marketing planning icesi mba. marketing planning marketing strategy its a blue print by which the...
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MARKETING PLANNING
Marketing Strategy its a blue print by which the firm plans to complete
David R (1987)
Marketing Planning
A document that layouts recommendations for a business, whatthe firm need to accomplish and how
Calkins J (2005)
MARKETING PLANNING
The written marketing plan
- An executive summary- Table of contents- A summary of the current situation (SWOT)- A focused assessment of the marketing opportunity- A financial marketing goal- A summary of the company marketing strategy- A month to month budget- A month to month sales and revenue forecast- A plan for monitoring and evaluating action plans and progress and at the end of the period
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TimeHorizon Activities Name of activities Lateral connections
Long 1) Set overall, long-term goals andBasic approach to market place
1) Formulation of marketing strategy
1) Corporate strategy
Medium 2) Set two-to five-year objectives and plans ;with more detail for shorter time horizons
2) Marketing planning 2) Business plan
3) Set one-year objectives and detailed plan; allocate resources to achieve goals specified in steps 3 and 4
3) Marketing programming, allocating and budgeting
3) Operating programs and budgets
Short 4) Execute plans, programs, and budgets
4) Marketing implementation
4) Operating activities
5) Evaluate results of execution against goals set in steps 1, 3, and 4, above; specify corrective action where necessary
5) Monitoring and auditing
5) Business audits
6) Gather and analyze quantitative and qualitative data from within and outside the company
6) Analysis and research
6) Business analysis and research
MARKETING PLANNING
Marketing Planning
The planning process requires meetings and agreement and an understanding (analyzing) the current situation.
Planning requires also communicating the plan and supervisingits implementation
MARKETING PLANNING
Planning may help people to sell ideas and to get budget allocation
Planning can be an unfertile business requirement. The written document may never be read and left getting dust on a shelf
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Planning should ultimately activate decision making
A plan without an implementation worth nothing
MARKETING PLANNING
Stop making plans, start making decisions
How Executives Plan
66% periodically
67% unit by unit
How Executives Decide
100% continuosly
70% issue by issue
No wonder only 11% of executives are highly satisfied that StrategicPlanning is worth the effort
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The Planning Process
Step 1Understand situation
Step 3Write and Present the Plan
Gain Support
Step 4Execute
Step 2Develop Objetives, Strategies
and Tactics
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Marketing Plan Summary
OBJETIVES STRATEGIES TACTICS
Key to success1) Always remember you are selling a recommendation2) Make the data compelling and;3) Always deal with the conflicting data.
MARKETING PLANNING
Practical Recommendations
1) Tell a story but don't write a novel plans should be long enough to be understood but short enough to be read, and they should “speak” to people.
2) Don't make novice mistakes check data accuracy, sources reliability
3) Set demanding but achievable goals
4) Make sure you have the resources to make the plan possible
5) Make sure you have an implementation and follow up process
MARKETING PLANNING
Typical business situation sumarizes in two sets of components:
Company´s Environment
Strengthweaknesses
OpportunitiesThreats
MARKETING PLANNING
Understanding the situation
Behind the typical SWOT analysis we have:
1. Marketing research2. Analysis of competitors3. Industry intelligence4. Analysis of the past performance5. Organizational and industry constraints
MARKETING PLANNING
Understanding the situation
We want to understand the market and its segments, and how the competition is
doing in those markets and segments
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Situation Analysis
At the end we should be able to detect the critical factorswe need to deal with in our plan
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Portfolio Planning
One of the ways to explain your current situationin the market is poftfolio analysis:
- BCG chart - G.E Mckinsey Screen
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BCG Portfolio Chart
Product MarketGrowth Rate
Relative Market Share
10%
20%
4.0 2.0 1.0 0.5 0.25
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4.0 2.0 1.0 0.5 0.25
Product MarketGrowth Rate
Relative Market Share
$
$
X
X
?
?
“DISASTER”SEQUENCES
“SUCCESS”SEQUENCES
Low
LowHigh
High
BCG Portfolio Chart
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GE McKinsey ScreenH
igh
Med
ium
Low
LowMediumHigh
INDUSTRY ATTRACTIVENESS
BU
SIN
ES
S S
TR
EN
GT
HS
Invest/grow
Selectivity/earnings
Harvest/divest
• Size• Growth• Share• Position• Profitability• Margins• Technology position• Strengh• Image• Pollution• People
• Size• Market Growth• Market diversity• Competitive structure• Industry Profitability• Technical role• Social• Environment• Legal• Human
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Situation Analysis
With the Situation Analysis we intend to seeand explain the reality that the company is facing.
