sales

- Ex Student CIM/Simon Page 2012/2013

- CAM Diploma in Marketing Communications (CIM)

- CIM Professional Diploma in Marketing

- Alumni -Orange Academy, School of Media and Communication, several trainings

- Passionate about business development, marketing and healthcare

Assignment Theme (Ansoff Matrix)

Task 1

- Background (1a) 5 Marks - 2 pages

-The Marketing Plan 9 (b-f) 45marks – 10 pages

Task 2Justification Report 2a) – 2e) - (2,500 words)

Various Marketing Planning Frameworks

Analysis

Planning

Implementation

Control

Mission-Objectives-Strategy-Tactic (MOST)

APIC

The Strategic Marketing plan

Organization Background - 2 pages

Situation Analysis• Macro Environment Audit• Micro Environment Audit• Internal Audit• SWOT/TOWS Analysis• ConclusionObjectives• Mission and Vision

• Overall Marketing Objectives(Strategic Audit & Plan- 10 Pages)

Strategy• Strategic Options• Evaluation of Strategic Options• Where and How to compete

(Target Segments and Positioning)Tactics - Marketing Mix DecisionsActions – Implementation and Budget and Resources Control• Measurement and Control of the

Marketing plan

Task 1

a) Organisation Background - (5 Marks)

• Organisation Name

• Organisation Information; Type of Organisation, Size of Organisation, range of products and services customer base and main competitors

• Stakeholders- summary of key internal and external stakeholders

• Key Customer segment: an overview of the selected customer segment for your plan

• Theme chosen and rationale for your choice

- Provide all the information listed above using sub headings not bullet points. This section helps the reader/examiner understand the context of your responses. Stay within the page limit (2 pages)

The Strategic Marketing plan

Next develop a strategic marketing plan for your organisation.

Using a planning framework; e.g SOSTAC, so your plan has a logical flow

Provide references throughout your work where possible

The Marketing Audit (Situational Analysis)

• Micro environmental Analysis

• Macro environmental Analysis

• Internal Environment

• SWOT/TOWS analysis

External Environment

Micro Environmental Analysis

Customer Analysis

Channel Analysis

Competitor Analysis

Stakeholder Analysis

Industry/Market Analysis

Customer Analysis

Who are your customers (Demographics)

What are their needs? What is their lifestyle? What is their digital

lifestyle/profile?

(Psychographics)

(Behavioral Segmentation)Demand Analysis

Why do they buy? What needs are being met? How do they buy? Decision Making Process? Buyer journey? When do they buy?

Key Insights.

Where are they? (Geography)

For B2B customers; Consider theirSize (revenue, staff) Location, Volume of purchases, Key buying criteria, frequency of purchase and Nature of Decision Making Unit

Channel Analysis

• Channel Structure: How the Channel Structured?• Product Diffusion: How do products move within the channel? • Margin Distribution: How are margins distributed with the channel?• Channel Regulation: How is the channel regulated?• Channel Motivation: Policies, Discounts and Promotion to motivate

channel members

Competitor Analysis

• Who are the competition/Key Competitors?

• What is their size/market share?

• What are their goals?

• Who are their customers?

• What is their strategy and current level of success?

• What is their brand positioning

• What do they say in their communication?

• What are their strengths and weaknesses

Stakeholder Analysis

A systematic process of identifying stakeholders and assessing the effectiveness of current organisational strategies to them.

The Stakeholder Audit

• Identify the main stakeholders.

• Identify the needs/interests of each stakeholder.

• Determine their power/influence and potential impact on the organisation.

• Determine the current organisational strategies for each stakeholder group.

Stakeholder Mapping –Mendelow’s Matrix (Mendelow 1985)

Minimal effortKeep informed

Keep satisfiedKey players

(participation)High

Low

Low High

Power

Interest

Industry Analysis

Porter’s 5 Forces Model

Industry Analysis: Porter’s 5 Forces (Harley Davidson Motorcycle)

Competitive Rivalry(HIGH)

Rivalry between brands is strong with several camps with

respect to Motorcycles.

Bargaining Power of Suppliers.

LOW

Threat of New Entrants. (High)

The Market is dynamic with numerous new entrants. Projected growth

attractive to new entrant

Bargaining Power of Customers and Dealerships.( LOW).

