Advanced Marketing Planning
by
Professor Malcolm McDonald
Cranfield School of Management
8th November 2000

Definition of marketing
Marketing is a process for:
q understanding markets
q quantifying the value required by the different groups
(segments) within these markets
q communicating this value to those responsible for
delivering it
q measuring the effectiveness of the value actually
delivered

Map of the marketing domain
Define markets
& understand
value
Asset
Monitor Create
Base
value value
Deliver
value

Application areas
Define markets
Planning
& understand support
value tools
Data
warehouse
Intranet
Monitor Create
value value proposition
CRM
Internet
Communicate
& deliver
value

Define markets and understand value
Define
markets & segments
- Corporate
mission/objectives
- External data
*
Understand
inc. market research
value required
- Internal data
(by the customers)
from value delivery
* Understand
Evaluate
competitor value
market/segment
positioning
attractiveness
Analysis

Key elements of world class marketing
1. Profound understanding of the market-place
2. Creative segmentation and selection
3. Powerful differentiation positioning and branding
4. Effective marketing planning processes
5. Long-term integrated marketing strategies
6. Institutionalised creativity and innovation
7. Total supply chain management
8. Market-driven organisation structures
9. Careful recruitment, training and career management
10. Vigorous line management implementation

Personalising segments
OIO0599.7

Create the value proposition
Analysis
Choose markets/
Corporate
segments
objectives
*
Define objectives
value received
Define price/value
proposition
Define marketing
Cost
strategies
Convenience
How value is to be delivered /
Communication
communicated
Consumer wants
Price
& needs
- product/service Place - distribution
benefits Promotion * - marketing
communications
Product/service - features
- customer service
Estimate expected results
Value received and budgeting
Marketing Plan(s)

Deliver value
Create value
Define
proposition
Markets
modifications to value
New market creation
proposition / marketing strategy
Supplies Products Services
Deliver the product / service
Research & Inbound Outbound
Operations Service
development logistics logistics
Exchange information
Communicate the offer (implement integrated marketing communications plan) Monitor Mgr. Comm.
*
programs
Measurement:
Across media:
*
Design and implement Attitudes
• Mass media
- awareness
marketing communication programs • Mail
- perceptions
• Telephone
- etc
• Personal contact
Design program Negotiate/tailor
Behaviour
• Electronic eg Net
Initiate dialogue Commit
- conversion rates
• etc
Exchange information Exchange value
- etc
Customer information

Define marketing strategy for promotion
e.g test drive,
demonstration,
5 senses
Place
Distribution
Channel/Medium
Strategy
Choice
Mass media Telephone
Direct mail Other
Electronic
Personal
contact
- objectives - objectives - PR
- objectives
- objectives
- message strategy - objectives
- strategy - POS
- strategy
- strategy
- media strategy - strategy - etc
Integrated marketing
communications plan

Monitor value
Value required Value received
Value delivered How value delivered
(by customers) (by us)
vs proposition / communicated vs
latest vs vs objectives marketing strategies
expected
• Product / service vs
plan (R&D, Operations)
• Promotions vs plan
• (IMCP)
• Place vs plan
• (Distribution Plan)
• Price vs plan

Define markets & understand value
Analysis
IT Market research
Define
aggregation/
Support markets/segments
Planning
analysis
for Market mapping support
Causal
Understand value Segmentation tools
Marketing Plan models
required SWOT
Effectiveness Create
Compet. Analysis NPD
Portfolio analysis
Evaluate Understand value
Planning
market/segment competitor value Forecasting
proposition
attractiveness positioning
Monitor
value Size/share Choose
Purchase
Revenue/Profit markets/segments
Monitor vs
propensity
Retention
Plan
Value Value
CLV
Operational Data Channel
required delivered
EIS Warehouse choice Define objectives
How value Allocation of customers
Value
delivered/ to segments
received
Define price/value
communicated Operational implications
proposition
ERP
CRM
System
Define marketing
Deliver value Program monitoring
strategies
Customer interface
Deliver product/service
Customer
Inbound Outbound Estimate expected
Operations
information R&D Service
logistics logistics results
Exchange information
Communicate value Marketing
Design/implement marketing communication programmes Plan(s)
Monitor
R&D support Design program Negotiate/ tailor
marcom
Data analysis Initiate dialogue Commit
programmes
Project Exchange information Exchange value
management

Key areas for improvements in strategic
marketing planning
General comments
A strategic marketing plan should be a clear and simple
summary of key market trends, key target segments, the
value required by each of them, how we intend to create
superior value (to competitors), with a clear prioritisation of
marketing objectives and strategies, together with the
financial consequences.
Frequently, they are diffuse, confusing compilations for
unconnected individual sections.

