Develop and manage marketing strategies

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Develop and manage marketing strategies
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• Session 3
• Strategic Marketing and planning
• with Sue Cameron

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Agenda

• Revision QA
• Strategic Planning
• Marketing management and planning
• SWOT and PEST
• The Marketing Plan
• Revision for the exam

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Revision QA

1. Who is Philip Kolter?
2. Is marketing just sales?
3. If not, what does it include?
4. Most people dont plan to fail they just
   
5. What do you market to? Peoples .
   

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Revision QA

• 6. What are the 2 concepts that all business is
  based on? A clue is S D
• 7. What is a marketing offering?
• 8. What is a product in marketing terms?
• What does perceived value mean?
• What is customer satisfaction?
• What is the marketing mix?

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Revision QA

1. What is an exchange?
2. What is relationship marketing?
3. How much does it cost to get a new customer as
   apposed to an existing customer?
4. Is emotional engagement important in selling and
   marketing?

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Strategic Planning
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• Most organisations operate according to formal
  plans
• Managers are often too busy and have no time for
  planning
• Planning can help make sense of a changing
  environment
• Organisations failing to plan are planning to
  fail
• The need for flexibility has led to a resurgence
  in the process of scenario planning

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Strategic Planning
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• The process of developing and maintaining a
  strategic fit between the organisations goals
  and capabilities in the light of changing
  marketing opportunities
• It relies on developing a clear
• Company mission
• Objectives
• Sound Business Portfolio
• Coordinated Functional Strategies

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Definitions

• Hierarchy A pyramid-like ranking of ideas,
  individuals, items, etc., where every level
  (except the top and the bottom ones) has one
  higher and one lower neighbour
• Higher level means greater authority, importance,
  and influence
• Reference Business Dictionary.com website (May
  2013)
• http//www.businessdictionary.com/definition/hiera
  rchy.html

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Strategy Hierarchy
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• Corporate or Executive Strategy level
• Strategic Business Unit (SBU) Level
• Functional Level of SBU (e.g. Marketing Strategy)

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The Strategy Hierarchy
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Marketing Management and Planning

• Depending on the size of the organisation there
  can be between three to four levels
• This involves four levels of decision making
• The corporate
• The divisional
• The business unit
• Product levels

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Marketing Management and Planning

• The organisations head office is responsible for
  a corporate strategic plan, each division
  develops a divisional plan that cover the
  allocation of funds to each SBU in the division
• Marketing plans operate at two levels, the
  strategic and tactical

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Marketing or Business Plan?
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• The business plan incorporates the plans of all
  functions production or operations, RD,
  finance, human resources, IT and marketing
• The marketing plan has its focus on customer
  acquisition, (finding) retention (keeping) and
  the resources required
• It includes the resources needed to implement
  specific marketing functions (such as selling,
  advertising, sales promotion and market research)

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Marketing or Business Plan?

• 2. Most marketing plans cover one year, but some
  cover a few years
• 3. Plans vary in their length from under ten
  pages to over 50
• 4. Frequently cited shortcomings of marketing
  plans, are lack of realism, insufficient market
  and competitive analysis i.e. no research and a
  short-run focus

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Contents of a Marketing Plan
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The Nature and Contents of a Marketing Plan
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• Executive Summary
• The marketing plan should open with a brief
  summary of the plan
• This executive summary is aimed at the senior
  management to enable them to grasp quickly the
  plans major thrust, its goals and
  recommendations
• The summary should be no more than one page long

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The Nature and Contents of a Marketing Plan
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• Situational Analysis i.e. the current marketing
  situation
• This section presents relevant background data on
  the target market, product, competition,
  distribution and the macro-environment
• The data are drawn from a product fact book or
  database maintained by the product manager

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The Nature and Contents of a Marketing Plan

• Product Situation
• This states the sales, product prices,
  contribution margin and profits for past years
• Competitive Situation
• Identify and describe the main competitors in
  terms of size, goals, market share, product
  quality, marketing strategies and other
  characteristics

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The Nature and Contents of a Marketing Plan

• Distribution Situation
• This presents data on the size and importance of
  each marketing (distribution) channel
• Macro-environment Situation
• A brief summary of the broad macro
  trends-demographic, economic, technological,
  political/legal and socio-cultural that affect
  the product lines future

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Marketing

• Two of the most important things in marketing is
  understanding and promoting your critical success
  factor(s) and your point of difference to your
  competitors

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Market Research

• There are various tools to use to conduct
  effective market research
• Such as a SWOT and a PEST analysis
• Market research is an ongoing process in the
  marketing department

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SWOT

• Strengths (internal)
• Weaknesses (internal)
• Opportunities (external)
• Threats (external)

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PEST

• Political factors
• Economic factors
• Social factors
• Technology factors
• Are all external factors

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Why have a marketing plan?

• A Marketing Plan is a bit like a job description
  for your company
• Everyone should have one, but theyre often not
  fit for purpose, out of date and reviewed
  infrequently
• Research has shown that businesses with plans
  succeed, outperform competitors, and retain
  staff, more than those with no plan

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Why have a marketing plan?

