Prospective Marketing Planning Jean-François DAVID 2008
Prospective Marketing Planning
©J.-F.David 2008
Jean-Franç Jean-François DAVID Strategist http:// www..davidjf. http://www davidjf.com
-30 years within IBM France (Oil/Chemical/Pharma Marketing Operations Manager, CPG Industry Strategy and Marketing Director, Co-Founder of IBM France Consulting Group), author of many contributions on various IT and Organizational topics: Intelligent agents, IT perspectives, Strategic Alignment, Processes and IT, … Since 95: -Education (HEC MBA, ESCP, Dauphine, HEC Management, Collège de l'X, ENST, University of Nantes, WUTBS, ...) -Independent consultant, active member of many networks (EFQM, IQM, AFNET,APM , CJD,…) Research themes: Governance and IT Governance. Strategic alignment. IT/Organization/Culture interference. Time-Based Strategies. KM and cognitive aspects. Man/machine interfaces. Marketing planning. Large Account planning.
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course MBA 7040 (JF David module) " Customers and Markets " theoretical field: " competitive analysis and market analysis " JF David practical and pragmatic module: all the aspects of marketing research, marketing plan… JF David "point of view": executive decision making The main objective is to learn how to realize a market research, and how to prototype an innovative marketing plan
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Teaching Method & Evaluations...
"What I hear, I forget. What I see, I remember. And what I do, I understand." Chinese Proverb
Evaluation
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personal contributions during the course.
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Group's result for assignment Prospective Marketing Planning
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Applied to a concrete case: Creation of new kind of health centers in Europe and/or France The occidental medicine has been developed so far to provide appropriate care to the patients. It is a curative medicine, dealing with diseases, illnesses and injuries. This medicine is based on scientific evidence, mainly resulting from randomized clinical trials comparing diagnostic and therapeutic protocols. The results come from statistical analysis and are applicable to populations of patients. Despite a lot of success, the costs of this modern medicine are extremely high and unsustainable in many countries. Several public health studies have reported the value of early detection of the disease and disease management. Very few efforts, however, have been made to prevent diseases and keep the population healthy, as it was done in traditional Chinese medicine. This preventive medicine should be focused on the individuals, aiming at keeping their health balance and detecting potential disease before they get worse. Traditionally this was the role of the family doctor, or the general practitioners. However the primary care system is not always able to respond to the complex needs of the patients.
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Applied to a concrete case: Creation of new kind of health centers in Europe and/or France A recent initiative has been proposed in North America with the creation of health teams and health care networks. You can see for example http://www.scientahealth.com/aboutus/locations.php These new teams follow the patients and prevent their illnesses from worsening. The results are encouraging showing a reduction in costs and improvement in quality of life. The Project: A team of high level recognized M.D. intent to launch this kind of concept in Europe. -definition of the offer, -benchmark, -value chain (market study, positioning strategy, marketing, marketing channels, production, post-sales, …) -market research -Elements for a Business plan -Marketing plan Prospective Marketing Planning
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Applied to a concrete case: Creation of new kind of health centers in Europe and/or France The current project is based on this concept of prevention and focused on healthy individuals who are at risks of developing a disease, an illness or even an injury. The goal is to evaluate for a given individual their risks of developing a specific type of disease and to help them reduce these risks through a health program. This is now possible through a thorough analysis of the genetic and environmental factors of the person that can be then displayed in a personal record. This analysis can be repeated during the life with a frequency rate varying with the level of risks and the impact of the interventions aiming at reducing these risk factors. Two major components have to be present to succeed with this approach: 1) the quality of the analysis assessing the risk factors; 2) the personal involvement of the individual to adopt a risk reduction program. The accuracy of the information assessing the risk is based on the development of a network of experts and a multidisciplinary team. This can be achieved using telemedicine and high profile genetic analysis. The personal involvement is helped by a coaching team following the progress of the person. The role of this team will be to ensure that the physical, psychological and social aspects are included in heath management.
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Applied to a concrete case: Creation of new kind of health centers in Europe and/or France Open subjects inside marketing plan: - Precise definition of the project, with team key innovative ideas about telemedicine, distance services - Related ITC tools (obtain fast advice, fast diagnosis, security and reliability aspects, call center) - Open market, realistic market - Network of competencies - Kind of center to be implemented in Europe and/or France - Alliances and partnerships, potential investments in current centers You will maybe not have at the end all the elements to be able to completely build a business plan and a marketing plan, especially on budget, on marketing mix, on communication strategies and partners, … One will judge groups on - the value/content of market analysis, - the relevance of their arguments - their capacity to mobilize all necessary frameworks.
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Applied to a concrete case: Creation of new kind of health centers in Europe and/or France Some random ideas... - size of the health market, of "CSP+" health market - main actors, public, private - specificity of countries - health portals growth and credibility - Technologies involved (tememedicine tools, new pervasive devices, Web 2.0 aspects, mobiles, UMTS, CDMA, WIFI, …, ) - Technology providers and their strategies - Rating, ranking, customer satisfaction, ... - political aspects, care system for all of for some... - ethical aspects - ...
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Define your team methodology... Financials key accounts Porter ...
...
positioning data collection
Mission
... CSF's
intelligence
routes to Markets final draft
Vision ...
