1 marketing “marketing is the process of planning and executing the conception, pricing,...
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Marketing
“Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas, goods
and services to create exchanges that satisfy individual and organisational objectives.”
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Marketing Orientated
Listen & understandPut customer firstTarget…focus Plan change and innovation
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Marketing Levels
Functional
Corporate
Business
Operational
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Marketing Process
Customer Acquisition
Customer Retention
Profit or Other Result
Market Segmentatio
n
Target Market
Selection
Product & Service
Positioning
Sustaining Value
CreatingValue
IdentifyingValue
Marketing Analysis
Company Customer Context
Competition Collaboration
Product/Service Place PromotionPrice
Marketing Mix – The 4 P’s
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Hierarchy of Plans
OperationalPlans
CorporatePlan
Business Plan
Functional Plans
Marketing Plans
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Marketing Planning
Assumptions
SWOT Analysis
Marketing Audit
Input
Marketing Objectives
Marketing Strategies
Objectives Operations
Programmes
Monitoring
Control
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Marketing Audit
Internal
External
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STRENGTHS
STRENGTHS WEAKNESSESWEAKNESSES
OPPORTUNITIESOPPORTUNITIES
THREATSTHREATS
FactorsInternalto theOrganisation
FactorsInternalto theOrganisation
FactorsExternalto the Organisation
FactorsExternalto the Organisation
SWOT
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Good Strategies
More efficient, less cost,
quicker
Strong relationships, thorough knowledge,
solution-based
OperationalExcellence
Customer Intimacy
Product/Service Leadership
State-of-the-art, creative,
risk taking
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Marketing ObjectivesDraw on SWOT Set marketing objectives around• Markets• Products • Sales• Profit
Specific, Measurable, Agreed, Relevant, Timebound, Extending, Rewarding
S.M.A.R.T.E.R.
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Marketing Audit
Internal
External
External
Providing contextRaising issues and challengesStakeholder analysis
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Marketing Audit
StrengthsWeaknesses
External
Internal
OpportunitiesThreats
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Marketing Research
List information neededIdentify sources (secondary and primary) Choose most appropriate method• Time• Cost• Effectiveness
Action Plan (W3)
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Marketing Research
List Information Source Action Plan
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Market Research
Market Research
Desk ResearchField or Primary Research
ObservationConsultation
Focus Groups Delphi Technique
Information Needed
Customer Needs & WantsPEST TrendsCompetitionBest practice
Funding required
Performance History
Income GeneratedVariable Costs
Fixed CostsSurplus/Deficit per Service
Activity LevelsIncome per EmployeeEnvironmental Issues
Marketing SpendMarketing Effectiveness
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Market Research
ISSUES/ELEMENTS
DEMOGRAPHY
Population
Age structure
Distribution and Settlement Patterns
Changes/immigration
SOURCES OF INFORMATION
NI Census 1991 and 2001
NISRA (www.nisra.gov.uk)
ECONOMY
Sector Information
Labour Forced/Unemployment/Skills
Invest NI
DCAL/Arts Council
SOCIAL/COMMUNITY
Planning
Housing
Education
Health and Social Services
Deprivation
Office for National Statistics
www.detini.gov.uk
www.economicstatistics-ni.gov.uk
www.dardni.gov.uk
www.nitb.com/tourismfacts/Default.htm
www.dcalni.gov.uk
www.artscouncil-ni.org/
Trade Bodies/Institutes
Noble Index
District Housing Plan (NIHE)
House Condition Survey (NIHE)
HPSS Trust Strategy and Annual Report
Director of Public Health Annual Report (HSSB)
www.deni.gov.uk/facts_figures/index.htm
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Make Assumptions…
Facts and figures but…make assumptions• Restrict to the critical few• Use Best Guess/’Guestimate’ • Necessary for informed decisions
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PEST
Political Economic
TechnologicalSocial
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PESTLE
POLITICAL POLITICAL
ECONOMIC
ECONOMIC
SOCIAL
SOCIAL
TECHNICAL
TECHNICAL
LEGAL
LEGAL
ENVIRONMENTA
L
ENVIRONMENTAL
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STRENGTHS
STRENGTHS WEAKNESSESWEAKNESSES
OPPORTUNITIESOPPORTUNITIES
THREATSTHREATS
FactorsInternalto theOrganisation
FactorsInternalto theOrganisation
FactorsExternalto the Organisation
FactorsExternalto the Organisation
SWOT
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Robust Analysis
271Miles
If you folded an A4 Sheet 32 times,
how thick
would it be?
