mba marketing seminar [dr. carter; mktg.600] combined set of 1 st phase “marketing planning”...
TRANSCRIPT
MBA Marketing Seminar [Dr. Carter; MKTG.600]
COMBINED SET OF1st PHASE
“MARKETING PLANNING” TEXT CONCEPT SLIDES
Chapter 1: Introduction to Marketing Planning
The Marketing Plan Handbook
3rd ed.
Marian Burk Wood
1-1
Marketing Planning DefinedMarketing Planning is a systematic, structured
process. It includes:1. Researching and analyzing the current
situation.
2. Developing and documenting the firm’s objectives, strategies and programs,
3. Implementing, evaluating and controlling marketing activities.
1-2
Contents of The Marketing Plan
I. Executive SummaryII. Current SituationIII. Objectives and IssuesIV. Target Market, Customer Analysis and
PositioningV. Marketing StrategyVI. Marketing ProgramsVII. Financial PlansVIII. Implementation and Controls
1-3
The Marketing Planning Process
1-4
Step 1: Research and Analyze the Current Situation
The marketer performs both:
1. External analysis, and
2. Internal analysis
1-5
External AnalysisExternal analysis involves the understanding
of trends that may impact marketing strategy:
Demographic Economic Technological Political-Legal Ecological Social-Cultural
1-6
Internal AnalysisMarketers also assess the firm’s capabilities
and the strategies of competitors in order to:
Build on strengths Exploit competitors’ weaknesses
1-7
Other AnalysesOther areas that are analyzed for their
impact on marketing strategy include: Customers Suppliers Distributors Partners, and Other Stakeholders
1-8
Step 2: Understand Markets and Customers
Can be consumers or businesses A comprehensive understanding of the
customer is desired: Buying habits, needs, wants, attitudes and
behaviors. Who?, What?, Where?, When?, Why?, How? Are buying patterns changing? Why?
1-9
Step 3: Segmentation, Targeting and
Positioning The purpose of segmentation: To group customers with similar needs, wants, behavior or attitudes.
Targeting: The selection of specific segments for marketing. Can be to one segment, multiple segments, or the entire market.
Positioning: Using marketing to create a competitively distinctive place (position) for the brand or product in the mind of the targeted customers.
1-10
Step 4: Plan Direction, Objectives, and Marketing Support
Goals: Long-term performance targets. Objectives: Shorter-term targets that
support the achievement of goals. Sustainable Marketing:
Balancing long-term goals with short-term objectives and budget realities.
Balancing goals and objectives with an eye toward being responsible to the larger society.
1-11
Six Approaches to GrowthBased upon permutations of markets and products.
1-12
CURRENT MODIFIED INNOVATED
EXISTING
EXPANDED(Geographic
)
ENTIRELY NEW
Market Penetration
Market Development
Product Development
Diversification
Step 5: Develop Marketing Strategies and Programs
Utilizing the tools of the “marketing mix”. Consistent with the firm’s overall
direction, goals and strategies. Includes the development of strategic
alliances.
1-13
Alliance Provides Value
1-14
Primary Marketing ToolsThe primary tools for marketing, referred to
as the “Marketing Mix” are: Product Price Promotion, and Channels
1-15
The Marketing Mix
1-16
Product Tangible good or an intangible service. Must be considered in a holistic fashion. Branding must also be considered.
1-17
PricingBased upon a number of factors: How customers perceive the value of the
offering. Positioning. Product costs. Competitive forces. Objectives of the organization.
1-18
Channel How, when and where to make the goods
and services available to customers. Requires effective relationships with
channel partners.
1-19
PromotionInvolves the following activities: Advertising Public Relations Sales Promotion Personal Selling Direct Marketing Use of the Internet
1-20
Step 6: Track Progress, Implement and Control
Mechanisms and methods of measuring progress toward goals: Sales forecasts Budgets Schedules
Comparing actuals vs. projections or the plan.
Making changes as needed.
1-21
Preparing for Marketing Planning
Marketers must develop a number of professional and organizational strengths, including:
Knowledge of markets and customers, Core competencies, and Strategic relationships
1-22
Support Strategies: Customer Service
Customer Service: Reinforces positive perceptions. Enhances business through reputation
and referral. Helps differentiate from competitors. Poor service alienates otherwise loyal
customers.