Barriers to marketing planning
1. Cultural Lack of belief in planning and/or
marketing and/or need to change
2. Behavioural Lack of top management support;
lack of cross functional involvement
3. Cognitive Lack of knowledge and skill
4. Systems & Lack of data and/or inappropriate
procedures systems
5. Resources Lack of time, people and money
All of these factors are inter-dependent i.e. change
one, it impacts on another

Lack of Knowledge and Skills

Key marketing concepts/tools, linkages.
The need for marketing planning
Mktg.
MIS Product
Audit
Management
Gap
Brands
Analysis Ansoff
Mktg.
Res. Matrix
Position
Life
Product cycle
Promotion
Place Management
Mngmt. Mkt.
Management Diffusion Growth
Price
Mkt.
Boston Share
Sales
Matrix
Channel
Promotion Segmen-
mngmt.
tation
PIMS
Objectives,
Adv.
Customer
Strategies,
Service
Sales Programmes,
Marketing
Force Budgets, Forecasts,
Organisation
Plans
PDM
Assumptions

The marketing The output of the marketing planning process Marketing theory
Planning process
Strategic marketing plan contents (Structures, frameworks, models)
Mission statement
Phase 1
Goal setting
Financial summary
Marketing audit
Market research
Market segmentation studies
Phase 2 Market overview Gap analysis
Market structure
Situation review Product life cycle analysis
Market trends
Diffusion of innovation
Key market segments
Ansoff matrix
Gap analysis
Forecasting
Market research
(By product)
Opportunities Issue management
(By segment)
Threats
(Overall)
(By product)
Strengths
(By segment)
Weaknesses Key success factors matrix
(Overall)
Market research
(By product)
Issues to be Market segmentation studies
(By segment)
Addressed
(Overall)
B.C.G. Matrix
Portfolio summary
Directional policy matrix
Downside risk assessment
Assumptions
(By product)
Marketing
Phase 3 (By segment)
Objectives
Strategy Porter matrix
(Overall)
Formulation Ansoff matrix
Strategic focus Bcg matrix
Product mix Directional policy matrix
Product development Gap analysis
Product deletion
Market extension
Target customer groups
(4 x 4 ps) Market segmentation studies
Marketing
(Positioning/branding) Market research
Strategies
Response elasticities
Product
Price
McDonald PRODUCTIVITY MATRIX
Promotion
Blake mouton matrix
Place
Phase 4 Resource Forecasting
Requirements Budgeting
Resource
Allocation
And monitoring Measurement and review
Marketing planning and marketing theory (structures, frameworks, models etc.)
© Copyright, professor Malcolm h.B. McDonald 1987

Cranfield Centre for Advanced
Technology in Marketing
Objective of Centre
To develop solutions, via information technology,
which make available the power of marketing tools,
techniques and processes, to personnel at all
levels within an organisation, who have an
influence on marketing.

Hierarchical decomposition of the
tasks involved in producing a strategic
marketing plan (1)
Business unit
Mission & targets
Definitions
Product markets
Financial performance
Conduct audit SWOT analysis
Summarise audit
Financial performance
Produce a
Predict trends
strategic Update SWOT analysis
marketing
Summarise trends
plan
Define marketing objectives
Set objectives
Define marketing strategies
& strategies
Assess objectives

Hierarchical decomposition of the tasks involved in
producing a strategic marketing plan (2)
Life cycle
Financial
performance
Porter
matrix
Strengths &
CSF bar
weaknesses
chart
Perpetual
map
SWOT
Opportunities
analysis
& threats
Competitor
Conduct audit analysis
Market MAF bar
attractiveness chart
Aggregated
life cycle
Gap
analysis
Summarise
audit
Boston
matrix
Directional
policy matrix

Some major technique interrelationships
used in strategic marketing planning
Cost volume forecast
Product life Gap
experience cycle analysis
curve
future data
cost Market risk
gap
segmentation categories
Boston
Porter
New product
matrix
matrix
development
priorities,
portfolio
differentiation balance
positioning new
ideas,
Strategy risk
CSF bar Ansoff
horizontal
chart Matrix
Formulation
axis
product-
axes future potential
priorities, market
positioning portfolio balance choice
vertical
Directional
Perceptual Market
axis
policy matrix
map attractiveness
Key: provides x as input to