Mcdonald Presentation Nov 08 00


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Mcdonald Presentation Nov 08 00

  1. 1. Advanced Marketing Planning by Professor Malcolm McDonald Cranfield School of Management 8th November 2000
  2. 2. 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
  3. 3. Map of the marketing domain Define markets & understand value Asset Monitor Create Base value value Deliver value
  4. 4. Application areas Define markets Planning & understand support value tools Data warehouse Intranet Monitor Create value value proposition CRM Internet Communicate & deliver value
  5. 5. 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
  6. 6. 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
  7. 7. Personalising segments OIO0599.7
  8. 8. 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)
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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.
  14. 14. 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
  15. 15. Lack of Knowledge and Skills
  16. 16. 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
  17. 17. 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
  18. 18. 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.
  19. 19. 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
  20. 20. 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
  21. 21. 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