CHAPTER 6 MARKETING Elements of a Marketing Plan A marketing plan is an essential planning tool for a company. This document defines the company’s overall goals, determines strategies for achieving those goals and, at the end of a predetermined period of time, assesses how well those goals were achieved. Marketing plans may differ from company to company. However, there are some basic elements that will be found in all marketing plans. Those elements include an executive summary, a situation analysis, marketing goals/objectives, marketing strategies, and implementation, as well as a system for evaluation and control. 1. Executive summary An executive summary is a brief overview of the entire marketing plan. It briefly addresses each topic in the plan and gives an explanation of the costs involved in implementing the plan. The executive summary may also be used to provide information to people outside the organization, especially those who may be investing in the company or organization. 2. Situation analysis A. SWOT analysis Situation analysis is the study of the internal and external factors that affect marketing strategies. The information from a company’s SWOT analysis and from the environmental scan becomes the basis for this portion of the marketing plan. SWOT Analysis: Strengths, Weaknesses, Opportunities and Threats (SWOT). SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. In SWOT, strengths and weaknesses are internal factors. A strength could be: your specialist marketing expertise, a new, innovative product or service, location of your business, quality processes and procedures, any other aspect of your business that adds value to your product or service. A weakness could be: lack of marketing expertise, undifferentiated products or services (i.e. in relation to your competitors), location of your business, poor quality goods or services, damaged reputation. In SWOT, opportunities and threats are external factors. An opportunity could be: a developing market such as the Internet, mergers, joint ventures or strategic alliances, moving into new market segments that offer improved profits, a new international market, a market vacated by an ineffective competitor. A threat could be: a new competitor in your home market, price wars with competitors, a competitor has a new, innovative product or service, competitors have superior access to channels of distribution, taxation is introduced on your product or service. SWOT analysis can be very subjective. Do not rely on SWOT too much. Two people rarely come-up with the same final version of SWOT. TOWS analysis is extremely similar. It simply looks at the negative factors first in order to turn them into positive factors. So use SWOT as guide and not a prescription. A next step of analysis, usually associated with the externally-focused TOWS Matrix, helps you think about the options that you could pursue. To do this you match external opportunities and threats with your internal strengths and weaknesses, as illustrated in the matrix below: (O) 1. 2 TOWS Strategic Alternatives Matrix External Opportunities External Threats (T) 1. 2. Internal Strengths (S) 1. 2. SO "Maxi-Maxi" Strategy ST "Maxi-Mini" Strategy Strategies that use strengths to maximize opportunities. Strategies that use strengths to minimize threats. Internal Weaknesses (W) 1. 2. WO WT "Mini-Maxi" Strategy "Mini-Mini" Strategy Strategies that minimize weaknesses by taking advantage of Strategies that minimize weaknesses and avoid threats. opportunities. Simple rules for successful SWOT analysis: Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis. SWOT analysis should distinguish between where your organization is today, and where it could be in the future. SWOT should always be specific. Avoid grey areas. Always apply SWOT in relation to your competition i.e. better than or worse than your competition. Keep your SWOT short and simple. Avoid complexity and over analysis SWOT is subjective. Once key issues have been identified with your SWOT analysis, they feed into marketing objectives. SWOT can be used in conjunction with other tools for audit and analysis, such as PEST analysis and Porter's Five-Forces analysis. So SWOT is a very popular tool with marketing students because it is quick and easy to learn. During the SWOT exercise, list factors in the relevant boxes. Some of the problems that you may encounter with SWOT are as a result of one of its key benefits i.e. its flexibility. Since SWOT analysis can be used in a variety of scenarios, it has to be flexible. However this can lead to a number of anomalies. Problems with basic SWOT analysis can be addressed using a more critical POWER SWOT. SWOT Analysis Examples Example 1 - Wal-Mart SWOT Analysis Strengths - Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Weaknesses - Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control. Opportunities - To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. Threats - Being number one means that you are the target of competition, locally and globally. Example 2 - Starbucks SWOT Analysis Strengths - Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004. Weaknesses - Starbucks has a reputation for new product development and creativity. Opportunities - New products and services that can be retailed in their cafes, such as Fair Trade products. Threats - Starbucks are exposed to rises in the cost of coffee and dairy products. Example 3 - Nike SWOT Analysis Strengths - Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets. Weaknesses - The organization does have a diversified range of sports products. Opportunities - Product development offers Nike many opportunities. Threats - Nike is exposed to the international nature of trade. Romania: Exemplu practic de Analiză SWOT a unei companii ce pregăteşte lansarea unei reţele de franciză. Pornim de la următoarele premise – discutăm despre o companie care: deţine un lanţ de magazine, ce operează sub acelaşi brand şi se ocupă cu vânzarea de muzică, film, jocuri pentru calculator, accesorii pentru jocuri, educaţionale multimedia, precum şi diverse alte articole conexe (cartele telefonice, încărcare electronică, joystick-uri, baterii, ziare şi reviste, etc.) De asemeni are dezvoltat sistemul de rent (închiriere) pentru filme (VHS şi DVD) şi jocuri; brandul beneficiază de awareness pe piaţă; compania a dezvoltat un know-how identificabil, ce cuprinde proceduri operaţionale şi logistice, standarde de amenajare şi marketing, etc. – ceea ce permite urmărirea respectării standardelor de calitate a produselor şi serviciilor; are suportul