SWOT
Value chain Ansoff ... Prospective Marketing Planning
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enquiries ©J.-F.David 2008
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documents presentation
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Prospective Marketing Planning Jean-François DAVID 2008
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Marketing planning course: detailed tentative agenda Sept, 1st:
J.-F.David introductory lecture on Prospective Marketing Planning Sept,2nd team session: Teams building , start of data collection, Mission, market overview, open market, Team detailed planning 2nd-12th: definition of solution, data collection (reports, web, interviews, …) Sept 12th team session Segmentation, portfolio, SWOT, frameworks (5 forces, …), ... 12th-25th: Data collection again Sept,25th team session: Final idea, integration of data collected, finalization of frameworks 25th-29th: Validation of choices, additional data collection, towards Vision and plan, Sept 29th team session: Vision, Marketing objectives, operational marketing aspects 29th-30th: Preparation of formal presentation Sept 30th team session: Integration of documents, final version of marketing plan prototype and presentation charts Oct, 14th: Exam, Formal presentation of results, rating, discussions
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Adapted from Professor Malcolm McDonald
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THE US CEOs LOOK TO THE FUTURE Foundation for the Malcolm Baldrige National Quality Award 1998
Six trends affecting major U.S. companies are judged to be "major" by more than 70% of the CEOs surveyed:
- globalization (94%) - improving knowledge management (88%) - cost and cycle time reduction (79%) - improving supply chains globally (78%) - manufacturing at multiple locations in many countries (76%) - managing the use of more part-time, temporary and contract workers (71%) Eight other trends were judged to be major by between 50% and 70% of the CEOs:
- developing new employee relationships based on performance (69%) - improving human resources management (68%) - improving the execution of strategic plans (68%) - developing more appropriate strategic plans (64%) - ongoing measurement and analysis of organizational processes (60%) - developing a consistent global corporate culture (56%) - outsourcing of manufacturing (55%) - creating a learning organization (52%)
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and now… now…..
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©J.-F.David 2008
Strategies…? Business Strategy
Divisional Strategy
Divisional Strategy
Divisional Strategy
Production Strategy
IS Strategy
Marketing Strategy
IT Strategy
Data Policy
Comms Policy
Manual Systems Strategy
Architecture Policy
Acquisition Policy
etc
Management Strategy
Control Policy
Organisation Policy
Robson, W. (1997) Strategic Management & Information Systems. 2nd ed. Prentice Hall.
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Where ?
What ?
How ?
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Basic thinking... Market attractiveness
desinvest
invest
Strengths Prospective Marketing Planning
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A product portfolio chart [growth-share matrix] of a comparatively strong and diversified company
Market Growth Rate
20%
10%
4.0
2.0
1.0
0.5
Relative Market Share [Log Scale] Prospective Marketing Planning
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BCG...
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Market / segment selection criteria High
Market Market//segment segment attractiveness attractiveness - Size - Growth - Profitability - Competitive intensity
High
Low
Low
Invest / Grow
Selectively Invest
Maintain/ manage for sustained earnings
Manage for Cash / Withdraw
Business BusinessStrengths Strengths - Product Range - Product Efficacy - Service Quality (Including distribution) - Price - Associated Services (e.g. Technical advice) - Reputation / Image
Adapted from Professor Malcolm McDonald
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Sample competitive position / business strength for an higher education institution Competitive position / Business Strength
High High
Directors Seminars
Exec MBA
/ st ve In uild B
Market Attractiveness
Low
Distance Education/ CMR Research
C.S. G.M.Ps
?
Present position
MANDAS
h as rC fo
n ai nt ai M
Low
C.S.
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Forecast position in 3 years
e ag an M
Full-Time MBA
KEY
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Because BCG type models have limitations, new measures of company strengths and market opportunity have been developed: The Directional Policy Matrix (or the GE-McKinsey Matrix) Bu sines s sector prospects Unattractive Withdraw al
Average
Attractive D ouble or quit
Phased w ith drawal
Company's comp etitive capabilities
Weak
Proceed w ith care Phased with draw al
Proceed w ith care
Cash generation
Grow th
Try h ard er
Average
Growth Leader
Strong
Leader
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GE-McKinsey matrix...
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ADL Matrix...
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Downes and Mui's New Forces Model
+…hypercompetition Prospective Marketing Planning
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WEB 2, …
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A circuit on a molecule?
Researchers have just discovered how to build the first complete electronic integrated circuit around a single carbon nanotube molecule
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Paradigm change... a) Paradigm change, profession slippage Why do client want this kind of service/product ? t New professions, competitors t New vision b) List of product/services How can we add t more customization services t more ICT
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Method 2
How to decide go/no go ?
benefits
DO PROTO INTELLIGENCE
ABSORB
NO
risks Prospective Marketing Planning
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Strategy and … Mission, Values, Vision, …. Mission:
Why we exist?
Values:
What we believe in?
Vision:
What we want to be?
Strategy:
Our game plan
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Adapted from IBM Consulting Group
Adapted from IBM Consulting Group
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Core Competencies
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Core Competencies
Partnerships Prospective Marketing Planning
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Intelligence...
Intelligence
Technological Fundamental Science Molecules Information System
Competitive
Products Processes
Economy Strategy
Sociology Politics Culture General economy Ecology
Environnemental
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Shared Clients
Clients Markets Suppliers
Commercial
Staff
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Strategic change...
When for technology change...
Profitability
Technology change
Investments
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Strategic change... TECHNOLOGY
DIVERSIF.
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BREAK THROUGH
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Porter again... Intelligence Competitive Intelligence Environmental intelligence
Potential Intrants Commercial Intelligence
Commercial Intelligence
Suppliers
Sector's Competitors
Clients
Substitutes Technological intelligence From Martinet
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Two type of intelligence, of scanning...
All Azimuth Intelli gence
Strengths Weaknesses
DIAGNOSIS Targeted Intelli gence
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Process Analys is
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Spying…? 95% of useful information can be obtain ed by intelligence
bl ack information
forbidden
forbidden
espionage
gray information
intelligence
intelligence
dangerous nonsense
white information
intelligence
costly nonsense
dangerous nonsense
open
organi zed & deontological
i llegal
technique used
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Marketing’ is all about markets….
