part four: managing marketing
CHAPTER 12
MARKETING PLANNING
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
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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
function or
product/brand
N.
England
S.
England
product/brand
board
frozen
food
functions
baked
goods
confectionery
pet food
matrix organisation
marketing
head ug
studies
head pg
studies
research
degrees
HR
accounting
how to plan
AQ – re-set figure type
blocks to marketing planning
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hierarchical management structures
vertical communications
horizontal communications
turf battles
power struggles
functional silos
McKinsey 7S model
AQ – 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.
5.
6.
7.
where do we want to be?
how are we going to get there?
are we getting there?
have we arrived?
the strategic gap
objective
strategic
gap
current
projection
planning period
marketing planning
where are we now?
marketing analysis
where
do we want to be?
marketing objectives
how are we going
to get there?
marketing strategy
and tactics
are we getting there?
marketing evaluation
and control
have we arrived?
marketing analysis
e.g. PRESTCOM
e.g. capability analysis
or Porter’s five forces
e.g. segmentation
e.g. SWOT
Porter’s five forces
power of
suppliers
industry
attractiveness
barriers
to entry
barriers to entry
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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:
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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
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
niche
broad segments
stuck in
the middle
cost focus
(Porter, 1985)
differentiation
cost focus
differentiation
Ansoff’s matrix
existing
market
penetration
market
development
product
development
diversification
products
new/
related
existing
new/related
markets
reasons to trade in overseas
markets
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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
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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
drivers:
• economies of scale
• consumer mobility
• communications
technology
• cost of investment
• falling trade barriers
• cultural insensitivity
restrainers:
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income levels
culture and language
climate
differing use conditions
governments
local market conditions
local skills
company history and
operations
marketing implementation
(tactics)
money
men
minutes
implementation:
McKinsey’s seven Ss
structure
strategy
systems
shared
values
skills
style
staff
typical marketing plan headings
1.
2.
3.
4.
5.
6.
7.
8.
executive summary
current marketing situation
objectives
target markets
marketing strategies
marketing programmes
resources and budgets
implementation controls
evaluation and control
act
measure
correct
compare
plan
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)