MARKETING PLANNING

ICESI

MBA

MARKETING PLANNING

Marketing Strategy its a blue print by which the firm plans to complete

David R (1987)

Marketing Planning

A document that layouts recommendations for a business, whatthe firm need to accomplish and how

Calkins J (2005)

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What is in the document?

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The written marketing plan

- An executive summary- Table of contents- A summary of the current situation (SWOT)- A focused assessment of the marketing opportunity- A financial marketing goal- A summary of the company marketing strategy- A month to month budget- A month to month sales and revenue forecast- A plan for monitoring and evaluating action plans and progress and at the end of the period

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Where does planning fit in the marketing process?

MARKETING PLANNING

THE MARKETING PROCESS

Strategyformulation

MarketingPlanning

Programdeployment

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TimeHorizon Activities Name of activities Lateral connections

Long 1) Set overall, long-term goals andBasic approach to market place

1) Formulation of marketing strategy

1) Corporate strategy

Medium 2) Set two-to five-year objectives and plans ;with more detail for shorter time horizons

2) Marketing planning 2) Business plan

3) Set one-year objectives and detailed plan; allocate resources to achieve goals specified in steps 3 and 4

3) Marketing programming, allocating and budgeting

3) Operating programs and budgets

Short 4) Execute plans, programs, and budgets

4) Marketing implementation

4) Operating activities

5) Evaluate results of execution against goals set in steps 1, 3, and 4, above; specify corrective action where necessary

5) Monitoring and auditing

5) Business audits

6) Gather and analyze quantitative and qualitative data from within and outside the company

6) Analysis and research

6) Business analysis and research

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Marketing Planning

The planning process requires meetings and agreement and an understanding (analyzing) the current situation.

Planning requires also communicating the plan and supervisingits implementation

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Planning may help people to sell ideas and to get budget allocation

Planning can be an unfertile business requirement. The written document may never be read and left getting dust on a shelf

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Planning should ultimately activate decision making

A plan without an implementation worth nothing

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Stop making plans, start making decisions

How Executives Plan

66% periodically

67% unit by unit

How Executives Decide

100% continuosly

70% issue by issue

No wonder only 11% of executives are highly satisfied that StrategicPlanning is worth the effort

How is planning conducted in your organization?

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The Planning Process

Step 1Understand situation

Step 3Write and Present the Plan

Gain Support

Step 4Execute

Step 2Develop Objetives, Strategies

and Tactics

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Marketing Plan Summary

OBJETIVES STRATEGIES TACTICS

Key to success1) Always remember you are selling a recommendation2) Make the data compelling and;3) Always deal with the conflicting data.

MARKETING PLANNING

Practical Recommendations

1) Tell a story but don't write a novel plans should be long enough to be understood but short enough to be read, and they should “speak” to people.

2) Don't make novice mistakes check data accuracy, sources reliability

3) Set demanding but achievable goals

4) Make sure you have the resources to make the plan possible

5) Make sure you have an implementation and follow up process

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The Planning Process

It all begins with a clear understanding of business

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Typical business situation sumarizes in two sets of components:

Company´s Environment

Strengthweaknesses

OpportunitiesThreats

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Understanding the situation

Behind the typical SWOT analysis we have:

1. Marketing research2. Analysis of competitors3. Industry intelligence4. Analysis of the past performance5. Organizational and industry constraints

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Understanding the situation

We want to understand the market and its segments, and how the competition is

doing in those markets and segments

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Situation Analysis

At the end we should be able to detect the critical factorswe need to deal with in our plan

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Portfolio Planning

One of the ways to explain your current situationin the market is poftfolio analysis:

- BCG chart - G.E Mckinsey Screen

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BCG Portfolio Chart

Product MarketGrowth Rate

Relative Market Share

10%

20%

4.0 2.0 1.0 0.5 0.25

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4.0 2.0 1.0 0.5 0.25

Product MarketGrowth Rate

Relative Market Share

$

$

X

X

?

?

“DISASTER”SEQUENCES

“SUCCESS”SEQUENCES

Low

LowHigh

High

BCG Portfolio Chart

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GE McKinsey ScreenH

igh

Med

ium

Low

LowMediumHigh

INDUSTRY ATTRACTIVENESS

BU

SIN

ES

S S

TR

EN

GT

HS

Invest/grow

Selectivity/earnings

Harvest/divest

• Size• Growth• Share• Position• Profitability• Margins• Technology position• Strengh• Image• Pollution• People

• Size• Market Growth• Market diversity• Competitive structure• Industry Profitability• Technical role• Social• Environment• Legal• Human

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Situation Analysis

With the Situation Analysis we intend to seeand explain the reality that the company is facing.

