The Marketing Planning Workbook

  • 534 views
Uploaded on

Marketing checklists – love them or loath them, they are at the heart of management thinking and practice. And they serve two purposes. …

Marketing checklists – love them or loath them, they are at the heart of management thinking and practice. And they serve two purposes.
The first is to provide a framework to improve marketing performance. The second is to help managers and business owners with an easy to follow system for crafting today’s - and tomorrow’s - breakthrough marketing strategies and plans.

More in: Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
534
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
0
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. 2COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukThe MarketingPlanning Workbookby Andrew PearsonCOACHING BUSINESS
  • 2. 3COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukThe MarketingPlanning Workbook© Copyright 2012 Andrew M. PearsonALL RIGHTS RESERVED. No part of this report may be reproduced or transmitted in any form whatsoever,electronic, or mechanical, including photocopying, recording, or by any informational storage or retrieval systemwithout express written, dated and signed permission from the author.DISCLAIMER AND/OR LEGAL NOTICES:The information presented herein represents the view of the author as of the date of publication. Because of therate with which conditions change, the author reserves the right to alter and update his opinion based on the newconditions. The report is for informational purposes only. Whilst every attempt has been made to verify theinformation provided in this report, neither the author nor his affiliates/partners assume any responsibility forerrors, inaccuracies or omissions.
  • 3. 4COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukCONTENTS PageINTRODUCTION 5BUSINESS REALITIES 6-13MARKET STRATEGY 14-26MARKETING TACTICS 27-39CONCLUSION 40SOME EXTRAS 41-48ABOUT US 49CONTENTS
  • 4. 5COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMarketing checklists – love them or loath them, they are at the heart of managementthinking and practice. And they serve two purposes.The first is to provide a framework to improve marketing performance. The second isto help managers and business owners with an easy to follow system for craftingtoday’s - and tomorrow’s - breakthrough marketing strategies and plans.‘The Marketing Planning Workbook’ takes the reader through each of the keysteps involved in developing a marketing plan in a clear, structured and practical wayby answering the following key questions:• What is the big idea? The Business Realities• What are my objectives? The Market Strategy• How am I going to achieve them? The Marketing TacticsThe workbook breaks down into three broad sections. The first; The BusinessRealities, is a health check, a series of questions that have always stimulateddiscussion amongst managers. The second, Market Strategy is concerned with theapproach to achieving the company’s objectives. The third and final section concernsthe Market ing tactics required to deliver the market strategy .Thus the checklists work from the essentials of business direction to delivery instraightforward language that cuts away the buzzwords and acronyms to show youthings they don’t teach you in business schools about marketing! We hope you find‘The Marketing Planning Workbook’ a useful addition to your current way ofmarketing planningINTRODUCTION
  • 5. 6COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukThe Marketing Planning Workbook1.BUSINESS REALITIESThe business challengesHow well are we doing?Opportunity, risk and innovationWhat we need to know competitorsPlaying to strengthsExploiting competitive advantagesKey Success Factors
  • 6. 7COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukTHE BUSINESS CHALLENGESQuestions and Assignments1. What problems is your company is currently facing. Given theseproblems, what actions should it be taking?2. What is the company’s current knowledge area (core competence)? Howcan it leverage this specialisation in new products or new markets? Whatnew competencies will it need to develop in the future?3. What changes are taking place in the company’s industry? Given thesechanges, how should it respond? Are any new customer segmentsemerging that the company should be targeting? Are there any newcustomer needs that the company should aim to satisfy?4. What criteria would the company use to decide whether a customer is"right" or "wrong" for the business? Apply these criteria to determinewhich customers it should to target and decide how to target them.5. What business is the company really in? Are there any other possibledefinitions for the business? Explore the implications of defining it in thedifferent ways have been identified.6. What are the key success factors in the business? How are they changing?How should it respond to these changes?7. What is the company’s real value-added? Why do customers buy from it?Why do they buy from its competitors? Given the changes taking place inthe company’s industry, what will be its value added in the future?8. Who are your company’s most threatening competitors? How are theyplaying the game? What would the company have to do to outperform itschief competitors?
  • 7. 8COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukHOW WELL ARE WE DOING?Questions and Assignments1. What is the market for each of your company’s products or services by size,competitive intensity, and potential economic and innovating trends? Howwell are your company’s products or services performing by revenuecontribution and by share of the cost burden in each?2. How well are your company’s products or services performing by revenuecontribution and by share of the cost burden? To what extent is the mixdriven by toady’s breadwinners, tomorrow’s breadwinners, problemproducts or services and yesterdays breadwinners?3. How well are your customers and channels performing by revenuecontribution and by share of the cost burden? How are these changing bytechnology, customer expectations and values?4. How effectively are financial and knowledge resources allocated to eachproduct? Are they allocated to opportunities rather than to problems? Towhat extent is working capital and the marketing budget contributing torevenue?5. To what extent are your company’s products or services leaders in yourmarkets, customers and channels? Is – or can – leadership be based on priceor quality (reliability, appearance, design, reputation etc)?6. Does your company use transaction analysis to represent the cost structureof a market, product and customer
  • 8. 9COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukOPPORTUNITY, RISK AND INNOVATIONQuestions and Assignments1. Is your company constantly attuned to spotting opportunities and means toexploit them through creativity and innovation?2. What opportunities are available to your company? Can you spot them inadditive, complementary and breakthrough openings, new means ofproduction, new channels, new or improved services, relationship buildingand communications methods?3. How do you identify opportunities? Do you spot them from problemanalysis, customer proposals, creative groups, market mapping, featuresstretching, features blending and stretch techniques?4. Do you screen and select opportunities by size, investment need, return andrisk?5. When you evaluate an opportunity is risk evaluated on the basis of one youcan afford to take, one that you cannot afford to take or one that you cannotafford not to take?6. How effective are your innovation processes? Are you able to generate newways to meet changing customer needs and different ways of doing thingsthrough your knowledge of customer needs, technology knowledge toproduce the products or services required and through your capability to dowhat you do even better?