A ‘market’ exists when: Customers who are addressable; with definable needs and an ability and willingness to pay
...come together with... A supplier or suppliers who understand those needs; have products or services which can meet them; which can be supplied profitably ‘Come together’ implies ‘Location’ (though that might be cyberspace) Adapted from Professor Malcolm McDonald ©J.-F.David 2008
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Definitions “ Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably.” The Charted Institute of Marketing. “Marketing encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, the Customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.” Peter F Drucker 1954.
"Keeping the customer happy and the competitor miserable" Prospective Marketing Planning
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Marketing dans T.L.F. MARKETING, subst. masc. ÉCON., COMM. Ensemble des études et des actions qui concourent à créer des produits satisfaisant les besoins et les désirs des consommateurs et à assurer leur commercialisation dans les meilleures conditions de profit. Le marketing comprend toutes les activités qui dirigent les produits du producteur au
consommateur. Ces activités incluent, en plus de la vente, des fonctions telles que l'achat, le transport, l'entreposage, la finance, la publicité, etc. (J.-C. CHEBATH, B.-G. SIMARD, Le Vendeur ce méconnu ds Comm., sept. 1971, p. 22, col. 2). P. méton. Service du marketing, dans une entreprise. Chez Pier Import 24 magasins en France dont les deux tiers à Paris on joue à fond la carte exotique. «Nous traitons 70 % de nos importations nousmêmes, sans passer par aucun intermédiaire,» précise M. Jean-Pierre Martin,directeur du marketing. Làbas, sur place, des agents contrôlent les fabrications. Certains artisans locaux sont financés par lettre de crédit (Le Monde dimanche, 10 mai 1981, p. 4). En appos. avec valeur adj. inv. Qui correspond à, qui est en rapport avec cet ensemble d'études et d'actions. Esprit marketing; actions marketing, objectifs marketing (CIDA 1973). Dans le domaine pol. Une firme de conseillers en propagande, spécialisée dans le «marketing politique», avait été chargée par M.L. de «vendre» sa candidature (P. VIANSSON-PONTÉ, Hist. de la République gaullienne, 1971 ds GILB. Mots contemp. 1980). Le marketing électoral. Combien coûte une campagne? Combien de candidats aux législatives 1973 ont fait appel aux spécialistes du marketing? Existe-t-il une méthode scientifique pour améliorer un score électoral? (Expansion, févr. 1973 ds GILB. Mots contemp. 1980). Rem. 1. Synon. marchéage (d'apr. BRANC. Écon. 1978), mercatique (ibid.). 2. ,,Traductions proposées: Pour le sens large: commercialisation; pour le sens restreint: techniques commerciales, stratégie commerciale (...). Les organisations internationales emploient déjà le mot «commercialisation»`` (COMITÉ D'ÉTUDE DES TERMES TECHN. FR., Termes techn. fr., Paris, Hermann, 1972, p. 87 et 163). 3. L'Académie Française (Communiqués sur le voc. techn. et industr. des 6 et 20 avr. 1967) condamne ce ,,terme étranger``, désignant les ,,opérations d'études et de développement de la vente d'un produit sur un marché`` et propose l',,équivalent français`` commercialisation. Prononc.: [ ]. Étymol. et Hist. 1944 (R. SERVOISE, L'Étude sc. des marchés, 41 ds HÖFLER Anglic). Empr. à l'angl. marketing, dér. de to market «faire son marché, acheter et vendre», de market «marché» empr. à l'anglo-normand. correspondant au fr. marché*. L'usage actuel du terme dans le monde des affaires s'est établi à la fin du XIXe s. et a pris une extension particulière aux États-Unis (cf. NED et NED Suppl.2), d'où il a été emprunté par le fr. Bbg. GUILLOTON (N.). Marketing, commercialisation, mercatique,Prospective ... Meta. 1977, t. 22, pp. 211-217. HUMBLEY t. 2, 1974, pp. 594-595. Marketing Planning ©J.-F.David 2008
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Marketing?
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Marketings? Buzz (marketing) Marketing amont Marketing aval Marketing d'étude, stratégique, terrain Marketing de l'offre Marketing de réseau Marketing des services Marketing digital Marketing direct Marketing électronique Marketing expérientiel Marketing global Marketing humanitaire Marketing industriel Marketing international Marketing interne Marketing local Prospective Marketing Planning
Marketing-mix ou plan de marchéage Marketing one-to-one (business to business) Marketing orienté client Marketing politique Marketing relationnel Marketing RH Marketing sportif Marketing de combat Marketing de persuasion Marketing sensoriel Marketing social Marketing urbain Cybermarketing Neuromarketing Géomarketing Street marketing Télémarketing Trade-marketing Wwwarketing Permission marketing Publicité et téléphone mobile ©J.-F.David 2008
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THE SATELLITES Innovation
Cost Cost
Position Position
Speed Speed
Service Service
CUSTOMER
Products Products
Brand Brand
People People
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The role of marketing To determine, for an organisation, what should be sold (Product), to whom (customer segmentation), at what price (Price), where/ through which channels (Place) and how (Promotion) , in order to meet the organisation’s strategic objectives. Product – WHAT? Price – HOW MUCH? Place/distribution – WHERE? Promotion – WHY? (or 4C's Customer need / Cost / Convenience / Communication )
Basics… 2 more differentiators: People Processes To create an identity for the organisation or product (Brand) in which promotional expenditure can be vested Marketeers set Marketing Strategy and may help inform Organisation strategy, but do not set the latter. Adapted from Professor Malcolm McDonald ©J.-F.David 2008
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Marketing Functions Strategy and Planning Market & Business analysis Competitor tracking
Channel development (with sales) Advertising and Promotion (inc. Brand) – known often as ‘Marketing Communications’. Sales support Pricing (Product Development and Management) Marketing operations (the delivery of marketing initiatives)
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Adapted from Professor Malcolm McDonald ©J.-F.David 2008
Prospective Marketing Planning
"What do you want to do?" "I want to work in Marketing !"