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Explaining RealityEsscence

Competitive Positioning

Customers Benefits

Product/service features

Internal capabilities

Sustantable MarketingLeadership

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Explaining Reality

Sales

Time

Planting

The surge

Cruisecontrol

Commoditization Saturation

Replacement

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Strategy Development Process

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Strategy Development Process

What do we want to achieve?

How do we achieve it?

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Strategy Development Process

Setting objetives

Responding what? and when?

Strategy Development Process

Objetives should correspond to mission, vission and corporate goals

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Steps in Strategic Planning

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A mission statement asks.. What is our business? Who is the customer? What do consumers value? What should our business

be?

A mission statement should be: An “invisible hand” Neither too narrow nor too broad Fitting of market environment Based on distinctive competencies Motivating

Market-Oriented Mission

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Strategic Planning

Company Objectives must tie to Marketing Objectives

• Company Mission

• Business Objectives

• Marketing Objectives

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Strategy Development Process

Strategic initiatives responding to thehow we are achieving the objetives

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Devising the Implementation

Tactical implementation should follow theStrategy formulation phase.

It refers to a specific “road map” to turn the Strategic initiatives in to reality.

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Tactical implementations

Strategy formulation activities(pre-implementation planning)

• Project ideation• Developing initial support for project among decision makers• Estimating an expected budget and schedule• Identifying project goals and expected outcomes• Attaining approval for project

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Tactical implementations

Implementation planning activities(tactical and project planning)

• Detailed action planning• Resource planning• Facilitating buy-in with implementation participants• what.-if analysis• Developing contingency plans

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Tactical implementations

Execution activities

• Carrying out planned activities• Monitoring and coordinating tasks• Communicating with project participants• Overcoming unanticipated problems

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Managerial Guidelines for Tactical Implementations

• Hone your implementation skills• Prepare for the unexpected• Effective excecution is not possible without a supportive infraestructure• Building buy-in is a fundamental implementation task• Top management must provide direction• Like a fine wine, implementation takes time• Management must provide air corver for “reality checkers”• Make simplicity a virtue Peter J, & Harper S (2003)

The Devil is in the DetailBusiness Horizons

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Tactical Implementation

Anticipating to problems in the implementationPhase is as important as the strategy it self

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Framework for Diagnosing Implementation Problems

SkillsFunctions Interacting Allocating Monitoring Organizing

Actions

Programs

Systems

Policies

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Evaluating Performance

No implementation is successful if we don'tClearly define the performance indicators

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Establishing Performance Indicators

Financial Performance

Market Performance

Operating Performance

Human Performance

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Establishing Performance Indicators

Strategic Imperative Key Performance Indicators (measurements)

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Defining the Resources Requirements

StrategicResources

Needed

Human Infrastructures

Imperative Physical Financial Human Changes

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Strategic Imperative RisksLikelihoodOf success

Defining the Resources Requirements

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Orchestrating the marketing effort

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Elements of most marketing programs

People

Processes Systems

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People• Training• Certification

Processes Systems

• Key basic action lies in the marketingtask• Certification

• Facilitate the marketing task• Enable best practicesharing• Monitoring themarketing program

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Evaluation programs for marketing units that measure the quality of marketing processes and

people’s profile and skillsCertification ensures a minimal accepted quality

and provides feedback for improvement

Certification

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Companies build capabilities through exploiting developing their resources.

Organization

Res

ourc

es

Business

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CompetitiveAdvantage

Control

CoordinationRe

sour

ces

Businesses

Organization

Great corporate strategies come in the first instance from strength in each side of the triangle: high-quality rather than pedestrian resources, strong market positions in attractive industries, and an efficient administrative organization. But true corporate advantage requires a tight fit at each angle as well. When a company’s resources are critical to the success of its businesses, the result is competitive advantage. When the organization is configured to leverage those resources into the businesses, synergy can be captured and coordination achieved. Finally, fit between a company’s measurement and reward systems and its businesses produces strategic control.

Creating Corporate Advantage, David J. Collis and Cynthia A. Montgomery, May-June 1998.

The triangle of corporate strategy

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In order for companies to implement strategies manager’s thinking must be reoriented and core decision-making systems reshaped.

This is going from formulating a strategy to assuring its implementation is possible. One way to achieve this is through the management of change.

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To make a change possible you need to manage change

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What may impaired the evolution of a strategy, specially concerning organizational design, in

the implementation process?

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Subsidiaries Central management

I do

Conflict for

changeI control

People, processes, and power

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Subsidiary Subsidiary

Subsidiary

Center

How do you orchestrate the subsidiary center relationship

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The steps are needed– Set the strategic direction– Organize around roles (strategic

contributions)– Coordinate the roles