model application

Strategic Tools Unleashing the Power of

Marketing & Management Models

Helen Strong

helen@strong.org.za

Management Decisions

• To reach a decision as a marketing or product manager you need information about the marketplace and the consumers who are available to buy your product

• The most efficient way to gather this information is to use a structured approach, guided by business models which help you – Identify which factors affect the decision– Work out the relationships between those factors

Strategy for the Strategic Analysis

Plan before you start …

• What is the purpose of the analysis?– What management decision needs the

information?

• What information do I have already?

• What do I need to do to be fully informed?

• How & when do I need to report?

Who should take part?

• Often it helps to put together a diverse team of experts who can provide input– Different insights– Transfer of ideas from one area to another– Cooperation and buy-in to the solutions

Purpose?

Ask: What is the management problem?

• Some common reasons for strategic analysis include:– New product development– Building brand loyalty– Looking for growth / opportunities– Sales are falling– Preparing a Zero based budget– Evaluate impact of competitive activity – Entering a new market

E.g. Assume entering a new global market

The management decision1. Which market do we enter?

2. What target market do we need to reach?

3. What do we need to do to the marketing mix to maintain the brand integrity

Which market do we enter?

• Initial enquiries would be broad-based

• Ask – Objectives in entering a new market?– Risks– Returns– Sustainability

Eliminate the obvious…

• Unless you are an arms manufacturer or support organization, probably don’t want to enter a war-zone

• Is there an adequate communication system

• However, developing economies (such as Africa) are becoming more attractive

Do Some Secondary Research

• GDP• Culture & lifestyle

(Use the product?)• Current levels of

consumption?• Access to target

markets?– Distribution channels?– Promotion channels?– Achievable margins?

• Structure of the economy?

• Transaction costs?• Legislation, especially

taxation & repatriation of profits?

• Exchange rates?

Best entry model?

• Self funded independent• Partnership• Franchise• Manufacture under licence• Finished goods for distributor / retailer

• Decide once have considered the environment…

What type of management models can guide the decision?

One of the oldest…

• SWOT • Strength and weaknesses = internal

organization factors and resources • Opportunities and threats = external

environment– Defines the capacity of the company– Identifies obvious opportunities and threats

More powerful to applyMullins 7 Domains

• Examines both the internal capacity and the external environment– Looks at the people in the company who will

be driving the entry into the new market– Answers the question about the competitive

situation

And to look at the supply chain…

Here the organization • Examines the end consumer needs• Defines the required product quality • Looks for partners who can deliver these CSF’s

Important to consider the Brand Translation…

• How does the brand need to adapt to maintain its integrity in the new market?

• Avoid unintentional errors in language and brand expression

Prepare the Plan

• Build all the information that you have gathered into a PLAN

• Know– How you will adapt the

brand and marketing mix– How you will launch into

the new market– Market penetration

strategies– Sales targets– How you will repatriate

your profits

• Responsible head office executives

• Where the resources will be available

• Be sure of your partners / associates

• Evaluate what the competition has done

• Be familiar with local culture and customs

• Ensure compliance with local legislation

• The above is a brief example of how management models can assist the decision processes

• The exercise focuses the mind to consider important factors and the relationships between them

• There is a new resource for people who have strategy in mind ….

Explore the full potential of Marketing & Management

Models…