1-23
Support Strategies: Internal Marketing
Internal Marketing: Focuses all employees on serving
customers. Builds support for the marketing plan. Enhances execution of the marketing
plan throughout the organization.
1-24
5 Guiding Principles for Effective Marketing Planning1. Expect Change
2. Emphasize Relationships
3. Involve Everyone
4. Seek Alliances
5. Innovate to Provide Value
1-25
Chapter 2: Analyzing the Current Situation
The Marketing Plan Handbook
3rd ed.
Marian Burk Wood
2-1
Environmental Scanning and Analysis
Involves the analysis of both: Internal Factors, and External Factors
2-2
Internal Factors Mission Resources Offerings Previous Results Business Relationships Keys to Success and Warning Signs
2-3
External Factors Demographics Ecological Economic Technology-related Political-Legal Social-Cultural Competitors
2-4
Internal Analysis: MissionMission: States the firm’s fundamental
purpose. Indicates how the firm will add value.
2-5
Internal Analysis: Resources Human Financials Informational Supply
2-6
Internal Analysis: OfferingsExamining what the firm is currently
offering in the way of goods and services: Fit with mission and resources. Affirm role of each line and item.
2-7
Internal Analysis: Previous Results Results include:
Sales (dollars and units). Profitability. Customer acquisition and retention costs. Other financial results.
Provide clues to firm’s strengths and weaknesses.
Helps separate the effective programs from the less-effective programs.
2-8
Internal Analysis: Business Relationships
Includes relationships with: Suppliers Distributors Other business partners
Examine: Capacity Quality Value provided
2-9
Internal Analysis: Keys to Success and Warning Signs
Keys to Success: Identify special factors most crucial to
success. Maintain focus on key priorities.
Warning Signs Indicate potential problems with the plan.
2-10
External Analysis: Demographic Trends
Examined by target market: Consumer Demographics Business Demographics
2-11
External Analysis: Consumer Demographic TrendsKey consumer demographic trends include: Population growth Population composition:
Age Gender Ethnicity Religious makeup Education Occupation Household size Income
2-12
External Analysis: Business Demographic Trends Size and growth of industries
Number of companies. Number of locations or branches. Number of employees. Sales revenues.
Trends in new business formation may signal emerging opportunities.
2-13
External Analysis: Economic Trends
Must keep an eye on global, national, regional and local economic trends.
Some measures typically monitored: Buying power Income Debt Credit Usage
2-14
External Analysis: Ecological Trends
Potential impacts: Availability of raw materials. Government regulations. Social attitudes.
2-15
External Analysis: Technological Trends
Key trends include: Cell phones Computers Digital media Internet access Increasing bandwidth
2-16
External Analysis: Political-Legal Trends
Legal Trends: Laws includes international, federal, state and local. Related to:
Competitive behavior Pricing Taxation Promotion Distribution Product liability Labeling
2-17
External Analysis: Political-Legal Trends
Political Trends Global. national, or local Can signal a change in the legal
environment.
2-18
External Analysis: Social-Cultural Trends
Key trend: Increasing diversity in markets. Keep tabs on popular culture.
Tends to be volatile. Core beliefs and values change more
slowly over time.
2-19
External Analysis: Competitors
Identify: Current competitors. Possible future competitors.
Learn about the unique competitive advantages of each competitor.
Track trends in market share.
2-20
Porter’s Five Forces Model
2-21
Three Fundamental Business Strategies
Cost Leadership Strategy Differentiation Strategy Focus Strategy
2-22
SWOT Analysis Strengths Weaknesses Opportunities Threats
2-23
SWOT Analysis (cont’d)
2-24
Exhibit 2.5 Judging Organizational Strengths & Weaknesses
Past Performance Trends Comparison vs. Competitors
Specific Goals or Targets Personal Opinions of
Strategic Decision Makers
Are organizational resources & capabilities
strengths or weaknesses?
Chapter 3: Understanding Markets and Customers
The Marketing Plan Handbook:
3rd ed.
Marian Burk Wood
3-1
What is a Market? Market = All the potential buyers for a
particular product or service. Markets can be defined by:
Product Customer definition Geography
3-2
Markets Must Be Analyzed Markets are always changing Market analysis is performed to better
understand: Requirements Behaviors, and Attitudes
3-3
Market Share Market share : The percentage of total
sales (dollars or units) held by a particular company, brand or product.
