Jean-François DAVID Strategist 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, …
Prospective Marketing Planning
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,…)
Jean-François DAVID 2006
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. Prospective Marketing Planning J.-F.David 2005
course MBA 7040 (JF David module)
Teaching Method & Evaluations...
" Customers and Markets " theoretical field: " competitive analysis and market analysis "
"What I hear, I forget. What I see, I remember. And what I do, I understand." Chinese Proverb
JF David practical and pragmatic module: all the aspects of marketing research, marketing plan… JF David "point of view": executive decision making
Evaluation
The main objective is to learn how to realize a market research, and how to prototype an innovative marketing plan
Prospective Marketing Planning J.-F.David 2005
Applied to a concrete case: The market of medical information and education for emergency situations. "Potential positioning of Public Hospital Emergency & Critical Care departments as leader for emergency procedures ... in competition/cooperation with all the other French and WW actors” Vision: French Emergency & Critical Care, becoming a major actor of standards for Emergency Medicine procedures and related education. -definition of the offer, -benchmark, -value chain (market study, positioning strategy, marketing, marketing channels, production, post-sales, …) -market research -Elements for a Business plan -Elements for a Marketing plan
Prospective Marketing Planning J.-F.David 2005
•
personal contributions during the course.
•
Group's result for assignment
8
Prospective Marketing Planning J.-F.David 2005
Applied to a concrete case: The market of medical information and education for emergency situations. You will undoubtedly 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 media 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.
Prospective Marketing Planning J.-F.David 2005
1
Applied to a concrete case: The market of medical information and education for emergency situations.
EMERGENCY & CRITICAL CARE KNOWLEDGE BASE
VISIBLE AND INVISIBLE WEB
Savoir médical, technico-économique DOCTORS
Knowledge formalization
DAT
Some ideas...
A
Permanent scientific and educational response on emergency locations
Extract real scientific knowledge
ADMINISTRATION PHARMACISTS Technical Know-how
Pedacogical knowledge
- size of the Health “industry” market - size of emergency & critical care market - main actors - health portals growth and credibility - internet e-health applications and usages - information validation and seriousness
Test concept on potential client populations
HEALTH INDUSTRY PARA-MEDICALS EDUCATORS
Professional know-how OW KNOW-H
- new pervasive devices - mobiles, UMTS, CDMA, WIFI, … - professional and home usage - education, e-learn, …
INSURANCES
He lp
"ROBOTS"
KNOW
Educate
sw An er
KNO WLE DGE
Critical Care MOBILE New Media
- Real people for critical care assistance? - Knowledge relevant to different cultural levels
HOME UMTS Prospective Marketing Planning J.-F.David 2005
GPRS
CDMA
Prospective Marketing Planning J.-F.David 2005
Define your team methodology... Financials key accounts Porter
...
intelligence
data collection
Mission
... CSF's
...
positioning
routes to Markets
Vision ...
final draft SWOT
Value chain ...
Ansoff
...
...
enquiries
documents presentation
your planning your timing Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning Jean-François DAVID 2005
Prospective Marketing Planning J.-F.David 2005
2
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%) Prospective Marketing Planning J.-F.David 2005
and now…..
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.
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Basic thinking... Where Market attractiveness
What
desinvest invest
How
Strengths
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
3
Market / segment selection criteria A product portfolio chart [growth-share matrix] of a comparatively strong and diversified company
Low
Low
Invest / Grow
Selectively Invest
Maintain/ manage for sustained earnings
Manage for Cash / Withdraw
High
- Size - Growth - Profitability - Competitive intensity
20% Market Growth Rate
High
Market / segment attractiveness
10%
Business Strengths - Product Range - Product Efficacy - Service Quality (Including distribution) - Price - Associated Services (e.g. Technical advice) - Reputation / Image
4.0
2.0
1.0
0.5
0.25
Relative Market Share [Log Scale]
Adapted from Professor Malcolm McDonald Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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
?