unor furnizori de prestigiu, fapt ce-i permite aprovizionarea cu marfă de calitate, la preţuri competitive; beneficiază de ultimele noutăţi din domeniu, ţine pasul cu tendinţele pieţei şi se adaptează cerinţelor publicului ţintă; are o strategie de marketing coerentă, implementată la nivelul tuturor magazinelor; doreşte să se dezvolte, pentru a beneficia de expunere naţională, dar şi de creşterea cifrei de afaceri; doreşte să minimizeze infuzia de capital necesară deschiderii de noi locaţii. Iată cum arată analiza SWOT pentru compania în discuţie: STRENGHT – PUNCTE FORTE WEAKNESSES – PUNCTE SLABE brand recunoscut awareness în piaţă diversitate de servicii conexe acordate clientului aspect comercial modern, plăcut, comerţ civilizat marfă nouă tot timpul, pe gustul publicului ţintă, atât la vânzare cât şi la închiriere sisteme de promovare inovatoare publicitate concertată, la nivelul tuturor magazinelor furnizori agreaţi, stabili preţuri de achiziţie ce permit o marjă comercială decentă standarde şi proceduri de operare bine definite şi eficiente OPPORTUNITIES – OPORTUNITĂŢI deschiderea unui magazin necesită un capital iniţial şi capital pentru susţinerea rulajului termenul de rotaţie a mărfii este foarte scurt este necesară angajarea unui personal calificat pentru deservirea magazinului nu exista un soft de gestiune funcţional, care să integreze atât aprovizionarea cât şi vânzarea mărfii posibilitatile de control a unităţilor din teritoriu este limitată nu există sistem de livrare la domiciliu pentru partea de închiriere exigenţele şi obiceiurile de consum ale clientului român se schimbă, avantajând magazinele ce practică un comerţ civilizat, într-un ambient plăcut pretenţiile crescute ale publicului ţintă (1825 ani), ce doreşte să fie în pas cu tendinţele internaţionale şi la nivelul entertaiment-ului alinierea la cerinţele internaţionale ale legislaţiei privind drepturile de autor amploarea fenomenului pirateriei pe piaţa românească – atât în domeniul muzicii, cât şi al filmului firmele "de la scara blocului", ce-şi bazează afacerea pe piraterie şi eludarea prevederilor legale dezvoltarea internetului, a conexiunilor de mare viteză, ce creşte posibilităţile de download – atât muzică, cât şi film închirierile sunt o afacere meteo – THREATS – AMENINŢĂRI lipsa din piaţă a unor lanţuri internaţionale de prestigiu din domeniu avantajul "primului sosit" (prezenţa în piaţă) deschiderea lanţurilor de magazine pentru amplasarea în sistem "shop-in-shop" (ex. în reţele de hipermarketuri, în magazinele Diverta) sensibilă intenţia declarată a unor jucători importanţi din piaţa internaţională de a se dezvolta – chiar în sistem de franciză – pe piaţa românească, odată cu maturizarea acesteia Bulgaria Hotel "Emotion" was built in 1991 by a family of small entrepreneurs. Located in the villa zone between the resorts Albena and Balchik, its location in terms of geographical and climate conditions favour the development of the activity carried out by welcoming, accommodating and sending tourists during the summer. The status is based on three-star hotel where service quality meets the categorization. The first customers were won in the way of friendly advice. They in turn, was pleased, attract customers, but this is not enough. Currently, the hotel works with several tour operators and travel agencies - Tourist office accommodation Zora - Balchik Travel Agency "Seafoods" - Balchik, "Vist66" – Varna and others. SWOT analysis STRENGTHS New, built entirely needs of hotel facilities Affordable prices Qualified staff Quality Services Parking Barbecue Good relations with Turkish firms OPPORTUNITIES The global expansion of tertiary sector Relatively good climate conditions Cheep work force Developing of new products and services Increasing the proportion of Russian tourists Czech Republic: JOINERY HILLMAN - SWOT ANALYSIS WEAKNESSES High proportion of expenditure for salaries Narrow range of supplied services Weak advertisement Not enough facilities THREATS Presence of strong competitive potential Unstable policy and economics justification Strong season working Activation of the landslide processes STRENGHTES 20- year experience and practice in this field constant structure of the company‘ shareholders buildings are after a total renovation quality equipment steady team of skilled workers stable and profitable business products of high quality very small number of complaints low cost of production WEAKNESSES limited production space and thus the impossibility of buying other machines limited storage space funds are limited by credit repayment for the purchase of the second building lack of funding for the extension of production area low production capacity of the company which does not allow to implement larger contracts lack of own drying kiln OPPORTUNITIES THREATS company is well established in the region well-known products of respected quality permanent and qualified suppliers with very interesting delivery conditions established customer base sufficient number of contracts cooperation with building companies end of the economic crisis and economy recovery in the CR promised support for housing construction and building development favourable level of taxes the possibility of extending the economic crisis relatively strong competition in this field unclear future development of the economy and the market for the reason of election campaign risk of tax increasing increase in input prices SWOT ANALÝZA TRUHLÁŘSTVÍ HILLMAN SILNÉ STRÁNKY SLABÉ STRÁNKY dvacetiletá praxe a zkušenosti v oboru neměnné složení společníků firmy objekty firmy po ukončené celkové rekonstrukci vybavení kvalitními stroji stálý kolektiv kvalifikovaných pracovníků stabilní a ziskové hospodařeni firmy vysoká kvalita výrobků velmi malý počet reklamací nízké náklady na výrobu omezené výrobní prostory a tím nemožnost zakoupení dalších strojů omezené skladovací prostory finanční prostředky limitované splácením úvěru na zakoupení druhé budovy chybějící finance na přístavbu výrobních prostor nižší výrobní kapacita firmy neumožňuje realizovat větší zakázky chybějící vlastní sušárna PŘÍLEŽITOSTI firma je v regionu dobře zavedená obecně známá a uznávaná kvalita výrobků HROZBY možnost prodloužení ekonomické krize poměrně silná konkurence v oboru kvalitní a stálí dodavatelé - s možností realizace velmi zajímavých dodacích podmínek vybudovaný okruh zákazníků dostatečný počet zakázek spolupráce se stavebními firmami konec ekonomické krize a oživování ekonomiky v ČR slibovaná podpora bydlení a rozvoje stavebnictví příznivá úroveň daní nejasný budoucí vývoj