  • 9. 10COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukWHAT DO WE KNOW ABOUT OURCOMPETITORS?Questions and Assignments1. Who are your competitors? Now? Five years from now? What factors couldcause changes in the identity of your competitors? Acquisitions?Deregulation? Import penetration? Channels? New technology? Rawmaterials? Legislation?2. What are your competitors’ investment priorities? Goals and objectives?What is their market standing? What are their assumptions about themarket? Industry?3. How important is your specific market(s) to each of your competitors? Whatis the level of their commitment? Do you therefore know what effort eachcompetitor is likely to make to defend or improve its position in yourmarket(s)?4. What are your competitor’s strengths and limitations? In what respect iseach one better or worse that you are? What if its strategies are working andwhich are not? Is it usually safe to assume that the former will be continuedand the latter changed?5. What weaknesses make a competitor vulnerable? Are they to do with cash,margin, growth, operations and distribution coasts, overdependence on onemarket or one customer, people? Can you attack them with your strongestforces at their weakest point?6. What changes are competitors like to make in their future strategies? Arethey seeking strong investment candidates (stars) or cash cows?7. What effects will your competitors’ strategies have on the industry on themarket and on your strategy?
  • 10. 11COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukPLAYING TO STRENGTHSQuestions and Assignments1. Does your business specialise in an area in which it leads? Does this area ofspecialisation (or competence) integrate business activities into oneknowledge or one market?2. Can this knowledge area be enhanced to give your company a unique leadand enable it to diversify?3. Is your company diversified in products and markets and highlyconcentrated in its business knowledge area or is it diversified in itsknowledge area and highly concentrated in its products and markets?4. Do you think your company obtains the most from its specialisation5. Could your company’s specialization and knowledge area enable it todiversify into complementary and breakthrough opportunities to createadditional unique strategic positions?6. Could your business capitalize on time and productivity gains by acquiringor enhancing its specialist knowledge by buying business, rather thanbuilding business to achieve its goals in additive, complementary andbreakthrough opportunities?7. Does your company’s strategy follow organisation structure decisions ordoes its organisational structure follow its strategy making decisions?
  • 11. 12COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukEXPLOITING COMPETITIVE ADVANTAGESQuestions and Assignments1. What does your company offer the market place that is unique and valuable?How will that offer be maintained? How will it be protected from imitation buyscompetitors? What is the source of that competitive advantage?2. Does your company’s competitive advantage based on better value for moneythat comes from lower prices? Does it come from differentiating the offerthrough performance features, service, branding and brand image and access todistribution?3. Does your competitive advantage derive from its value chain, reputation or itsstrategic assets or a combination of all?4. Does competitive advantage flow from lower input costs, economies of scale,experience curve effects or technological innovation or a combination of all?5. Does your business possess advantages in its product, market or technicalknowledge or a combination of all?6. Does your competitive advantage from relationships with your customers,suppliers, investors and employees?7. Does competitive advantage flow from structural success? Does it come fromyour company’s culture, capabilities and activity systems?8. Can your company exploit and sustain competitiveness in each of theaforementioned areas?
  • 12. 13COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukKEY FACTORS FOR SUCCESSQuestions and Assignments1. Do you plot the Key Success Factors (KSFs) in your business? What handful ofKSFs are the important ones?2. Do they show you how well equipped you are to compete in them? Do they showyou priority areas for building competitive advantage?3. What are the largest areas of cost in your business? Advertising and packaging?Materials and labour? Equipment and stock? Others?4. What have been the reasons for success or failure amongst competitors? Wideor narrow product range? Relationships with key customers? Others?5. Which areas of the business is it possible to build competitive advantage? Price?Differentiation through wide distribution, strong relationships, advertising,product features and quality?6. Have KSFs in your business changed over time? Do you anticipate change? Dothey pose a threat or an opportunity?7. Are you able to change the nature of KSFs in your business by innovation?
  • 13. 14COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukThe Marketing Planning Workbook2.MARKET STRATEGYAn ‘offensive approach’Business purposeVision and missionMarket objectivesMarket standingMarket strategyOffensive strategies for exploiting competitive advantagesCreate a customer or two!Something of value that’s different!Gaining commitmentStructure activities and capabilityMarketing planning
  • 14. 15COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukAN ‘OFFENSIVE’ APPROACHQuestions and Assignments1. Vision and purpose?2. A strong commitment to providing superior value to customers, backedby a low cost operation?3. A strong emphasis on innovation throughout the business, both ‘dailytrickle’ and ‘big bang’, in the right balance for the industry. Stress ontechnology, support, recognition and reward for successful innovators.Structure where innovation can flourish?5. An ability to achieve required short term results, combined with a strongfocus on long term objectives?6. Commitment to continued investment in all assets, like brands, people,new products and equipment, even when faced by strong short termpressures?7. Overall focus on attacking competition, but at carefully chosen times andplaces?8. Fast, good quality response to new opportunities or competitive threats
  • 15. 16COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukBUSINESS PURPOSEQuestions and Assignments1 What is your business? Are you responsible for the answer – or is someoneelse?2 Is your company’s business purpose defined by the company name or by thewant the customer satisfies when he buys your product or service?3 Does your company raise and study this question when the business issuccessful and at its inception?4 What does your customer see, think, believe and want from your product orservice?5 Who is the actual and the potential customer? Where is he? How does hebuy? How can he be reached?6 What does the customer buy? Why does he buy your product or service?Why does he buy from your competitors?7. What does the customer value? What does he look for when he buys? Isprice one of a number of considerations and only a part of value?8 What will be your business? What is your market’s potential and trends?What changes in market structure are to be expected? What innovations willchange customer wants? What wants do customers have that are notadequately satisfied by the products and services offered to him today?
  • 16. 17COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukVISION AND MISSIONQuestions and Assignments1. Imagine a time three years from now. You are in New York on a longweekend break. You want to send a postcard home or to the office explainingwhere you are, what you are doing, how well the business is doing well andwhat you have achieved for your stakeholders – what would you write – andsee how close you have come to achieving your vision and mission?2. Does your vision statement offer a picture of a more valuable world, conveyleadership and communicate what you wish it to achieve for yourstakeholders?3. Does your mission statement define the nature of your business, what itaims to do achieve and how it aims to achieve it?5. Does your company have either?6. What would you do to set out to create / improve your vision statement?Does it convey the value you have created and show how those involved willgain and be better off?7. Does your mission statement convey news of the benefits offered by yourproducts and services to meet the needs of your customers? Does it show theinnovation and the sources of competitive advantage your company is basedon?
