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Strategic Marketing Planning

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Strategic Marketing Planning

  1. 1. Effective Strategic Marketing Planning Nigel S Jones BEng MSc MIDM MCIM FInstSMM 1
  2. 2. • Provide and overview of the Strategic Marketing Planning Process • Introduce some key planning tools / technique 2 Objectives
  3. 3. Definition of Marketing 3 The management process responsible for identifying, anticipating and satisfying customer requirements profitably.
  4. 4. Definition of Marketing 4
  5. 5. Purpose of Strategic Marketing Planning 5 Strategy is the way in which an organisation achieves its goals Principle focus Marketing Planning: • Identification and creation of a competitive advantage • Identify and capitalise on opportunities
  6. 6. Where are we now? Where do we want to be? How are we going to get there? How will we know when we are there? The Planning Process 6
  7. 7. 4 Key Phases Phase 1 - Goal Setting Phase 2 - Situation Analysis Phase 3 - Strategy Formation Phase 4 - Resource Allocation / Implementation 7
  8. 8. 4 Key Phases 1. Vision / Mission Phase 1 Goal Setting Phase 2 Situation Analysis Phase 3 Strategy Formation Phase 4 Resource Allocation / Implementation 2. Corporate Objectives 4. SWOT Analysis 5. Issues to be addressed 3. Marketing Audit 6. Marketing Objectives 7. Marketing Strategies 9. Budget 10. 1st Year Implementation Plan 8 Measurement and Review
  9. 9. Phase 1 - Goal Setting 9
  10. 10. Vision Statement 10 Where your organisation wants to go What it wants to be Should be a source of inspiration Example: To become the most successful premium manufacturer in the car industry
  11. 11. Mission Statement 11 Fundamental purpose of organisation What it does to achieve vision Defines critical processes
  12. 12. Vision Statement 12 Example: To be the worldwide leader in sharing delicious tastes and creating joyful memories
  13. 13. Mission Statement 13 Example: Krispy Kreme seeks to maintain its loyal customer base and attract new customers in both current and developing markets with its commitment to quality and consistency in its doughnuts, other baked goods, and beverages . Krispy Kreme will lead the industry via a commitment to innovation, service, growth, and quality . Its channel system and franchise system ensure profitability for retailers and franchisees while providing convenient access for customers. Krispy Kreme desires to instill the belief that the company is a set of capabilities, not just a product or brand .
  14. 14. Corporate Mission & Objectives 14 • Statement of the organisation’s role • Business Definition – distinctive competences • Indication of the future market performance • Summary of financial performance • Typically 3 – 5 year planning period
  15. 15. 15 Phase 2 - Situation Analysis
  16. 16. Example - The ABC Motor Company Established 16 November 2010 Sports Coupe´ Family Hybrid 4 x 4 Small Hatchback 16
  17. 17. Market Segments 17 Group of customers with same or similar requirements Each has own critical success factors – address to succeed Affects marketing / promotional mix
  18. 18. Market Segments 18 Types of Segmentation • Geographic Segmentation • Demographic Segmentation – age, socio, gender • Psychographic – lifestyle, behavioral http://www.strategicbusinessinsights.com/vals/presurvey.shtml
  19. 19. Example - The ABC Motor Company Established 16 November 2010 Sports Coupe´ Family Hybrid 4 x 4 Small Hatchback 19 Segment: Young Drivers - C1C2D Limited disposable income Segment: Families - BC1C2 Moderate disposable income Segment: Executive – ABC1 Large disposable income CSF: Cheap to insure! CSF: Safe and economical CSF: Indicate status – excite!
  20. 20. SWOT Analysis Example - ABC Motor Company Two areas of analysis: Internal – Strengths and Weaknesses External – Opportunities and Threats 20
  21. 21. Internal Analysis 21
  22. 22. Strengths • Very strong loyal UK following • Low insurance grouping for hatchback and family model • Recent addition of hybrid family car • Excellent Research and Development (R&D) Resources 22 SWOT - Internal Analysis Example - ABC Motor Company
  23. 23. Weaknesses • Marketing / Brand Development – small department • Customer Relations / Database • Not a strong brand yet – perception of coupe as exec model • Product Reliability Issues • Sports Coupe – very heavy on fuel and high emissions • Hatchback now a bit long in the tooth – spec falling behind competition 23 SWOT - Internal Analysis Example - ABC Motor Company
  24. 24. External Analysis 24
  25. 25. Considers Opportunities and Threats PEST or PESTLE Model: 25 External Analysis Political Economic Social Technology Legal Environmental
  26. 26. SWOT Analysis ABC Motor Company Political • Potential increased taxation 4 x 4 – not hybrids 26 Opportunities Economic • Escalating fuel prices – selling point for hybrids Social • UK designed and produced vehicles – strong selling feature in UK market Technology • Digital / Social media – inexpensive marketing tools
  27. 27. SWOT Analysis ABC Motor Company Political • VAT to reach 20% for 2011 will impact sales for at least 1st two quarters 27 Threats Economic • Escalating fuel prices • Sales of new cars still low Social • Increasing environmental awareness – impact on performance cars Technology • Development of battery technology – competition from electric cars
