marketing strategy and plans
TRANSCRIPT
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MARKETING PLANNING
( Market Analysis, Goals and
Marketing Strategies )
By
Dr. Raymond Musyoka
University of Nairobi
School of Business
E-Mail: [email protected]
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INTRODUCTION
• …why do entrepreneurs start business ?.
• … there many possible answers…
…solve human problem
…to make money/profit,
…to grow, etc
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… marketers / entrepreneurs must know,
…how to;
1. … prepare marketing plans
2. …how to use them… in achieving the firm’s marketing objectives.
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• …as a marketer/entrepreneur you
need to have a good marketing
plan.
WHY ? ... to provide ,
1. direction and
2. focus for your brand/ product. @@@@
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• To grow your business, you need a marketing
plan.
• The right marketing plan identifies everything
from 1) who your target customers are to
2) how you will reach them, to
3) how you will retain your customers so they repeatedly
buy from you.
• Done properly, your marketing plan will be the
roadmap you follow to get unlimited customers
and dramatically improve the success of your
organization.
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Marketing planning
-
Defined
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…managerial task
of determining the future course
of marketing action
preceded by an analysis of the past
and projection of future marketing events.
@@@ @@@@ @@@@ @@@@
• Q. What are the benefits of having a Marketing Plan? – mention two.
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Benefits Achievement of
… marketing objectives.
… Co-ordination of activities.
… Control objectives and review.
… return on investment.
Identification of Developments and Minimization
of non-rational responses.
@@@
• Q. Are there problems faced in trying to develop and implement marketing
plans? Yes/No ?. If YES, mention two. If NO , Justify. 11-Mar-19 8
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Common Problems
Faced
In Marketing Planning
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Lack of knowledge and skills
Organizational barriers, Inadequate Resources
Poor Objectives formulation and selection.
Marketing section V/s Marketing concept.
Process V/s Output
Lack of clear relationship between corporate
planning, strategic Marketing planning and
operational marktg plg. @@@@
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STRATEGIC MARKETING
PLANNING PROCESS
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Phase one Goal setting
Phase two Situation review
Phase three
Strategy formulation
Phase four Resource
allocation and monitoring Measurement and review 11-Mar-19
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STEP- 1
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STEP- 2 Corporate
Objectives
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• …review overall objectives/ org’n
• …must be:
consistent,
congruent,
achievable,
precise and clear
…this applies to all levels of plg
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STEP- 3 MARKETING
AUDIT ( MARKET ANALYSIS )
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What is Marketing audit?
…concerned with systematic,
critical and
unbiased
review and appraisal of the
marketing environment and
marketing operations.
…try to answer these corporate plan questions Where is the company now?.
Where does the company want to go?.
How should the company organize its resources to get there?.
Acts as the basis for setting objectives and strategies.
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Who should carry marketing audit? Company's own Line Managers
on their own areas of responsibility.
How many times? Once annually , at the beginning of the planning cycle, thorough situation
analysis .
What are the causes of Objections? Lack of
time
objectivity.
How can this problem be resolved?
1. Institutionalizing procedures …in as much detail as possible so
that all managers have to conform to a disciplined approach and,
2.Embrace training
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Marketing auditing Process
Phase:1.
Identify area,
collect data, measure
data,
analyze data/ of all
relevant facts and
opinions which impinge
on a company's
problems
Phase 2.
Then apply judgment
to uncertain areas which
are remaining following
this analysis
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Finding info eg on competitors
• Internet – use Google/search engines
• Ask your suppliers and customers
• Company marketing materials
• Industry publications
• Media coverage
• Trade shows
• Labor ads
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What are the different Forms of Marketing Audit ?
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Internal Marketing Audit
External Marketing
Audit
Marketing Audit
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Internal Marketing Audit
Controllable Variables
Organization's Resources
• Examine/ assess…
…as they relate to the environment and vis-a-vis the resources of competitors.
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External audit
uncontrollable variables
the health and growth of the markets served by the company
• Examine/ assess…
• as they relate to the environment
and vis-a-vis the resources of competitors.
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Which are the critical internal areas to collect
data on?
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STRENGTHS AND WEAKNESSES
Own company Issues
Sales (total) by:-
geographical location,
industrial type,
customer,
Product
Brand
Variant, etc
Market shares
Profit margins
Marketing procedures
Marketing organization 11-Mar-19
customer,
Product
geographical
location Brand
Variant,
Plus others
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Marketing mix variables
Marketing mix
variables
PRODUCT
PRICE
PLACE
PROMOTION
PEOPLE
PHYSICAL EVIDENCE
PROCESSES
Assess all dimensions of
these variables…
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Operations and resources Issues
… assess…
Marketing objectives clarity
Consistent,
Achievable,
accuracy
Marketing strategy …what is the strategy?.
…is it appropriate?.
…are resources available & sufficient?.
…are the available resources and optimally allocated across elements of the marketing mix?
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Structure
…are the _________ well structured ?. marketing responsibilities.