KEY
Forecast position in 3 years
fo h as rC
C.S.
in ta
Prospective Marketing Planning J.-F.David 2005
Research
Present position
e ag an M
n ai M Low
C.S. G.M.Ps
MANDAS
Full-Time MBA
Low
Distance Education/ CMR
Prospective Marketing Planning J.-F.David 2005
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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 U nattractive
Average
Withdraw al
Phased w ith draw al
Phased w ith drawal
Proceed w ith care
Cash generation
Growth
A ttractive D oub le or quit
Comp any's comp etitive capabilities
Weak
Proceed w ith care Try h ard er
Average
Grow th Leader
S trong
Leader Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Downes and Mui's New Forces Model
+…hypercompetition Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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
89
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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Method 2
How to decide go/no go ?
benefits
Strategy and … Mission, Values, Vision, ….
DO PROTO
Mission:
Why we exist?
Values:
What we believe in?
Vision:
What we want to be?
Strategy:
Our game plan
INTELLIGENCE
ABSORB
NO
risks
Prospective Marketing Planning J.-F.David 2005
Adapted from IBM Consulting Group
Prospective Marketing Planning J.-F.David 2005
Core Competencies
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Adapted from IBM Consulting Group
Core Competencies
Partnerships Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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Intelligence...
Strategic change...
Intelligence
Technological
When for technology change... Fundamental Science Molecules Information System Products Processes
Economy Strategy Clients Markets Suppliers
Commercial
Sociology Politics Culture General economy Ecology
Environnemental
Technology change Profitability
Competitive
Shared Clients
Staff Investments
Prospective Marketing Planning J.-F.David 2005
Strategic change...
Prospective Marketing Planning J.-F.David 2005
Porter again... Intelligence
7(&+12/2*< Environmental intelligence
Competitive Intelligence
Potential Intrants Commercial Intelligence
Commercial Intelligence
Suppliers
',9(56,)
Sector's Competitors
Clients
Substitutes
%5($. 7+528*+
Technological intelligence From Martinet
Prospective Marketing Planning J.-F.David 2005
Two type of intelligence, of scanning...
Prospective Marketing Planning J.-F.David 2005
Spying…? 95% of useful information can be obtain ed by intelligence
All Azimuth Intelligence
Strengths Weaknesses
black information
forbidden
forbidden
espionage
gray information
intelligence
intelligence
dangerous nonsense
white information
intelligence
costly nonsense
dangerous nonsense
DIAGNOSIS Targeted Intelligence
Process Analys is
open
organized & deontological
illegal
technique used
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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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 Prospective Marketing Planning J.-F.David 2005
Definitions
Prospective Marketing Planning J.-F.David 2005
THE SATELLITES
“ 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.
Innovation
Cost
Speed
Position
CUSTOMER
Products
Service
Brand
People
"Keeping the customer happy and the competitor miserable" Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Marketing Functions
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
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)
Adapted from Professor Malcolm McDonald Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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"What do you want to do?"
The process
"I want to work in Marketing !"
- The Environment - Expectations, objectives, power and culture - Resources
Marketer Strategic Analysis
Strategic Choice
Sales rep
Strategic Implementation
- Generation of options - Evaluation of options - Selection of strategy
Prospective Marketing Planning J.-F.David 2005
Sales
Mfg.
IT
Finance & Accounting
HR
Logistics
The market understanding processes R&D Etc.
Marketing
Sales
Mfg
Market 3
Market 4
HR
Logistics
R&D Etc.
The market understanding process
The value driven CEO
The “Marketing” Director
Market 1
Market 2
Finance & Accounting
IT
The customer relationship management process
The innovation process
The Supply chain management process
The knowledge management process
Creating customer value
The market understanding process Marketing
Prospective Marketing Planning J.-F.David 2005
Adapted from professor Malcolm h.B. McDonald
Positioning & branding the organisation
from Robin (ex DRH Kodak)
- People and systems - Organisation structure - Resource planning
Creating shareholder value
Vendor
Etc.