ekonomiky a trhu z důvodů předvolebního boje nebezpečí zvýšení daňového zatížení nebezpečí zvýšení cen vstupů Turkey SWOT ANALYSİS – OUR SCHOOL STRENGTHS The school’s physical capacity is sufficient The young and dynamic team of teachers Standard number of students in classes To be successful in sport activities The support of the school’s administration to the works To have a good guidance service Teachers can use computer The harmony of teacher’s and school’s administration To have a school library To have computer labs To be a commercial vocational school To be preferred by students WEAKNESSES Employee resistance to change The lack of teaching aids and materials The lack of employee motivation The lack of sufficient cooperation between teachers Weak parent-teacher cooperation The lack of social activities The high proportion of fragmented families The low socioeconomic level of the region The coefficient implementation in loss To have a very busy daily programme OPPORTUNITIES The support for the school’s administration to the works To have a high rate of access for our students for 2 years associate degree programs Our school is a pilot school To be close to The Barış Manço Culture centre Cooperation with BMD and Vestel THREATS Because of the school’s vocational school, to have less options in universities and departments To be near to the beach in Avcılar A lot of internet cafes near our school. B. Environmental scan The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the ‘macro-environment’, the ‘micro-environment’ and the ‘internal environment’. The micro-environment This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. The macro-environment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to compensate for changes in culture, politics, economics and technology. The internal environment All factors that are internal to the organization are known as the 'internal environment'. They are generally audited by applying the 'Five Ms' which are Men, Money, Machinery, Materials and Markets. The internal environment is as important for managing change as the external. As marketers we call the process of managing internal change ‘internal marketing’. Essentially we use marketing approaches to aid communication and change management. The external environment can be audited in more detail using other approaches such as SWOT Analysis, Michael Porter's Five Forces Analysis or PEST Analysis. Five Forces Analysis helps the marketer to contrast a competitive environment. It has similarities with other tools for environmental audit, such as PEST analysis, but tends to focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or range of products. For example, Dell would analyse the market for Business Computers i.e. one of its SBUs. Five forces analysis looks at five key areas namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry. The threat of entry Economies of scale e.g. the benefits associated with bulk purchasing. The high or low cost of entry e.g. how much will it cost for the latest technology? Ease of access to distribution channels e.g. Do our competitors have the distribution channels sewn up? Cost advantages not related to the size of the company e.g. personal contacts or knowledge that larger companies do not own or learning curve effects. Will competitors retaliate? Government action e.g. will new laws be introduced that will weaken our competitive position? How important is differentiation? e.g. The Champagne brand cannot be copied. This desensitises the influence of the environment. The power of buyers This is high where there a few, large players in a market e.g. the large grocery chains. If there are a large number of undifferentiated, small suppliers e.g. small farming businesses supplying the large grocery chains. The cost of switching between suppliers is low e.g. from one fleet supplier of trucks to another. The power of suppliers The power of suppliers tends to be a reversal of the power of buyers. Where the switching costs are high e.g. switching from one software supplier to another. Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft. There is a possibility of the supplier integrating forward e.g. Brewers buying bars. Customers are fragmented (not in clusters) so that they have little bargaining power e.g. Gas/Petrol stations in remote places. The threat of substitutes Where there is product-for-product substitution e.g. email for fax where there is substitution of need e.g. better toothpaste reduces the need for dentists. Where there is generic substitution (competing for the currency in your pocket) e.g. Video suppliers compete with travel companies. We could always do without e.g. cigarettes. Competitive Rivalry This is most likely to be high where entry is likely; there is the threat of substitute products, and suppliers and buyers in the market attempt to control. This is why it is always seen in the centre of the diagram. PEST It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up of: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors. Political Factors The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as: 1. How stable is the political environment? 2. Will government policy influence laws that regulate or tax your business? 3. What is the government's position on marketing ethics? 4. What is the government's policy on the economy? 5. Does the government have a view on culture and religion? 6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others? Economic Factors Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at: 1. Interest rates. 2. The level of inflation Employment level per capita. 3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on. Socio-cultural Factors The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include: 1. What is the dominant religion? 2. What are attitudes to foreign products and services? 3. Does language impact upon the diffusion of products onto markets? 4. How much time do consumers have for leisure? 5. What are the roles of men and women within society? 6. How long are the population living? Are the older generations wealthy? 7. Do the population have a strong/weak opinion on green issues? Technological Factors Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points: 1. Does technology allow for products and services to be made more cheaply and to a better standard of quality? 2. Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? 3. How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc? 4. Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc? III. Objectives A. Company’s mission Writing the mission statement for your business can be one of the most important things you can do as a new company owner, especially if there is more than one person working on the business. Often you will have rather different ideas among partners as to the direction and strategy of a company. By answering the following questions collaboratively and creating one document that all involved in the company agree to and sign, you will not only minimize headaches and arguments down the road but also be fully aligned on your goals and be able to work together efficiently. Here are ten questions your company’s mission statement should answer: Ten Questions Your Mission Statement Should Answer 1. What problem(s) do you solve? What need(s) do you fulfil? 2. What do you sell? How do you make your money? What is your revenue model? 3. How are you unique from everyone else out there? What is your unique selling proposition? 4. Who will you sell to? What is your target market? 5. What are your economic/financial goals? 6. What are your social/community goals? 7. What type of company do you want to create? Are you a lifestyle or high potential company? 8. Where is the company going? What products/services/industries do you plan to venture into? 9. What is your five year strategy? Do you want to sell internationally, build an online store, franchise your business, build certain partnerships, and develop additional products? 10. Do you ever plan on selling the company or going public? What is your exit strategy? Powerful sample mission statements: PEPSI - "Beat Coke" HONDA - "We will crush, squash, and slaughter Yamaha" NIKE - "Crush Reebok" Older sample mission statements which are quite grandiose in scale: Wal-Mart (1990) "Become a $125 billion company by the year 2000" Sony (1950's) "Become the company most known for changing the worldwide poorquality image of Japanese products" Boeing (1950) "Become the dominant player in commercial aircraft and bring the world into the jet age" Ford Motor Company (early 1900's) "Ford will democratize the automobile" One-line mission statements: Wal-Mart "To give ordinary folk the chance to buy the same thing as rich people." Mary Kay Cosmetics "To give unlimited opportunity to women." 3M "To solve unsolved problems innovatively" But notice how these one-line samples are supported by value statements that show how the mission will be accomplished and measured. Merck "To preserve and improve human life." o o o o o Corporate social responsibility Unequivocal excellence in all aspects of the company Science-based innovation Honesty & integrity Profit, but profit from work that benefits humanity Walt Disney "To make people happy." o o o o o No cynicism Nurturing and promulgation of "wholesome American values" Creativity, dreams and imagination Fanatical attention to consistency and detail Preservation and control of the Disney "magic" You can also find excellent collections of mission statements in various bookstores that will be sure to get your creative juices flowing. The main thing to realize is that there are many different ways to approach your mission statement and you should feel free and encouraged to do it your own way. There are no set formulas or rules. Romania Misiunea companiei AVIVA ROMÂNIA În 3-5 ani, Aviva va fi compania cea mai admirată, de încredere, căutată şi de succes în plan financiar din industria asigurărilor şi regiunea noastră geografică. Vom fi LIDER INCONTESTABIL oriunde ne vom propune să fim prezenţi. Misiune companie MININIFO ROM Misiunea companiei MININIFO ROM este să devină lider pe piaţa locală din România ca distribuitor de produse profesionale pentru spălătoriile auto, utilaje spălătorii, accesorii şi cosmetică auto, cât şi prestator de servicii complete de proiectare, instalare şi întreţinere pentru echipamentele comercializate. Bulgaria AROMA Cosmetics Aroma is a leading European producer of cosmetics and perfumery products with long traditions in this field. Our products are sold in 56 countries on the five continents. We combine the advantage of our 78-year experience in cosmetics and perfumery with the employment of modern technologies and state-of-the-art equipment. Mission Statement: The Mission of AROMA Cosmetics is to provide high quality products to its Consumers that contribute to their health and beauty. AROMA strives for continuing growth to benefit investors and employees by building mutually beneficial relationships with business partners and by encouraging and supporting the professional development of its employees. TOGETHER BULGARIA Together Bulgaria is the first broker company founded for and in favour of the client. Company mission: FOR A BETTER LIFE Our goal is to make your life easier by helping you choose the best investment or insurance product. We help you organize your finances, ensure your health and fulfill your dreams.We help you take care of yourself and the people you love by advising you how to make more profit from your income. Czech Republic Foxconn je uznávaným lídrem v poskytování kompletních řešení v oblasti IT a produkci spotřební elektroniky až po výrobu součástek pro komunikační a elektronická zařízení. Vývoj v uplynulých letech ukázal, že FOXCONN CZ je na dobré cestě splnit své cíle stát se výrobní centrálou v Evropě a plně obsluhovat region EMEA (Evropa, Střední východ, Afrika), a také poskytovatelem kompletních služeb z jednoho místa Foxconn is the recognized leader in providing complete solutions in the field of IT and consumer electronics production, including the production of components for communication and electronic equipment. Developments in recent years has shown that FOXCONN CZ is on track to meet its goal to become a manufacturing headquarters in Europe and fully serve the EMEA region (Europe, Middle East, Africa), providing a complete service from one place. NESTLÉ v České republice Vize BÝT NEJLEPŠÍ SPOLEČNOSTÍ V OBORU POTRAVIN A NÁPOJŮ S PŘEDNÍM POSTAVENÍM V OBLASTI VÝŽIVY, ZDRAVÍ A ZDRAVÉHO ŽIVOTNÍHO STYLU V ČESKÉ REPUBLICE. Poslání Uskutečňovat koncept Good Food, Good Life ("dobré potraviny pro dobrý život") tím, že našim spotřebitelům a zákazníkům poskytujeme potraviny a nápoje nejvyšší kvality. Vyvíjíme řešení, vycházející z výživy, zdraví a zdravého životního stylu a vždy se snažíme přidávat hodnotu tím, že trvale používáme nejlepší postupy a poskytujeme spolehlivé služby našim zákazníkům. NESTLÉ in the Czech Republic Vision TO BE THE BEST COMPANY IN THE FIELD OF FOOD AND BEVERAGES, WITH THE BEST RANKING IN NUTRITION, HEALTH AND HEALTHY LIFESTYLE IN THE CZECH REPUBLIC Mission Implementing the