  • 17. 18COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMARKETING OBJECTIVESQuestions and Assignments1. Do your company’s objectives set targets for growth, productpenetration/development, market development, position relative tocompetitors?2. In what ways can you add customers, increase their average spend andincrease their frequency of purchase?3. Are your company’s objectives for growth consistent with its area ofknowledge and capabilities, ability to attract new resources and approach torisk?4. Do you set innovation goals for new and improved products and services toachieve marketing objectives, technological changes to replace obsoleteproducts, new production processes to attain pricing objectives and systemsto enhance planning, activity and implementation to keep up with advancesin knowhow and skill?5. Are your people clear about their objectives for performance and the plansthrough which they will be attained? Who sets these objectives and how arethey set?6. Are these targets specific? Do they reflect targets to be accomplished, timedefined for achieving results, challenging and attainable and measureable?7. What steps are taken to ensure that your managers and people succeed indelivering their objectives?
  • 18. 19COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMARKET STANDINGQuestions and Assignments1. What is the required standing of your company’s existing products in theirexisting markets, in revenue and percentage of the market, measuredagainst direct and indirect competition?2. What is the required standing of your company’s existing products in newmarkets, in revenue and percentage of the market, measured against directand indirect competition?3. What existing products that should be discarded – for technological reasonsand market trends, to improve the product mix or following decisions tochange the purpose of the business?4. What new products are needed in existing markets – in terms of the numberof products, their properties, and revenue and market share potential?5. What new markets that new products should develop planned– in revenueand percentage terms?6. Does the company’s distributive organisation achieve the marketing goalsand pricing policy appropriate to them?7. Does your company’s s service objective measure how well the customershould be supplied with what he considers value by the company, itsproducts, sales and service organisation? Does it deliver customer loyaltyand satisfaction? Is service performance carried out independently?
  • 19. 20COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMARKET STRATEGYQuestions and Assignments1. Does the market strategy define the actions your company needs to take topursue its business objectives?2. Does the content of the market strategy fully define the products to beoffered, the markets to be targeted and the approaches required to compete?3. Is the strategy content consistent with the vision and mission defined by thebusiness?4. What generic entry positioning strategies and competitive approaches areadopted to establish offers of new value in the market place?5. How effective is the strategy process in defining the way decisions are madeabout strategy content? Does it consider the company’s future, how it selectsits goals and the way resources are allocated to achieve them?6. Is the strategy process embedded in the structure, systems and processesthat the firm adopts as well as the culture and leadership style of thebusiness?7. What decisions are made to control the strategy process?
  • 20. 21COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukOFFENSIVE STRATEGIES FOREXPLOITING COMPETITIVE ADVANTAGESQuestions and Assignments1. Head on strategies to drive back / overwhelm a competitor? Strongproducts, heavy market support and well financed?2. Flanking strategies to attack a competitor’s weakness with your strongestforces and invalidate rival’s product or service? Price (high or low)? Enterneglected segments? Product innovation?3. Concentrate on niche product distinctive segments? Attractive to you butnot to competitors? Collect premium prices? Low scale economies? Aboveaverage profit margins?4. Guerrilla strategy? Surprise? Tactical flexibility? Make selective attacks toharass competitor’s weaker products with ‘fighting brands’? Invalidatecompetitor’s new or improved products or services with ‘fighting brands’??5. Market saturation- encirclement? A wide range of product or services?Absorb high proportion of stock and display space?6. Regional concentration? Brand leadership in miniature? Local marketknowledge and reputation?7. Product concentration? Limited range of power brands? Stronglyadvertised? Very efficiently produced in high volume?
  • 21. 22COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukCREATE A CUTOMER OR TWO!Questions and Assignments1. What do your customers need / want?2. Is there a danger you are actually telling them that they need you?3. What are your customers’ current priorities? Remember you may haveseveral different types of customer buying your products and services rightnow!4. Can you define them by who they are, what they buy and why they buy?5. What feedback are you getting to pinpoint/establish the value yourcustomers seek? How often do you do this?6. Are there gaps in your market? What customer groups are not being servedthat could be being served that you should be developing?7. Are there any new needs or priorities on the horizon that you should beattending to?
  • 22. 23COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukSOMETHING OF VALUE THAT’S DIFFERENT!Questions and Assignments1. What understanding do you have of the criteria by which buyers distinguishamong different products/services on offer and the extent to which theyconsider them substitutable?2. What factors are important to buyers? What importance do your buyersattaché to these factors; price, perceived quality, demographic imagery,performance, the number and type of features, brand imagery, service andsupport, attitudes to suppliers?3. An effective proposition of value – or market positioning - guides product/service development and avoids head on competition. Does your company havea proposition of value?4. What value proposition do you offer your customer groups? Does it offercustomers more value relative to your competitors? Does it give youcompetitive space?5. What is the basis of your value proposition(s)? Does it add value forcustomers? Does it target specific customer segments? Does it address theneeds of these segments? Does it offer means, or technology, to address theseneeds?6. How often do you gather information to help you test the efficacy of yourmarket positioning and value proposition to make sure that you are fullyengaging with your customers?
  • 23. 24COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukGAINING COMITMENTQuestions and Assignments1. An understanding of the networks your business operates in is important. Doesyour company have effective relationships with stakeholders and third parties?Does it mange its relationships with these to increase the overall value to thosein the network?2. Does your company have strong relationships with its suppliers? Can you buildstrong relationships with your competitors suppliers of who may see yourestablished and new products as a threat to their business?3. Do your company’s products genuinely satisfy customers, needs, solve theirproblems and meet their aspirations? Does your selling effort enable you tocause your potential and existing customers to buy your products / services?Know where your customer groups congregate? Does your company createrewarding personal and organisational relationships with its customers?4. Do your company’s distributors create economic value for your business? Isyour company able to fulfil the needs of its distributors; which include; Themargin, rate of sale and cost of storage of your product / service?5. Are the people employed by your company committed to it? Are your peoplesufficiently customer led? Are they able to deliver the personal andorganisational relationships required by all the company’s stakeholders?6. Is your company aware of how to approach investment backers and howinvestors select investment opportunities? Are you aware of the questionsinvestors need answering?
  • 24. 25COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukSTRUCTURE, ACTIVITY AND CAPABILITYQuestions and Assignments1. Does your company operate with the optimal value chain? Does it have theappropriate functional policies?2. Given the market company is in, do you feel that your company has designedand developed a well balanced activity system to pursue its strategy?3. Have these activities been combined into a system that creates the requisite fitbetween the needs of the market and the actions taken by the company? Whathappens if your market changes? Do you ensure that the activity system createsthe requisite fit?4. Does the activity system fit the ones demanded by the market? Do they fittogether like a jig-saw to form a collective fit with the market and balance oneanother over time?5. Is your company’s competitive positioning based on performing activitiesdifferently, or is it choosing to perform different activities from those of yourcompetitors?6. Has your company developed internal variety that will allow it to developcapabilities even before it knows what competencies are required?7. Has it developed a culture of change? Has it institutionalised continualinnovation?
