Marketing Planning Consolidated
Marketing Planning Consolidated
Marketing Planning Consolidated
Definitions of marketing
Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably The Chartered Institute of Marketing
The right product, in the right place, at the right time, and at the right price Adcock et al
Marketing is the human activity directed at satisfying human needs and wants through an exchange process Kotler 1980
Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others Kotler 1991
Implications of marketing
Who are our existing / potential customers? What are their current / future needs? How can we satisfy these needs?
Can we offer a product/ service that the customer would value? Can we communicate with our customers? Can we deliver a competitive product of service?
Successful marketing requires: Profitable Offensive (rather than defensive) Integrated Strategic (is future orientated) Effective (gets results) Hugh Davidson 1972
Assignment of responsibilities, tasks and timing Awareness of problems, opportunities and threats Essential marketing information may have been missing if implementation is not carefully controlled by managers, the plan is worthless!
Marketing Research
the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services American Marketing Association
Attitude measurement
cognitive component (know/believe about an act/object) affective component (feel about an act/object) conative component (behave towards an object or act)
Likert scale
strongly agree agree neither agree nor disagree disagree strongly disagree
Semantic differential scales - differences between words e.g. practical v impractical Projective techniques
sentence completion psychodrama (yourself as a product) friendly martian (what someone else might do)
Group discussion and focus group Postal research questionnaires Diary panels - sources of continuous data In-home scanning - hand-held light pen to scan barcodes Telephone research Observation
home audit direct observation
In-store testing
What is MKIS?
MKIS (MIS) is a set of procedures and methods for the regular, planned collection, analysis and presentation of information for use in marketing decisions American Marketing Association
Statistical Bank
MKIS
Display unit
Marketing Manager
Model Bank
SWOT analysis Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external)
PEST analysis Political factors Economic factors Socio-cultural factors Technological factors
Political/legal
Monopolies legislation Environmental protection laws Taxation policy Employment laws Government policy Legislation Others?
Economic Factors
Inflation Employment Disposable income Business cycles Energy availability and cost Others?
Sociocultural factors
Demographics Distribution of income Social mobility Lifestyle changes Consumerism Levels of education Others?
Technological
New discoveries and innovations Speed of technology transfer Rates of obsolescence Internet Information technology Others?
COMPETITIVE RIVALRY
Threat of substitutes
Substitutes
Buyer Behaviour
Buyer Behaviour
Dominant Family Purchase - Cozenza 1985 Demographic Factors The Consumer Buying Process Maslows hierarchy of needs UK socioeconomic classification scheme Types of buyer behaviour The Buying Decision Process Organisational Buyer Behaviour
Demographic Factors
Age Stage in family life cycle Occupation Economic circumstances Lifestyle social influence variables
family background reference groups roles and status
Consumer
27 25 19 12
Strategic Development
Strategic Development
Product Life Cycle (Revisited in Product) Bowmans Competitive Strategy Options New Product Development (NPD)
PLC exercise
The Ford Escort The Mini Cooper The Internet Phone Cadburys Fuse The Boeing 747 The Millennium Dome KIT KAT
Source: Based on the work of Cliff Bowman. See C.Bowman and D.Faulkner. Competitive and Corporate Strategy, Irwin, 1996.
1 2 3 4
Risk of price war and low margins/need to be cost leader Low cost base and reinvestment in low price and differentiation
Differentiation (a) Without price premium Perceived added value by user, yielding market share benefits (b) With price premium Perceived added value sufficient to bear price premium
Focused differentiation Perceived added value to a particular segment, warranting price premium Increased price/standard Higher margins if competitors do not value follow/risk of losing market share Increased price/low value Only feasible in monopoly situation Low value/standard price Loss of market share
Products Decisions
Products Decisions
Product and Service Classification System The Product Life Cycle Introduction to product matrices Boston Matrix (Growth/Share) Ansoffs Matrix (Product Market)
Industrial goods Installations - speciality goods of industrial markets - plant and machinery Accessories - maintenance and office equipment Raw materials components Business to business e.g. consultants, accountants
Development
Growth
Maturity
Decline
Few:
trial of early adopters
1. Stars
2. Cash Cows
4. Dogs
High
Low
FUSE
Ansoffs Matrix (Product/Market Matrix) New Products Existing Products Existing Markets New Markets
Market Penetration
Market Development
Product Development
Diversification
Ansoffs Matrix (Product/Market Matrix) New Products Existing Products Existing Markets New Markets
E.g. Realignments of the marketing mix Same outlets and sales strategy - new product
Products Decisions
Product and Service Classification System? The Product Life Cycle stages? Growth/Share? Product Market?
