leyland pitt 2004 plans are nothing. planning is everything. dwight d. eisenhower writing the...
TRANSCRIPT
Leyland Pitt 2004
Plans are nothing. Planning is everything. Dwight D.
Eisenhower
Writing the Marketing Plan
Leyland Pitt 2004
Why do we need strategy in marketing?
Because of Competitive Rationality
Oversupply
CustomerChoice
CustomerSophisticationInnovation
Imitation
Leyland Pitt 2004
Components of the Marketing Plan
Section What it is
I. Executive Summary An abbreviated summary of the main thrusts of the plan, for management overview
II. Current Marketing Situation Relevant background data on the market itself, the product, distribution, competition, and the broader environment - "What's happening?"
III. Opportunity and Issue Analysis The strengths and weaknesses of the firm; the opportunities and threats facing it; the key issues that the plan must cope with.
IV. Objectives What the plan wants to reach - e.g. sales volume, market share, ROI
V. Marketing Strategy Who the target markets will be; what the blend of marketing mix elements [the 4 Ps] to reach them will be.
VI. Action Programs • What will be done? • Who will do it? • When will it be done? • How much will it cost?
VII. Projected Profit and Loss Statement Summarises the potential financial payoff from the plan
VIII. Controls How will the plan be supervised?
Leyland Pitt 2004
The Marketing Planning Process
8 1 2 3
4567
Executive
Summary
Current Marketing
Situation
Opportunity and Issue Analysis
Marketing
Strategy
Action
Programs
Projected Profit and Loss
Statement
Controls
Objectives
Leyland Pitt 2004
The Executive Summary
Offers the readermain thrusts of planwhowhatwhenhowwhy
Leyland Pitt 2004
Current Marketing Situation
The marketCustomersProductsCompetitorsEnvironmentDistribution
Leyland Pitt 2004
Opportunity and Issue Analysis
Do we understand competitive advantage?
Resources: STRENGTHS and WEAKNESSES
Environment: OPPORTUNITIES and THREATS
Leyland Pitt 2004
A Resource AuditRESOURCE High Medium Low Neutral Low Medium High
PEOPLE
Adequate
Skilled
Loyal
Service Minded
MONEY
Adequate
Flexible
FACILITIES
Adequate
Flexible
Location
SYSTEMS
Information
Planning
Control
MARKET ASSETS
Client Base
General Reputation
STRENGTH WEAKNESS
Leyland Pitt 2004
Environmental Scanning
P Politics and Legislation
E The Economy
S Socio-cultural: Values, attitudes and norms
T Technology
Leyland Pitt 2004
Political/Legal
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Economic
Leyland Pitt 2004
Socio-cultural
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Technological
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Opportunity Analysis
P R O B A B I L I T Y
High
Low
High LowATTRACTIVENESS
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Threat Analysis
P R O B A B I L I T Y
High
Low
SEVERITYHigh Low
Leyland Pitt 2004
Objectives and Goals
Mission - What Business are We In?Is the customer
always right?
ObjectivesGoals
Leyland Pitt 2004
Dilbert’s Instant Mission Statement Generator
(www.dilbert.com)
Our challenge is to proactively negotiate value-added catalysts for change to
exceed customer expectations
It's our responsibility to collaboratively simplify innovative sources and quickly
engineer high-quality deliverables
Leyland Pitt 2004
Marketing Strategy
The Fundamental Marketing Logic by which the Organization intends to achieve its Objectives and Goals
CustomersCustomers CollaboratorsCollaboratorsCompetencesCompetencesCompetitorsCompetitors
What Business Are We In?What Business Are We In?
Target MarketsTarget Markets
ProductProduct PricePrice PlacementPlacement PromotionPromotion
The MarketingMix
Leyland Pitt 2004
Target Marketing
1. Is Creative2. Is Changing3. Is becoming
ever-more precise
4. Mass customization
Leyland Pitt 2004
The Marketing Mix
Each of the components is subject to more change now than in the preceding 25 years
Products?Organization? The role of brands? Blurring?
Pricing?Value based. More creative. The danger of
commoditiesPromotion?
Accountability. New media.Placement?
Channel power. Intermediary obsolescence.
Leyland Pitt 2004
Action Programs Should maximize likelihood that the plan will be
implemented according to schedule Identify activities, due dates,and individual
responsibility
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Marketing Research Project
Devlop/Run Advertising Campaign
Interview/Appoint New Sales Reps
New Package Develop- ment
Dealer Traing Pro- grammes
Activities
Leyland Pitt 2004
Budgets
The Plan expressed in monetary units
Forms the basis for all marketing spending
Leyland Pitt 2004
Teaching MBAs through the ages
• Teaching Math in 1950: A logger sells a truckload of lumber for $100. His cost of production is 4/5 of the price. What is his profit?
• Teaching Math in 1960: A logger sells a truckload of lumber for $100. His cost of production is 4/5 of the price, or $80. What is his profit?
• Teaching Math in 1970: A logger exchanges a set "L" of lumber for a set "M" of money. The cardinality of set "M" is 100. Each element is worth one dollar. Make 100 dots representing the elements of the set "M." The set "C", the cost of production contains 20 fewer points than set "M." Represent the set "C" as a subset of set "M" and answer the following question: What is the cardinality of the set "P"of profits?
• Teaching Math in 1980: A logger sells a truckload of lumber for $100. His cost of production is $80 and his profit is $20. Your assignment: Underline the number 20.
• Teaching Math in 1990: By cutting down beautiful forest trees, the logger makes $20. What do you think of this way of making a living? Topic for class participation after answering the question: How did the forest birds and squirrels feel as the logger cut down the trees? There are no wrong answers.
• Teaching Math in 2000: A logger sells a truckload of lumber for $100. His cost of production is $120. How does Arthur Andersen determine that his profit margin is $60?
Leyland Pitt 2004
Controlsset targets, evaluate
reality against targets, take corrective action
annual plan controlprofitability (or at least,
expense) controlstrategic control
Leyland Pitt 2004
Implementation of Marketing Strategy
StrategyFormulation
StrategyImplementatio
n
Poor
Poor
Adequate
Adequate
Success
Failure Rescueor Ruin
Trouble