mcdonald presentation nov 08 00
DESCRIPTION
McDonaldTRANSCRIPT
Advanced Marketing PlanningAdvanced Marketing Planningby
Professor Malcolm McDonaldCranfield School of Management
8th November 2000
Definition of marketing
Marketing is a process for:● understanding markets● quantifying the value required by the different groups
(segments) within these markets● communicating this value to those responsible for
delivering it● measuring the effectiveness of the value actually
delivered
AssetBase
Define markets& understand
value
Createvalue
Delivervalue
Monitorvalue
Map of the marketing domain
Define markets& understand
value
Createvalue proposition
Communicate & deliver
value
Monitorvalue
Application areas
Data warehouse
Intranet
CRMInternet
Planningsupport
tools
Definemarkets & segments
Understandvalue required
(by the customers)
Understandcompetitor value
positioning
Evaluatemarket/segmentattractiveness
- Corporate mission/objectives
- External data inc. market research
- Internal data from value delivery
Analysis
Define markets and understand value
*
*
Key elements of world class marketing
1.1. Profound understanding of the market-place
2.2. Creative segmentation and selection
3.3. Powerful differentiation positioning and branding
4.4. Effective marketing planning processes
5.5. Long-term integrated marketing strategies
6.6. Institutionalised creativity and innovation
7.7. Total supply chain management
8.8. Market-driven organisation structures
9.9. Careful recruitment, training and career management
10.10. Vigorous line management implementation
Personalising segments
OIO0599.7
Choose markets/segments
Define objectivesvalue received
Define price/valueproposition
Estimate expected results Value received and budgeting
AnalysisCorporate objectives
Marketing Plan(s)
CostConvenienceCommunicationConsumer wants& needs- product/servicebenefits
PricePlace - distribution Promotion * - marketing communicationsProduct/service - features - customer service
Create the value proposition
Define marketingstrategies
How value is to be delivered /communicated
*
Supplies Products Services
Research &development
Inboundlogistics Operations Outbound
logistics Service
Monitor Mgr. Comm.programsMeasurement:Attitudes- awareness- perceptions- etcBehaviour- conversion rates- etc
Design and implementmarketing communication programs
Across media:• Mass media• Mail• Telephone• Personal contact• Electronic eg Net• etc
Communicate the offer (implement integrated marketing communications plan)
Customer information
Design program Negotiate/tailorInitiate dialogue CommitExchange information Exchange value
Exchange information
Deliver value
Deliver the product / service
modifications to value proposition / marketing strategy
Create valueproposition
New market creation
DefineMarkets
**
Mass media - objectives
- message strategy
- media strategy
Direct mail - objectives
- strategy
Telephone
- objectives
- strategy
Personalcontact
- objectives
- strategy
Electronic- objectives
- strategy
PlaceDistribution
Strategy
e.g test drive,demonstration,5 senses
Integrated marketingcommunications plan
Channel/Medium Choice
Other- PR
- POS
- etc
Define marketing strategy for promotion
Monitor value
Value required(by customers)latest vsexpected
Value received(by us)vs objectives
Value deliveredvs proposition
How value delivered/ communicated vs
marketing strategies
• Product / service vsplan (R&D, Operations)
• Promotions vs plan• (IMCP)• Place vs plan• (Distribution Plan)• Price vs plan
Definemarkets/segments
Evaluatemarket/segmentattractiveness
Choosemarkets/segments
Define objectives
Estimate expectedresults
Valuerequired
Valuedelivered
Valuereceived
How valuedelivered/
communicated
Define markets & understand value
Understand valuerequired
Understandcompetitor value
positioning
Define price/valueproposition
Define marketingstrategies
Createvalueproposition
OutboundlogisticsOperations Service
Design/implement marketing communication programmesDesign program Negotiate/ tailorInitiate dialogue CommitExchange information Exchange value
Monitormarcom
programmes
Deliver product/service
Exchange information
InboundlogisticsR&D
Monitor value
Analysis
MarketingPlan(s)
Customerinformation
PlanEffectiveness
Communicate value
DataWarehouse
CRMSystem
ERP
OperationalEIS
Channelchoice
Allocation of customersto segmentsOperational implications
Program monitoringCustomer interface
Monitor vsPlan
Size/shareRevenue/Profit
RetentionCLV
Purchasepropensity
R&D supportData analysis
Projectmanagement
Planningsupport
toolsMarket mappingSegmentationSWOTCompet. AnalysisPortfolio analysisForecasting
NPDPlanning
Market researchaggregation/
analysis
Causalmodels
ITSupportforMarketing
Deliver value
Key areas for improvements in strategicmarketing planning
General commentsA strategic marketing plan should be a clear and simplesummary of key market trends, key target segments, thevalue required by each of them, how we intend to createsuperior value (to competitors), with a clear prioritisation ofmarketing objectives and strategies, together with thefinancial consequences.