Adapted from Professor Malcolm McDonald
Adapted from Professor Malcolm McDonald Prospective Marketing Planning J.-F.David 2005
Successful Marketing
Prospective Marketing Planning J.-F.David 2005
Competitive advantage
1- Understand Customer Orientation
Superior position
2- Understand the sources of competitive advantage 3- Understand the Environment (opportunities and threats)
O O
4. Understand competitors
O
5. Understand Market Segmentation
Superior resources
Superior skills
6. Understand Your Own Strengths and Weaknesses 7. Understand the dynamics of product/market evolution
O O
8. Understand your portfolio
O O
9. Set Clear Strategic Priorities and Stick to Them Adapted from professor Malcolm h.B. McDonald
Costs Differentiation Protected niche
O Prospective Marketing Planning J.-F.David 2005
Specialised knowledge Customer orientation Trade relationships Technical expertise Flexible organisation
Adapted from professor Malcolm h.B. McDonald
O O O O O
Coverage Economies of scale Financial structures Shared experiences Global / International Prospective Marketing Planning J.-F.David 2005
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The corporate planning cycle Strategic Intent & Corporate Plan
-
What is Strategy? Translating a Mission into Desired Outcomes
Expressed as objectives
Strategic Plans Marketing Operations HR Finance Manufacture etc.
Mission
Why we exist?
Core values
What we believe in?
Expressed as objectives Detailed action plans - Communications - Price - Sales - Product
Vision
What we want to be?
Strategy
Our game plan Expressed as Targets/ objectives
Strategic initiatives What we need to do?
Personal objectives What I need to do?
Control
Implementation & Measurement
Review and Revision/ Restatement
Strategic outcomes Satisfied shareholders
Where strategic objectives are planned-for over a time period longer than the budget cycle, interim milestones need to be set. Prospective Marketing Planning J.-F.David 2005
Delighted customers
Effective processes
Motivated and prepared workforce Prospective Marketing Planning J.-F.David 2005
Adapted from professor Malcolm h.B. McDonald
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
The marketing Planning process
Phase 1 Goal setting
Phase 2
The output of the marketing planning process Strategic marketing plan contents
Market overview
Opportunities Threats
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
Strategy Formulation
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
Situation review
Phase 3
Marketing theory (Structures, frameworks, models)
Mission statement
Resource Requirements
(4 x 4 ps) (Positioning/branding) Product Price Promotion Place
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
Prospective Marketing Planning "Marketing J.-F.David 2005 From Malcolm McDonald Plans"
10
The purpose of strategic marketing planning
The building blocks for successful marketing
Sales and Marketing Programme
…but if the basic building block is unsound!
Marketing Plan Competitor audit
Internal audit
External audit
Sales
r etito mp Co audit Adapted from Professor Malcolm McDonald
planning, and its principal focus is the and M ar
Marke ting P lan
Market structure
The overall purpose of strategic marketing identification and creation of sustainable
keting Progra mme
competitive advantage Business risk
Extern al audit
Internal audit
ucture Market str
??? Financial risk
Adapted from Professor Malcolm McDonald
Return Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Marketing plan
Market Research How big is the market? Number of existing & potential clients Type of existing & potential clients Location of existing & potential clients
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.
What is the main market trend? Change in student requirements Change in technology Change in overall demand
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
The route to Competitive Advantage
Market Research
High Price
Differentiation
Competition Number Type Location Marketing operations of competitors
Sales Revenue High Volume
Operations
Financial Prospective Marketing Planning J.-F.David 2005
Lower Costs
Economies of Scale
Low Business Risk
Learning Curve
Low Financial Risk
Gearing Interest Cover Working Capital Ratio Operational Leverage Adapted from Professor Malcolm McDonald
High Cash Flows
Competitive Advantage
From Sri Srikanthan, Cranfield School of Management Prospective Marketing Planning J.-F.David 2005
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Planning vs Execution...
Quality and share both drive profitability
Strategy (Planning)
ROI (%)
Effective
Ineffective
38 27
Die (quickly)
Efficient
Thrive
20 High
25
20
13
21
Tactics (Sales)
14
-1%
7
Die (slowly)
Inefficient
40% Relative Product Quality
Low
Survive
High
60%
25%
Low
Relative Market Share Source: PIMS
Adapted from Professor Malcolm McDonald Prospective Marketing Planning J.-F.David 2005
The Strategy Process
PEST Analysis Political
Prospective Marketing Planning J.-F.David 2005
Economic The PEST (or STEP…) analysis
What are these and how do they impact the company and its target customers/ clients?
