CPMRCPFB

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CPMR/CPFB

• Course 201
• 2009

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John L. Schlacter is Professor of Marketing in
the W. P. Carey School of Business at Arizona
State University. He received his bachelor's
degree from Western Reserve University and his
MBA and Ph.D. degrees from Ohio State
University.   Dr. Schlacter is primarily
interested in the behavioral aspects of
organizations and the marketplace, as well as
strategic market planning and the development of
marketing intelligence systems.   He has received
the award for outstanding teaching and
contributing to ASU's Center for Executive
Development. He has also served as Assistant
Dean for the College, and has published over
eighty articles appearing in a variety of
management and marketing journals and trade
publications.   Dr. Schlacter is an active
participant in executive development programs at
Arizona State University, has taught in the MBA
for Executives program, and is also a consulting
associate with Management Horizons, Inc., whose
clients include members of the distributive
trades.   Dr. Schlacter consults in the areas of
both marketing and management, and has over
thirty years of experience in these fields. The
majority of his work has involved organizational
development, motivation and leadership and
communication team building, as well as strategic
planning, marketing research and work with
salespeople and sales managers. He has consulted
with a number of Fortune 500 firms as well as
smaller owner-managed firms. His work has
spanned industrial, wholesale/retail and service
organizations and trade associations.   In
addition to his consulting activities, he has
authored and participated in several hundred
executive and management development programs
over the past thirty years throughout the United
States and abroad.
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STRATEGIC MARKETING PLANNING FOR MANUFACTURERS'
REPRESENTATIVES AND FOOD BROKERS

• I. A Definition of "Strategic Marketing"
• II. Three Key Planning Questions
• III Situation Analysis External
• IV. Situation Analysis Internal
• V. Market Opportunity Analysis
• VI. Mission and Objectives
• VII. Strategies and Tactics
• VIII. Tools for Analysis
• A. Implementation Form Activity Charting
• B. The Nine Cell Matrix

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A DEFINITION OF STRATEGIC MARKETING
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Strategic Marketing

• Bringing Organizational Resources To Bear On
  Marketplace Opportunities Within the Constraints
  Imposed By The External Environment.

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Three Key Planning Questions

• 1. Where Are We Now?
• 2. Where Do We Want to Go?
• 3. How Do We Want to Get There?

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WHERE ARE WE NOW?
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A Strategic Marketing Model for Manufacturers'
Representatives

• I. Situation Analysis
• A. External Environment
• 1. Political/Legal
• 2. Economic
• 3. Sociocultural
• 4. Industry/Competitive
• 5. Technology
• Suppliers
• Physical

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A Strategic Marketing Model for Manufacturers'
Representatives   I. Situation Analysis   A.
External Environment   1. Political/Legal
a. What is happening? b. What does it mean
for me?   2. Economic a. What is
happening? b. What does it mean for
me?   3. Sociocultural a. What is
happening? b. What does it mean for
me?   4. Industry/Competitive a. What is
happening in my industry? b. What does it
mean for me? c. Who are my key
competitors? d. What are their strategies
and present situation? e. What does it mean
for me?   5. Technology a. What is
happening? b. What does it mean for
me?   6. Suppliers a. Who are my key
suppliers? b. What is happening in their
business? c. What does it mean for
me? 7. Physical a. What is happening? b.
What does it mean for me?  
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A Strategic Marketing Model for Manufacturers'
Representatives

• I. Situation Analysis
• B. Internal Environment
• 1. History/Mission (Who Am I?)
• 2. Financial Condition
• 3. Management/Organization Structure
• 4. Personnel
• 5. Technical
• 6. Marketing and Sales

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A Strategic Marketing Model for Manufacturers'
Representatives   I. Situation Analysis   B.
Internal Environment   1. History/Mission
(Who Am I?)   2. Financial Condition
a. What looks good? b. What
needs to be improved?   3.
Management/Organization Structure a.
Are we organized well with good management in
place and a plan for
succession? b. What needs to be
improved?   4. Personnel a. Do
we have enough of the right people in the right
places? b. What needs to be
improved?   5. Technical a. Are
we up to date technically? (e.g., computers, data
gathering and storing, e-mail, fax,
etc.) b. What needs to be
improved?   6. Marketing and Sales
a. Do we consistently deliver value to our
customers (the right product,
accompanied by the right service, delivered to
the right people at the right
place and time, and at the right price)?
b. What needs to be improved?
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A Strategic Marketing Model for Manufacturers'
Representatives

• II. Market Opportunity Analysis
• A. Existing Principals
• B. Potential Principals
• C. Existing Customers
• D. Potential Customers
• E. Who Will We Choose to Target Among Our
  Existing and Potential Market Targets?