  • 25. 26COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMARKETING PLANNINGQuestions and Assignments1. Does your company have a fixation with excellent tactics at the expense ofstrategy? Does your company have a two to three year strategic plan? Tacticalplans for one year of less?2. Does your have a formalised system for marketing planning? Is there activeinternal support for it from the CEO? Does marketing and marketing planningbenefit from line management support and skills?3. How would you describe your company’s marketing planning system? What arethe good points and the bad things about it? How could it be improved? Do youuse techniques to structure an influential marketing plan?4. Is there an awareness of lost market opportunities and or seriousenvironmental and competitive conditions due to unpreparedness and realconfusion over what to do about this? Is here a understanding of how to makethe business more responsive in the face of opportunity and uncertainty?5. Is there a deep understanding of what the company can do better than itscompetitors? How its distinctive competence can b matched with the needs ofcertain customer groups?6. Does your company’s marketing planning system result in excessive detail?Does it ask for essential data to intellectualise over future choices? Does it placegreat emphasis on underlying thinking behind objectives and strategies7. Does longer term planning determine difficult choices between the emphasis tobe placed on commercial operation and the development of the business? Arelonger terms projections separate from shorter term planning activities thattake the form of forecasting and budgeting?
  • 26. 27COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukThe Marketing Planning Workbook3.MARKETING TACTICSThe Marketing MixBrand and imageNew Product developmentPricingPromotionAdvertisingMobilize your customer sales forceE-commerce and social mediaMarketing channelsMarketing researchImplementing marketingMarketing management
  • 27. 28COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukTHE MARKETING MIXQuestions and Assignments1. Does your company operate a full ‘mix’ of controllable tactical marketing toolsproduct, price, place, promotion to produce the response it wants from thetarget market?2. Have you build a product or service based on a clear understanding yourcustomers’ wants and needs? Do you feel that your product or service will‘create a customer’? Will it attract customers one by one with something eachone wants that is better and different?3. Have you defined offerings as a combination of individual capabilities andconcentrated them on a specific industry to create a customised solutionrather than pigeon-holing customers into a product category4. Have you considered that the price of you product or service is one part of thecost to satisfy? Have to consider the cost of your customer of buying yourproduct? Driving to your shop? The cost of conscience? Could suchconsiderations move you away from strictly price based to value basedcompetition over the longer term?5. When you consider place issues do you consider convenience? Have youconsidered the internet, your product or service mix and diversificationthrough add on or complementary products as a place of convenience?6. Is your company’s communications policy based on ‘give and take’? Do youencourage customers to call you or search for their needs? Do you listen tosupporters and advocates that can help you build the next wave of products orservices?7. Are these four elements integrated into a blend of activities that transform thecompany’s marketing strategy into real value for customers?8. The company develops product offers and creates strong brand identities forcustomers? It prices these offers to create real customer value and distributesthe offers to make them available for target customers? It designs promotionsthat communicate the value proposition to target customers and persuadethem to act on the market offering?
  • 28. 29COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukBRAND AND IMAGEQuestions and Assignments1. How far does the image and value of your brands help you achieve yourobjectives? How do you think they are perceived by your customers and otherstakeholders? What actions should be taken to close any gap between theimage and the reality?2. How well do you understand your brand(s)? Do you analyse them all be typeto identify core and extension areas for each one, using research as a guide?3. How far do your promotional and personal selling activities support andenhance the company’s brand image?4. Are you aware of how well your brands names fit? Do you establish whichnames can be used in combination, why and with what relative emphasis?5. Can you stretch certain brand names? Are there attractive new marketsegments and usages to enter without weakening the brand core?6. When is the optimum time to develop new brand names? Are thereopportunities to develop new brand names for distinctive and superior newproducts with which existing names do not fit well?7. Can you license your brand name(s), trademarks and characters? Have youthought that this might be a profitable means to generate extra profit? Haveyou protected your brand names and symbols?8 Do you have a brand development plan? Does it show the role anddevelopment over the next five years? Do they incorporate any technologicalchanges that have taken place over the past five years
  • 29. 30COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukNEW PRODUCT DEVELOPMENTQuestions and Assignments1. Do you give priority to innovation – or to maintenance activity? Arepriorities set for individual product development projects? Do you have amethod to identify projects that offer breakthrough opportunity?2. Do you constantly improve product acceptance and or reduce cost withoutloss of quality? Are you able to develop new distinctive products that offermore value and capture early-bird advantages?3. Do you seek new benefits for your products or services? Do you look forsuperior product benefits? Do you seek both technical product performanceas well as customers emotional and logical needs?4. Do you look for small differences in performance areas that matter tocustomers? When you cannot find areas to improve products or services doyou look for ways to reduce cost without impairing performance?5. Do you monitor the lifecycle of your products or services? Do you seek newopportunities to stretch and extend product line before ageing of establishedproducts?6. Do you develop new brand names selectively and when they are essential?Are your old brand names standing the test of time?7. What is your success rate like in new product development? Are you able toavoid any of the following; unrealistic time schedules, frozen targets, vestedinterest, and absorption in the new product development/improvementprocess?
  • 30. 31COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukPRICINGQuestions and Assignments1. Are you are of the price sensitivity of your brands and markets? Are you awareof the influences of frequency of purchase, necessity, unit price andcomparability to price changes?2. Are you able to buttress your price segments by strengthening your valueproposition to customers?3. Do you have a clear strategy as to which price segments you wish to compete inand why?4. When considering the profitability of a change in price do you consideralternatives? Could you consider holding price yet reduce promotional costs,raise prices yet add a major service improvement, or reduce the weight, or alterpayment terms, or add free maintenance or technical assistance?5. Are you able to minimise disruptive ripple effects by accurately establishingyour profit results for each major account by building strong relationships atthree or four levels, by responding to genuine trade needs and by establishing areputation for being prepared to bite the bullet?6. Are you able guard against price cannibalisation? Can you minimise losses onnew products by creating a defensive plan, including aggressive pricing, givingyour new product gets extra space for the company and not borrow fromexisting products, positioning in high end markets when moving down market7. How do you respond to markets with falling prices? Do you leave them toothers or do you blend together strengths together to tackle them successfully?
