Develop and manage marketing strategies

1. 0 Develop and manage marketing strategies Session 3 Strategic Marketing and planning with Sue Cameron

2. Agenda • Revision Q&A • Strategic Planning • Marketing management and planning • SWOT and PEST • The Marketing Plan • Revision for the exam

3. Revision Q&A • Who is Philip Kolter? • Is marketing just sales? • If not, what does it include? • Most people don’t plan to fail they just ……………………………… • What do you market to? People’s ………….; ………………: & ……………

4. Revision Q&A 6. What are the 2 concepts that all business is based on? A clue is S & D 7. What is a marketing offering? 8. What is a product in marketing terms? • What does perceived value mean? • What is customer satisfaction? • What is the marketing mix?

5. Revision Q&A • What is an exchange? • What is relationship marketing? • How much does it cost to get a new customer as apposed to an existing customer? • Is emotional engagement important in selling and marketing?

6. 0 Strategic Planning • Most organisations operate according to formal plans • Managers are often too busy and have no time for planning • Planning can help make sense of a changing environment • Organisations failing to plan are planning to fail • The need for flexibility has led to a resurgence in the process of scenario planning

7. 0 Strategic Planning • The process of developing and maintaining a strategic fit between the organisation’s goals and capabilities in the light of changing marketing opportunities • It relies on developing a clear: • Company mission • Objectives • Sound Business Portfolio • Coordinated Functional Strategies

8. Definitions • Hierarchy: A pyramid-like ranking of ideas, individuals, items, etc., where every level (except the top and the bottom ones) has one higher and one lower neighbour • Higher level means greater authority, importance, and influence Reference: Business Dictionary.com website (May 2013) http://www.businessdictionary.com/definition/hierarchy.html

9. 0 Strategy Hierarchy • Corporate or Executive Strategy level • Strategic Business Unit (SBU) Level • Functional Level of SBU (e.g. Marketing Strategy)

10. The Strategy Hierarchy

11. Marketing Management and Planning • Depending on the size of the organisation there can be between three to four levels • This involves four levels of decision making: • The corporate • The divisional • The business unit • Product levels

12. Marketing Management and Planning • The organisation’s head office is responsible for a corporate strategic plan, each division develops a divisional plan that cover the allocation of funds to each SBU in the division • Marketing plans operate at two levels, the strategic and tactical

13. 0 Marketing or Business Plan? • The business plan incorporates the plans of all functions – production or operations, R&D, finance, human resources, IT and marketing • The marketing plan has its focus on customer acquisition, (finding) retention (keeping) and the resources required It includes the resources needed to implement specific marketing functions (such as selling, advertising, sales promotion and market research)

14. Marketing or Business Plan? 2. Most marketing plans cover one year, but some cover a few years 3. Plans vary in their length from under ten pages to over 50 4. Frequently cited shortcomings of marketing plans, are lack of realism, insufficient market and competitive analysis i.e. no research and a short-run focus

15. Contents of a Marketing Plan

16. 0 The Nature and Contents of a Marketing Plan Executive Summary • The marketing plan should open with a brief summary of the plan • This executive summary is aimed at the senior management to enable them to grasp quickly the plan’s major thrust, its goals and recommendations • The summary should be no more than one page long

17. 0 The Nature and Contents of a Marketing Plan Situational Analysis i.e. the current marketing situation • This section presents relevant background data on the target market, product, competition, distribution and the macro-environment • The data are drawn from a product fact book or database maintained by the product manager

18. The Nature and Contents of a Marketing Plan • Product Situation • This states the sales, product prices, contribution margin and profits for past years • Competitive Situation • Identify and describe the main competitors in terms of size, goals, market share, product quality, marketing strategies and other characteristics

19. The Nature and Contents of a Marketing Plan • Distribution Situation This presents data on the size and importance of each marketing (distribution) channel • Macro-environment Situation A brief summary of the broad macro trends-demographic, economic, technological, political/legal and socio-cultural that affect the product line’s future

20. Marketing • Two of the most important things in marketing is understanding and promoting your critical success factor(s) and your point of difference to your competitors

21. Market Research • There are various tools to use to conduct effective market research • Such as a SWOT and a PEST analysis • Market research is an ongoing process in the marketing department

22. SWOT • Strengths (internal) • Weaknesses (internal) • Opportunities (external) • Threats (external)

23. PEST • Political factors • Economic factors • Social factors • Technology factors • Are all external factors

24. Why have a marketing plan? • A Marketing Plan is a bit like a job description for your company • Everyone should have one, but they’re often not fit for purpose, out of date and reviewed infrequently… • Research has shown that businesses with plans succeed, outperform competitors, and retain staff, more than those with no plan

25. Why have a marketing plan? • Without a plan there’s no direction for the company or its employees, decisions can be uninformed, opportunities can be missed and threats can damage or destroy the business Reference: Smarts Insights website (May 2013) http://www.smartinsights.com/marketing-planning/create-a-marketing-plan/how-to-create-a-marketing-plan/

