introduction lect 1

8/8/2019 Introduction Lect 1

1/20

Challenges and how world class companies

deal with them

The need for marketing planning Where to begin

An overview of the total process

OBJECTIVES


2/20

Thought Starters

Deliverables from your strategic

marketing plan: Can you list your key target markets? (in order of

priority)

Can you describe (quantitatively and qualitatively) thevalue that is required by each of your key targetmarkets?

In each of these key target markets, can you describehow your organisation creates this value?

Do the relevant senior people in your organisationunderstand and support the above three points?

Are all the relevant functions in your companyorganised in a way that is supportive of delivering thevalue required by the customer?


3/20

Challenges

MarketMaturity

Globalisation

Customer power


4/20

The purpose of strategic marketing

planning

The overall purpose of strategic marketing

planning, and its principal focus is the

identification and creation of sustainable

competitive advantage.


5/20

Definition of marketingM

arketing is a process for: defining markets

quantifying the needs of the customer groups(segments) within these markets

putting together the value propositions to meet theseneeds, communicating these value propositions to allthose people in the organisation responsible fordelivering them and getting their buy-in to their role

playing an appropriate part in delivering these valuepropositions (usually only communications)

monitoring the value actually delivered.

For this process to be effective, organisations need tobe consumer/customer-driven


6/20

The contents of a strategic marketing

plan

The purpose statement

Financial summary

M

arket overview SWOT analyses

Portfolio summary

Assumptions

Objectives and strategies

Budget


7/20

Asset

Base

Define markets& understand

value

Determine value

proposition

Deliver

value

Monitor

value

Map of the marketing domain


8/20

The route to Sustainable Competitive

Advantage (SCA)Differentiation High

Price

High

Volume

Sales Revenue

Low BusinessRisk

Low Financial

Risk

Positive

NPVSCA

Economiesof Scale

Learning

Curve

High Cash

Flows

Gearing

Interest Cover

Working Capital Ratio

Operational LeverageFinancial

OperationsLower

Costs


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NicheOutstanding

Success

Disaster Lowestcost

High

Low

High LowLowRelative costRelative cost

DifferentiationDifferentiation


10/20

Provider Customer Consumer

The value chain


11/20

Profit improvement

Productivity improvement Salesgrowth

Product

development

Market

development

Market

penetration

Change

asset base

Existing

assets

Costreduction

Improveasset

utilisation(experience

andefficiency)

Increaseprice /reduce

discounts

Improveproduct /sales mix(margins)

Newmarkets

Existingmarkets

Convertnon-

users

Newsegments

Takecompetitors

customers

Increaseusage

Growth focusCash and margin focus

Investment

Innovation

Diversification

Divestment

Redevelopment of

capital resources

Capital Utilisation focus


12/20

Strategic marketing planning

What is our purpose?

What is our Market?

Who are our customers?

What are our products?

What does the customer need?

How well do our products satisfy

these needs?

What are our objectives?

How can we allocate our resources

optimally?

What are our strategies?

What new products should be

developed?

How should we price our products?

What should our channel strategies

be?

What service levels should we provide

for our different customer groups?

How should we communicate with our

target markets?

How should we measure the

effectiveness of our plan?


13/20

Key elements of world class marketing

1.1. Profound understanding of the market-place

2.2. Creative segmentation and selection

3.3. Powerful differentiation positioning and branding

4.4. Effective marketing planning processes

5.5. Long-term integrated marketing strategies

6.6. Institutionalised creativity and innovation

7.7. Total supply chain management

8.8. Market-driven organisation structures

9.9. Careful recruitment, training and career management

10.10. Vigorous line management implementation


14/20

Define

markets & segments

Understandvalue required(by the customers)

Understand

competitor value

positioning

Evaluatemarket/segment

attractiveness

- Corporate

mission/objectives

- External data

inc. market research

- Internal data

from value delivery

Analysis

*

*

Define markets and understand value


15/20

Market overview

What the market is

How it works

Key leverage points


16/20

Market definition and segmentation

Correct market definition is crucial for:

Share measurement Growth measurement

The specification of target customers

The recognition of relevant competitors

The formulation of marketing strategy


17/20

SWOT analysis

By segment, what value is required by

the customer?

What value are you offering to entice

the customer to buy from you.


18/20

Market/segment selection criteria

Business Strengths

Market / segmentattractiveness

- Size

- Growth

- Profitability

- Competitive intensity

- Product Range

- Product Efficacy

- Service Quality (Including distribution)

- Price

- Associated Services (e.g. Technical advice)

- Reputation / Image

High Low

Low

High

Maintain/

manage for

sustained

earnings

Invest/

Grow

Manage for

Cash /Withdraw

Selectively

Invest


19/20


20/20

Communicate the offer: activities

Advertising

Brand awareness

Brand attitude

- info re benefits

- brand image

- feelings

- peer influence

Trial inducement

Reduce cognitive

dissonance

Selling

Prospecting

Provide

information

Persuade

Close sale

Deliver

Service

Marketingactivity

Define mkts/

understand value

Create value

proposition

Interaction

Recognise

exchange

potential

Initiate dialogue

Exchange

information

Negotiate/ tailor

Commit

Exchange value

Monitor

Decisiontheory

Problem

recognition

Information

search

Evaluation of

alternatives

Choices/

purchase

Post-purchase

behaviour

Consumerbehaviour

Category

need

Awareness

Attitude

Information

gathering &

judgement

Purchase

process

Post-purchase

experience

Supplier perspective Interaction perspective Buyer perspective

introduction lect 1

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