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Explaining RealityEsscence
Competitive Positioning
Customers Benefits
Product/service features
Internal capabilities
Sustantable MarketingLeadership
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Explaining Reality
Sales
Time
Planting
The surge
Cruisecontrol
Commoditization Saturation
Replacement
Strategy Development Process
Objetives should correspond to mission, vission and corporate goals
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A mission statement asks.. What is our business? Who is the customer? What do consumers value? What should our business
be?
A mission statement should be: An “invisible hand” Neither too narrow nor too broad Fitting of market environment Based on distinctive competencies Motivating
Market-Oriented Mission
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Strategic Planning
Company Objectives must tie to Marketing Objectives
• Company Mission
• Business Objectives
• Marketing Objectives
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Strategy Development Process
Strategic initiatives responding to thehow we are achieving the objetives
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Devising the Implementation
Tactical implementation should follow theStrategy formulation phase.
It refers to a specific “road map” to turn the Strategic initiatives in to reality.
MARKETING PLANNING
Tactical implementations
Strategy formulation activities(pre-implementation planning)
• Project ideation• Developing initial support for project among decision makers• Estimating an expected budget and schedule• Identifying project goals and expected outcomes• Attaining approval for project
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Tactical implementations
Implementation planning activities(tactical and project planning)
• Detailed action planning• Resource planning• Facilitating buy-in with implementation participants• what.-if analysis• Developing contingency plans
MARKETING PLANNING
Tactical implementations
Execution activities
• Carrying out planned activities• Monitoring and coordinating tasks• Communicating with project participants• Overcoming unanticipated problems
MARKETING PLANNING
Managerial Guidelines for Tactical Implementations
• Hone your implementation skills• Prepare for the unexpected• Effective excecution is not possible without a supportive infraestructure• Building buy-in is a fundamental implementation task• Top management must provide direction• Like a fine wine, implementation takes time• Management must provide air corver for “reality checkers”• Make simplicity a virtue Peter J, & Harper S (2003)
The Devil is in the DetailBusiness Horizons
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Tactical Implementation
Anticipating to problems in the implementationPhase is as important as the strategy it self
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Framework for Diagnosing Implementation Problems
SkillsFunctions Interacting Allocating Monitoring Organizing
Actions
Programs
Systems
Policies
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Evaluating Performance
No implementation is successful if we don'tClearly define the performance indicators
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Establishing Performance Indicators
Financial Performance
Market Performance
Operating Performance
Human Performance
MARKETING PLANNING
Establishing Performance Indicators
Strategic Imperative Key Performance Indicators (measurements)
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Defining the Resources Requirements
StrategicResources
Needed
Human Infrastructures
Imperative Physical Financial Human Changes
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Strategic Imperative RisksLikelihoodOf success
Defining the Resources Requirements
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People• Training• Certification
Processes Systems
• Key basic action lies in the marketingtask• Certification
• Facilitate the marketing task• Enable best practicesharing• Monitoring themarketing program
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Evaluation programs for marketing units that measure the quality of marketing processes and
people’s profile and skillsCertification ensures a minimal accepted quality
and provides feedback for improvement
Certification
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Companies build capabilities through exploiting developing their resources.
Organization
Res
ourc
es
Business
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CompetitiveAdvantage
Control
CoordinationRe
sour
ces
Businesses
Organization
Great corporate strategies come in the first instance from strength in each side of the triangle: high-quality rather than pedestrian resources, strong market positions in attractive industries, and an efficient administrative organization. But true corporate advantage requires a tight fit at each angle as well. When a company’s resources are critical to the success of its businesses, the result is competitive advantage. When the organization is configured to leverage those resources into the businesses, synergy can be captured and coordination achieved. Finally, fit between a company’s measurement and reward systems and its businesses produces strategic control.
Creating Corporate Advantage, David J. Collis and Cynthia A. Montgomery, May-June 1998.
The triangle of corporate strategy
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In order for companies to implement strategies manager’s thinking must be reoriented and core decision-making systems reshaped.
This is going from formulating a strategy to assuring its implementation is possible. One way to achieve this is through the management of change.
MARKETING PLANNING
What may impaired the evolution of a strategy, specially concerning organizational design, in
the implementation process?
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Subsidiaries Central management
I do
Conflict for
changeI control
People, processes, and power
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Subsidiary Subsidiary
Subsidiary
Center
How do you orchestrate the subsidiary center relationship