Invites viewers to consider the power of marketing and management models when preparing strategic plans. It focuses on what type of problems / opportunities require additional information to inform the management decision

1. Strategic Tools
Unleashing the Power of
Marketing & Management Models
Helen Strong
helen@strong.org.za

2. Management Decisions
• To reach a decision as a marketing or product
manager you need information about the
marketplace and the consumers who are
available to buy your product
• The most efficient way to gather this information
is to use a structured approach, guided by
business models which help you
– Identify which factors affect the decision
– Work out the relationships between those factors

3. Strategy for the Strategic Analysis
Plan before you start …
• What is the purpose of the analysis?
– What management decision needs the
information?
• What information do I have already?
• What do I need to do to be fully informed?
• How & when do I need to report?

4. Who should take part?
• Often it helps to put together a diverse
team of experts who can provide input
– Different insights
– Transfer of ideas from one area to another
– Cooperation and buy-in to the solutions

5. Purpose?
Ask: What is the management problem?
• Some common reasons for strategic analysis
include:
– New product development
– Building brand loyalty
– Looking for growth / opportunities
– Sales are falling
– Preparing a Zero based budget
– Evaluate impact of competitive activity
– Entering a new market

6. E.g. Assume entering a new global
market
The management decision
1. Which market do we enter?
2. What target market do we need to reach?
3. What do we need to do to the marketing mix
to maintain the brand integrity

7. Which market do we enter?
• Initial enquiries would be broad-based
• Ask
– Objectives in entering a new market?
– Risks
– Returns
– Sustainability

8. Eliminate the obvious…
• Unless you are an arms manufacturer or
support organization, probably don’t want
to enter a war-zone
• Is there an adequate communication
system
• However, developing economies (such as
Africa) are becoming more attractive

9. Do Some Secondary Research
• GDP
• Culture & lifestyle
(Use the product?)
• Current levels of
consumption?
• Access to target
markets?
– Distribution channels?
– Promotion channels?
– Achievable margins?
• Structure of the
economy?
• Transaction costs?
• Legislation, especially
taxation & repatriation
of profits?
• Exchange rates?

10. Best entry model?
• Self funded independent
• Partnership
• Franchise
• Manufacture under licence
• Finished goods for distributor / retailer
• Decide once have considered the
environment…

11. What type of management models
can guide the decision?
One of the oldest…
• SWOT
• Strength and weaknesses = internal
organization factors and resources
• Opportunities and threats = external
environment
– Defines the capacity of the company
– Identifies obvious opportunities and threats

12. More powerful to apply
Mullins 7 Domains
• Examines both the internal capacity and
the external environment
– Looks at the people in the company who will
be driving the entry into the new market
– Answers the question about the competitive
situation

13. And to look at the supply chain…
Here the organization
• Examines the end consumer needs
• Defines the required product quality
• Looks for partners who can deliver these CSF’s

14. Important to consider the Brand
Translation…
• How does the brand
need to adapt to
maintain its integrity
in the new market?
• Avoid unintentional
errors in language
and brand expression

15. Prepare the Plan
• Build all the information
that you have gathered
into a PLAN
• Know
– How you will adapt the
brand and marketing mix
– How you will launch into
the new market
– Market penetration
strategies
– Sales targets
– How you will repatriate
your profits
• Responsible head office
executives
• Where the resources will
be available
• Be sure of your partners /
associates
• Evaluate what the
competition has done
• Be familiar with local
culture and customs
• Ensure compliance with
local legislation

16. • The above is a brief example of how
management models can assist the
decision processes
• The exercise focuses the mind to consider
important factors and the relationships
between them
• There is a new resource for people who
have strategy in mind ….

17. Explore the full potential of
Marketing & Management
Models…