Technological environment - innovations, new products, ICT
Social environment - social structure, life-style, education, culture
Political environment
ORG
- local, regional and global political changes
Economical environment
Social
- competition, income, employment, consumption
Technological Prospective Marketing Planning J.-F.David 2005
SWOT Analysis Strengths
Prospective Marketing Planning J.-F.David 2005
The Strategy Process (example new educ product)
Opportunities
SWOT Analysis Strengths
In the light of PEST, what does it mean for the company, compared with its competitors?
Opportunities External
Weaknesses
High pass rate (CPA) High quality students
Environment
For/ to the company
Of the Company
Internal
Weaknesses Lack of practical experience
High industry presence in the local area
Threats Depressed local economy
Threats Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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Match SW to OT SWOT benefits Internal Factors
Strengths (S)
Weaknesses (W) Identify and evaluate internally and externally the following:
External Factors Opportunities (O)
Economic, social, political and technological aspects Internal SO Strategies ------------------------Use strengths to take advantage of opportunities
Threats (T)
ST Strategies -------------------------Use strengths to avoid threats
Strengths Weaknesses
WO Strategies ------------------------
External
Offset weaknesses to take advantage of opportunities
WT Strategies ------------------------Min. weaknesses to avoid threats
Opportunities Threats
or…
Substantial Waste Of Time ???
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Porter's generic strategies
The Strategy Process
Cost Advantage
Porter’s Five Forces Analysis
Lower Cost
Threat of new entrants
Broad Target Bargaining power of suppliers
Competitive rivalry
Bargaining power of buyers
Differentiation
1. Cost Leadership
2. Differentiation
3A. Cost Focus
3B. Differentiation Focus
Competitive Scope
Narrow Target Threat of substitute products Prospective Marketing Planning J.-F.David 2005
Ansoff matrix
Prospective Marketing Planning J.-F.David 2005
And…. PRODUCTS increasing technological newness
Present
Present
New
Market Penetration
Product Development
MARKETS increasing market newness
New
Market Extension
Diversification
Prospective Marketing Planning J.-F.David 2005
*Marketing communications *Pricing *Sales promotions *Ad's *Logos, brochures, catalogs, white papers, … *Planning *Control *Product Management *CRM *Networking *….
Prospective Marketing Planning J.-F.David 2005
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The ten steps of the strategic marketing planning process
MARKETING PLANNING PROCESS
Mission Statement
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
(external) Marketing Audit (internal) SWOT Analysis
4. SWOT Analysis Phase Two Situation Review
5. Assumptions
Generation & Evaluation of Options
6. Marketing Objectives and Strategies 7. Estimate Expected Results Phase Three Strategy Formulation
The Marketing Plan
8. Identify Alternative Plans and Mixes 9. Budget
Phase Four Resource Allocation & Monitoring
Implementation
10. 1st Year Detailed Implementation Programme
Measurement and Review
Adapted from Professor Malcolm McDonald Prospective Marketing Planning J.-F.David 2005
Business plan format
Prospective Marketing Planning J.-F.David 2005
Business plan contents
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
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 ...
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Organizations... Branding... "In future, the most powerful brands will be customer-centric. Successful companies will know the customer and will be the customer’s advocate"
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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Prospective Marketing Planning J.-F.David 2005
Value Chain Analysis Procurement Ma in rg
Human Resource Management Technology Development Procurement
Ma rg i
Prospective Marketing Planning J.-F.David 2005
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
OPERATIONS
OUTBOUND LOGISTICS
SALES & MARKETING
eg. Quality Control Receiving Raw Material Control etc
eg. Manufacturing Packaging Production Control Quality Control Maintenance etc
eg. Finishing Goods Order Handling Despatch Delivery Invoicing etc
eg. Customer mgmt Order Taking Promotion Sales Analysis Market Research etc
n
ce r vi Se
ng e ti rk s M a a le S & nd ou tb tics Ou gis Lo ns io at er Op d un s bo tic I n gi s Lo
A SC UT P I V P I OT RI TE S
100
Primary Activities Importance of value-chain analysis is that it provides a framework for identifying or developing a distinctive competence.
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 J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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New value chain...