Harleys are highly differentiated premium motorcycles catering for

peculiar segments thus buyers have low bargaining power

Threat of Substitute Products (LOW)

Though Motorcycles can be substituted by four wheelers,

trains however these don't offer the same 'individual'

experience

External Environment

Environment

Macro

Macro-Environmental Analysis

Political

• Ongoing Legislation about carbo

emission standards

•Goverment Policy towards local

content and local manufacture present

an opportunity to manufacture locally

and reduce costs

Economic

Global Market growth is slow

in 2018 though recovering

from a recent decline.

Value sales are still in a rut

Dynamic market with many

entrants, returners and

competitors

Rise in GDP, growth in non-

residential spending.

Increasing Prices and supply

shortages of oil and gas

Socio Cultural

Ever growing need for economical and easy-

to-maintain transportation among urban

dwellers

Passion for motorcycling economical Pricing

and fuel efficiency of two wheelers

Exit of Baby Boomers

Emergence of Gen Y and millennial possibly

Hispanic with interest in value

Growing trend for customers to seek

experiences rather than products

Customers demand customisation even for

e-bikes

Technological

Rapidly evolving Technology

required motorbike companies to

respond quickly

Emergence of the electric bikes,

smart phones and apps

Success of the online platform and

Social media

A high level of consumer

innovation.

Safety concerns spurring new

research

Legal

The need to use proprietary

technicians and factory-

approved methods

Ecological

Emergence of demand for fuel efficient and

eco-friendly bikes

Internal Analysis

1. ORGANISATION CULTURE

•Core and Brand Values•Symbols (Shared values, objects and heroes)•Language (Shared Jargon, Slogans, and Humor)•Stories (Shared legends and Myths)•Practices (Shared Rituals, Ceremonies and Activities)•Attitude to Technology/Innovation•History and Tradition•Internal Assumptions and Beliefs

Handy's Model of Organisational Culture

Power Role

Task Person

Handy’s Model of Culture•Power Culture: Power is held within a small group of people or a single person who exert(s) control. Not too many rules or bureaucracy. Flexible and fast. Succession is however a problem. Relies heavily on individuals. High Turnover

Role Culture: Well defined structure where authority is delegated as appropriate. Highly hierarchical and bureaucratic. Power is tied to position or role. Not very flexible or responsive.

Task Culture: Teams are formed for specific issues or projects. Power is held by the team. Teams and Tasks are usually short-lived. Works well when resources are available. Lack of resources leads to lowering morale. Good for Speed and quick reaction. Short projects

Person Culture: Not very common. Individuals believe themselves to be superior to the organisation. Each person brings specific skills and own interests. Can be problematic for an organisation

2. Management Style

•Autocratic: Manager makes decision with little or no input.

•Low commitment. High Turnover

•Consultative: Decisions takes employee and business interest into account.

Allows feedback

•Persuasive: Tries to convince staff of benefits of decision made

•Democratic: Staff are encouraged to be part of decision making. Improved job

satisfaction but can be slow because of consensus

3. Organisational Structure

Type of Organisational Structure Description

Functional Structure Staff are organised based on type of work, tasks they perform and skills they possess; i.e functional areas.

Divisional Structure Staff are grouped into divisions based on a characteristics such as geography, type of customer such as B2B or B2C or a product type. There is a greater level of independence and flexibility

Matrix Structure Combines attributes of both Functional and Divisional structures. Staff report to both a functional and divisional line manager

An organizational structure is defined as “a system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization.

4. Resource Based View

-Views the organisation as a collection of resources

- Sees resources as key to superior firm performance.

--Which are used to create sustainable advantage

- Supporters argue that organizations should look inside the company to find the sources of competitive advantage instead of looking at competitive environment for it.

Internal Analysis –Resource and Capabilities PortfolioMatrix

BLACKHOLES

(SuperciliousStrength)

SLEEPERS

(Zone of irrelevance)

ACHILLES’HEELS

(KeyWeaknesses)

CROWNJEWEL

(KeyStrength)

Rela

tive resourc

estr

ength

com

pare

d to

com

petito

rs

1

5

10

Strategic importance of resource in creating customer value

5 1

Grant2010

Resource or Capability

VALUABLE RARE INIMITABLE ORGANISED TO EXPLOIT IMPACT ON COMPETITIVEADVANTAGE

Strong Global Presence

Yes Yes Yes Yes Sustainable Competitive Advantage

Ownership of Specialty brands

Yes No No Yes Competitive Parity

Upscale and Cozy atmosphere at Restaurants

Yes Yes No Yes Temporary Competitive Advantage

App for Logistics, Operations and Ordering

Yes Yes Yes No Unused Competitive Advantage

Example of VRIO Analysis for Starbucks Coffee. List the various resources and competencies of your organization. Write a brief conclusion focusing on the resources and capabilities that can be used or developed to gain some competitive advantage