Marketer
Vendor
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Sales rep
©J.-F.David 2008 from Robin (ex DRH Kodak)
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The process - The Environment - Expectations, objectives, power and culture - Resources
Strategic Analysis
Strategic Choice
Strategic Implementation
- Generation of options - Evaluation of options - Selection of strategy Prospective Marketing Planning
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- People and systems - Organisation structure - Resource planning 65
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The market understanding process Marketing
Sales
Mfg.
IT
Finance & Accounting
HR
Logistics
R&D Etc.
The “Marketing” Director
Market 1
Market 2
Market 3
Market 4 Etc.
Adapted from Professor Malcolm McDonald ©J.-F.David 2008
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The market understanding processes IT
Finance & Accounting
HR
The value driven CEO
The market understanding process
The customer relationship management process
The innovation process
The Supply chain management process
The knowledge management process
Adapted from Professor Malcolm McDonald ©J.-F.David 2008
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Logistics
R&D Etc.
Creating shareholder value
Mfg
Creating customer value
Sales
Positioning & branding the organisation
Marketing
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Successful Marketing 1- Understand Customer Orientation 2- Understand the sources of competitive advantage 3- Understand the Environment (opportunities and threats) 4. Understand competitors 5. Understand Market Segmentation 6. Understand Your Own Strengths and Weaknesses 7. Understand the dynamics of product/market evolution 8. Understand your portfolio 9. Set Clear Strategic Priorities and Stick to Them Prospective Marketing Planning
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Adapted from professor Malcolm h.B. McDonald
Competitive advantage Superior position ● ● ●
Costs Differentiation Protected niche
Superior resources
Superior skills ● ● ● ● ●
Specialised knowledge Customer orientation Trade relationships Technical expertise Flexible organisation Prospective Marketing Planning
Adapted from professor Malcolm h.B. McDonald
● ● ● ● ●
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Coverage Economies of scale Financial structures Shared experiences Global / International 70
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The corporate planning cycle Strategic Intent & Corporate Plan
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Expressed as objectives
Strategic Plans Marketing Operations HR Finance Manufacture etc.
Expressed as objectives Detailed action plans - Communications - Price - Sales - Product
Control
Expressed as Targets/ objectives
Implementation & Measurement
Review and Revision/ Restatement Where strategic objectives are planned-for over a time period longer than the budget cycle, interim milestones need to be set. Prospective Marketing Planning
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What is Strategy? Translating a Mission into Desired Outcomes Mission Why we exist?
Core values What we believe in?
Vision What we want to be?
Strategy Our game plan
Strategic initiatives What we need to do?
Personal objectives What I need to do?
Strategic outcomes Satisfied shareholders
Delighted customers
Effective processes
Adapted from professor Malcolm h.B. McDonald
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Prospective Marketing Planning
The marketing Planning process
The output of the marketing planning process Strategic marketing plan contents
Phase 1 Goal setting
Phase 2
Market overview
Market structure Market trends Key market segments Gap analysis
(By product) (By segment) (Overall)
Strengths Weaknesses
(By product) (By segment) (Overall)
Issues to be Addressed
(By product) (By segment) (Overall)
Portfolio summary
Assumptions Marketing Objectives
(By product) (By segment) (Overall) Strategic focus Product mix Product development Product deletion Market extension Target customer groups
Marketing Strategies
Phase 4 Resource Allocation And monitoring
Financial theory / Structure
Financial summary
Opportunities Threats
Strategy Formulation
Marketing theory (Structures, frameworks, models)
75 From Malcolm McDonald "Marketing Plans"
Mission statement
Situation review
Phase 3
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(4 x 4 ps) (Positioning/branding) Product Price Promotion Place
Resource Requirements
Marketing audit Market research Market segmentation studies Gap analysis Product life cycle analysis Diffusion of innovation Ansoff matrix Forecasting Market research
Competitor analysis Industry/sector analysis Risk evaluation Ratio analysis, valuation studies Cost of capital NPV analysis Project evaluation Life cycle costing
Issue management
Profitability analysis by products / segments Comparative analysis of competitor products Experience curves and cost structures
Key success factors matrix Market research Market segmentation studies B.C.G. Matrix Directional policy matrix
Cash flows and risk evaluation Sensitivity analysis
Downside risk assessment
Sensitivity analysis Decision trees Probability theory
Porter matrix Ansoff matrix Bcg matrix Directional policy matrix Gap analysis
Performance targets / ratios Cost, price, volume (CPV) analysis Marginal and absorption costing Activity base costing
Market segmentation studies Market research Response elasticities McDonald PRODUCTIVITY MATRIX Blake mouton matrix Forecasting Budgeting
Budgeting and financial planning Zero base budgets
Integrated financial planning Limiting resource analysis
Measurement and review
Marketing planning and marketing theory (structures, frameworks, models etc.) Adapted from professor Malcolm h.B. McDonald 1987
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The building blocks for successful marketing
Sales and Marketing Programme
…but if the basic building block is unsound!