Authorities
along functions,.
products,
end-user, and
territorial lines?
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(d). Information system
…is the system producing
accurate,
sufficient and
timely
information about developments in the marketplace?
…is information gathered being used effectively
in making marketing decisions?
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Planning system: …well
conceived and
effective?
Control systems & Procedures
…exist within the group to ensure planned objectives are achieved, e.g.
meeting overall objectives, etc.?
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Functional efficiency …are internal communications within the group effective?
Inter-functional efficiency
Are there any problems between marketing and other
corporate functions?
Is the question of centralized versus decentralized
marketing an issue in the company?
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Profitability analysis
…is the profitability performance monitored by
product,
served markets, etc.,
to assess where the best profits and biggest costs
of the operation are located?
Cost-effectiveness analysis
Do any current marketing activities seem to
have excess costs?
Are these valid or could they be reduced?
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External audit
uncontrollable variables
the health and growth of the markets served by the company
• Examine/ assess…
• as they relate to the internal
environment and vis-a-vis the resources of competitors.
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Industry structure
Make-up of companies in the industry (strategic group members),
Major market standing /reputation;
Extent of excess capacity;
Production capability;
Distribution capability;
Marketing methods;
Competitive arrangements;
Extent of diversification into other areas by major companies in
the industry;
New entrants;
Mergers; Acquisitions;
International links;
Key strengths and weaknesses.
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Industry profitability
• Financial and non-financial barriers to entry;
• Industry profitability
• Relative performance of individual companies;
• Structure of operating costs;
• Investment;
• Volume;
• Cost of investment;
• Source of industry profits; etc.
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The Market
Total market
Size, growth, and trends (value, volume).
Customers / consumers: changing demographics,
psychographics and
purchasing behavior.
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Market characteristics, dev’ts and trends
Products Analysis:
Principal products bought;
End-use of products;
Product characteristics weights,
measures,
sizes,
physical characteristics,
packaging,
accessories, associated products, etc.).
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Prices Analysis
Price levels
Price range;
Terms and Conditions of Sale;
Normal Trade Practices;
Official Regulations, Etc.
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Physical distribution Analysis:
Principal method of physical distribution
Elements of logistics
Channels Management Analysis:
principal channels; purchasing patterns (e.g. types of product
bought, prices paid, etc.);
purchasing ability;
geographical location;
stocks; turnover; profits; needs; attitudes; decision-makers,
bases of purchasing decision; etc.
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Mktg Communication Analysis:
principal methods of communication, e.g. sales force,
advertising, direct response, exhibitions, public
relations, etc.
Industry practices: Trade Associations,
Government Bodies,
Attitudes,
Inter-firm Comparisons; Etc.
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Technological issues
new technology,
cost savings,
materials,
components,
equipment,
methods and systems,
availability of substitutes, etc.
Intra-company issues
• Capital investment,
• closures,
• strikes, etc.
as they affect your business
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Economic- Inflation Issues
Unemployment,
Energy,
Price,
Materials Availability, Etc
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Describing your competitors
Describe each of your major competitors
Consider the following factors: Size
Market share
Target market(s)
Comparative product quality
Potential for growth
Available capital and human resources
Brand image
Innovation
Strengths and weaknesses
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Political/ fiscal /Iegal issues
Union Legislation,
Taxation,
Duty Increases,
Regulatory Constraints (e.g.
-labeling,
-product quality stds,
-packaging,
-trade practices,
-advertising issues,
-pricing issues, etc.)
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Social/cultural Issues
Some issues:
Education ,
Immigration,
Religion,
Population Distribution And Dynamics (e.g. age
distribution, regional distribution, etc.),
Changes In Consumer Life Style, Etc
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STEP-4
SWOT
Analysis
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What does the grouping of internal and external data
constitute?. SWOT Analysis
SWOT Analysis
Internally
Strengths
weakness
Externally
Opportunities
threats
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Features:-
…conduct for each segment
…focus on key factors only.
Highlight internal differential strengths and weaknesses vis-a-vis competitors and key external opportunities and threats.
…summarize reasons for good or bad performance.
…be interesting to read, contain concise statements.
…capture only relevant and important data
…give greater emphasis to creative analysis.
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STEP- 5
Assumptions
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…it is really a question of standardizing the planning
environment, before the planning process can proceed.
…with respect to the company's industrial
climate,
…assumptions should be few in number, and if a plan is possible
irrespective of the assumptions made, then the assumptions are
unnecessary.
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STEP- 6
Marketing
Objectives (Goals)
&
Strategies
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An objective is
what you want
to achieve.
A strategy
is how you
plan to achieve your
objectives.
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Highlights
• …set objectives and strategies at all levels in
marketing
• …set objectives for products and markets
• …objectives to be Measure-able in terms of sales volume;
market share;
profit;
percentage penetration of outlets
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Marketing strategies • are concerned with the four Ps, as follows:
Product Strategies …the general policies for product, eg » deletions,
»modifications,
»additions,
»design,
»branding,
»positioning,
»packaging, etc.