CRM
SCM
Customer Relationship Management
Supply Chain Management
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’
c
ERP Enterprise Ressource Planning
BI
d
KM
Business Intelligence
CRM
d d
Knowledge Management
Different needs in a market
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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
d d d
KM
BI
Listen Know Anticipate Decide
CRM Listen to client voice Design product/service Develop offer Marketing Contract Follow client
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 ument Annonc e
c
ERP
Control Measure Finance
Process zoom
Inve stigate, amaze ment reports, ... Moments of Tr uth Clie nt intelligenc e Claims analysis
Constitute the offe r Fix the price Ma nage the ac counts Follow-up profit/products Promotion campaigns Ma nage cata logs
manage people manage knowledge
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 gement Ana lyze the m arke ts Ana lyze customers Ana lyze com petition Route to marke ts Visits/C ontact management
Prospective Marketing Planning J.-F.David 2005
Fax, Em ail Phone/Call cente rs Fac e to face Inte rnet Dealers Age nts
Prospective Marketing Planning J.-F.David 2005
Choosing channels: the channel curve Books: value curve
Who does what? Call centers Face to face Marketing Production
10
Transaction cost...
Strength
By product? By market?
12
Store
8
Tel
6
Net
4
Post
2
Company
0 30 Cost
Partners 1
15 15 15 Convenience Brow seability Added value services
10 View ing
15 Accessibility
Factor
Partners n Source: Wilson et al (2001), ‘Profiting from eCRM’, FT Prentice Hall Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
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Key Accounts
from Ogilvy (http://rtm.ogilvy.com)
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Key account preliminary categorisation
Key account preliminary categorisation Top 15 (in volume/revenue generated)
A
Degree of collaboration
KAM relationship stage Realisation of fullest potential of both organisations
High: collaborative Integrated
B
Next 30
Confidence in relationship, stable & highly evaluated by both sides
Interdependent
C
Reduction of risk, ability to forecast
Cooperative
Next 55
Operational, efficient transactions
Basic
Prospective Marketing Planning J.-F.David 2005
Low: transactional
Prospective Marketing Planning J.-F.David 2005
Basic KAM SCM Ma nage custom er orders
Buying company
Selling company
Board
Admin
Ops
Key Account Mgr
Key Customer Contact Ops
Admin
Board
Study suppliers performance Use the market plac es Answer bids(RF I/RF P/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
Prospective Marketing Planning J.-F.David 2005
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 warehouse s Picking and conditioning Delivery planning Delivery fllow-up Ma nageme nt of re turns
Prospective Marketing Planning J.-F.David 2005
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Strategy Objectives
Win/Win
Strategy Objectives
Intelligence Innovation, R&D
Marketing
ERP BI
Control Measure Finance
Listen Know Anticipate Decide
Environnemental inte lligence Comme rcia l inte lligence Technological intelligence Strategic planning Ope rationa l planning
Business rules Clie nt rules Supplie r rules Auditability
Fina nce management General accounting Asset ma nagem ent Treasur y manage ment Accounting and finance plan Projects m anage ment Inve stments manage ment Infrastructures Information syste m Communic ation system
KM
e-design
Innovation …. Sourcing
Manage people Manage knowledge
Staff m anage ment Pay m ana gem ent Rec ruitment Education Incentive Ma nagem ent Unions re lations
Négociation Contract Procurement order …. Logistics Transportation Reception Dispatch Stocks ….. Manufacturing ….. Sales ……..
e-supply chain
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 ……..
Ma nageme nt reporting Fina nce reporting, ABM Q reporting
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 ……..
Supplier 2 Prime contractor
Supplier 1
"standardized"zones some relations… Systemic complexity
Prospective Marketing Planning J.-F.David 2005
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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 J.-F.David 2005
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7 ’S Cold triangle
Strategy
Systems
Structure
1 What demand...
Super-goal
Staff
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...
Skills
Style
Warm triangle
4 - What has been implemented...
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
V-cycle: risk of forgetting needs, weak delays mastership...
Ian Stokes...
Needs specification
Operational system Tunnel effect
System requirement & specs
Operation, maintenance, final val.