Pricing Decisions
Pricing Decisions
Quality Low
Economy Strategy e.g. Tesco spaghetti
High Penetration e.g. Telewest cable phones Premium e.g. BA first class
Pricing strategies
Premium pricing
Uses a high price, but gives a good product/service exchange e.g. Concorde, The Ritz Hotel
Penetration pricing
offers low price to gain market share - then increases price e.g. France Telecom - to attract new corporate clients (or Telewest cable)
Economy pricing
placed at no frills, low price e.g. Soups, spaghetti, beans - economy brands
Price skimming
where prices are high - usually during introduction e.g new albums or films on release ultimately prices will reduce to the parity
Psychological pricing
to get a customer to respond on an emotional, rather than rational basis .e.g 99p not 1.01 price point perspective
Pricing variations
off-peak pricing, early booking discounts,etc e.g Grundig offers a cash back incentive for expensive goods
Optional product-pricing
e.g. optional extras - BMW famously under-equipped
Product-bundle pricing
sellers combine several products at the same price e.g software, books, CDs.
Promotional pricing
BOGOF e.g. toothpaste, soups, etc
Geographical pricing
different prices for customers in different parts of the world e.g.Include shipping costs, or place onPLC
Value pricing
usually during difficult economic conditions e.g. Value menus at McDonalds
Produce less of the lower margin models in the line Write penalty clauses into contracts Change the physical characteristics of the product
A channel of distribution comprises a set of institutions which perform all of the activities utilised to move a product and its title from production to consumption
Bucklin - Theory of Distribution Channel Structure (1966)
Users
Selection consideration
Market segment - must know the specific segment and target customer Changes during plc - different channels are exploited at various stages of plc Producer-distributor fit - their policies, strategies and image Qualification assessment - experience and track record must be established Distributor training and support
Direct unweighted strategy or request producers wishes are communicated . No consequences are applied or mentioned Direct mediated strategies - specific action is requested and consequences of rejection are stressed
e.g.1 control of retail pricing e.g.2 minimum order size e.g.3 salesperson training e.g.4 physical layout of store e.g. 5 territorial and customer restrictions
Promotion Decisions
Promotions Decisions
Elements in the communication process Promotions mix The promotions message Executions style Media choice? Promotional objectives
Elements in the Communication Process Sender Encoding Message Media Decoding Receiver
Noise
Feedback
Response
Sender - party sending the message Encoding - message in symbolic form Message - word, pictures and symbols that the sender transmits Media - the communication channel e.g radio Decoding - receiver assigns meaning to symbols encoded by the sender
Response - reaction of the receiver after being exposed to the to the message Feedback - the part of the receivers response after being communicated to the sender Noise - unplanned static or distortion during the communication process e.g. competitor action (Creature Comforts?)
Promotions Mix
Personal selling Telemarketing Direct mail Trade fairs and exhibitions Commercial television Newspapers and magazines Radio Cinema Point of sale displays Packaging
Execution styles
Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol e.g. OXO e.g. After Eight mints e.g .Turkish Delight e.g. Timotei shampoo e.g .Gap e.g. Richard Branson
Technical expertise e.g.Vorsprung durch Technik - Audi Scientific evidence e.g. Whiskers Testimonial evidence e.g. Ian Botham
Media choice?
Marketing objectives Definition of problem e.g falling awareness Evaluation of different tools choice of optimum mix of promotional methods Integration into overall marketing communication programme
Exercise - What beliefs and expectations do you have about the following brands? How far are these due to promotion as opposed to personal experience?
Fairy liquid Persil washing powder Midland Bank Virgin Radio Nissan Tesco
Promotional objectives
To support sales increases To encourage trial To create awareness To inform about a feature or benefit To remind To reassure To create an image To modify attitudes
Implementation
Implementation
The implementation process An action checklist Total quality and marketing Managing the organisation/stakeholder interface Activities to establish and build customer relationships Relationship marketing McKinsey 7-S framework
External Factors
Monitoring Results
Adaptation of strategy/tactics
Implementation problems
Internal problems e.g change of management External problems e.g. changing competition Poor planning e.g. Hoovers flight tickets Poor intelligence e.g. 1985 Coca-Cola Poor execution
Create a sense of purpose and urgency to tackle real problems which have prevented progress in the past motivate be prepared for conflict Be willing to negotiate Anticipate stress Build skills Build in the capacity for learning Monitor and evaluate
Statistical process control (SPC) New relationships with suppliers (JIT) Quality Assurance e.g BS EN ISO 9000
Relationship marketing
The consistent application of up-to-date knowledge of individual customers to product and service design . . . . In order to develop a continuous and long-term relationship Cram
Not mass marketing. Aimed at individual. Customer retention not attraction Long term, ongoing relationships Regular customer contact Spirit of trust