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A Strategic Marketing Model for Manufacturers'
Representatives   II. Market Opportunity
Analysis   A. Existing Principals   1.
In what industries are our present principals?
2. How much of these markets do they
control?   B. Potential Principals   1.
What new industries might offer opportunities?
2. Who are some of the key players (potential
principals) in these markets? 3. What do
we know about each of them? 4. What else
do we need to know?   C. Existing Customers  
1. In what industries are our present
customers? 2. How much of these markets do
we control? 3. Who are our key accounts in
these markets? 4. What is happening in
these markets and with these accounts that we
need to know about? 5. What is
the "potential" of these targets?   D.
Potential Customers   1. What new
industries might offer opportunities? 2.
Who are some of the key players (potential
accounts) in these markets? 3. What do we
know about each of them? 4. What else do
we need to know? 5. What is the potential
of these targets?   E. Who Will We Choose to
Target Among Our Existing and Potential Market
Targets?   1. In what industries will
we be active? 2. Who will be our key
principals? 3. Who will be our key
accounts?
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WHERE DO WE WANT TO GO?
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A Strategic Marketing Model for Manufacturers'
Representatives

• III. Mission Statement and Objectives
• A. Mission Statement What kinds of products and
  services do we want to sell to whom?
• B. Objectives What key standards need to be met
  in order to successfully exploit our market
  targets?
• 1. Financial
• 2. Management and Organization
• 3. People
• 4. Marketing and Sales

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Sample Mission Statements

• Lewis Marketing is a quality driven MR agency
  striving to be of 1 value to our plumbing
  irrigation, utilities and water systems
  wholesalers in North South Carolina and to the
  principles we represent in those industries.

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Sample Mission Statements

• NDB Associates, Inc. is a Sub Chapter S
  Corporation headquartered in Devon, Pennsylvania.
  We are a Manufacturers Sales Representative
  Organization specializing in Office Products and
  Office Furniture covering Pennsylvania, Southern
  New Jersey, Delaware, Maryland, D.C. and
  Virginia. We sell to Wholesalers, Contract
  Dealers, and Retailers of Office Products. NDB
  strives to meet or exceed our principles sales
  and marketing goals by providing world class
  professional service and training to our
  customers.

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Sample Mission Statements

• The Wild Company is a premiere manufacturer rep
  organization servicing the northeast United
  States in partnership with quality manufacturers
  whose products are used or resold by styling
  salons.
• We are committed to quality performance for our
  manufacturers, through our field and tele-sales
  team to our distributors.

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Sample Mission Statements

• Zaslow Sales Company is an electronics
  manufacturers representative firm committed to
  the technical selling and marketing of component
  and engineered power, control and system
  packaging products through direct and distributor
  sales channels in order to provide design
  solutions and continuing sales support to
  commercial, industrial and military/ aerospace
  customers in New England.

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Sample Mission Statements

• We are a national manufacturers representative
  firm servicing the Canadian distribution network,
  multi-unit chain operations and volume feeders
  with high quality commercial food service
  equipment and supplies.

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Sample Mission Statements

• Rudolph Co., Inc., Electrical Manufacturers
  Representatives, in partnership with its
  Principal Manufacturers, is committed to
  providing the highest quality electrical products
  to the residential, contractor, commercial,
  industrial, and utility markets through wholesale
  electrical distributors.

