Marketing-Planning-and-Strategy

1Chapter12MarketingPlanningandStrategy2Re-definitionTheMarketingPlanningProcessBusinessmissionMarketingauditSWOTanalysisMarketingobjectivesCorestrategyMarketingmixdecisionsOrganizationandimplementationControlMarketingplanningatthebusinesslevelMarketingplanningattheproductlevelStrategicthrustStrategicobjectivesTargetmarketsCompetitiveadvantageCompetitortargets3ExternalMarketingAuditChecklistIMacroenvironment1.Economic:inflation,interestrates,unemployment2.Social/cultural:agedistribution,lifestylechanges,values,attitudes3.Technological:newproductandprocesstechnologies,materials4.Political/legal:monopolycontrol,newlaws,regulations5.Ecological:conservation,pollution,energy4ExternalMarketingAuditChecklistIITheMarket1.Marketsize,growthrates,trendsanddevelopments2.Customers,whoarethey,theirchoicecriteria,how,when,wheredotheybuy,howdotheyrateusvs.thecompetitiononproduct,promotion,price,distribution3.Marketsegmentation:howdocustomersgroup,whatbenefitsdoeachgroupseek4.Distribution:powerchanges,channelattractiveness,growthpotentials,physicaldistributionmethods,decisionmakersandinfluencers5.Suppliers:whoandwherearethey,theircompetenciesandshortcomings,trendsaffectingthem,futureoutlook5ExternalMarketingAuditChecklistIIICompetition1.Whoarethemajorcompetitors?2.Whataretheirobjectivesandstrategies?3.Whataretheirstrengthsandweaknesses?4.Marketsharesandsizeofcompetitors5.Profitabilityanalysis6.Entrybarriers6BargainingPowerBargainingPowerPotentialentrantsSuppliersBuyersSubstitutesIndustrycompetitorsRivalryamongexistingfirmsThreatofsubstituteproductsThePorterModelofCompetitiveIndustryStructure7IBMInformationtechnologysolutionssupplierIBMusesadvertisinglikethistodemonstratethevaluethatitprovidestobuyers8InternalMarketingAuditChecklistOperatingResults(byproduct,customer,geographicregion)SalesMarketshareProfitmarginsCostsStrategicIssuesAnalysisMarketingobjectivesMarketsegmentationCompetitiveadvantageCorecompetencesPositioningPortfolioanalysisMarketingStructuresMarketingorganisationMarketingtrainingIntra-andinterdepartmentalcommunicationMarketingSystemsMarketinginformationsystemMarketingplanningsystemMarketingcontrolsystemMarketingMixEffectivenessProductPricePromotionDistribution9SWOTAnalysisOpportunitiesStrengthsThreatsWeaknessesInternal(controllable)External(uncontrollable)Source10TAGHeurerAdvertisinglikethisforTagHeuerwatches(withthetagline–TheMikrograph:preciseto1/100thofasecond)aimstodemonstrateitsuniquecompetitivestrengthsinmakingprecisiondevices11ProductGrowthStrategiesTheAnsoffMatrixMarketpenetrationorexpansionExistingNew/relatedProductsMarketsExistingNew/relatedMarketdevelopmentProductdevelopmentEnternewmarkets12StrategicObjectivesStrategicObjectivesHoldDivestBuildHarvest13CoreStrategyTargetMarketsCompetitortargetsCompetitiveadvantageCorestrategy14CompetitiveStrategiesCostleadershipCostfocusCompetitivestrategiesDifferentiationfocusCostfocusDifferentiation15ToyotaToyota’skeyresourcessuchasitsproductionexpertise,distributioncoverageandpowerfuladvertisinglikethis‘lifestyle’campaignhavecombinedtoenableittogainmarketleadershipinthemasscarmarket16TheValueChainSupportactivitiesPrimaryactivitiesMarginThroughValueFirmInfrastructureHumanResourceManagementTechnologyDevelopmentProcurementIn-boundLogisticsOperationsOut-boundLogisticsMarketingandSalesService17TestingCoreStrategyClearlydefinestargetcustomersandtheirneedsResourceandmanageriallysupportableInternallyconsistentDerivedtoachieveproductmarketobjectivesCreatesacompetitiveadvantageIncursacceptableriskCorestrategy18KeyQuestionsandtheProcessofMarketingPlanningKeyQuestionsStagesinmarketingplanningWherearewenowandhowdidwegetthere?BusinessmissionMarketingauditSWOTanalysisWhereareweheading?MarketingauditSWOTanalysisWherewouldweliketobe?MarketingobjectivesHowdowegetthere?CorestrategyMarketingmixdecisionsOrganisationImplementationAreweoncourse?Control19TheRewardsofMarketingPlanningConsistencyRewardsResourceallocationREWARDSResourcesallocationStimulatesachievementEncouragesorganisationaladaptionConsistencyCompetitiveadvantageEncouragesthemonitoringofchange20MarketingPlanningProblemsandRecommendationsMarketingplanningproblemsPoliticalOpportunitycostRewardsystemsInformationCultureRecommendationsforminimisingtheimpactofproblemsSeniormanagementsupportMatchplanningsystemtobusinesscultureTherewardsystemDepoliticiseoutcomesClearcommunicationTraining21ChapterSummaryTheroleofmarketingplanningistogivedirectiontoanorganisation’smarketingeffortandco-ordinateitsactivities.Thevariousstagesofthemarketingplanningprocessincludedevelopingoradjustingthebusinessmission,settingmarketingobjectives,analysingthemarketingenvironment,decidingthecorestrategyandorganisingtheimplementation.Themarketingauditisdividedintoanexternalandaninternalaudit.Marketingobjectivesneedtobedecidedattwolevels:strategicthrustandstrategicobjectives.Therearefourstrategiesavailableformarketingplanners:differentiation,costleadership,differentiationfocusandcostfocus.Thereareanumberofrewardstobegainedfrompursuingcarefulplanning.Marketingpl