Marketing Plan
Competitor audit
Internal audit
Sales and M arketi ng P
External audit
Marke
ting P
rogram m
e
lan
Market structure
or etit mp Co audit Adapted from Professor Malcolm McDonald
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Internal audit
Extern al audit
ucture Market str
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Segmentation: RFM
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Segmentation: Radar
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Segmentation: IAC
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Segmentation: IPO / IPR
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The purpose of strategic marketing planning
The overall purpose of strategic marketing planning, and its principal focus is the identification and creation of sustainable competitive advantage Business risk
??? Financial risk
Adapted from Professor Malcolm McDonald
Return
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Marketing plan Detailed plan of to whom you will sell your product, at what price, through which channels, and with the support of what kinds of sales and advertising. Includes a strategy, a mix, ways of measuring success, attention to staffing, and attention to costs. Summarized in the marketing functional strategy section of the business plan.
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Market Research How big is the market? Number of existing & potential clients Type of existing & potential clients Location of existing & potential clients What is the main market trend? Change in student requirements Change in technology Change in overall demand Prospective Marketing Planning
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Market Research Competition Number Type Location Marketing operations of competitors
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The route to Competitive Advantage High Price
Differentiation
Sales Revenue High Volume
Operations
Financial
Lower Costs
Economies of Scale
Low Business Risk
Learning Curve
Low Financial Risk
Gearing Interest Cover Working Capital Ratio Operational Leverage
High Cash Flows
Competitive Advantage
From Sri Srikanthan, Cranfield School of Management
Adapted from Professor Malcolm McDonald
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Maslow
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Client: SONCAS
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Planning vs Execution... Strategy (Planning) Effective
Ineffective
Efficient
Die (quickly)
Thrive
Die (slowly)
Survive
Tactics (Sales) Inefficient
Adapted from Professor Malcolm McDonald
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Quality and share both drive profitability ROI (%)
38 27 20 High
25
20 13
21
40%
14 -1%
7
Relative Product Quality
Low High
60%
25%
Low
Relative Market Share Source: PIMS
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PEST Analysis Political
Economic
What are these and how do they impact the company and its target customers/ clients?
Social Prospective Marketing Planning
Technological ©J.-F.David 2008
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PESTEL analysis...
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The Strategy Process Social environment
The PEST (or STEP…) analysis
- social structure, life-style, education, culture
Technological environment
Political environment
ORG
- innovations, new products, ICT
- local, regional and global political changes
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Opportunities
In the light of PEST, what does it mean for the company, compared with its competitors? For/ to the company
Of the Company
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SWOT
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The Strategy Process (example new educ product)
SWOT Analysis Strengths
Internal
ωHigh pass rate (CPA)
Weaknesses Lack of practical experience
Environment
ωHigh quality students Opportunities External
High industry presence in the local area
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Threats Depressed local economy
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Match SW to OT
Internal Factors
Strengths (S)
Weaknesses (W)
External Factors Opportunities (O)
SO Strategies ------------------------Use strengths to take advantage of opportunities
Threats (T)
ST Strategies -------------------------Use strengths to avoid threats
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WO Strategies -----------------------Offset weaknesses to take advantage of opportunities
WT Strategies ------------------------Min. weaknesses to avoid threats
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SWOT benefits
Identify and evaluate internally and externally the following: Economic, social, political and technological aspects Internal Strengths Weaknesses
External Opportunities Threats
or…
Substantial Waste Of Time ??? Prospective Marketing Planning
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The Strategy Process Porter’s Five Forces Analysis
Threat of new entrants
Bargaining power of suppliers
Competitive rivalry
Bargaining power of buyers
Threat of substitute products Prospective Marketing Planning
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Porter...
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Porter's generic strategies Cost Advantage Lower Cost Broad Target
Differentiation
1. Cost Leadership
2. Differentiation
3A. Cost Focus
3B. Differentiation Focus
Competitive Scope
Narrow Target
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Porter, generic strategies...
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Ansoff matrix PRODUCTS increasing technological newness
Present
Present
New
Market Penetration
Product Development
MARKETS increasing market newness
New
Market Extension
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Diversification
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Ansoff…
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And…. *Marketing communications *Pricing *Sales promotions *Ad's *Logos, brochures, catalogs, white papers, … *Planning *Control *Product Management *CRM *Networking *….
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MARKETING PLANNING PROCESS
Mission Statement (external) Marketing Audit (internal) SWOT Analysis Generation & Evaluation of Options The Marketing Plan Implementation Prospective Marketing Planning
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The ten steps of the strategic marketing planning process The Strategic Plan (Output of the Planning Process) Mission Statement Financial Summary Market Overview SWOT Analysis Assumptions Marketing Objectives and Strategies 3 Year Forecast and Budgets
1. Mission Phase One Goal Setting
2. Corporate Objectives 3. Marketing Audit 4. SWOT Analysis
Phase Two Situation Review
5. Assumptions 6. Marketing Objectives and Strategies 7. Estimate Expected Results
Phase Three Strategy Formulation
8. Identify Alternative Plans and Mixes Measurement and Review
9. Budget Phase Four Resource Allocation & Monitoring
10. 1st Year Detailed Implementation Programme
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Business plan format Summary Historical situation / SWOT analysis / audit / background Where is the organisation going? How will the organisation get there? – Markets (Marketing plan) How will the organisation get there? – Finances How will the organisation get there? – Operations How will the organisation get there? – People List of assumptions Contingency plans Monitoring process - review and re-consideration of plan
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Business plan contents Marketing
Customers, products/services, promotion, competitors, pricing ...
Operations
Systems, equipment required, premises, problem areas, quality ...