26. Videos on Marketing Plans • The Marketing Mix (May 2013) http://www.youtube.com/watch?v=MLmsJEz3GD4 • The purpose of a marketing plan (May 2013) http://www.youtube.com/watch?v=NlERzgqtIkI • Critical Success Factors (May 2013) http://www.youtube.com/watch?v=O5uHP_kiySI

27. 10 Steps to develop a marketing plan 1. Determine the organisation’s mission Your mission statement reflects why your organisation is in business, provides basic guidelines for further planning, and establishes broad parameters for the future

28. The company's overall mission and objectives are defined by the: • Functional plan • Strategic plan • Marketing plan • Customer analysis • CEO

29. 10 Steps to develop a marketing plan 2. Set company goals Goals define the overall results you wish to achieve, guide the development of a marketing plan, and shape the strategies needed to implement it Make your goals SMART

30. Smart Goals Specific Measurable Achievable Realistic Time framed You can use this acronym for all goals (personal and professional)

31. 10 Steps to develop a marketing plan 3. Perform external analysis An external analysis examines trends in the marketplace or business environment, the local economic outlook, market types, available financing, and market needs This is where you use the SWOT analysis and the PEST analysis

32. 10 Steps to develop a marketing plan 4. Perform internal analysis An internal analysis looks at your firm’s strengths and weaknesses It should include a client review of your organisation’s performance This is also where you use the SWOT analysis

33. 10 Steps to develop a marketing plan 5. Establish marketing goals Marketing goals should reflect what you think your firm can accomplish through marketing in the coming years: the amount of new business vs. old or repeat business, job and client profiles, and promotional and sales goals These goals cover Product, Price, Place and Promotions (the 4 P’s or Marketing Mix)

34. 10 Steps to develop a marketing plan 6. Define strategies to achieve your goals Strategies are specific activities to achieve stated marketing goals over two or three years They range from pursuing a new type of client to expanding an existing market geographically or even adding or changing a specialty

35. 10 Steps to develop a marketing plan 7. Research and refine strategies Focus your energies as much as possible, selecting only those strategies that will make it possible to reach your goals

36. 10 Steps to develop a marketing plan 8. Create and refine promotional and sales tactics • Tactics are short-term, immediate, planned actions undertaken to implement strategies • Tactics are specific reactions to research • Limit tactical planning to those tasks necessary to accomplish marketing goals

37. 10 Steps to develop a marketing plan 9. Implement the plan Once the plan is put into action, good coordination and record keeping are critical to its success

38. 10 Steps to develop a marketing plan 10. Evaluate the plan in action The entire marketing planning process must be continuously evaluated and updated Conduct regular evaluations of your efforts to achieve your marketing goals, studying both successes and failures

39. GOALS, STRATEGIES, AND TACTICS • After reading the previous 10 steps it is important to understand what these terms mean for an architecture firm and see an example • Here are some brief definitions and examples of terms that clarify the author’s vision of a goal, strategy, and tactic

40. GOALS, STRATEGIES, AND TACTICS • A goal is an end, a measurable state to be achieved within a specified time frame • A sample marketing goal is “To increase our organisation’s revenues for private colleges and universities by 20 percent within three years”

41. GOALS, STRATEGIES, AND TACTICS • A strategyis a means by which an organisation seeks to achieve one or more of its goals • A sample strategy to achieve the sample goal is “To expand the services we offer existing university clients to include facilities management and project definition.”

42. GOALS, STRATEGIES, AND TACTICS • A tactic is a specific short term action aimed at implementing one or more of the firm’s strategies • An example may be “To become active in newly formed educational facilities users group in our region: attend meetings, join our clients in offering tours of recently completed facilities, and/or place this group on our newsletter mailing list.”

43. GOALS, STRATEGIES, AND TACTICS • However you define your goals, strategies, and tactics it is important to avoid meaningless generalisations such as these: “Our policy will be to lead the competition.” “We will offer a better product.” “We will get our image into the public eye.” “Our plan will increase sales.” “Our plan is to satisfy our customers.”

44. Revision for the exam • How can you obtain information on products and services that are not performing well? • Where can you find information on your competitors i.e. comparative markets? • What sort of things can you do to involve your colleagues in developing a marketing plan? • What elements of the internal business environment do you need to be aware of in developing your marketing strategies?

45. Revision for the exam • Explain a current trend that is affecting hospitality and or tourism industry and how it would it affect businesses? • What ethical issues might affect the development of a marketing strategy? • What are some of the features of the Competition and Consumer Protection Act that could affect marketing activities?

46. Revision for the exam • How would you monitor and evaluate the success of your marketing plan? • Why Is it important to examine past and current marketing information when making a new strategy? • How could changes in the economy, labour force and population growth affect your marketing plan?

47. Revision for the exam • In researching the external business environment what sources of information are available and how can you use these sources to develop new business opportunities? • If you have changes in your marketing plan you would you advise and how would you check that this information has been understood?

48. Tomorrow evening • Get a good night’s sleep (8 hours) • Have a nutritional breakfast and lunch • Good luck • See you next week? • Plan and implement sales activities?