Internal Analysis –Organisation - StrategyAudit

• Financing Strategy• Cash cycle policy• Payment Terms• Cut accounts

receivable• Price Fixing for FX

• Route Merging

• Delivery Outsourcing

• Bulk Purchase

• Volume Discount

• Product

• Segmentation• Price• Differentiation• Channel

Segmentation

DISTRIBUTIONPRODUCT STRATEGY

FINANCESTRATEGY

• Price Segmentation

• Price Differentiation

• Price Modulation

• Co-Pricing

• Process Design• Lean Structure• Technology

Innovation• Machinery

• Unique Skills

• Knowledge Transfer

• Skill Development

PROCESSSTRATEGYPEOPLESTRATEGYPRICINGSTRATEGY

Classified - Confidential

Internal Analysis –FinancialAnalysis

• Funding

• Equity or Debt

• Cash Cycle –Receivables and Payables

• Payment Cycle –30 days, 60 Daysetc.

Financial MeasuresCurrent ratio describes the ability of the organization to meet its current liabilities with its current assets should be 1.0 or higher. 2.0 or better is a very healthy position

Profitability Ratios

1. Gross Margin: Gross Profit X100Sales

2. Net Margin: Net Profit X 100Sales

Liquidity and Solvency Ratios

1. Current/Working Capital Ratio: Current Assets

Current Liabilities

2. Acid Test: Current Assets - StockCurrent Liabilities

Activity Ratios

1. Fixed Asset Ratio: SalesFixed Assets

2. Stock Turnover Ratio: Cost of SalesAverage Stock (Inventory)

Debtor and Creditor Collection Period

1. DebtorX365Credit Sales for Year

1. CreditorX365Purchases for Year

Other Financial Measures

1. Sales Measures

a. Sales Force Effectiveness: Net SalesNo. of Sales People

b. Sales Productivity: Sales MarginSales Expenses

2. Market Share Analysis: a. Market Share : Organisation Market Share Value

Total Market Value

b. Relative Market Share: Organisation Market Share ValueMarket Share Value of Next Largest Competitor

Brand Equity

Brand Loyalty

Brand Association

Perceived Quality

Brand Awareness

Proprietary Assets

Brand Equity AnalysisAaker’s Brand Equity Model

Brand Equity

According to Aaker, Brand Equity stems from the following major attributes;

- Brand Name Awareness: Extent to which a customers recalls a brand’s name in association with a product or recognises a brand.- Brand Loyalty: The willingness of customers to make repeat purchases and not to switch to competitors, provide word of mouth. (Apple, Harley Davidson)- Perceived Quality: Belief in the performance of the product in meeting expectations- Brand Association: How the brand names calls to mind the attributes of the product category; associations in the mind of consumer (e.g Google-Search)- Proprietary Assets: Patents, Trademarks, Relationship with Channel

Example

Brand Equity.

HIGH

Perceived Quality

(High)

Proprietary Assets

(High Value)

Brand Association (HIGH)

Brand Awareness

(High)

Brand Loyalty (High)

Brand Equity Analysis

Harley Customers are fiercely loyal. They spread positive

word of mouth, trust and are committed to the brand.

Harley’s iconic logo and branding are easily recognisable.

Riders and non-riders actively seek products bearing this

logo.

Harleys are perceived as high quality based on previous

experience, positive word of mouth from current users,

pricing and its public image.

Harley’s iconic logo allow Harley to earn revenue from

clothing and other accessories. Its dealership systems is a

valuable asset.

Harley brings strong associations with heavy bike

category and is recognised as the market leader.

Thus Harley has a strong brand equity

The BCG matrix looks at an organisation’s products as a portfolio, and groups them, relative to each other, according to two criteria, market growth and relative market share.

Every company needs a balanced product portfolio: too much reliance on one category of product offering can make the portfolio unbalanced and introduce a wider organisational risk.