Administration Systems, policies, equipment ... People
Numbers, skills, structure, availability, training, succession, culture ...
Finance
incomes/expenditures, profit/loss, balance sheets, sensitivity, bank balances, credit policy, investments needed ...
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Branding... "In future, the most powerful brands will be customer-centric. Successful companies will know the customer and will be the customer’s advocate"
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Organizations...
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Value Chain Analysis A
Human Resource Management Technology Development Procurement
Ma rgi n
ce rvi Se
ng eti rk s Ma Sale & nd ou tb tics Ou i s g Lo ns io at er Op d un s bo tic I n gi s Lo
S
Procurement in rg Ma
SC UT P I V P I OT RI TE
Primary Primary Activities Activities Importance of value-chain analysis is that it provides a framework for identifying or developing a distinctive competence. Prospective Marketing Planning
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Support Activities Infrastructure
- Legal, Accounting, Financial Management
Human Resource Management
- Personnel, Pay, Recruitment, Training, Manpower Planning, etc
Product & Technology Development
- Product and Process Design, Production Engineering, Market Testing, R&D, etc
Procurement
- Supplier Management, Funding, Subcontracting, Specification
INBOUND LOGISTICS eg. Quality Control Receiving Raw Material Control etc
OPERATIONS
eg. Manufacturing Packaging Production Control Quality Control Maintenance etc
OUTBOUND LOGISTICS
SALES & MARKETING
eg. Finishing Goods Order Handling Despatch Delivery Invoicing etc
eg. Customer mgmt Order Taking Promotion Sales Analysis Market Research etc
SERVICING
Value Added - Cost = Profit
eg. Warranty Maintenance Education / Training Upgrade etc
Primary Activities Many activities cross the boundaries - especially information based activities such as: Sales Forecasting, Capacity Planning, Resource Scheduling, Pricing, etc Prospective Marketing Planning
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New value chain...
CRM
SCM
Customer Relationship Management
Supply Chain Management
ERP Enterprise Ressource Planning
BI Business Intelligence
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KM Knowledge Management
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CRM One definition ‘Attracting, satisfying and retaining profitable customers’ Another definition (Professor Malcolm McDonald) ‘The IT-enabled integration of data across multiple customer contact points to enable the development of offers tailored to specific customer needs’
Different needs in a market
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Main processes SCM
Order Buy Supply Produce Transport Deliver Invoice Reclaim
CRM
Listen to client voice Design product/service Develop offer Marketing Contract Follow client
ERP
Control Measure Finance
KM
BI
Listen Know Anticipate Decide
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Inve stigate, amaze ment reports, ... Moments of Tr uth Clie nt intelligenc e Claims analysis
Inve nt product/servic e Ana lyse/test the needs Design the system Define pr oce sses Prototype Design subsyste ms Industrializ e Negotia te sub-contracting Inte grate Test Deploy/Control Q Doc um ent Annonc e Constitute the offe r Fix the price Ma nage the ac counts Follow- up profit/products Promotion campaigns Ma nage cata logs
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Process zoom CRM Listen to client voice Design product/service Develop offer Marketing Contract Follow client
Ma nage opportunities Ma nage territories Forecast sale s Answer R FP/RFQ, bids Negotia te Quotations Issue / Manage contrac ts Sell Take the or ders
Ma nage service dema nds Claims management Provide support Ma nage real time se rvices/mails Ma nage call c enters Cam pa ign management Customer se gme ntation Customer va lue m ana gem ent Ana lyze the m arke ts Ana lyze custom ers Ana lyze com petition Route to m arke ts Visits/C ontact management
Fax, Em ail Phone/Call cente rs Fac e to face Inte rnet Dealers Age nts
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Who does what? By product? By market?
Call centers Face to face Marketing Production Transaction cost...
Company
Partners 1
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Choosing channels: the channel curve Books: value curve 12
Strength
10 Store
8
Tel
6
Net
4
Post
2 0 30 Cost
15 15 15 Convenience Brow seability Added value services
10 View ing
15 Accessibility
Factor
Source: Wilson et al (2001), ‘Profiting from eCRM’, FT Prentice Hall Prospective Marketing Planning
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from Ogilvy (http://rtm.ogilvy.com)
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Key Accounts
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Key account preliminary categorisation Top 15 (in volume/revenue generated)
A
B
Next 30
C
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Key account preliminary categorisation Degree of collaboration
KAM relationship stage Realisation of fullest potential of both organisations
High: collaborative Integrated
Interdependent
Confidence in relationship, stable & highly evaluated by both sides
Reduction of risk, ability to forecast
Cooperative
Operational, efficient transactions
Basic
Low: transactional
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Basic KAM
Buying company
Selling company
Board
Admin
Ops
Key Account Mgr
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Admin
Board
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SCM Ma nage custom er orders Study suppliers performance Use the market plac es Answer bids(RF I/RFP/R FQ) Negotia te with supplie rs Ma nage contracts Order Info exchange, auctions, dynamic trading
Ma nage finished products stoc ks Plan supply Supply Buy orde rs Logistic s supplie rs Rec eption Qua lity c ontr ol Ma tch (invoices/product) Supplie r paym ent
Order Buy Supply Produce Transport Deliver Invoice Reclaim
Invoice c lients Cash/R eclaim
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Provisional order management Sales pla nning Production planning Budgets, c ost analysis Capacity planning MR P Ma inte nance CTL/Quality mgt Plan floor planning Product a ssembly Ma nage inte rmediary stoc ks Planning Control Order
Ma nage transportation Ma nage distribution Ma nage war ehouse s Picking and conditioning Delivery planning Delivery fllow-up Ma nageme nt of re turns
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ERP BI
Control Measure Finance
Listen Know Anticipate Decide
Finance management General accounting Asset ma nagem ent Treasur y manage ment Accounting and finance plan Projects m anage ment Investments manage ment Infrastructures Information syste m Communic ation system
Environnemental intelligence Commercia l intelligence Technological intelligence Strategic planning Ope rationa l planning
Business rules Clie nt rules Supplier rules Auditability
KM
Manage people Manage knowledge
Staff m anagement Pay m ana gement Rec ruitment Education Incentive Managem ent Unions re lations
Ma nageme nt reporting Finance reporting, ABM Q reporting
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Strategy Objectives
Win/Win
Strategy Objectives
Intelligence Innovation, R&D
Marketing Innovation ….