concept of Good Food, Good Life (“Good Food for Good Life”) by providing our consumers and customers food and beverages of the highest quality. We develop solutions based on nutrition, health and healthy lifestyle and always try to add value by using the best practices and providing reliable services to our customers. Turkey Mega Otomotiv Aş Misyonu ve Vizyonu: Mega Otomotiv Müşteri memnuniyezini , sürekli gelişmeyi kaliteyi, Ekip Çalışmasını, Sosyal sorumluluğu profesyonel yönetim anlayışını teknolojik gelişmelere uygunluğu ve paylaşımı esas alan bir anlaşıla sektöründe liter bir kuruluş olmayı kendine vizyon EDİNMİŞTİR, Ayrıca belirlemiş olduğumuz bu vizyon çerçevesinde çalışanlarımıza ülkemize kaynak ve değer yaratan örnek bir kuruluş olmayı kendimize Misyon edindik. B. Marketing objectives Objectives let everyone know what the marketing plan will accomplish. To be useful, an objective must be single-minded (have only one topic for each objective), specific, realistic, measurable, and have a time frame. For example, you cannot include increasing sales and increasing profits in the same objective. Each topic needs to be a separate objective. Specific means that the objective provides enough detail that there can be no misunderstanding. You cannot use, “to be better than a competitor” as an objective because what is “better” to one person may not be to another. Measurable means that the objective includes a way to evaluate it. For example, you cannot simply say you want to increase sales. You need to identify the percentage increase in dollar or unit sales to make that objective measurable. Thus, you could use, “to increase dollar sales by 15 percent as compared to the same time last year.” Finally, you must include a time frame, such as in six months, or as compared to last year’s sales. Without a time frame, you would not know if an objective was actually reached. Marketing objectives must be in line with the organization’s goals and mission. If an organization’s goal is to double its business in five years, marketing objectives must coincide with that goal and provide the means to reach it. A company’s mission statement provides the focus for a firm’s goals with its explanation of the company’s core competencies, values, expectations, and vision for the future. All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and Timed. Specific - Be precise about what you are going to achieve. Measurable - Quantify your objectives. Achievable - Are you attempting too much? Realistic - Do you have the resources to make the objective happen (men, money, machines, materials, and minutes)? Timed - State when you will achieve the objective (within a month? By February 2011?) Some examples of SMART objectives: 1. Profitability Objectives To achieve a 20% return on capital employed by July 2018. 2. Market Share Objectives To gain 25% of the market for lady shoes by August 2015. 3. Promotional Objectives To increase awareness of the dangers of AIDS in France from 11% to 24% by May 2016. To increase trail of X washing powder from 2% to 5% of our target group by January 2019. 4. Objectives for Survival To survive the current double-dip recession. 5. Objectives for Growth To increase the size of our Argentinian operation from $300,000 in 2018 to $500,000 in 2019. 6. Objectives for Branding To make Y brand of bottled beer the preferred brand of 22-30 year old males in Europe by March 2018. There are many examples of SMART objectives. Be careful not to confuse objectives with goals and aims. Goals and aims tend to be vaguer and focus on the longer-term. They will not be SMART. However, many SMART objectives start off as aims or goals and therefore they are of equal importance. Marketing Budget A marketing budget is an estimate of projected costs to market your products or services. A typical marketing budget will take into account all marketing costs e.g. marketing communications, salaries for marketing managers, cost of office space etc. However much of the budget is concerned with marketing communications e.g. public relations, website, advertising, etc. Both are considered here. The costs in a marketing budget will be allocated according to the campaign and the media to be utilized. Some prior research will be necessary for the cost estimates to be as realistic as possible. This is called advertising or marketing communications research. Pre-budgeting Research 1. Industry and Market Research 2. Competitor Analysis/SWOT 3. Internal marketing performance records e.g. marketing metrics, marketing controls. 4. Marketing Audit. Knowledge of key industry and market factors must be taken into account when developing your marketing plan. Your plan will also be influenced by researching your competition. You will want to allot funding in a way that exploits the weaknesses of your competitors and emphasizes your strengths. Other information that can guide your spending plan is found in your internal records. What advertising expenditures have proven successful for your business? For example, you can review internal records and determine the return on investment of your advertising dollars. A periodic examination of the performance of these records may lead you to drop certain media that have not proven fruitful. Typical general marketing expenses: Advertising agency commissions Salaries for marketing managers Salaries for marketing support e.g. marketing assistants. Office space Fixtures and fittings Travel costs Other direct and indirect marketing costs, including marketing communications costs (see below). Typical marketing communications costs: Personal Selling Public Relations Printing Mailing Website Development & Hosting Brochure Design Advertising Television Advertising Radio Advertising Direct Marketing Newspaper Advertising Proposal Development/bid submittal Networking Event Attendance Sales Promotion Many other marketing communications tools. Summary of the Marketing Budget Marketing budgets ensure that your marketing plan or campaign is realistically organized from a financial point of view. Some pre-budget research into your industry and market, your competitors and your business’s historical marketing metrics helps marketing managers make a more informed calculation. You should cost out all general marketing and marketing communications expenses. You could also work in conjunction with an accountant to make sure that the figures are complete and realistic. IV. Marketing strategies A. Positioning and points of difference Big business marketers know that one of the most important elements of a successful