Portfolio Analysis: Boston Consulting Group (BCG) Matrix

Internal Analysis –Product –PortfolioAnalysis

Products or services may be analysed for what stage they are in the Product Life cycle. Organisations with product(s) in maturity and decline will need a strategic intervention.

Product Life Cycle

Innovation Audit

1. Innovation strategy: to what extent is there a clear, effective and communicated innovation strategy?

2. Idea generation: to what extent is there a positive, collaborative approach to generating customer focused ideas?

3. Prioritisation: to what extent are the most appropriate ideas selected for implementation?

4. Implementation: to what extent are ideas quickly and successfully implemented?5. People and organisation: to what extent is there a culture of innovation?6. Output: to what extent are the number of new products and services developed

sufficient?

Source: Cranfield University https://www.som.cranfield.ac.uk/apps/innovationaudit/https://wom.cranfield.ac.uk/apps/innovationaudit/

https://www.som.cranfield.ac.uk/apps/innovationaudit/

https://wom.cranfield.ac.uk/apps/innovationaudit/

https://www.som.cranfield.ac.uk/apps/innovationaudit/

Innovation AuditELEMENT IMPACT

OrganisationClimate

*Level of Freedom Employees are given * Trust and Openness *Time set aside for new ideas *Playfulness/Humor/Relaxed atmosphere * Conflict/Creative Tension *Debate* Idea support* Risk Taking

Specific Measuresof Innovation Performance

*Number of new products launched over a period * Percentage of Sales generated by new products * Success rate of new products

Supporting Policiesand Systems

*Policies and Systems that support innovation time e.g incentives to staff for new product ideas and project. Policies that encourage suggestion or allow staff to work on new ideas during working hours e.g Google staff -20% of time

Senior Management Team’s Cognitive styles

*Based on Myer Briggs Type Indicator, Senior Managers maybe; -Intuitive: Ingenious ad integrative seeing patterns. Sensing: Practical, Adaptable, Action Oriented. Thinking: Objective, Logical Pragmatists. Feeling: Insightful, Empathetic focusing on people and values. Style impacts Innovation

Internal Analysis –Mckinsey7-SModel


Mckinsey 7s’- Key

• Strategy: the plan devised to maintain and build competitive advantage over the competition.

• Structure: the way the organization is structured and who reports to whom.

• Systems: the daily activities and procedures that staff members engage in to get the job done.

• Shared Values: these are the core values of the company that are evidenced in the corporate culture and the general work ethic.

• Style: the style of leadership adopted.

• Staff: the employees and their general capabilities.

• Skills: the actual skills and competencies of the employees working for the company.

1 2 3 4 5 Remarks

StrategyX

Focus targeting high volume tertiary hospital that provide care to an emerging, educated

middle class that is able to pay out of pocket for high quality medical care including surgical

consumables.

Structure

XGeographical structure where large bands of customers within a geographical area are

managed by Regional teams. Marketing strategy is also developed and executed by the sales

team with guidance from Senior continental marketing leads. Duplicity of roles is a challenge

as inadequate focus is given to marketing strategy.

Style

XJ&J adopts the top-down approach. Revenue goals are set by top most management and

cascaded to the sales representatives. Though quick, this method struggles to have the buy-in

of the field representatives since they played a nominal role in setting the objectives.

Systems

XReps use personal selling to generate purchase requests. Requests are filled by a distributor

within 24 -72 hours . Turnaround time for supplies is sometimes slow with customers frustrated

at not being able to access sutures faster.

Shared Values

XJ&J is guided by a decades-old document known as the Credo. Serves as a strategic and

moral compass for the organisation and its staff. Doing business this way is sometimes a

challenge in a multicultural society where practices which may be considered as anti-credo are

widespread.

Staff

XJ&J recruits high quality professionals into its sales and marketing team. Ideal candidates have

a medical background, experience in selling and a knack for problem solving. Harder to attract

and retain such talent with current remuneration. The current team is also inadequate with

several large chunks of customers not adequately covered.

Skills

XEmployees undergo product and selling skills training upon regularly. Sales reps have superior

technical capability compared to competition. However short comings exist around

communications with internal stakeholders, reporting skills and strategic marketing skills.

Example of Mckinsey’s 7’s J&J

Analysis of Online Activity• Online channels provide an opportunity to get real visibility into the

customer journey.

• It is possible to identify the online channels chosen by the customer and obtaining the customer identity.