e-design
Sourcing Négociation Contract Procurement order …. Logistics Transportation Reception Dispatch Stocks ….. Manufacturing ….. Sales ……..
e-supply chain
Win/Win
Strategy Objectives
Intelligence Innovation, R&D
Prototyping ….. Marketing Sales, studies, quotations Order entry …. Industrialize ... Production plannings ... Manufacturing Production plans Capacity planning Plantfloor planning Stocks …. Purchase, ... Maintenance ….. Logistics Client management Sales management After sales... ….. Finance mgt …... People mgt ……..
Prototyping ….. Marketing Sales, studies, quotations Order entry …. Industrialize ... Production plannings ... Manufacturing Production plans Capacity planning Plantfloor planning Stocks …. Purchase, ... Maintenance ….. Logistics Client management Sales management After sales... ….. Finance mgt …... People mgt ……..
Supplier 2
Prime contractor
Supplier 1 Prospective Marketing Planning
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Hoshin Kanri
Hoshin = a course, a policy, a plan, an aim Kanri = administration, management, control, charge of, care for
Hoshin = Policy Deployment Prospective Marketing Planning
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7 ’S Cold triangle
Strategy
Systems
Structure
Super-goal
Staff
Skills
Style
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Warm triangle
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1 What demand...
was
client's
2 - What has been proposed by IT & Organization group...
3 - What has been designed by project team...
really
5 After some final adjustments by the end user...
6 - Client's real need...
4 - What has been implemented...
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V-cycle: risk of forgetting needs, weak delays mastership...
Needs specification
Operational system Tunnel effect
System requirement & specs
Operation, maintenance, final val.
Software requ. & validation
Pre-operation, validation test
Preliminary design and validation
Integration, deployment, tests
Detailed design and validation
Unit by unit tests
Code, debug, …
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Cumulative cost
Needs, Solutions, Constraints, definition
Alternatives research, Risk decrease
Step by step progress
Step products review
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Wikinomics...
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Acquire New Customers and Grow Your Business (Salesforce.com) Generate leads by advertising your business online with Google AdWords. Turn those leads into new customers with Salesforce CRM.
People click on your ad When people search on Google, your ad is displayed and traffic is driven to your site.
Capture leads from your Web site Prospects fill out a Web form, which creates a lead in Salesforce that is routed to your sales team.
Manage the follow-up process Log calls, send emails, and update the status of your leads so that you never miss an opportunity.
Convert leads into customers Update deal information, track opportunity milestones, and record all opportunity-related interactions.
Manage customer relationships Acquire deep knowledge of every account, facilitate collaboration, and build and maintain strong, lasting customer relationships.
Advertise your business on Google Take five minutes to write your ad and select a couple keywords—even target your ad locally.
Measure what’s working • A real-time view of your business • A single solution for insight • Customizable reports
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Inside / Outside
Mass Customization
Mass Production
Innovation
Transformation
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Inside / Outside strategy
Stars
Cash Cows
?
Dogs
inside Prospective Marketing Planning
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outside
Inside / Outside Web sites
portal
Informal Networks
Institutional
E-Biz
inside Prospective Marketing Planning
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Product, Price, Place, Promotion, Processes … and People !
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COPs Prospective Marketing Planning
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Analyse du "gap"...
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"Banana"... CA Historique haut ???
Historique bas
Boy
I
I
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Define your team methodology... Financials key accounts Porter ...
...
positioning data collection
Mission
... CSF's
intelligence
routes to Markets final draft
Vision ...
SWOT
Value chain Ansoff
enquiries
... Prospective Marketing Planning
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...
documents presentation
your planning your timing
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Some deliverables from your strategic marketing plan
Can you list your key target markets? (in order of priority) Can you describe (quantitatively and qualitatively) the value that is required by each of your key target markets? In each of these key target markets, can you describe how your organisation creates this value? Do the relevant senior people in your organisation understand and support the above three points? Are all the relevant functions in your company organised in a way that is supportive of delivering the value required by the customer?
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Adapted from Professor Malcolm McDonald
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Some essential deliverables from your strategic marketing plan?
Market structure and segmentation •
•
•
•
Is there a clear and unambiguous definition of the market we are interested in serving? Is it clearly mapped, showing product/service flows, volumes/values in total, our shares and critical conclusions for our organisation? Are the segments clearly described and quantified? These must be groups of customers with the same or similar needs, not sectors. Are the real needs of these segments properly quantified with the relative importance of these needs clearly identified?
Differentiation •
•
Is there a clear and quantified analysis of how well our company satisfies these needs compared to competitors? Are the opportunities and threats clearly identified by segment? Prospective Marketing Planning
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Adapted from Professor Malcolm McDonald
Some essential deliverables from a strategic marketing plan
Scope •
•
•
• •
Are all the segments classified according to their relative potential for growth in profits over the next three years and according to our company’s relative competitive position in each? Are the objectives consistent with their position in the portfolio? (volume, value, market share, profit) Are the strategies (including products, services and solutions) consistent with the objectives? Are the measurement metrics proposed relevant to the objectives and strategies? Are the key issues for action for all departments clearly spelled out as key issues to be addressed?