Directly affects segmentation and marketing.
Serves as a baseline for understanding historical market dynamics.
3-4
Consumer vs. Business Markets
3-5
5 Basic Levels of Market Definition
Level DefinitionPotential Market All customers who may be
interested in a particular offering.
Available Market Customers who are interested, possess sufficient income, and have access to the offering.
Qualified Available Market
Customers who are qualified to buy based on age or other criteria.
Target Market Customers that the company intends to target.
Penetrated Market
Customers who are already buying the product.
3-6
Analyzing Customer Needs and Behavior
3-7
Analyzing Consumer MarketsInformation needs include: Who? What? Where? When? Why? How?
3-8
Considerations for the Consumer Market
Cultural Social Personal
3-9
Consumer Market: Cultural Considerations Different cultures means different approaches to
buying situations, due to differing values, beliefs and preferences.
Subcultures: Groups within a larger culture that preserve distinct cultural identity: Religion Ethnic background Lifestyle
Class: Levels of socioeconomic status. Persons of same class exhibit similar behaviors
3-10
Consumer Market: Social Considerations Social influences on behavior include:
Family members Friends Work Groups Civic Organizations
Within social groups, consumers are influenced by opinion leaders, who provide advice and guidance.
3-11
Consumer Market: Personal Considerations Personal factors include:
Family life cycle Lifestyle Psychological makeup
Psychographic characteristics include: Motivations Perceptions Attitudes
3-12
Considerations for the Business MarketSpecial considerations for businesses
include: Organizational Connections
Internal players Suppliers
Organizational Considerations Company characteristics Derived demand
3-13
Organizational Connections: Internal PlayersAlso to consider: Those who initiate the decision Those who use the products/services Those who evaluate the alternatives Those who approve the release of funds
3-14
Organizational Connections: SuppliersCurrent relations with competing suppliers
should be considered: Long-term contracts Evaluations Requirements Other elements
3-15
Organizational Considerations: Company CharacteristicsCompany characteristics include: Company’s size and industry Current market share and growth Competitive situation Buying policies and procedures Financial constraints Timing of the purchases
3-16
Organizational Considerations: Derived DemandDerived demand: The principle that demand
for business products is based upon (derived) demand for related consumer products.
Derived demand requires that B2B marketers be aware of emerging trends and needs in consumer markets and be ready to help their business customers serve their consumer customers.
3-17
Planning Marketing ResearchTwo basic types of research: Secondary Research:
Information already collected for another purpose.
More readily available and less expensive than primary research.
Primary Research: Research conducted to address a specific
situation
3-18
Examples of Sources of Secondary Research
3-19
Secondary Research: Some CautionsSome cautions for using secondary research: Before using, check dates and sources. Consider the source’s credibility
Reputable? Unbiased?
Look into the sources cited by your secondary source
Be careful about applying general learning to your specific situation.
3-20
Primary Research Problem Definition
What information is needed? How will it be used?
Data Collection Methods include:
Observation Surveys Experiments
3-21
Primary Research Techniques: Focus Groups Small group of customers/prospects Guided discussion Yields insights into customer thinking,
attitudes and behaviors Drawback: May not be representative of
the entire market.
3-22
Primary Research Techniques: Ethnographic Research Ethnographic Research: Observing how
customers behave in actual product purchase or usage situations, and asking to clarify the reasons for behavior.
Helps marketers to: Develop new product ideas. Fine-tune personal selling approaches. Plan for other marketing attention.
3-23
Using Marketing Research If research is needed, include this as a
budget item in your marketing plan. Plan for ongoing market research to help
measure results during implementation. Good decision making involves weighing
the pros and cons of making a decision based on limited data, or waiting for research.
Be respectful of consumer privacy concerns.
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Chapter 4: Planning Segmentation, Targeting and Positioning
The Marketing Plan Handbook:
3rd ed.
Marian Burk Wood
4-1
Fragmentation and Intense Competition Customers exhibiting a wider variety of:
Needs Attitudes, and Behaviors
Companies must differentiate themselves more distinctly in the markets where they compete.
4-2
The Need for Segmentation, Targeting and Positioning
A move away from mass marketing. A move towards segment marketing. Allows marketers to focus their resources
on the most promising opportunities. Improves marketing efficiency and
effectiveness
4-3
Market Segmentation Definition: the process of grouping
customers within a market according to similar needs, habits or attitudes that can be addressed through marketing.