• Online analysis can help marketers update customer data real time and quickly notice changes in customer behaviour.

• The resultant information is more efficiently gotten and more accurate

• Useful when making critical marketing decisions.

• key purpose of online analysis is to understand what people are doing when they visit your channel.

Online Analysis

Through Google analytics, various reports can be generated. Important insights include;

• The amount of time people spent on individual pages

• What route they took in getting to the website or how they arrived; e.g keyword search, click on advertisement..

Social Media Analytics

Social media Analytics help marketer learn how to develop their social media presence

• Post Reach

• Impressions

• Post Clicks

• Engagement

• Page Likes

• Actions on page

• Page Views

• Engagement rate

Internal Analysis –Value ChainAnalysis(VCA)

Classified -Confidentil

VCA MODEL

Primary Activities

Primary activities relate directly to the physical creation, sale, maintenance and support of a product or service. :

•Inbound logistics –processes related to receiving, storing, and distributing inputs and raw materials internally. •Operations – These are the transformation activities that change inputs into outputs that are sold to customers such as manufacturing, operations.•Outbound logistics – These activities deliver your product or service to your customer. These are things like collection, storage, and distribution systems, and they may be internal or external to your organization.•Marketing and sales –processes used to persuade clients to purchase from you instead of your competitors. The benefits you offered, and how well you communicate them, are sources of value here.•Service – These are the activities related to maintaining the value of your product or service to your customers, once it's been purchased. E.g. After Sales Maintenance, warranty

Support ActivitiesActivities support the primary functions. The dotted lines show that each support, or secondary, activity can play a role in each primary activity. For example, procurement supports operations with certain activities, but it also supports marketing and sales with other activities.

Procurement (purchasing) –what the organization does to get the resources it needs to operate. Such as finding vendors and negotiating best prices.Human resource management –how well a company recruits, hires, trains, motivates, rewards, and retains its staff. People are a significant source of value, so businesses can create a clear advantage with good HR practices.Technological development –Relate to managing and processing information, as well as protecting a company's knowledge base. Minimizing information technology costs, staying current with technological advances, and maintaining technical excellence are sources of value creation.Infrastructure – The company's support systems, and the functions that allow it to maintain daily operations. Accounting, legal, administrative, and general management are examples that businesses can use to their advantage.

Tips for using Value Chain Analysis

•Identify sub activities for each primary activity

•Identify sub activities for each support activity

•Identify links between support and primary activities

•Look for opportunities/ solutions to optimize and create value

InternalAnalysis – Organisation SWOTAnalysis

• What does your organization do better than others?• What are your unique selling points?• What do you competitors and customers in your market

perceive as your strengths?• What is your organizations competitive edge?

• What do other organizations do better than you?• What elements of your business add little or no value?• What do competitors and customers in your market

perceive as your weakness?

• What political, economic, social-cultural, or technology (PEST) changes are taking place that could be unfavourable to you?

• What restraints do you face?• What is your competition doing that could negatively

impact you?

• What political, economic, social-cultural, or technology (PEST) changes are taking place that could be favourable to you?

• Where are there currently gaps in the market or

unfulfilled demand?• What new innovation could your

organisation bring to the market?

STRENGHTS

WEAKNESSES

OPPORTUNITIES

THREAT

WIEHRICH’s SWOT/TOWS MATRIX

Opportunity Threat

Opportunity 1 Threat 1

Opportunity 2 Threat 2

Strengths S-O Strategies S-T Strategies

Strength 1 S-O Strategy 1 S-T Strategy 1

Strength 2 S-O Strategy 2 S-T Strategy 2

Weaknesses W-O Strategies W-T Strategies

Weakness 1 W-O Strategy 1 W-T Strategy 1



TOWSThe Matrix presents a range of strategic options or alternative

•Strengths and Opportunities (SO) – How can you use your strengths to maximize opportunities?

•Strengths and Threats (ST) – How can you use your strengths to minimise real and potential threats?

•Weaknesses and Opportunities (WO) – How can you use your opportunities to overcome the weaknesses you are experiencing?

