MKF3121Week1

Whatisplanninginmarketing?

Roleofmarketingmanager:− Collectingandanalysingbackgroundproductcategorydata− Utilisingthebackgroundanalysisformarketingstrategydevelopment− Implementingthestrategyviathemarketingmix

Whydoweplan?− Toensuresurvival− Tocompeteeffectivelyandefficiently(inresourcesandmarket)− Toexpandhorizontallyandlaterally− Tomotivateemployees(becausethentheyknowwhattodo)− Tosatisfythefirm’sresponsibilitytoallstakeholders

Strategicplanning–Processofdevelopingandmaintainingastrategicfitbetweentheorganisation’sgoalsandcapabilitiesandchangingmarketingopportunities

ElementsoftheplanningprocessDiagnosis Wheredoestheorganisationstand?Forecast Whereistheorganisationheaded?Objectives Whereshouldtheorganisationgo?Strategy Howshouldtheorganisationgetthere?Tactics Whatmeansshouldbeusedbytheorganisationtogetthere?Feedback/control Howshouldtheorganisationmeasureitsprogress?

Marketingplanningsequence

Allplansshouldexplain:

− Whatafirmwanttoaccomplish(objectives)− Howthefirmplanstoaccomplishobjectives(marketingstrategies)− Howstrategiesshouldbeimplemented− Whatresourcesarerequiredtoimplementtheplan

MKF3121CharacteristicsofaneffectivemarketingplanStrongtopmanagementsupport Proactive/visionaryCompiledbystaff Personalised/specificThoroughlyresearched ContinuallyrevisedExternalcompetitivefocus

FromthereadingBrooksbank(1991)

Overviewofamarketingplan

Marketingplan-awrittendocumentcontainingtheguidelinesforthebusinesscentre’smarketingprogramsandallocationsovertheplanningperiod

Week2

Marketinginthefirmcontext

MKF3121

LevelsofplanningAguidetotheemphasisofdifferenttypes CorporatePlan SBUPlan MarketingPlan

Mission Developedaspartofplanningprocess

MusthavebothcorporateandSBUmission Determinedby“yourboss”

Industryanalysis Macro,structure Macro,structure,market Structure,market,maybe

focusedonparticularsegmentCustomeranalysis Moremarketsize Segmentation Profiling

Competitoranalysis

Whoandhowaretheybetter/worseatresourceandcapabilities

Whoandhowtheyarebetter/worseatportfoliocapabilities

Whoandhowaretheybetter/worseatproject/brandlevel(marketingmix)

Internalanalysis Resourcesandcapabilities Portfolioanalysis,capabilities Currentstrategies

SWOT Theorganisation/corporatebrand SBUbrand Fortheproject/brand/product

Objectives Shareholdervalue Drivenbycorporate,valueofbusiness

Drivenbycorporate/SBU.Specifictoproject,marketingmix

Strategiesandtactics

Acquisition/divestmentofbusinessunits

Targeting,positioning,closingthegap Marketingmix

Budget Theorganisation Thebusiness Theproject/productplan

Implementation Marketingphilosophy Marketingaudit,internalmarketing

Approval,monitoringandcontrol

Stepsinplanningsequence1. Collectdata2. Situationanalysis3. Developobjectives,strategiesandprogrammes4. Developfinancialdocuments5. Negotiatefinalplan6. Measureprogresstowardsobjective7. Audit

ObjectivesandStrategiesAguidetotheemphasisofdifferenttypes

Objectives

CorporatePlan BusinessPlan FunctionalPlanShareholdervalueAggregatedacrossallbusinessunitsRevenueProfitabilityROIEPSOtherstakeholdercontribution

Drivenbycorporate,valueofbusinessAggregatedacrossproductmarketswithinbusinessunitSalesgrowthNewproductormarketgrowthProfitabilityROICashflowStrengtheningbasesofcompetitiveadvantage

Drivenbycorporate/SBU,specifictoproject,marketingmixForspecificproduct-marketSalesMarketShareContributionmarginCustomerSatisfaction

MKF3121TypesofplansandstrategiesScope CorporatePlan BusinessPlan FunctionalPlan Corporate(thefirm)

Wheretocompete

Business(anelementofthefirm)Howtocompete

Marketing(functionalforthebusiness)Whatdowecompetewith

Whichbusiness?divestmentsdiversificationexitandentry

Competitiveadvantagewithinproduct,marketsarena,marketsandsegmentsadvantage,positioningaccess,scaleandscope

Brand,product,productlinelevel,Allocationofmarketingeffort,Marketingmix

Objectives− Anobjectiveisanendtobeachieved− Objectivesshouldbedesignedtoaddressissues/challengesidentifiedandtakeyourfirmforwardintothe

future− Anobjective(goal)isadesiredeffect− ObjectivesmustbeSMART(Specific,Measurable,Actionable,RealisticandTimely)

Corporateobjectives Performanceobjectives Marketingobjectives− Corporateobjectives

(should)consistofbothqualitativeandquantitativecomponents,

o amissionstatement

o performanceobjectives

− CorporateobjectivesmaybeBHAGs

o BigHairyAudaciousGoals.

− Thefollowingstakeholders’needsmustbesatisfied:

o shareholders(andtheinfluenceoffinancialmarkets)

o employees(andtheirunionrepresentation)

o managerso creditorso thepublic(societalmarketing).

− Performanceisdeterminedbytheimperativesofstakeholderrequirements,measuredintermsoffinancialobjectives–ROI,ROA,EPS,dividends,profitability,cashflow,etc.

− Corporateperformanceobjectivesneedtobetranslatedintomarketingperformanceobjectives(brandorsegment)regarding:

o saleso marketshareo profitability

− Thisiswhatyouwilldoasaproduct(brand)marketingmanagerafterYOURSWOT.

MissionStatements

MKF3121Modelofmission− Organisationalphilosophy

» Whatdowewanttobe− Productmarketdomain

» Wherearewegoingtooperate− Organisationalkeyvalues

» Howdowewantourpeopletobehave− Criticalsuccessfactors

» Whatdowehavetobegoodatthisindustry

BusinessDefinitionandScope− Businessdefinitionandscopeisthestartingpointforstrategydevelopment.− Thewayabusinessisdefineddetermines:

» thenatureofthemarketsthefirmcompetesin» theproductsandsubstitutes(existingandnew)thatserviceormayservicethatmarket» thenatureofcompetition» thecapabilitiesrequiredtocompetesuccessfullyintheindustry.

− Thesedecisionsinvolvechoicesconcerningwheretocompete,howtocompeteandwhattocompetewith