Even within a large segment, marketers often can identify niches.
4-4
Steps in the Segmentation Process
1. Select the general market: Eliminate markets that have no need for the
product or are inappropriate for other reasons.
2. Apply segmentation variables.
3. Assess and select segments for targeting
4-5
Overview of Segmentation, Targeting and Positioning
4-6
Consumer Segmentation Variables
Type of Variable Examples
Behavioral and Attitudinal
Benefits sought, rate of usage, attitude toward product and usage, price sensitivity.
Demographic Age, gender, family status, household size, income, occupation, education.
Geographic Location, distance, climate.
Psychographic Lifestyle, activities, interests.
4-7
Segmenting by Behaviors and AttitudesIn many ways, the best way to segment: Help marketers analyze the specific value
that a particular group expects from the offering.
Include variables like: Benefits required or expected Usage occasion and status Loyalty status Technological orientation Attitudes toward products or usage
4-7
Segmenting by Demographics Popular for segmentation because they
are common and easily identified consumer characteristics.
Often point to meaningful differences in: Consumer needs and wants. Product consumption. Media usage.
However, care must be taken to avoid over-generalization or stereotyping.
4-9
Segmenting by GeographicsMay be based on: A company’s ability to sell and service
products in certain areas or climates, Its interest in entering promising new
markets, or Its reluctance to sell in certain areas due
to environmental threats or unfavorable climate.
4-10
Segmenting by Psychographics
Includes such variables as lifestyles, activities, interests and attitudes.
Provides a deeper understanding of what and why consumers buy.
When consumer activities or interests cross demographic and/or geographic lines.
4-11
Business Segmentation Variables
Type of Variable Examples
Behavioral and Attitudinal
Purchasing patterns and process, user status, benefits expected, order size/frequency, buyer/influencer/user attitudes.
Demographic Industry, business size, business age, ownership structure.
Geographic Location, distance, climate.
4-12
Segmenting by Behaviors and Attitudes Helps marketers identify what specific business
segments want and value, as well as how/why they buy.
Includes variables such as: Purchasing patterns User status Attitude toward technology Loyalty status Price sensitivity Order size/frequency Attitudes Benefits expected
4-13
Segmenting by DemographicsCommon business demographic variables
used: Industry Business size Business age Ownership structure
4-14
Segmenting by Geographics Utilizes such variables as nation, region,
state, city and climate. Allows for the grouping of potential
customers according to: Concentration of outlets Location of headquarters Geography-related needs or responses
4-15
Assessing Potential Target Markets
Target Market: The segment of the overall market that a company chooses to pursue.
Each potential segment must be evaluated based upon fit with the firm’s: Resources Core competencies Goals and objectives Offerings
4-16
Assessing Segment Attractiveness
4-17
Ranking and Choosing Among Potential SegmentsHere is an approach sometimes taken:
1. Take all potential targets.
2. Rate each potential target across a number of selected criteria. Develop “importance” weights for each of the criteria.
3. Develop a composite score for each segment.
4-18
Sample Segment Ranking
Segment
Growth Potential
Competitive Superiority
Fit with Company
ResourcesOverall Score
A 3 5 2 10
B 5 4 4 13
C 4 2 3 9
Scoring key: 5 = highly attractive, 4= moderately attractive, 3 = average, 2 = moderately unattractive, 1 = highly unattractive
4-19
Coverage Strategies Concentrated Marketing
Concentrating the marketing efforts on only one key segment.
Undifferentiated Marketing Targeting all segments with the same
marketing strategy. Differentiated Marketing
Creating a separate marketing strategy for each segment.
4-20
Personas Growing number of companies are
gaining insights by developing personas: Detailed but fictitious profiles representing
how individual customers in their targeted segments behave, live and buy.
Give marketers a deeper understanding of what shapes each segment’s needs, preferences, buying behavior and consumption patterns.
4-21
Positioning
Positioning is the differentiation of the brand or product on the basis of attributes that customers find meaningful.
Positioning conveys the value that the brand provides and sets the brand apart.
Sets the tone for the marketing plan. Should be re-evaluated periodically.
4-22
Meaningful Differentiation
Some sources of meaningful differentiation: Product features Service attributes Channel attributes Pricing attributes Other attributes
Consideration is also given to positions being staked out by the competition.
4-23