CBA Strategic Marketing

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CBAStrategic Marketing
Graham Bailey
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Presentations

• Present to the group your chosen topic covering-
• Situation
• Market
• Customers

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MARKETING DEFINITION

• Marketing is the management process responsible
  for identifying, anticipating and satisfying
  customer requirements profitably

The Chartered Institute of Marketing
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PRODUCT ORIENTATION
CUSTOMER ORIENTATION OR MARKETING ORIENTATION
VS
Persuade customer to have what company has
developed
Persuade company to have what customer wants
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PRODUCT ORIENTATION
CUSTOMER ORIENTATION OR MARKETING ORIENTATION
VS
Persuade customer to have what company has
developed Product, production, process and
delivery system
Persuade company to have what customer
wants Customer segments and competitive
advantage
Focus
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CUSTOMER ORIENTATION OR MARKETING ORIENTATION
PRODUCT ORIENTATION
VS
Persuade customer to have what company has
developed Product, production, process and
delivery system Volume, costs profit margins
Persuade company to have what customer
wants Customer segments and competitive
advantage Profitable use of resources, market
position, customer satisfaction
Focus Objectives
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CUSTOMER ORIENTATION OR MARKETING ORIENTATION
PRODUCT ORIENTATION
VS
Persuade customer to have what company has
developed Product, production, process and
delivery system Volume, costs profit
margins Short-term, reactive
Persuade company to have what customer
wants Customer segments and competitive
advantage Profitable use of resources, market
position, customer satisfaction Medium and long
run view of threats and opportunities
Focus Objectives Time Horizon
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PRODUCT ORIENTATION
CUSTOMER ORIENTATION OR MARKETING ORIENTATION
VS
Persuade customer to have what company has
developed Product, production, process and
delivery system Volume, costs profit
margins Short-term, reactive Annual plan
budget
Persuade company to have what customer
wants Customer segments and competitive
advantage Profitable use of resources, market
position, customer satisfaction Medium and long
run view of threats and opportunities Integrated
strategies
Focus Objectives Time Horizon Planning
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THE MARKETING MIX

• Right Product
• Right Price
• Right Place
• Right Promotion
• Right People
• Right Processes
• Right Physical Evidence
• SUCCESSFUL PRODUCT

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Marketing Planning

• Mission Statement
• (external) Marketing Audit (internal)
• SWOT Analysis
• Generation and Evaluation of Options
• The Marketing Plan
• Implementation and Control

Feedback
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DEVELOPING THE MARKETING PLAN

• A

udit

• A

nalysis

• O

bjectives

• S

trategies

• T

actics

• T

iming

• M

easurement

• F

eedback
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PRODUCT LIFE CYCLE (PLC)
Introduction
Growth
Maturity
Decline
VOLUME
Break-even
TIME
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PORTFOLIO MATRIX
Stars
high
Annual Market Growth Rate
10
cash cows
dogs
low
-1x
1x
10x
Market Dominance
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SWOT
Internal (controllable)
External (uncontrollable)
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FIVE FORCES INFLUENCE COMPETITIVE INTENSITY
Potential Entrants
Threat of Entry
Industry Competitors
Bargaining Power
Bargaining Power
Suppliers
Buyers
Internal Rivalry
Threat of Substitution
Substitutes
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MARKETING SEGMENTATION ANDCUSTOMER DATABASE
Criteria for segmenting the consumer database

• Geography
• Demography
• Psychography
• Product Usage
• Decision Process

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MARKETING SEGMENTATION ANDCUSTOMER DATABASE
Criteria for segmenting the business database

• Geography
• Industry type
• Size of company
• Product Usage
• Decision Process

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TARGETING

• Market size
• Viable audience
• Can you reach them

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POSITIONING

• Against competition
• Relevant to customers needs

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POSITIONING GRID
x
Criteria B
x
x
x
x
x
Criteria A
x
x
x
x
x
x
x
x
x
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DEVELOPING A SUSTAINABLE COMPETITIVE ADVANTAGE
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Competitive Advantage Analysis
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Competitive Advantage Analysis
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Competitive Advantage Analysis
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Competitive Advantage Analysis
Business strengths
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Competitive Advantage Analysis
Business strengths
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Competitive Advantage Analysis
Business strengths
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Competitive Advantage Analysis
Business strengths
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Competitive Advantage Analysis
Business strengths
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Competitive Advantage Analysis
Business strengths
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Competitive Advantage Analysis
Business strengths
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Porters generic strategies
cost leadership
focus
differentiation
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Why Plan?