  28. 28. • Strength of brand - poor • Customer Relations / Database - limited • Product Reliability Issues • Sports Coupe – very heavy on fuel and high emissions • Hatchback now a bit long in the tooth – spec falling behind competition 28 Issues to be Addressed from Analysis Example - ABC Motor Company
  29. 29. 29 Phase 3 Strategy Formation
  30. 30. High Low Relative Market Share (In Relation to Largest Competitor) BCG Growth Matrix High Low Market Growth (Annual Rate of growth) Divest Divest Prioritize Invest Star Cash Cow Question Mark Dog 30
  31. 31. Sports Coupe´Family Hybrid 4 x 4 Small Hatchback The ABC Motor Company High Low Relative Market Share (In Relation to Largest Competitor) BCG Growth Matrix High Low Market Growth (Annual Rate of growth) Star Cash Cow Question Mark Dog 31
  32. 32. • Develop ABC Motor Company Brand • Develop Customer Relations / Marketing Database • Resolve Product Reliability Issues • Focused marketing for Sports Coupe to increase market share • Re-design of Hatchback – to gain larger market share • Increased marketing on Family Hybrid – Cash Cow 32 Marketing Objectives (From Issues)
  33. 33. Fundamental Questions 1. Why should customers come to you? 2. Do you deliver what you promise and more? 3. Are your customers delighted? Or just satisfied? 33 Planning Reality Check Roger Staubach
  34. 34. • Emphasizes superiority of brand based upon unique features and benefits • Differentiates company from competitors • Reinforces customers decision to purchase 34 Unique Selling Proposition (USP) (Rosser Reeves, USA)
  35. 35. Approach to identifying USP: - 1. Identify you 3 biggest benefits 2. Be unique & specific 3. Solve and industry Performance Gap • Current issues in the market • What do you do that your competitors don’t do 4. Condense into one single concise sentence 35 Unique Selling Proposition (USP)
  36. 36. USP Example “When it absolutely, positively has to be there overnight” 36
  37. 37. Marketing Strategies Actions taken to achieve objectives Develop strengths and counter weaknesses Strategy in terms of: - • Product • Price • Place • Promotion
  38. 38. Marketing Strategies Product Policies regarding: - • Product lines • Modifications • Specifications to suit segments • Product additions / deletions • Design • Branding e.g. Re-design of Hatchback specification
  39. 39. Marketing Strategies Price Pricing Policies regarding: - • Pricing objectives – e.g. max revenue, profit, survival, market share • Strategies – Skimming, Penetration, loss leaders etc • Loyalty discounts • Pricing for different products • Pricing for different segments e.g. reduce price of Coupe to increase market share and move into “cash cow”
  40. 40. Marketing Strategies Place Policies regarding: - • Distribution channels / retailers • Agents, resellers, franchises • Customer services levels e.g. direct marketing
  41. 41. Promotion
  42. 42. Marketing Strategies Promotion Policies regarding the promotional mix: - • Advertising • Sales promotion • Public Relations • Personal selling • Direct Marketing e.g. sales promotions for end of line Hatchback before re-spec
  43. 43. Marketing Strategies Promotion – 5M’s • Mission - Objectives • Money – Cost Implications • Message – to suit market segment • Media – Appropriate media • Measurement – how can the result be measured?
  44. 44. Ladder of Engagement
  45. 45. 45 Phase 4 - Resource Allocation / Implementation
  46. 46. Implementation Budget / Resources Strategies and tactics must be aligned with available resources Both financial an physical
  47. 47. Implementation – e.g. Promotion Action Jan Feb Mar April May June July Aug Sept Oct Nov Dec Advertising Sales Promotion Public Relations Personal Selling Direct Marketing
  48. 48. Measurement ROI (Metrics) • Increase in turnover • Advertising – impressions from view listener volumes • Consumer surveys • Sales promotions – return of coupons / loyalty cards • Wide range of methods to measure digital marketing • Analytics • Number of conversations regarding your product • Number of tweets / retweets • Number of followers • Number impressions • Number of views (video / slides) • Etc etc.
  49. 49. Measurement ROI (Metrics) Financial Analysis • Cost per enquiry (CPE) / Response (CPR) • Response% • Conversion Ratios • Cost per order (CPO) • Return on investment • Lifetime Value
  50. 50. Further Reading 50
  51. 51. herdmanjones Strategic Marketing Consultants info@herdmanjones.co.uk www.herdmanjones.co.uk 51 NigelSJones Nigel S Jones Herdman Jones Associates Ltd

Editor's Notes

  • Mission statement is an internal statement
    Not written for customers (although can be used)
    Communicated to all staff
    Driven and inspired by vision statement
  • CSF start to provide strategic focus – on product spec
    and also marketing message!
  • Note, not all issues are marketing –
    Could be resource / systems procedures etc
  • Note, not all issues are marketing –
    Could be resource / systems procedures etc
  • Note, not all issues are marketing –
    Could be resource / systems procedures etc
  • Note, not all issues are marketing –
    Could be resource / systems procedures etc
  • Note, not all issues are marketing –
    Could be resource / systems procedures etc
  • Note, not all issues are marketing –
    Could be resource / systems procedures etc
  • Skimming - high prices – reduce as sales slow down
    Penetration pricing – low to encourage purchases
  • Skimming - high prices – reduce as sales slow down
    Penetration pricing – low to encourage purchases
  • Skimming - high prices – reduce as sales slow down
    Penetration pricing – low to encourage purchases
  • Only Showing Promotional mix elements
  • ×