CHAPTER 12 MARKETING PLANNING part four: managing marketing.
-
Upload
keon-wardman -
Category
Documents
-
view
219 -
download
2
Transcript of CHAPTER 12 MARKETING PLANNING part four: managing marketing.
CHAPTER 12MARKETING PLANNING
part four: managing marketing
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?
agenda
• organising for marketing• marketing planning• business mission and marketing objectives• marketing strategy• marketing operations• evaluation and control
functional organisation
board
finance HR mktg ops
geographic (regional)
head office
Scotland Wales N. England
S. England
function or product/brand
product/brand
board
frozen food
baked goods
confec-tionery pet food
functions
matrix organisation
marketing HR accounting
head ugstudies
head pgstudies
researchdegrees
how to planAQ – re-set figure type
blocks to marketing planning
• hierarchical management structures• vertical communications• horizontal communications• turf battles• power struggles • functional silos
McKinsey 7S modelAQ – re-set figure type and enlarge
figure
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?
the strategic gap
planning period
strategicgap
objective
currentprojection
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
marketing analysis
e.g. PRESTCOM
e.g. SWOT
e.g. capability analysisor Porter’s five forces
e.g. segmentation
Porter’s five forces
industry attractiveness
barriers to entry
threat of
substitutes
inter-rivalry of competitors
power of suppliers
power of
buyers
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
threat of substitutes
• the pricing of substitute products• switching costs• loyalty levels
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
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
inter‐rivalry of competitors
the intensity of rivalry may depend on:• number of competitors • cost structure • differential advantages of products/brands• switching costs• competitors’ strategic objectives • exit barriers
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
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!
SMART
specific
measurable
achievable
relevant
timed
SMART
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
generic competitive strategies
(Porter, 1985)
broad segments niche
cost focus different-iation cost focus different-
iation
stuck inthe middle
Ansoff’s matrix
products
markets
existing
existing new/related
new/related
marketpenetration
marketdevelopment
productdevelopment diversification
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
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
market screening
• company’s experience of similar markets• cultural matches– e.g. language
• opportunities for standardisation– and thus reduced costs
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:
marketing implementation (tactics)
moneymenminutes
implementation:McKinsey’s seven Ss
sharedvalues
skills
strategy
style
systems
staff
structure
typical marketing plan headings
1. executive summary2. current marketing situation3. objectives4. target markets5. marketing strategies6. marketing programmes7. resources and budgets8. implementation controls
evaluation and control
plan
correct compare
measureact
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
reference
Porter (1985) – detail to be added (AQ)