Value capture • •
Do the objectives and strategies add up to the profit goals required by our company? Does the budget follow on logically and clearly from all the above, or is it merely an add on? Prospective Marketing Planning
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Strategic marketing planning What is our purpose?
What are our strategies?
What is our Market?
What new products should be developed?
Who are our customers?
How should we price our products?
What are our products?
What should our channel strategies be?
What does the customer need?
What service levels should we provide for our different customer groups?
How well do our products satisfy these needs?
How should we communicate with our target markets?
What are our objectives? How can we allocate our resources optimally? Prospective Marketing Planning
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Strategic marketing planning exercise - SWOT analysis 1. SEGMENT DESCRIPTION It should be a specific part of the business and should be very important to the organisation
2. CRITICAL SUCCESS FACTORS In other words, how do customers choose?
3. WEIGHTING (How important is each of these CSFs? Score out of 100)
4. STRENGTHS / WEAKNESSES ANALYSIS How would your customers score you and each of your main competitors out of 10 on each of the CSFs? Multiply the score by the weight.
1
You
2
1
3
2
4
3
5
OPPORTUNITIES
5. OPPORTUNITIES / THREATS What are the few things outside your direct control that have had, and will have, an impact on this part of your business?
Comp A Comp B Comp C Comp D
4 Total 100
5
THREATS
1 2 3 4 5
6. KEY ISSUES THAT NEED TO BE ADDRESSED What are the really key issues from the SWOT that need to be addressed? Prospective Marketing Planning
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marketing audit checklist
External audit Business and economic environment economic political/fiscal/legal social/cultural technological intra company
Internal audit marketing operational variable own company
The market Total market, size,growth and trends (value/volume) market characteristics, developments and trends products prices physical distribution channels customers/consumers communication industry practices
sales (total, by geographical location, industrial type, customer, by product) market shares profit margins/costs marketing information/research marketing mix variables as follows: product management price distribution promotion operations and resources
Competition Major competitors size market share/coverage market standing/reputation production capabilities distribution policies marketing methods extent of diversification personal issues international links profitability key strengths and weaknesses
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Criteria for a marketing plan A. Creative thinking
D.Usefulness D. You Subordinates Peers Superiors
B. Clarity of thinking presentation
C. Completeness
E. Prepareable Not of details is the product worth the of essential elements effort reiteration of basic strategy basic plan F. Good process supporting programmes relationships G.Objectivity G. financial impact Prospective Marketing Planning
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TO DO
- Customer view (needs and desires) - Core competencies - Mission statement (way to describe precisely your new business...) - Financial projection (if you can) - Gap analysis - Pest or Pestel analysis - Ansoff (this implies, as for some other frameworks, that you choose correctly your market segmentation, by type of product, by duration, by content, by ...) - SWOT and CSF's - Competitive analysis - Porter framework or Downes and Mui's framework - Portfolio matrix (BCG like, McKinsey like, your way like, ...) - Mass customization matrix (dynamic stability) - Open market - Vision statement - Value chain, who does what, routes to market - Ideas on implementation plan - Potential projection of sales and profit (if possible)
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1- executive abstract The executive abstract must be a synthesis of all your paper 2- table of contents 3- context The context must be the description of the "problem" your proposal will try to solve. What is the rational ? 4- objectives 5- methodology / process / planning You have to describe here - your whole methodology, starting from initial market analysis, discovery of your "idea", study on the potential and open market, competitive analysis, justification using a lot of mental models and frameworks (porter, bcg, pest, swots, gap analysis, ….), imagination the implementation process (alliances, value chain, …) and the practical planning at the end. - Your work group Process, what you decide to do to make this study - Your work group planning 6- results Here is the core of your study. - Your findings from data analysis - Mission - Your "creative" idea - your study on the potential and open market, to produce... - your competitive analysis, - your justification using a lot of mental models and frameworks - porter,bcg, pest, swots, gap analysis, - your imagination of the implementation process - your study of value chain - routes to markets - alliances, value chain, … - core competencies aspects - culture aspects - Vision 7- recommendations Your recommendations for implementation, your implementation planning scenario… 8- discussion This chapter speaks about open subjects to be, at the end, discussed with project team management - final decision process, - budgets challenges, … - …. 178 Prospective Marketing Planning ©J.-F.David 2008 9- references 10- appendices
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...possible assignment schedule... Sept, 1st:
J.-F.David introductory lecture on Prospective Marketing Planning Sept,2nd team session: Teams building , start of data collection, Mission, market overview, open market, Team detailed planning 2nd-8th: definition of solution, data collection (reports, web, interviews, …) Sept 8th team session Segmentation, portfolio, SWOT, frameworks (5 forces, …), ... 8th-12th: Data collection again Sept,12th team session: Final idea, integration of data collected, finalization of frameworks 12th-25th: Validation of choices, additional data collection, towards Vision and plan, Sept 25th team session: Vision, Marketing objectives, operational marketing aspects 25th-29th: Preparation of formal presentation Sept 29th team session: Integration of documents, final version of marketing plan prototype and presentation charts Sept, 30th: Exam, Formal presentation of results, rating, discussions
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http:// davidjf.free. .free.fr fr/ /MkingPlan/main. htm http://davidjf MkingPlan/main.htm jf@ jf@davidjf. davidjf.com http:// www..davidjf. http://www davidjf.com http:// ://freejfd freejfd. .blogspot. http blogspot.com
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