marketing plan knows what makes you stand out from your competition. Before they spend any money on marketing tactics they work out what sets them apart and importantly what is meaningful to their target market. In big business marketing as well as small business marketing, your key point of difference is the basis on which you develop your brand positioning. Developing your business or brand positioning is very important as it is the core for all your communication with your customers, suppliers, business partners and employees. It is how you want your customers to favourably perceive your brand and/or business in relation to your competitors. There is a simple process big business marketers follow which you can easy use for your small business even if you are just starting out. Step 1: Have an understanding of your key customers’ needs and desires. The key is to find out what they are really wanting from your and your competitors products or services. If you have customers talk to them, if you are just starting out consider doing a simple market survey. Their needs and desires will have a rationale (e.g. deliver service on time) and emotional (e.g. peace of mind) element as after all we are talking about human beings and they will always be more loyal to a brand or business that they feel more emotionally attached to. Just think of the brands or businesses that you are most loyal to and this will help you with discovering your own key point of difference. Step 2: You need to determine your key strengths and weaknesses versus your competitors in relation to the key customers’ needs and desires. To make it easier just look at the 2-4 major competitors and always include the market leader. When looking at your strengths and weaknesses just examine those areas that differentiate your small business from your competitors. Step 3: Look at the key features (i.e. what your product does or what your service provides) and benefits (i.e. the positive values your customers receive such as cleaner teeth or peace of mind). The key is to have the key features and benefits that link back to your customers’ needs and desires better than your competitors. Once you have gone through the three steps you should be able to choose the one key feature and its benefit that will give you your key point of difference which you can maintain and develop it over time. Remember you do not have to identify your key point of difference alone, if you have employees, business partners or work with consultants and agencies they can all assist you to get into the hearts and minds of your customers. English McDonald’s Internet: Points of Parity, Points of Difference Yesterday McDonald’s announced that it would be introducing free internet access. This is a good move and a long overdue one. There are two important concepts when it comes to positioning: points of parity and points of difference. When a brand establishes a frame of reference, or competitive set, there are obvious points of parity. These are features and benefits offered by basically everyone. They do not differentiate, but a brand that falls short on these dimensions will surely be hurt. For example, all small cars have four wheels, a steering wheel, lights and pretty good gas mileage. These are all points of parity. Points of difference are the things that help a brand stand out. These are the factors that drive purchase. Small cars are all pretty similar but the Mini Cooper is uniquely sporty and fun to drive. For McDonald’s, internet access is fast becoming a point of parity. In the world of coffee establishments, in particular, internet access is almost universal. McDonald’s has to offer free internet simply to be a viable competitor in the space. This move will result in some lost revenue in the short run, as people no longer have to pay for internet access, but it will protect share. Marketing isn’t always about growth. Sometimes companies have to focus on improving the product simply to keep up. This is one of those times for McDonald’s. B. Marketing mix (four Ps) The marketing mix is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion. The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar! It is the same with the marketing mix. The offer you make to your customer can be altered by varying the mix elements. So for a high profile brand, increase the focus on promotion and desensitize the weight given to price. Another way to think about the marketing mix is to use the image of an artist's palette. The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final colour. Every hand painted picture is original in some way, as is every marketing mix. Some commentators will increase the marketing mix to the Five P's, to include people. Others will increase the mix to Seven P's, to include physical evidence (such as uniforms, facilities, or livery) and process (i.e. the whole customer experience e.g. a visit the Disney World). The term was coined by Neil H. Borden in his article The Concept of the Marketing Mix in 1965. 1. Product For many a product is simply the tangible, physical entity that they may be buying or selling. You buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the product more complex than you first thought? In order to actively explore the nature of a product further, let’s consider it as three different products the CORE product, the ACTUAL product, and finally the AUGMENTED product. These are known as the ‘Three Levels of a Product’. So what is the difference between the three products, or more precisely ‘levels’? The CORE product is NOT the tangible, physical product. You can’t touch it. That’s because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly. The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car example, it is the vehicle that you test drive, buy and then collect. The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacture, and any after-sales service. Exercise Complete the table below by filling in the blank spaces. All companies have a CORE, ACTUAL and AUGMENTED product or service. Product or service or brand Ford Focus Spanish Holiday Budget/No Frills Airline e.g. EasyJet or Ryanair Chelsea Football Club Nike Romania SIVECO ROMANAI Core Product Actual Product Freedom to travel Relaxation A motor car An airline journey Excitement and leisure Association with the best in sports. Augmented Product Holiday insurance Food bought during your flight Sporting event Astăzi, soft-ul nostru soluţii de eLearning, contează pentru că eHealth, organizează eAgriculture, informatic companii şi eCustoms, eBusiness. industrii, eficientizează