•Weaknesses and Threats (WT) – How can you minimize your weaknesses and avoid threats? A purely defensive action to prevent loss

•Read link: https://www.volunteerhub.com/blog/the-tows-matrix-putting-a-swot-analysis-into-action/#targetText=Example%20TOWS%20Matrix&targetText=For%20the%20TOWS%20matrix%2C%20simply,how%20your%20table%20should%20look

TOWS Examples

SWOT/TOWS MATRIX EXAMPLE

(This is a SWOT/TOWS ananlysis for a Cleaning And Maintenance Company in the UK is being challenged by lower priced competitors who use cheaper immigrant polish labour)

Conclusion• After the SWOT/TOWS analysis, it is important to have a brief

conclusion with the key findings from the audit

• A summarised idea of the possible direction(s) to go

Critical Factor for Task 1 (Audit +Plan)

The use and application of relevant theory, models and frameworks in the strategic audit and is an important path to success.

Avoid a narrative style

SETTING STRATEGIC MARKETING OBJECTIVES

Hierarchy of Objectives

Marketing Communication Objectives

Marketing Objectives

Business Objectives

Organisational Vision/Mission StatementStatement of an organisations purpose, what it does and where its headed

Focuses delivering the Organisations mission and exploiting competitive advantage. Overall long term

profitability

Derived from Business Objectives. Focuses on market growth, increased share, penetration

Increasing Awareness, Changing perceptions and attitudes,

Improving retention.


Vision –“a strategic vision describes management’s aspirations for the future and delineates the organisation’s strategic course and long term direction (Thompson et al 2013)

Mission–Defines the boundaries of the organisation’s operations and its overallpurpose

Corporate objectives –cover the organisation’s overall direction andare often expressed in financial terms

Marketing objectives –these will usually cover outcomes regarding products and markets, such as market share issues and new product development among others

What is a Vision Statement?

A vision statement outlines what a company wants to be in the future

It is the management’s aspirations for the future

defines the organisation’s strategic course and long term direction(Thompson et al 2013)

The clear and inspirational long-term desired change resulting froman organization or program’s work.


What is a Mission Statement?

A Mission Statement defines the

company's business, its objectives and

its approach to reach those

objectives.


• If the mission is fulfilled, we will arrive at a vision

• Vision answers the question “What will the future look like as we fulfill our mission?”

Difference Between Mission And Vision


Example

GTBVision - We are a team driven to deliver the utmost in customer service. We are synonymous with innovation, building excellence and superior financial performance and creating role models for society

Mission- We are a high quality financial services provider with the urge to be the best at all times while adding value to all stakeholders

First BankVisionTo be the clear leader and Nigeria’s bank of first choice

MissionTo remain true to our name by providing the best financial services possible

Example

Dangote

Vision - Becoming the leading provider of essential needs in Food and Shelter in Sub-Saharan Africa.

Mission- To provide the basic needs of Nigerians.

Promasidor

Vision: to provide the opportunity to purchase our brands to everyone in Africa, because we firmly believe that everyone in Africa deserves that opportunity?

Corporate Objectives

• Corporate objectives are those that relate to the business as a whole.• Dictate strategy• Affect functional goals and objectives

• Usually set by the top management

• they provide the focus for setting more detailed objectives for the main functional activities of the business.

• Revenue, Profit, Brand image, Overall Revenue for all the units that make up the organisation

Marketing Objectives must be precise, time-based and measurable. (SMART)


Example 1 Example 2

Increase sales revenue by 12% in Asian

market territory by the end of 2017 by

developing new 5 customer proposals

aligned with the Asian market needs and

characteristics.

To improve Customer Satisfaction scores

by 15% by reducing caller wait time from

3 to 2 minutes by end of the first quarter

of 2018.

• Increase sales.

• Build brand awareness.

• Increase loyalty

• Grow Brand Equity

• Grow market share.

• Launch new products or services.

• Recruit new customers.

• Penetrate new markets internationally or locally.

• Improve stakeholder relations.

• Enhance customer relationships.

Marketing Objectives Can Be…….


CORPORATE OBJECTIVE

BRAND AMBITION

COMPETITIONTRENDS AND

CONSUMERPREFERENCE

Your Objectives Can Be Influenced By…….

OPPORTUNITIES


84

Marketing Objectives

•Increase unit sales of brand X by 10% over the next 12 months.•Increase market share of brand x by 5% over the next 12 months.•Generate 100 new enquiries for brand X each month.•Increase distribution penetration from 25% to 50% within 12 months.

CorporateObjectives

Organisation

Vision

MarketingObjectives

e.g. To become the

leading indigenous

consumer good company

Growth

Revenue

Profit

Cost Reduction

Efficiency

Volume Share.