  • 31. 32COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukPROMOTIONQuestions and Assignments1. What is your view of promotion? Necessity? They give sales and service peoplesomething to talk about? They will gain you some display space? If innovative,well planned and executed they will have a measurable impact on businessperformance2. Do you have a strategy for promotion which sets out clear priorities? Or do youoperate with an inventory of ideas and the things you want to achieve for yourbrand?3. Is your strategy planned in outline by brand and month at least a year ahead,firmed up six months ahead and be prepared four to eight weeks in advance ofD-Day?4. Do you give promotion the same priority as advertising? How do yourcompetitors balance their priorities between promotion and advertising? Isthere an area where you can obtain an edge over your competitors withinnovative promotion?5. Do your promotions carry appeal? Does your company invent or exploitsuccessful new promotional techniques and gain rewards due to innovation?6. Can you uniquely exploit an ordinary promotion with originality and achievesales gains? How well do you plan and execute your promotional activities?7 Do you research your promotions and analyse the results? Do you complete aprofit analysis of completes sales promotions?
  • 32. 33COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukADVERTISINGQuestions and Assignments1. Do you have crystal clear advertising strategies? Do you look for campaignideas rather than individual advertisements? Do your strategies communicateaims,? Flow from the marketing strategy? Exploit a distinctive positioning?Does your advertising stress either an emotional or functional benefit which isimportant to the customer?2. Do you insist on top quality in your products or services? Do you insist onoutstanding quality in your adverting?3. Do you create a climate where creativity can flourish? Do you find that newideas are crushed in layers of presentations and tiers of approval? Do you allowyour advertising agents to innovate new ideas?4. Do you assess advertising sympathetically or ruthlessly? How do you evaluate anew advertising campaign? Do you put yourself into the shoes of your typicalcustomer and consider their perceptions of your product or service? Do youconsider what the customer will respond to the advertising?5. Do you run successful campaigns into the long term? When thinking of changedo you consider the place your advertising occupies in the mind of yourcustomers and the damage that might be caused if you sought a differentapproach? When you find a strong one do you improve and update it and stickwith it?6. Are you ever satisfied with your advertising? Do you seek to upgrade anddevelop advertising continuously?
  • 33. 34COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMOBILIZE YOUR CUSTOMER SALES FORCEQuestions and Assignments1. Are your marketing efforts directlt related to profit? Do you feel that the moremoney is wasted on advertising, direct mail and telemarketing?2. Can you expect more from your customers than just you the privilege theygive you of serving them? Do you really believe that you have a ‘business’ withyour customers?3. Have you considered whether your technical proficiency is more important tocustomers than the happiness of your customers? Are you able to confirm thequality of your product or service with ‘decisive non essential niceties’ thatprompt word-of-mouth?4. Do you have a system for customer service? Ask your customers; ‘If you werea prospective new customer again, what advice would you have about whatyou would like from us?’ Do you operate other systems? Hospitality?Courtesy? Leadership? Referral? Information? Word of Mouth? Are you ableto prevent problems for your customers?5. How much are wonderful customers worth you? Do you operate word ofmouth programmes? What will motivate your customers to refer you topotential A category customers? Can you create word of mouth? Curiosity?Surprise value? Delight? Challenge?6. Do you filter your customers into ABCD categories? A: valued customer; D:rejecting customer? In which category do you apply most of your effort andtime?7. What type of referral system do you have? Do you ask for referrals? Do youreward customers for referrals? Do you educate customers that referrals area vital part of your business?8. Do you and your people have the confidence to ask for more? How effective isyour business attractor? Do you help your customers to buy? Do you have aclear, ongoing sales system with new offers and a ‘back-end’ of products orservices?
  • 34. 35COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukE-COMMERCE AND SOCIAL MEDIAQuestions and Assignments1. How is Information Communications Technology used in your company’smarketing? Do your company’s marketing activities operate with a different setof ICTs?2. Are you able to derive competitive advantages by using the internet? Reducingtransaction costs? Reducing customer search costs? Developing betterrelationships with customers and suppliers?3. What trends influence greater efficiency and differentiation in your business?Easier access to suppliers? Eliminate powerful channels? Improve bargainingpower over traditional channels? Reduce differences among competitors?Reduce barriers to entry?4. How doss digital marketing communications facilitate greater interactivity inyour business? Electronic word of mouth? Online communities?5. How do the various social networking websites impact your business? Are youable to enter or create brand communities to advance your brand? Rolemodels? Information exchange?6. How effective is your E-mail marketing? Permission marketing? Viralmarketing for word of mouth?7. How effective is your SEO. Are you maximising ‘paid searches’ How interactiveis your site?8. What factors influence customer’s online shopping behaviour in your business?Complex purchase processes? Ease of use and usefulness? Position in adoptionof innovation process? Transaction cost? Perceived risk
  • 35. 36COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMARKETING CHANNELSQuestions and Assignments1. Do you regularly review your trade channel environment, your own futureplans and likely competitor moves?2. Do you relate your business strengths to future distribution opportunities bytrade channel and by major account? Do you prioritise channels in which yourbrand strengths can be established?3. Does your organisational structure reflect your strategic channel priorities? Doyou tailor your products or services to channel needs Do you allocate costs andprofits by channel and major account?4. Do you get results from trade promotions? Are you able to build strong brandsto offset the complexities of trade spending?5. Do you operate processes to anticipate change in your channels and developnew approaches to optimise channel penetration? Are you able to identify whatretailers want and work hard to be the superior and favoured supplier?6. Does your company investigate channels that are unexploited by competitors?Are there opportunities to make better use of new distribution opportunitiesthan existing competitors?7. Do you analyse profitability by channel in order to get the right balancebetween profit levels and volume growth?
  • 36. 37COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMARKETING RESEARCHQuestions and Assignments1. Does your research improve the quality of information on which decisions aremade? Is market research viewed as a kind of ‘answer machine’ from whichjudgement is rendered unnecessary? Could answers to problems be found justby following general business principles and common sense?2. Do you look for action from non-continuous ‘ad-hoc’ market research? Do youconsider how you will use the results of any market research project before itstarts? What action steps do you use to brief suppliers that conduct researchfor you?3. Do you make sure that you use processed and raw data that you have gatheredin your company from sales people, customers, QC? Has your company gotaccess to continuous research reflecting customer demand and competitoractivity?4. Do rely exclusively on professionally conducted research to obtain firsthandknowledge of customers? Do you combine this with informal customer contactthrough market sensing methods to gain a good feel of customer preferences,attitudes, needs and wants?5. Do you or seek creativity in research identify and establish what customersreally think about a product or service? Do you encourage imaginative use ofresearch techniques to motivate interest and foster meaningful responses toimportant matters such as new products, new usages, new features / benefits,propensity to purchase, and new advertising?6. What is your view of blind testing? Useful? It determines the extent of productsuperiority over others? It helps decide whether a new product should bebrought to market, or not? It helps determine how much market support isrequired for an existing product?