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HOW DO WE WANT TO GET THERE?
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A Strategic Marketing Model for Manufacturers'
Representatives

• IV. Strategies and Tactics What do we need to do
  to accomplish our objectives? (What activities
  need to occur, who will be responsible for these
  activities, and over what period of time will
  they be completed?)
• A. Financial
• B. Management and Organization
• C. People
• D. Marketing and Sales

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A COMPLETE MODEL OF THE STRATEGIC MARKETING
PROCESS
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A Strategic Marketing Model for Manufacturers'
Representatives

• I. Situation Analysis
• A. External Environment
• 1. Political/Legal
• 2. Economic
• 3. Sociocultural
• 4. Industry/Competitive
• 5. Technology
• 6. Suppliers
• B. Internal Environment
• 1. History/Mission
• 2. Financial Condition
• 3. Management/Organization Structure
• 4. Personnel
• 5. Technical
• 6. Marketing and Sales
• II. Market Opportunity Analysis
• A. Existing Principals
• B. Potential Principals
• C. Existing Customers

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The Strategic Marketing Process Model
1. Where are we now?
External Environment
Market Opportunity Analysis
Tool 9-cell matrix
Internal Environment
2. Where do we want to go?
Mission and Objectives
3. How do we want to get there?
Strategies and Tactics
Tool Implementation Plan
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STRATEGIES AND TACTICSACTIVITY CHARTING
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IMPLEMENTATION CHART FOR (MARKET SEGMENT/
OBJECTIVE)
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Person responsible
ACTIVITIES
TIME
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MARKET OPPORTUNITY ANALYSIS THE NINE-CELL MATRIX
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PRODUCT PORTFOLIO MATRIX MARKET ATTRACTIVENESS
AND BUSINESS STRENGTH
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INVEST/GROW

• Market Attractiveness
• High Medium

• Selective Invest for
• Growth
• invest heavily in selected segments
• share ceiling
• seek attractive new segments to apply strength

• Premium Invest for
• Growth
• provide maximum investment
• diversify worldwide
• consolidate position
• accept moderate near-term profits

High Medium
Business Strength

• Challenge Invest for Growth
• build selectively on strengths
• define implications of leadership challenge
• avoid vulnerability, fill weaknesses

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HARVEST/DIVEST
Market Attractiveness Medium Low

• Restructure
• Harvest or Divest
• provide no unessential commitment
• position for divestment or
• shift to more attractive segment

Medium Low
Business Strength

• Harvest or Divest
• exit from market or prune product line
• determine timing so as to maximize present value

• Opportunistic
• Preserve for Harvest
• act to preserve or boost cash flow
• seek opportunistic sale or
• seek opportunistic rationalization to increase
  strengths

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SELECTIVELY INVEST/HOLD

• Market Attractiveness
• High Medium Low

• Protect Refocus Selectively Invest for Earnings
• defend strengths
• refocus to attractive segments
• evaluate industry revitalization
• monitor for harvest or divestment timing

High Medium Low

• Prime Selectively Invest for Earnings
• segment market
• make contingency plans for vulnerability

Business Strength

• Opportunistic Selectively Invest for Earnings
• ride market
• seek niches, specialization
• seek opportunity to increase strength (e.g.,
  acquisition)

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Market Attractiveness
Steps 1. Identify criteria for market
attractiveness and business strengths (see below
for example). 2. Weight criteria for market
attractiveness (divide 100 points) and business
strength (divide 100 points between criteria for
rep. and criteria for principal). 3. Rate the
particular market segment and the particular
rep/principal on each criterion for market
attractiveness and business strength respectively
(use 1-5 scale). 4. Multiply the wt. x rating for
each criterion on each axis and sum the score for
market attractiveness and business
strength. 5. Place principal/product in matrix.
Business Strength

• 5,5 3.67 2.33 1

3.67 2.33 1
Market Attractiveness Expected lifetime
(cycle) Need excess demand Growth Competition
Barriers -capital/plant technology political/legal
/cultural Size Cyclicality/Seasonality Fit
(synergy) Profitability
Business Strengths Marketing know-how Capacity
(physical plant) Size Growth Profitability Product
synergy Distribution base Mgt People Financial Br
and name/image Technical know-how Market share
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EXHIBIT 7.8 The McKenzie Companys Principals

• 1 Elm Grove Capacitor
• 2 Circuit Specialists
• 3 Genesis
• 4 Waltham Resistor
• 5 Pronto Circuit
• 6 Flexico
• 7 Alba Electronics
• 8 Hosunwa America