Value Share, Distribution, Brand

awareness, Sales,

Conversion, Trial

.e.t.c


STRATEGIC OPTIONS

Ansoff MatrixPorter Strategy

Differentiation

Strategy

Cost Leadership

Focus

Market

Development

Market

Penetration

Product

Development

Diversification


Competitive Strategies

•Cost leadership-being the lowest-cost producer in the industry as a whole.

•Differentiation-Achieving competitive advantage in the industry via a unique or highly differentiated product.

•Focus-involves the restriction of activities to only a part of the market (segment) by providing at lower cost or a differentiated product or service.

Igor Ansoff - 1965Classified - Confidential

Ansoff Growth Matrix

Market penetration

•More purchasing and usage•Gain customers from competitors•Convert non-users into users

Market Development

•New market segments•New distribution channels•New geographic areas

Product Development

•Product modification via new features•Different quality levels•‘New’ products

Diversification

New Products into New Markets

Evaluation of Strategic Option

• Which is the direct direction or option

• Which of the options is the most logical for the organization

• What should be considered before going in any direction

Evaluation of Strategic Options

• Cultural Fit• Associated Risk• Return on Marketing Investment • Stakeholder Expectations• Strategic Logic

STRATEGIC OPTIONS JUSTIFICATION – SFA MODEL

STRATEGIC OPTIONS Suitability feasibility Acceptability COMMENTS

STRATEGY OPTION 1

STRATEGY OPTION 2

STRATEGY OPTION 3


Option 1Score

Option 2Score

Suitability Does it utilize the organisation Strengths

Does it address its Weaknesses?

Does it solve the problem?

Does it take advantage of opportunities

Does it shield from negative trends and competitor activities

Feasibility Do we have enough financial resources? Cash Flow

Do we have enough skill and staff to achieve this

Do we have the right processes or technology

Acceptability To what degree is the risk acceptable to the brand or organisation

Is the return on Investment (Profitability) acceptable

What will be the reaction of stakeholder?

STP

Demographic

Geographic

Psychographic

Behavioral

Focus on Key

segment

Premium, Value or

Economy

Type of user,

Occasion

Luxury,

Convenience,

Quality


In order to be more specific and to eliminate waste, the organisation must decide where and how it will deliver value.

Marketing Strategy: Segmentation

The subdivision of a heterogeneous mass market into homogeneous subgroups according to criteria relevant to their buying behaviour

Segmenting Consumer MarketsGeographic

Nations ,states, regions ,cities, neighborhoods

DemographicAge, gender, family life cycle, family size,income,occupation,education,religion,race,nationality.

PsychographicAIO analysis

Activities-how people spend their time e.g hobbies,shopping

Segmenting Business (B2B) Markets

DemographicIndustryCompany sizeLocation

Operating variable

TechnologyUser status

Segmenting Business (B2B) Markets

Purchasing approaches• Buying criteria• Buying policies• Current relationships

Situational factors• Urgency• Size of order

Personal characteristics• Loyalty• Attitude to risks

Target market decisions

(Cur

rent

& p

otent

ial co

mpa

ny

stre

ngth

s in

serv

ing

segm

ent

)

Str

ong

Market/Segment attractiveness

Unattractive Average Attractive

Strongly Avoid Possibilitiesavoid

Avoid Possibilities Secondary targets

Possibilities Secondary Primetargets targets

Positioning

-The space the brand takes in the mind of the customer-How the brand will be communicated to the customer-Often captured by a positioning statement

MARKETING MIX ELEMENTS


PRODUCT


Augmented Product

Actual Product

Core

Product

Element/Levels of a Product

Core Product: The real core benefit of a product of a service. Basic functional benefit e.g. Cameras record scenes, Car provide transport

Actual Product: The features and capabilities that allow access to the core product e.g. Car’s engine, seats, a camera’s lens.

Augmented Product: Includes extra features and Factors required to support purchase e.g. after sales service, training, Installation

Pricing

What influences the pricing tactic?