Software requ. & validation
Pre-operation, validation test
Preliminary design and validation
Detailed design and validation
Integration, deployment, tests
Unit by unit tests
Code, debug, …
Prospective Marketing Planning J.-F.David 2005
Cumulative cost
Needs, Solutions, Constraints, definition
Prospective Marketing Planning J.-F.David 2005
Alternatives research, Risk decrease
Step by step progress
Step products review
Iterative development Prospective Marketing Planning J.-F.David 2005
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outside
Inside / Outside
Mass Customization
Mass Production
Innovation
Transformation
inside
Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
outside
Inside / Outside Web sites
outside
Inside / Outside strategy
Stars
Cash Cows
?
portal
Dogs
Institutional
inside
Prospective Marketing Planning J.-F.David 2005
Informal Networks
E-Biz
inside
Prospective Marketing Planning J.-F.David 2005
Product, Price, Place, Promotion, Processes … and People !
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Prospective Marketing Planning J.-F.David 2005
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COPs Prospective Marketing Planning J.-F.David 2005
Prospective Marketing Planning J.-F.David 2005
Define your team methodology... Financials key accounts Porter
...
intelligence
data collection
Mission
... CSF's
...
positioning
final draft SWOT
Value chain ...
Ansoff
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?
...
routes to Markets
Vision ...
Some deliverables from your strategic marketing plan
...
enquiries
documents presentation
your planning your timing Prospective Marketing Planning J.-F.David 2005
Adapted from Professor Malcolm McDonald
Prospective Marketing Planning J.-F.David 2005
Some essential deliverables from a strategic marketing plan Some essential deliverables from your strategic marketing plan?
Scope
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?
•
•
• •
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
Differentiation •
•
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?
•
Is there a clear and quantified analysis of how well our company satisfies these needs compared to competitors?
•
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?
Are the opportunities and threats clearly identified by segment? Adapted from Professor Malcolm McDonald
Prospective Marketing Planning J.-F.David 2005
Adapted from Professor Malcolm McDonald
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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
Strategic marketing planning What is our purpose?
What are our strategies? How should we price our products? What should our channel strategies be?
What are our products? 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 should we measure the effectiveness of our plan?
How can we allocate our resources optimally?
Prospective Marketing Planning J.-F.David 2005
Adapted from Professor Malcolm McDonald
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. You
2
1
3
2
4
Comp A Comp B Comp C Comp D
3
5 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?
OPPORTUNITIES
Who are our customers?
3. WEIGHTING (How important is each of these CSFs? Score out of 100)
1
What new products should be developed?
What is our Market?
2. CRITICAL SUCCESS FACTORS In other words, how do customers choose?
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?
Adapted from Professor Malcolm McDonald
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
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
Criteria for a marketing plan A. Creative thinking
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
B. Clarity of thinking presentation
C. Completeness
- 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)
Prospective Marketing Planning J.-F.David 2005
You Subordinates Peers Superiors
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 financial impact Adapted from Professor Malcolm McDonald
TO DO
D.Usefulness
Prospective Marketing Planning J.-F.David 2005
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, … - …. 9- references Prospective Marketing Planning J.-F.David 2005 10 di
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...possible assignment schedule... Sept, 1st: 1st-6th: Sept, 6th: 6th-13th: Sept, 13th: 13th-18th: Sept 18th: 18th-21th: Sept 21th: 21th-26th: Sept, 26th:
J.-F.David introductory lecture on Prospective Marketing Planning, Teams building Team planning, assignment planning, definition of solution Start of data collection (reports, web, interviews, …) Mission, Market overview, open market, segmentation, portofolio, SWOT, frameworks (5 forces, …), ... Data collection Final idea, integration of data collected, finalization of frameworks Validation of choices, additional data collection, towards Vision and plan Vision, Marketing objectives Preparation of formal presentation Integration of documents Final version of marketing plan prototype and presentation charts Exam, Formal presentation of results, rating, discussions
Adapted from Professor Malcolm McDonald
Prospective Marketing Planning J.-F.David 2005
http://davidjf.free.fr/MkingPlan/main.htm
[email protected] http://www.davidjf.com
Prospective Marketing Planning J.-F.David 2005
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