  • 37. 38COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukIMPLEMENTING MARKETING!Questions and Assignments1. How is your marketing organised: Functional? Product or brand? Market?Matrix? Is the company organised around customers or products? Does yourcompany generate new ideas that customers will perceive as having value?2. Can your company create an organisation structure that is top down, bottomup and side to side? Does top management empower team layers? People atthe customer interface are supported by top management? Marketers co-createvalue for customers, the value chain and stakeholder interests?3. Does your company try to make a difference in the world? Join with others tomake a difference in the world? Support a cause? Consider its socialcommitment? Seek sustainability over the long term?4. Is the company’s culture truly market driven? Is there a companywide passionfor marketing? Self managed teams and distributed leadership? Creativeproblem solving? Entrepreneurial innovation? Crisis leadership? Changecentred leadership? An environment for creativity to flourish?5. Has your company achieved a momentum effect? Does it sustain momentumwith a creative marketing approach? Does it spot opportunities for valuecreation? Spot what customers want and working hard to provide it? Does itfocus on customer retention an life time value of customer rather than shortterm revenue ‘ hits’?6. Do you have a process for turning your marketing plan into specific actions andassignments? Does it emphasise building strategy, tactics and implementationtogether? Does it put the customer and customer value and how the companycan achieve its objectives?7. What types of marketing control do you operate in your business? Annual-plan control? Profitability control? Efficiency control? Strategic Control?8. What do your marketing metrics do? Do they deliver financial and non-financial data? Actual v forecast; customer behaviour (retention, acquisition,usage) and attributes (awareness, satisfaction, perceived quality)? Marketingproductivity (counting, accounting, shareholder value, customer lifetimevalue)?
  • 38. 39COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukMARKETING MANAGEMENT...Questions and AssignmentsWhat is management? Customer perceived value, customer satisfaction andlong term growth? Profit? People? Operations?What new trends are emerging that requires particular management skills?People; knowledge is portable and is transported easily between companies?Managing temporary and /outsourced labour and skills? Customers: customersand consumers have more information and therefore power?1. Is your understanding of marketing management under review? Is it shiftingfrom the company to customers, from products or services to benefits, fromrelationships to the co-creation of value with business partners and customers?2. What pressures impact the ability to impact business results? Emphasis onshort term revenues? Shifts in financial power, channel power, competition?What has been the impact of these changes; declining marketing spends, branddevelopment, price maintenance, innovation, market power? Emphasis onsales, account management3. What skills do marketing managers require? Decision making underuncertainty? Communication skills? Data collection and analysis? Strategic andanalytical thinking? Marketing-specific skills? Integrated marketing mixmanagement? Organisation management?4. What skills will marketing require? ICT and digital technology exploitationwithin marketing? Managing networks, relationships and interactions?Information handling and management? Understanding and managingchange? Analytical and creative skills?5. Manage within a global marketing environment? Deciding whether to goabroad? Grow in developing markets? Counter attack global competitors intheir home markets? Entering supply chains that span the globe?
  • 39. 40COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukSO, THERE YOU HAVE IT...…the fundamentals of creating a unique marketing strategy and plan – and how to inventviable new business opportunities.In fact youve just gone through a ‘crash course’ on how to build and exploit a breakthroughmarketing strategy!The key is to unite an offering of superior value to a targeted customer group, with anefficient and distinctive means to create a fit between what the customer needs and what thecompany does really well in the face of competition.Let me put it another way! Let your targeted and distinctive offer be the brass and your gameplan be the gold! Blend the two metals in the refiners fire and what do you have? You willbring into being rich Corinthian metal, fit to compare with the creative castings of othermarket innovators that have created their own shining reputations in business.CONCLUSION
  • 40. 41COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukSOME EXTRAS1. MANAGING BRANDS: HOW TO ACHIEVEAND SUSTAIN MARKET LEARDERSHIPProcter & Gamble [P&G) is one of the most skilful marketers of consumer of consumerpackaged goods, owning many household brands such as Olay, Pampers, Braun, Pantene,Oral-B, Crest, and Gillette, to name but a few. The company’s scope and accomplishmentsare staggering. It markets nearly 300 brands in more than 160m countries; is a global leaderin 7 of the 12 different product categories in which it competes; and has total worldwide salesof more than e400b a year. Its sustained market leadership rests on a number of differentcapabilities and philosophies:1. Customer knowledge: P&G studies its customers – both end consumers andchannel members – through continuous marketing research and intelligencegathering. It spends more than e100m annually on more than 10,000 formalconsumer research projects and generates more than 3 million consumer contacts viaits email and call centre. It also puts more emphasises on getting its researchers outinto the field, where they can interact with consumers and retailers in their naturalenvironment.2. Long term outlook: P&G takes time to analyse each opportunity carefully and toprepare the best product. It then commits to making this product a success. Itstruggled with Pringles potatoes crisps for almost a decade before achieving marketsuccess.3. Product innovation: P&G is an active product innovator, devoting almost e2billion (3.5 percent of sales) to research and development an impressively highamount for a packaged goods company. It employs more PhDs than manyuniversities combined and applies for 3000 patents annually. Part of its innovationprocess is developing brands that offer consumers new benefits. Recent examplesinclude Fabreze, an odour elimination fabric spray, and Mr Clean Magic Eraser, aninnovative cleaning sponge.4. Product quality strategy: P&G designs products of above-average quality andcontinuously improves them. When P&G says ·new and improved· it means it. Recentexamples include: Pantene Ice Shine shampoo, conditioner and styling gel; andpampers BabyDry with Caterpillar Flex, a nappy designed to prevent leaks whenbabies stomachs shrink at night.5. Brand extension strategy: P&G produces its brands in several sizes and forms.This re shelf space and prevents competitors from moving in to satisfy unmet needs.P&G also uses its strong brand names to launch new products with instantrecognition and much less advertising outlay. The Mr Clean brand has been extendedfrom a household cleaner to a bathroom cleaner, and even to a car wash system. OldSpice was successfully extended from men’s fragrances to deodorant. Old Spice hastoppled Right Guard to become the leading antiperspirant for men.