Pricing

1. Premium Pricing2. Penetration pricing3. Price Skimming4. Bundle Pricing5. Value Based Pricing6. Competitive Pricing7. Economy Pricing8. Psychological Pricing9. Cost Plus Pricing10. Dynamic Pricing

Pricing Plan

EX - FACTORY PRICE

DISTRIBUTOR PRICE

WHOLESALER PRICE

RETAILER PRICE

CONSUMER TRADE PARTNER


DISTRIBUTION STRATEGY


PROMOTIONS


Decision must be made on

•Communication tools•Communication Channel/Media•Message

Promotions Plan

CONSUMER PROMOTION TRADE PROMOTION

Classified -Confintial

People Plan

Recruitment Process

Onboarding Process

Training SystemEngagement

StrategyReward Strategy


Business Process


Process

What kinds of processes need to be put in place for strategy to success- Production, Ordering, Delivery, Usage, Customer Service, Complaint handling,- Are current processes adequate or do they need to optimised so they are best in class

Physical Evidence

• Signage

• Exterior Design

• Interior Design

• Packing Space

• Surrounding

Environment

• Equipment

•Ambience

•Website

Servicescape

•Business Cards

•Stationary

•Billing Statement

•Account Balance

•Reports

•Employee Dress

•Uniforms

•Brochures

•Receipts

Tangibles


IMPLEMENTATION

Resources Required

•People

•Facilities

•Materials

•Equipment

•Money

•Agencies

•Time

Tools for Controlling and Managing Implementation

•Critical Path Analysis•Work Breakdown Structure•Schedules/Timelines/Milestones•Reports•Meetings•Dashboards

These can be updated with information periodically; daily, weekly, monthly, quarterly.

Sample Implementation PlanMONTHS

Activity 1 2 3 4 5 6 7 8 9 10 11 12 Responsibility Budget%

Offer Higher grade

Ukryl for same

price

Marketing 25

Price discounts

price sensitive

segments and

prompt payment

Distributor 25

Improved

distribution

efficiency

Distributor

Logistics15

Contracting sub

distributors

Marketing 10

Control


Control

- Final stage of SOSTAC® is Control. - You must monitor the implementation of your plan against- the objectives, the budget, and the action plan - take corrective action if needed to get back on track or adjust to

changes in the environment. - In addition, evaluate the plan’s activities, media and campaigns – have

they delivered?- only by evaluating its activities that an organisation can learn and

improve. - Lessons learned can be fed back into the next planning round.

Common Metrics That Organizations Track

Metric

1. Profit

2 Sales, Value or Volume

3 Gross Margin

4 Awareness

5 Market Share (Value/Volume)

6 Customer Satisfaction

7 Distribution/Availability

8 Number of Acquisitions

9 Relative Price

10 Number of Complaints

Financial Measures

Profitability Ratios

1. Gross Margin: Gross Profit X100

Sales

2. Net Margin: Net Profit X 100

Sales

3. Break Even Sales Level

Market Share

a. Market Share : Sales Revenue (Company A) X100Total Industry Sales Revenue

b. Relative Market Share: Organisation Market Share Value %Market Share Value of Next Largest Competitor %

Return on Marketing Investment (ROMI)

E.G. A company that normally averages 4% organic sales growth. The company then runs a N100,000 campaign for a month. The sales growth for that month is N150,000. The calculation goes:Return on Marketing Investment = [(150,000 - 100,000) / 100,000)] x 100 = 50%

measures how much revenue a marketing campaign is generating compared to the cost of running that campaign

Operational Measures

Brand Measures: Brand Awareness, Brand Preference

Customer Profile: Intention to Purchase, Retention or Loyalty,

Recommendations, Acquisitions

Distribution/Availability: measures effectiveness of distribution channels

e.g. Sales per channel employee, Sales per channel, Stock turnover.

Sales Measures: Net sales contribution (contribution of a segment or territory

to total sales) Sales Force Effectiveness.

Others: Pricing Measures e.g. Relative Price, Promotion Measures e.g.

Redemption rate, Responses to enquiries, Share of voice, Digital/Online

Measures: Click through rates, Cost per sale

Digital Measurement Techniques

• Traffic; Visits, Views, Unique Visitors

• Engagement/Interactions; Shares, Comments, Likes, Votes, Hashtag tracking, click through

• Conversion rate/Enquiries

• Email metrics; Subscriber rate, open rate, click through rate, bounce rate

• Online Surveys

Control

Set standards

Measure performance against set standards

Take corrective actions of gaps identified


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Ghana2ndFloor 8 Blohum Street Dzorwulu, Accra. [email protected]+233 302 768600

Kenya2ndFloor Elysee Plaza Kilimani Road, Nairobi. [email protected]+254 724 146606

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