Frequently, they are diffuse, confusing compilations forunconnected individual sections.
Barriers to marketing planning
1.1. Cultural Lack of belief in planning and/ormarketing and/or need to change
2.2. Behavioural Lack of top management support;lack of cross functional involvement
3.3. Cognitive Lack of knowledge and skill
4.4. Systems & Lack of data and/or inappropriateprocedures systems
5.5. Resources Lack of time, people and money
All of these factors are inter-dependent i.e. changeone, it impacts on another
Lack of Knowledge and Skills
Key marketing concepts/tools, linkages.The need for marketing planning
ProductManagement
Brands
Objectives,Strategies,
Programmes,Budgets, Forecasts,
PlansAssumptions
PIMS
GapAnalysis
ProductManagement
MIS
Mktg.Res.
PlaceManagement
AnsoffMatrix
Mktg.Audit
Position
Lifecycle
Mkt.Growth
Mkt.Share
Diffusion
BostonMatrix
PromotionMngmt.
SalesPromotion Channel
mngmt.
CustomerService
PDM
SalesForce
Adv.
MarketingOrganisation
Segmen-tation
Price
The output of the marketing planning process Strategic marketing plan contents
Marketing theory(Structures, frameworks, models)
Mission statementFinancial summary
Issue management
B.C.G. MatrixDirectional policy matrix
McDonald PRODUCTIVITY MATRIXBlake mouton matrixForecastingBudgeting
Measurement and review
Marketing planning and marketing theory (structures, frameworks, models etc.)© Copyright, professor Malcolm h.B. McDonald 1987
Downside risk assessment
Market segmentation studiesMarket researchResponse elasticities
Porter matrixAnsoff matrixBcg matrixDirectional policy matrixGap analysis
Key success factors matrixMarket researchMarket segmentation studies
Market overview
Marketing Strategies
Marketing Objectives
Opportunities Threats
Portfolio summary
Assumptions
Resource Requirements
StrengthsWeaknesses
Issues to beAddressed
Market structureMarket trendsKey market segmentsGap analysis
Marketing auditMarket researchMarket segmentation studiesGap analysisProduct life cycle analysisDiffusion of innovationAnsoff matrixForecastingMarket research
ProductPricePromotionPlace
(4 x 4 ps)(Positioning/branding)
Strategic focusProduct mixProduct developmentProduct deletionMarket extensionTarget customer groups
(By product)(By segment)(Overall)(By product)(By segment)(Overall)(By product)(By segment)(Overall)
(By product)(By segment)(Overall)
The marketingPlanning process
Phase 1
Goal setting
Phase 2 Situation review
Phase 3StrategyFormulation
Phase 4ResourceAllocationAnd monitoring
Cranfield Centre for AdvancedTechnology 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.
Hierarchical decomposition of thetasks involved in producing a strategicmarketing plan (1)
Definitions
Conduct audit
Predict trends
Set objectives& strategies
Business unit
Mission & targets
Product markets
Financial performance
SWOT analysis
Summarise audit
Financial performance
Update SWOT analysis
Summarise trends
Define marketing objectives
Define marketing strategies
Assess objectives
Produce astrategic
marketingplan
Hierarchical decomposition of the tasks involved inproducing a strategic marketing plan (2)
Conduct audit
Financialperformance
SWOTanalysis
Summariseaudit
Strengths &weaknesses
Opportunities& threats
Marketattractiveness
Aggregatedlife cycle
Gapanalysis
Bostonmatrix
Directionalpolicy matrix
Life cycle
Portermatrix
Perpetualmap
Competitoranalysis
MAF barchart
CSF barchart
Some major technique interrelationshipsused in strategic marketing planning
Bostonmatrix
Directionalpolicy matrix
Product lifecycle
Portermatrix
Perceptualmap
Marketattractiveness
CSF barchart
Costexperiencecurve
AnsoffMatrix
Gapanalysis
Marketsegmentation
New productdevelopment
StrategyFormulation
priorities,portfolio balance
future potential product-marketchoice
riskcategoriesgap
newideas,risk
priorities,portfoliobalance
forecastvolume
cost future data
positioningdifferentiation
axespositioning
horizontalaxis
verticalaxis
Key: provides x as input to