  • 41. 42COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk6. Multibrand strategy: P&G markets several brands in the same product categorysuch as Luvs and Pampers nappies and Oral-B and Crest toothbrushes. Each brandmeets a different consumer desire and competes against specific competitors’ brands.At the same time, P&G has begun to prune carefully to reduce its vast array ofproducts, sizes, flavours and varieties to assemble a stronger brand portfolio focusedon the best products.7. Communication pioneer: P&G is one of the two top advertisers in the UK,spending about £180 million. A pioneer in using the power of television to createstrong consumer awareness and preference, P&G is now taking a leading role inbuilding its brands on the Web and through other digital technologies. It is alsoinfusing stronger emotional appeals into its communications to create deeperconsumer connections.8. Aggressive sales force: As part of its communication strategy P&Gs sales forcehas been named one of the top 25 sales forces by Sales & Marketing Managementmagazine. A key to its success is the close ties its sales force forms with retailers9. Manufacturing efficiency and cost cutting: P&G’s reputation as a greatmarketing company has been matched by its excellence as a manufacturing company.P&G spends large sums developing and improving production operations to keep itscosts among the lowest in the industry, allowing it to reduce the premium prices atwhich some of its products sell.
  • 42. 43COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk2. WHAT ARE THE 4 CS OF GOOD BUSINESS?If you have studied marketing you’ll know all about the "Four Ps" – even the “Seven P’s”.Well you might be interested to know that an academic by the name of Bob Lauterborn, fromthe University of North Carolina has caused us to head up the alphabet to C to reckon withthe “Four C’s” He believes that the Four Ps should be replaced with his Four Cs. “Why?”Youmight ask. “Simple!” He says. “They aren’t working!”Wow! The cheek of it! A challenge to a 60 year old guiding-light of marketing-thinking.None-the-less it’s worth a peek. Lauterborn’s recommendations, expressed in broad terms,are as follows:1. First rather than Product our focus should be CONSUMER WANTS ANDNEEDS You cant develop products and then try to sell them to a mass market. Youhave to study consumer wants and needs and then attract consumers one by one withsomething each one wants that is better and different. The great writer andconsultant, Peter Drucker, insists on the same end when urging us to ‘create acustomer.’ In most cases, you have to find out what people want and then "build" theproduct or service for them, their way.Another C replacement for Product is Capable. By defining offerings as acombination of individual capabilities and concentrating them on a specific industry,creates a custom solution rather than pigeon-holing a customer into a product. Zara,McDonalds and easyJet are examples.2. Second COST to satisfy rather than Price You have to realize that price -measured in sterling - is one part of the cost to satisfy. If you sell fish and chips, forexample, you have to consider the cost of your customer driving to your shop, thecost of conscience of eating fat rich food, etc. One of the most difficult places to be inthe business world is the retailer selling at the lowest price. If you rely strictly onprice to compete you are vulnerable to competition - in the long term.3. Third rather than Place consider the issue of CONVENIENCE to buy Whyis it important to think of convenience to buy instead of place? Well surely the answeris rooted in knowing how each subset of the market prefers to buy - from theInternet, from a catalogue, on the phone, with a credit card and so forth. EstéeLauder, Amazon Books and Dell Computers are just a few businesses who do verywell over the Internet. Harrods, Tesco and IKEA are examples of stores that offerconvenience.4. Fourth COMMUNICATION rather than Promotion Given that promotion isessentially manipulative as it’s from the seller, the concept of communicationsuggests an exchange of ideas between buyer and seller. Communication requires‘give and take.’ Thus a more interactive approach can make any form ofcommunication more collaborative. The use phone numbers, web site address and soforth all help. As does listening to your customers, particularly supporters andadvocates that can help you build the next wave of products and services.
  • 43. 44COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukBuilding brand takes into account these considerations. Brand development is concernedwith crafting – and then delivering on - a promise. When you take into consideration the"Four C’s" outlined above you begin the process of brand building!So what are your conclusions? Are we being served with a dish of semantics? Or possibly asalver of something new or a serving dish comprising a something old served as somethingnew? Well I’ll tell you what I think and you can tell me what you think! The ‘Four C’s’ modelis in fact a reiteration of the ‘Four P’s’ model, refined to be more customer-centric.
  • 44. 45COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk3. MANAGING BRANDS: HOW TO ACHIEVEAND SUSTAIN MARKET LEARDERSHIPProcter & Gamble [P&G) is one of the most skilful marketers of consumer of consumerpackaged goods, owning many household brands such as Olay, Pampers, Braun, Pantene,Oral-B, Crest, and Gillette, to name but a few. The company’s scope and accomplishmentsare staggering. It markets nearly 300 brands in more than 160m countries; is a global leaderin 7 of the 12 different product categories in which it competes; and has total worldwide salesof more than e400b a year. Its sustained market leadership rests on a number of differentcapabilities and philosophies:1. Customer knowledge: P&G studies its customers – both end consumers and channelmembers – through continuous marketing research and intelligence gathering. It spendsmore than e100m annually on more than 10,000 formal consumer research projects andgenerates more than 3 million consumer contacts via its email and call centre. It alsoputs more emphasises on getting its researchers out into the field, where they caninteract with consumers and retailers in their natural environment.2. Long term outlook: P&G takes time to analyse each opportunity carefully and to preparethe best product. It then commits to making this product a success. It struggled withPringles potatoes crisps for almost a decade before achieving market success.3. Product innovation: P&G is an active product innovator, devoting almost e2 billion (3.5percent of sales) to research and development an impressively high amount for apackaged goods company. It employs more PhDs than many universities combined andapplies for 3000 patents annually. Part of its innovation process is developing brandsthat offer consumers new benefits. Recent examples include Fabreze, an odourelimination fabric spray, and Mr Clean Magic Eraser, an innovative cleaning sponge.4. Product quality strategy: P&G designs products of above-average quality andcontinuously improves them. When P&G says ·new and improved· it means it. Recentexamples include: Pantene Ice Shine shampoo, conditioner and styling gel; and pampersBabyDry with Caterpillar Flex, a nappy designed to prevent leaks when babies stomachsshrink at night.5. Brand extension strategy: P&G produces its brands in several sizes and forms. This reshelf space and prevents competitors from moving in to satisfy unmet needs. P&G alsouses its strong brand names to launch new products with instant recognition and muchless advertising outlay. The Mr Clean brand has been extended from a household cleanerto a bathroom cleaner, and even to a car wash system. Old Spice was successfullyextended from men’s fragrances to deodorant. Old Spice has toppled Right Guard tobecome the leading antiperspirant for men.6. Multibrand strategy: P&G markets several brands in the same product category such asLuvs and Pampers nappies and Oral-B and Crest toothbrushes. Each brand meets adifferent consumer desire and competes against specific competitors’ brands. At thesame time, P&G has begun to prune carefully to reduce its vast array of products, sizes,flavours and varieties to assemble a stronger brand portfolio focused on the bestproducts.