procese, ajută oamenii să-şi dezvolte creativ abilităţile profesionale. Nike online allows you to personalise your trainers • milioane de elevi, profesori şi părinţi care construiesc "educaţia viitorului" • sute de organizaţii cu impact major în mediul de afaceri românesc • companii orientate spre performanţă care investesc în instruirea a mii de angajaţi • mii de medici şi milioane de beneficiari ai serviciilor de sănătate • afirmarea inteligenţei româneşti prin inovaţie continuă şi cercetare dezvoltare Bulgaria AROMA BG Czech Republic HOTEL PATRIA Náchodská 358 541 01 Trutnov Health and beauty Rest and sleep Hair care products Face care products Body care products Oral care products Cosmetics for men Perfumery Accommodation in one-four bedded rooms, with a shower, toilet, satellite TV, minibar and direct-dial telephone. Hotel capacity is 245 beds. JOINERY Convenience and Children’s • zeci de mii de beneficiari ai iniţiativelor din sfera CSR • recunoaşterea României în elita mondială a soft-ului educaţional. Aroma Club on line offer you entertainment activities which helps you you’re your hair styling, tests about your body care; dictionary with Vocabulary with terms in the field of cosmetics and health care Restaurant for serving breakfast, lunch and dinners with a capacity of 130 seats. Daily Bar Currency Exchange Outdoor seating Parking Bike rental and storage Ski storage Fitness, sauna, massage Wi-fi internet. Sport possibilities: indoor golf at the hotel, near the hotel (50 metres) - a sport area with a football stadium, tennis courts, ice stadium, indoor and outdoor swimming pools Organization of individual business events, such as training, parties, banquets, etc. Recognized quality HILLMANN relaxation furniture Výrobek nebo služba nebo značka Jádro produktu Skutečný produkt HOTEL PATRIA Náchodská 358 541 01 Trutnov Česká republika Odpočinek a spánek Ubytování v jednolůžkových až čtyřlůžkových pokojích se sprchou + WC, TV-sat, minibarem a telefonem. Kapacita hotelu je 245 lůžek TRUHLÁŘSTVÍ HILLMANN Pohodlí a relaxace Nábytek do dětského pokoje of the products Extended Warranty for 4 years Furniture assembly free of charge Distribution of products within 30 km – free of charge Possibility of paying the price in installments Rozšířený produkt restaurace, bar směnárna venkovní posezení parkoviště úschovna a půjčovna kol úschovna lyží fitness, sauna, masáže wifi internet sportovní příležitosti: v hotelu indoor golf; v těsné blízkosti hotelu sportovní areál s fotbalovým stadiónem, tenisové kurty, zimní hala, plavecký krytý bazén a moderní letní koupaliště. Organizace individuálních firemních akcí, jako školení, večírků, rautů atd. uznávaná kvalita výrobku prodloužená záruka na 4 roky montáž nábytku u Turkey MEGA OTOMOTİV AŞ. Otomotiv Yedek Parça Oto cam Gövde Mekanizma Yastığı Lastik İzolato Basınç tablası Radiator Difarensiyel çemberi Stepne taşıyıcı Tav. Hav. Kapağı Arka ön far koruma Yağ basınç anahtarı Ön park lambası Stop lambası Sinyal lambası odběratele zdarma rozvoz výrobků do 30 km zdarma možnost úhrady ceny ve splátkach Araç bakım ve onarım servisi İkinci el araç satışı Yıkama ve Araç Kuaförü Another marketing tool for evaluating PRODUCT is the Product Life Cycle (PLC). The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline). The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products or services that customers NEED throughout their lives. 2. Price There are many ways to price a product. Premium Pricing Use a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries such as Savoy Hotel rooms and Concorde flights. Penetration Pricing The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom and Sky TV. Economy Pricing This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc. Price Skimming Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented. Premium pricing, penetration pricing, economy pricing, and price skimming are the four main pricing policies/ strategies. They form the bases for the exercise. However there are other important approaches to pricing. Psychological Pricing This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis. For example: ‘price point perspective’ - 99 cents not one dollar. Product Line Pricing Where there is a range of product or services the pricing reflect the benefits of parts of the range. For example car washes. Basic wash could be $2, wash and wax $4, and the whole package $6. Optional Product Pricing Companies will attempt to increase the amount customer spend once they start to buy. Optional ‘extras’ increase the overall price of the product or service. For example airlines will charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other. Captive Product Pricing Where products have complements, companies will charge a premium price where the consumer is captured. For example a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor. Product Bundle Pricing Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach. Promotional Pricing Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free). Geographical Pricing Geographical pricing is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price. Value Pricing This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales e.g. value meals at McDonalds. 3. Place Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. There are six basic 'channel' decisions: Direct or indirect channels (e.g. 'direct' to a consumer, 'indirect' via a wholesaler). Single or multiple channels. Cumulative length of the multiple channels. Types of intermediary (see later). Number of intermediaries at each level (e.g. how many retailers in that region). Which companies as intermediaries to avoid 'intrachannel conflict' (i.e. infighting between local distributors). Selection Consideration - how to decide upon a distributor Market segment - the distributor must be familiar with your target consumer and segment. Changes during the product life cycle - different channels can be exploited at different points in the PLC e.g. Foldaway scooters are now available everywhere. Once they were sold via a few specific stores. Producer - distributor fit - Is there a match between their policies, strategies, image, and yours? Look for 'synergy'. Qualification assessment - establish the experience and track record of your intermediary. Your distributor’s requirements of training and support. Types of Channel Intermediaries There are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others. a. Channel Intermediaries - Wholesalers They break down ‘bulk’ into smaller packages for resale by a retailer. They buy from