Price Strategies …the general pricing policies to be followed
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bands and
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Place Strategies
…the general policies for channels and
customer service
levels.
Promotion Strategies :
…the general policies for communicating with
customers under the relevant headings,such as,
sales force,
advertising
sales promotion,
public relations, exhibitions, direct mail, etc.
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STEP-7
Estimate Expected Results
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…having completed this major planning task, it is normal
at this stage to employ judgment,
experience,
field tests, and so on,
…to test out the feasibility of the objectives and strategies
in terms of estimating market share,
sales,
costs,
profits, and so on.
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STEP-8 Identify
Alternative Plans
And
Mixes
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• …it is also normal at this stage
that alternative plans and mixes
are considered, if necessary.
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STEP-9 Budget
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Features-
Cost the strategies
Cover 3 or 5 years
Develop detailed budget for the first year of the
plan, which would be included in the one-year
operational plan.
be realistic
relate to what the whole company wants to
achieve, rather than just one functional
department.
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STEP-10
First Year detailed
Implementation
Programme
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Features:
Develop
one-year tactical /operational plan,
specific sub-objectives,
…each supported by more detailed
• strategy and
• action statements.
A company organized according to functions
Might have an advertising plan, a sales
promotion plan, a pricing plan, and so on.
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A product-based company
• Might have a product plan, with objectives, strategies
and tactics for price, place and promotion as
necessary.
A market or geographically based company
• Might have a market plan with objectives, strategies
and tactics for the four Ps as necessary.
• Likewise, a company with a few major customers
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Any combination of the above might be suitable,
depending on circumstances.
A written strategic marketing plan is the
backdrop against which operational decisions
are taken.
Consequently, too much detail should be
avoided.
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Its major function is to determine
where the company is,
where it wants to go and
how it can get there.
It should be distributed on a 'need to know'
basis only.
It should be used as an aid to effective
management.
There cannot be a substitute for it.
@@@
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sample STRATEGIC AND OPERATIONAL PLANNING CYCLE
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STRATEGIC RESPONSE MODELS
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Introduction
…these are the strategic response models marketer use in making marketing
decisions/ formulation of strategies
Some models Include:
• BCG Model
• PLC Model
• Adopters Categories Model/Bass
Diffusion Model
• Ansoff’s Product/Market Model
• GE/ Mckinsey Matrix
• Profit Pools Model
• Industry Change Model -Four
Trajectories of Industry Change
Model
• Blue Ocean Strategy
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The nature
and Contents of
a Marketing
Plan
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Introduction
• Each product level (product line, brand) must
develop a marketing plan for achieving its goals.
• The marketing plan is the outputs of the marketing
process.
• Marketing plans are becoming more customer- and
competitor-oriented and better reasoned and more
realistic than in the past.
• The plans draw more inputs from all the functions
and are team-developed.
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CONTENTS OF THE MARKETING PLAN
(1.) Table of contents & Executive
summary :
• Title page
• A table of contents
• Acknowledgement
• Abstract:summary of the main goals
and recommendations.
-Permits senior management to grasp
the plan's major thrust.
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(2). Current marketing situation
This section presents relevant background data on
• sales,
• costs,
• profits,
• the market,
• competitors,
• channels, and
• the forces in the macro-environment.
• Use this information to carry out a SWOT (strengths,
weaknesses, opportunities, threats) analysis.
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(3). Opportunity and
issue analysis
• Task: Reviews the main
opportunities found in the
SWOT analysis and identify
the key issues likely to affect
the organization's attainment
of its objectives.
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(4). Marketing Objectives
The product manager outlines the plan's major
• financial and marketing goals.
Expressed in
• sales volume,
• market share,
• profit, and
• other relevant terms
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(5). Marketing strategy
The product manager
defines the
•Target market and
•Positioning strategy
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(5). Marketing strategy-Cont’d
• All this is done with
inputs from other
departments, to ensure that the
company can provide proper
support for effective
implementation.
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(6).Action programs • Specify the actual marketing programs, derived from
the marketing strategy, to be used in achieving the business objectives.
• Each marketing strategy element must be elaborated to answer these questions:
a) What will be done?
b) When will it be done?
c) Who will do it?
d) How much will it cost?
e) How will theprogress be measured?
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(7). Financial projections • Action plans allow the product manager to build a supporting
budget.
On the revenue side, this budget shows the forecasted
sales volume in units and average price.
On the expense side, it shows the expected
• costs of production,
• Marketing expenses.
The difference between revenues and sales is projected profit.
• Once approved, the budget is the basis for developing plans and schedules for material procurement, production scheduling, employee recruitment, and marketing operations.
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(8). Controls • This section outlines the controls for
monitoring and adjusting implementation of
the plan.
• Typically, the goals and budget are spelled out
for each month or quarter so management can
review each period's results and take corrective
action as needed.
• Some organizations include contingency plans
outlining the steps management would take in
response to specific environmental
developments, such as price wars or strikes,
etc.
END