• Without a plan theres no direction for the
  company or its employees, decisions can be
  uninformed, opportunities can be missed and
  threats can damage or destroy the business
• Reference Smarts Insights website (May 2013)
• http//www.smartinsights.com/marketing-plannin
  g/create-a-marketing-plan/how-to-create-a-marketin
  g-plan/

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Videos on Marketing Plans

• The Marketing Mix (May 2013)
• http//www.youtube.com/watch?vMLmsJEz3GD4
• The purpose of a marketing plan (May 2013)
• http//www.youtube.com/watch?vNlERzgqtIkI
• Critical Success Factors (May 2013)
• http//www.youtube.com/watch?vO5uHP_kiySI

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10 Steps to develop a marketing plan

• 1. Determine the organisations mission
• Your mission statement reflects why your
  organisation is in business, provides basic
  guidelines for further planning, and establishes
  broad parameters for the future

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The company's overall mission and objectives are
defined by the

• Functional plan
• Strategic plan
• Marketing plan
• Customer analysis
• CEO

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10 Steps to develop a marketing plan

• 2. Set company goals
• Goals define the overall results you wish to
  achieve, guide the development of a marketing
  plan, and shape the strategies needed to
  implement it
• Make your goals SMART

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Smart Goals

• Specific
• Measurable
• Achievable
• Realistic
• Time framed
• You can use this acronym for all goals
  (personal and professional)

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10 Steps to develop a marketing plan

• 3. Perform external analysis
• An external analysis examines trends in the
  marketplace or business environment, the local
  economic outlook, market types, available
  financing, and market needs
• This is where you use the SWOT analysis and the
  PEST analysis

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10 Steps to develop a marketing plan

• 4. Perform internal analysis
• An internal analysis looks at your firms
  strengths and weaknesses
• It should include a client review of your
  organisations performance
• This is also where you use the SWOT analysis

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10 Steps to develop a marketing plan

• 5. Establish marketing goals
• Marketing goals should reflect what you think
  your firm can accomplish through marketing in the
  coming years the amount of new business vs. old
  or repeat business, job and client profiles, and
  promotional and sales goals
• These goals cover Product, Price, Place and
  Promotions (the 4 Ps or Marketing Mix)

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10 Steps to develop a marketing plan

• 6. Define strategies to achieve your goals
• Strategies are specific activities to achieve
  stated marketing goals over two or three years
• They range from pursuing a new type of client to
  expanding an existing market geographically or
  even adding or changing a specialty

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10 Steps to develop a marketing plan

• 7. Research and refine strategies
• Focus your energies as much as possible,
  selecting only those strategies that will make it
  possible to reach your goals

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10 Steps to develop a marketing plan

• 8. Create and refine promotional and sales
  tactics
• Tactics are short-term, immediate, planned
  actions undertaken to implement strategies
• Tactics are specific reactions to research
• Limit tactical planning to those tasks necessary
  to accomplish marketing goals

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10 Steps to develop a marketing plan

• 9. Implement the plan
• Once the plan is put into action, good
  coordination and record keeping are critical to
  its success

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10 Steps to develop a marketing plan

• 10. Evaluate the plan in action
• The entire marketing planning process must be
  continuously evaluated and updated
• Conduct regular evaluations of your efforts to
  achieve your marketing goals, studying both
  successes and failures

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GOALS, STRATEGIES, AND TACTICS

• After reading the previous 10 steps it is
  important to understand what these terms mean for
  an architecture firm and see an example
• Here are some brief definitions and examples of
  terms that clarify the authors vision of a goal,
  strategy, and tactic

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GOALS, STRATEGIES, AND TACTICS

• A goal is an end, a measurable state to be
  achieved within a specified time frame
• A sample marketing goal is To increase our
  organisations revenues for private colleges and
  universities by 20 percent within three years

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GOALS, STRATEGIES, AND TACTICS

• A strategy is a means by which an organisation
  seeks to achieve one or more of its goals
• A sample strategy to achieve the sample goal is
  To expand the services we offer existing
  university clients to include facilities
  management and project definition.

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GOALS, STRATEGIES, AND TACTICS

• A tactic is a specific short term action aimed at
  implementing one or more of the firms strategies
• An example may be To become active in newly
  formed educational facilities users group in our
  region attend meetings, join our clients in
  offering tours of recently completed facilities,
  and/or place this group on our newsletter mailing
  list.

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GOALS, STRATEGIES, AND TACTICS

• However you define your goals, strategies, and
  tactics it is important to avoid meaningless
  generalisations such as these
• Our policy will be to lead the competition.
  We will offer a better product. We will get
  our image into the public eye. Our plan will
  increase sales. Our plan is to satisfy our
  customers.

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Revision for the exam

• How can you obtain information on products and
  services that are not performing well?
• Where can you find information on your
  competitors i.e. comparative markets?
• What sort of things can you do to involve your
  colleagues in developing a marketing plan?
• What elements of the internal business
  environment do you need to be aware of in
  developing your marketing strategies?

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Revision for the exam

• Explain a current trend that is affecting
  hospitality and or tourism industry and how it
  would it affect businesses?
• What ethical issues might affect the development
  of a marketing strategy?
• What are some of the features of the Competition
  and Consumer Protection Act that could affect
  marketing activities?

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Revision for the exam

• How would you monitor and evaluate the success of
  your marketing plan?
• Why Is it important to examine past and current
  marketing information when making a new strategy?
• How could changes in the economy, labour force
  and population growth affect your marketing plan?

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Revision for the exam

• In researching the external business environment
  what sources of information are available and how
  can you use these sources to develop new business
  opportunities?
• If you have changes in your marketing plan you
  would you advise and how would you check that
  this information has been understood?

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Tomorrow evening

• Get a good nights sleep (8 hours)
• Have a nutritional breakfast and lunch
• Good luck
• See you next week?
• Plan and implement sales activities?