producers and resell to retailers. They take ownership or ‘title’ to goods whereas agents do not. They provide storage facilities. For example, cheese manufacturers seldom wait for their product to mature. They sell on to a wholesaler that will store it and eventually resell to a retailer. Wholesalers offer reduce the physical contact cost between the producer and consumer e.g. customer service costs, or sales force costs. A wholesaler will often take on the some of the marketing responsibilities. Many produce their own brochures and use their own telesales operations. b. Channel Intermediaries - Agents Agents are mainly used in international markets. An agent will typically secure an order for a producer and will take a commission. They do not tend to take title to the goods. This means that capital is not tied up in goods. However, a ‘stockist agent’ will hold consignment stock (i.e. will store the stock, but the title will remain with the producer. This approach is used where goods need to get into a market soon after the order is placed e.g. foodstuffs). Agents can be very expensive to train. They are difficult to keep control of due to the physical distances involved. They are difficult to motivate. c. Channel Intermediaries - Retailers Retailers will have a much stronger personal relationship with the consumer. The retailer will hold several other brands and products. A consumer will expect to be exposed to many products. Retailers will often offer credit to the customer e.g. electrical wholesalers, or travel agents. Products and services are promoted and merchandised by the retailer. The retailer will give the final selling price to the product. Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart in the USA. d. Channel Intermediaries - Internet The Internet has a geographically disperse market. The main benefit of the Internet is that niche products reach a wider audience e.g. Scottish Salmon direct from an Inverness fishery. There are low barriers low barriers to entry as set up costs are low. Use e-commerce technology (for payment, shopping software, etc). There is a paradigm shift in commerce and consumption which benefits distribution via the Internet. 4. Promotion Another one of the 4P's is promotion. This includes all of the tools available to the marketer for ‘marketing communication’. As with Neil H. Borden’s marketing mix, marketing communications has its own ‘promotions mix’. Think of it like a cake mix, the basic ingredients are always the same. However if you vary the amounts of one of the ingredients, the final outcome is different. It is the same with promotions. You can ‘integrate’ different aspects of the promotions mix to deliver a unique campaign. The elements of the promotions mix are: Personal Selling. Sales Promotion. Public Relations. Direct Mail. Trade Fairs and Exhibitions. Advertising. Sponsorship. Physical Evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following: People are the most important element of any service or experience. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the ‘individual needs’ of the person consuming it. Process is another element of the extended marketing mix, or 7P's.There are a number of perceptions of the concept of process within the business and marketing literature. Some see processes as a means to achieve an outcome, for example - to achieve a 30% market share a company implements a marketing planning process. V. Implementation Strategies Goal I: Improve communication, internally and externally A. Improve AER's effectiveness in dealing with professional issues B. Improve AER's organizational effectiveness Objectives 1. Align the goals of AER and Divisions Action Items a. Create an AER forum for the Division discussion of professional issues and formulation of AER action plans to address those issues. b. Discuss and get consensus with Divisions on what professional issues should be addressed at the AER level vs the Division level 1. Enhance a. Use AERLift to support communication communication of new of AER strategic strategic plan goals to b. Develop communication Divisions and tools for leaders in Divisions Chapters and Chapters 2. Improve AER a. Redesign AER website, services to adding new capabilities to Divisions and consolidate links with Chapters Division and Chapter sites b. Offer enhanced speakers bureau for leadership c. Fuffill requests for information, mailing lists, etc more quickly Responsible Resources Deadline Result Performance Indicators Engineer Popescu Server IT 20,000 Euro AER forum Number of users Number of posts 30 Sept 2010 3. Develop proactive communication with Division and Chapter leadership C. Provide effective 1. Partner with legislative advocacy other for the profession organizations to effectively track legislation a. Increase contact with Council of Chapter Presidents and Council of Division Chairs b. Develop communication tools for leaders in Divisions and Chapters c. Develop newsletter for Chapter and Division leaders d. Review current materials for Division/Chapter leadership and revise as necessary. a Work with the Legeslative Working Group (LWG) to advance common legeslative agenda with sister organizations VI. Measuring and monitoring the marketing planning process. There is no planning without control. Marketing control is the process of monitoring the proposed plans as they proceed and adjusting where necessary. If an objective states where you want to be and the plan sets out a road map to your destination, then control tells you if you are on the right route or if you have arrived at your destination. Control involves measurement, evaluation, and monitoring. Resources are scarce and costly so it is important to control marketing plans. Control involves setting standards. The marketing manager will than compare actual progress against the standards. Corrective action (if any) is then taken. If corrective action is taken, an investigation will also need to be undertaken to establish precisely why the difference occurred. There are many approaches to control: Market share analysis. Sales analysis. Quality controls. Budgets. Ratio analysis. Marketing research. Marketing information systems (MkIS). Feedback from customers satisfaction surveys. Cash flow statements. Customer Relationship Management (CRM) systems. Sales per thousand customers, per factory, by segment. Location of buyers and potential buyers. Activities of competitors to aspects of your plan. Distributor support. Performance of any promotional activities. Market reaction/acceptance to pricing polices. Service levels.