  • 45. 46COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk7. Communication pioneer: P&G is one of the two top advertisers in the UK, spending about£180 million. A pioneer in using the power of television to create strong consumerawareness and preference, P&G is now taking a leading role in building its brands on theWeb and through other digital technologies. It is also infusing stronger emotionalappeals into its communications to create deeper consumer connections.8. Aggressive sales force: As part of its communication strategy P&Gs sales force has beennamed one of the top 25 sales forces by Sales & Marketing Management magazine. A keyto its success is the close ties its sales force forms with retailers9. Manufacturing efficiency and cost cutting: P&G’s reputation as a great marketingcompany has been matched by its excellence as a manufacturing company. P&G spendslarge sums developing and improving production operations to keep its costs among thelowest in the industry, allowing it to reduce the premium prices at which some of itsproducts sell.10. Brand-management system: P&G originated the brand-management system, in whichone executive is responsible for each brand. The system has been copied by manycompetitors but not often with P&Gs success. Recently P&G modified its generalmanagement structure so that each brand category is now run by a category managerwith volume and profit responsibility. Although this new organisation does not replacethe brand management system, it helps to sharpen focus on key consumer needs andcompetition in the category.It is easy to see that P&G’s success is based not on doing one thing well, but on successfullyorchestrating the myriad factors that contribute to its brand leadership.Source: Marketing Management, (2009), Kotler, P; Keller, K.L; Brady, M; Goodman, M; &Hansen,T; Prentice Hall
  • 46. 47COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk4. CHARACTERISTICS OF A COMPANY ‘SDEPARTMENTS THAT ARE TRULYCUSTOMER DRIVENR&D • They spend time meeting customers and listening to their problems.• They welcome the involvement of marketing, manufacturing andother departments on each new project.• They benchmark competitors products and seek best of classsolutions.• They solicit customer reactions and suggestions as the projectprogresses.• They continuously improve and refine the product on the basis ofmarket feedback.Purchasing • They proactively search for the best suppliers rather than choose onlyfrom those who solicit their business by offering the lowest prices.• They build long-term relationships with fewer but more reliable high-quality suppliers, thereby developing a sustainable value chain.Manufacturing • They invite customers to visit and tour their plants.• They visit customer factories to see how they use the companysproducts.• They willingly work overtime when it is important to meet promiseddelivery schedules.• They continuously search for ways to produce goods faster and/or atlower costs.• They continuously improve product quality, aiming for zero defects.• They meet customer requirements for customisation where this canbe done profitably.Marketing • They study customer needs and wants in well-defined marketsegments.• They allocate marketing effort in relation to the long-run profitpotential of the targeted segments.• They develop winning offerings for each target segment.• They measure company image and customer satisfaction on acontinuous basis.• They continuously gather and evaluate ideas for new products,product improvements and services to meet customers needs.• They influence all company departments and employees to becustomer centred in their thinking and practiceSales • They have specialised knowledge of the customers industry.• They strive to give the customer the best solution.• They make only promises they can keep.• They feed back customers needs and ideas to those in charge ofproduct development.• They serve the same customers for a long period of time.Logistics • They set a high standard for service delivery time and they meet thisstandard consistently.
  • 47. 48COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.uk• They operate a knowledgeable and friendly customer-servicedepartment that can answer questions, handle complaints andresolve problems in a satisfactory and timely manner.Accounting • They prepare periodic profitability reports by product, marketsegment, geographic areas (regions, territories), order sizes andindividual customers.• They prepare invoices tailored to customer needs and answercustomer queries courteously and quickly.Finance • They understand and support marketing expenditures (e.g., imageadvertising) that represent marketing investments which producelong-term customer preference and loyalty.• They tailor the financial package to the customers financialrequirements.• They make quick decisions on customer creditworthiness,PublicRelations• They disseminate favourable news about the company and theydamage control o unfavourable news.• They act as an internal customer and public advocate for bettercompany policies and practices.Othercustomercontact staff• They are competent, courteous, cheerful, credible, reliable andresponsive.
  • 48. 49COACHING BUSINESS01280 844966 info@coaching-business.co.uk www.coaching-business.co.ukFor further supportCall Andrew Pearson on 01280 844966 oremail andrew@coaching-business.co.ukAndrew M PearsonAbout Coaching BusinessAndrew M Pearson NDA, Dip M, MBA is considered to be a prominent expert in the fields ofstrategy, marketing and operations management. He tutors at Oxford Business School and isalso a visiting lecturer at Warwick University.In addition to UK business school experience he has led and presented seminars andworkshops at business forums throughout the world. He has extensive experience as abusiness coach, consultant and management speaker and has worked with managers andmanagement students in the UK, Europe, China and Libya. He focuses on issues of strategydevelopment, planning and implementation.His publications include; How to Invent New Business and How to Build a Business thatWorks Without You. A third volume, entitled The Strategic Manifesto, will follow in 2010.Andrew set up his first business aged 25 and steered it to market leadership and a turnoverof £11m in 6 years. Since then, he’s held senior management and professorial posts at anumber of UK firms, including four years with Cargill, during which he founded pioneeringstrategies for business development in Eastern Europe.Clients include:• A P Moller Terminals• Andersons Consulting• BALI (SE)• Centaur Grain Ltd• Channel Express Ltd• Dart Plc• Edexcel• Everglade Windows Ltd• Fowler Welch Ltd• Hartley’s Nurseries Ltd• LEAF• Mack International Ltd• Palmstead Nurseries Ltd• Velcourt LtdFurther E-books and coaching support:• Transforming the Process of Going to Market• Rejuvenating the Mature Business• Challenging the rules of the game• How to build a business that runs without you• Customer Driven Market Change• Creating Time to Think and Plan• So You Think You Know Your CustomersFor more information:Please contact Andrew for a chat on 01280 844966and for more information visit www.coaching-business.co.uk