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“Operational effectiveness means you’re running the same race faster. But strategy is choosing to run a different race because it’s the one you’ve set yourself up to win”.
Michael Porter
Strategy
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Ansoff’s Matrix
Current Markets
New Markets
Market Market PenetrationPenetration
Market Market DevelopmeDevelopme
ntnt
Product Product DevelopmentDevelopment
DiversificatioDiversificationn
Current Products
New Products
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ExistingProducts
NewProductsProducts
Product/Market Expansion Grid
Market Penetration
Market penetration is a strategy of increasing your share of existing markets. This might be achieved by raising customers’ awareness of products and services or finding new customers.
Product Development
Product development is a strategy for enhancing benefits you deliver to customers by improving existing products and services or developing new ones.
Market Development
Market development is a strategy of finding and entering new markets with current product or service range. The new market could be a new region, a new country or a new segment of the market.
Diversification
Diversification is a strategy that usually carries high costs and high risks. It often requires organisations to adopt new ways of doing business and so has consequences far beyond simply offering new products/services in a new market. It is therefore usually a strategy to be adopted when other options are not feasible.
Adapted from Ansoff I. (1968)
NewMarkets
ExistingMarkets
Markets
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Boston Box
Rela
tive M
ark
et
Gro
wth
Rate
StarsStars
Cash CowsCash Cows
Question Question MarksMarks
DogsDogs
Relative Market Share
+
+
-
-
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Attractive
Unattractive
Strong Average Weak
AverageMARKET
PROSPECTS
Leader/Growth
Leader Try harderDouble or quit
Growth/custodial:
Proceed with care
DisinvestCash
generator
Phased withdrawal
Phased withdrawal
BUSINESS POSITION
Directional Policy Matrix
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Cost|Focus|Differentiation
FocusDifferentiation Low Cost
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Scenarios
What if …?A visioning-type exerciseInformed speculation … not predictionAim for four scenarios• Strategic issues• Key assumptions• Implications
Plan on one (or more) scenario
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Red Ocean
•Compete in existing markets•Beat the competition•Exploit existing demand•Make the value-cost trade-off•Align the organisation to differentiation and low cost
•Create uncontested market space•Make the competition irrelevant•Create and capture new demand•Break the value-cost trade-off•Align the organisation to differentiation and low cost
Blue Ocean
Kim, Chan W., and Mauborgne, Renee (2005) Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant Boston, Harvard Business School Press.
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ReduceWhich factors should be reduced well below the industry standard?
CreateWhich factors should be created that the industry has never offered?
EliminateWhich of the factors the industry takes for granted should be eliminated?
RaiseWhich factors should be raised well above the industry standard?
A New ValueCurve
The Four Actions Framework
Reduce C
ost
Raise D
emand
Particularly eliminate and create to make the existing rules of competition irrelevant and move beyond competition onto new space…
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Six principles•Formulation
•Reconstruct market boundaries•Focus on the big picture, not the numbers•Reach beyond existing demand•Get the strategic sequence right
•Execution•Overcome key organisational hurdles•Build execution into strategy
Kim, Chan W., and Mauborgne, Renee (2005) Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant Boston, Harvard Business School Press.
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Strategy Canvas and Value Curve
Price Marketing Quality New Factors
Prestige
Factors
Low
High
New Factors
Blue Ocean
Red Ocean
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Marketing Mix
Product
Price
Prom
otion
Place
People
Proce
ss
Physica
l
Evidence
Stealth Marketing?