• Know where youre going
• A chance to review where youve come from
• Team buy in
• Learn from successes/failures
• Position vs competition
• Take a step back from the business

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DEVELOPING THE MARKETING PLAN

• A

udit

• A

nalysis

• O

bjectives

• S

trategies

• T

actics

• T

iming

• M

easurement

• F

eedback
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Case Study

• Study the Montabert case and develop your
  solution to the situation

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DEVELOPING THE MARKETING PLAN- STAGE 1
Audit and Analysis

• Environmental analysis
• Competitive analysis
• Customer analysis
• Resource and capability analysis

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The Objectives Cascade
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CORPORATE OBJECTIVES TO MARKETING OBJECTIVES

• long term plan
• financial situation
• life cycle stage
• company vision/mission
• competition
• market situation

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Marketing Objectives Cascade
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MARKETING OBJECTIVES

• new product development
• projected sales
• market share
• brand image
• communication objectives
• pricing strategy
• distribution channel strategy
• customer care policy

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Case Study

• Read the case study and prepare your answer.

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MARKET RESEARCH AND ANALYSIS CHECKLIST

• Gather reliable data
• Apply the appropriate analysis tools
• Draw conclusions and actions
• Incorporate into marketing plan
• Continue to collect and analyse data
• Set up regular reviews

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Marketing Research
Ad Hoc
Continuous
Primary Secondary
External M.I.S
Internal External
Observation Experiment Survey
Quantitative Qualitative
Census Survey
In-Depth Interviews
Psycho- Analytical
Group Discussions
Personal Postal Telephone
Online
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Market Driven Strategies
Org. structure systems
Shared beliefs and values
Superior skills in satisfying customers
Support progs actions
Strategy development process
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Sources of competitive strategy
Comoditiy Markets
Segmented Markets
Differentiated arkets
Fragmented arkets
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DEVELOPING THE MARKETING PLAN- STAGE 2

• Objectives
• Strategies
• Tactics
• Timing

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NPD Process
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Brand/Market Options
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Product Development Process
Cost
Increasing
Time
Launched Products
Ideas
Reducing
Risk
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Types of New Product
Lower Level of Change
Higher Level of Change
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New Product Strategy

• Product area identified
• Competitor review undertaken
• Quantified objectives
• Profit targets

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Idea Generation Techniques

• Segmentation studies, gap analysis, trend
  projections
• Competitive analysis
• Pointer and parallel markets
• Brainstorming
• Leading edge thinking future featuring
• Synectics

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New Product Development Exercise

• In your group, develop a new product for one of
  your companys

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Pricing Strategy

• Price leader
• Skimming
• Penetration
• Segmentation
• Product line
• Geographic
• Psychological

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Distribution Channel

• Direct
• Sales Force
• Distributor
• Licence
• Dealer Network
• Retail
• Broker
• Ecommerce

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Case study - preparation

• Complete the preparations for your presentation

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Marketing Communications

• What
• When
• Where
• Why
• Who
• How much ?

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Message Medium
Sender
Encoder
Decoder
Receiver
NOISE
Feedback Response
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THE COMMUNICATION PROCESS

• Awareness
• Interest
• Desire
• Action

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E F F E C T I V E N E S S
A I D
A
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E F F E C T I V E N E S S
Advertising
A I D
A
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E F F E C T I V E N E S S
Advertising
Publicity
A I D
A
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E F F E C T I V E N E S S
Advertising
P.R.
Publicity
A I D
A
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E F F E C T I V E N E S S
Advertising
Sales Promotion
P.R.
Publicity
A I D
A
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E F F E C T I V E N E S S
Personal Selling
Advertising
Sales Promotion
P.R.
Publicity
A I D
A
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E F F E C T I V E N E S S
Personal Selling
Advertising
Sales Promotion
Internet
P.R.
Publicity
A I D
A
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ABOVE, BELOW THROUGH THE LINE

• Above The Line
• Advertising
• Below the Line
• Sales Promotion
• Public Relations
• Direct Marketing
• Sponsorship
• Telemarketing
• Internet
• Database marketing

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ON LINE

• Web sites
• E-mail
• Intranet
• Extranet
• E-commerce

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DEVELOPING THE COMMUNICATIONS STRATEGY

• Consider who - target market
• where - media choice
• when - time of day,year
• what to say - creative
• why are we saying it - support
• how much to spend - share of
• budget

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COMMUNICATIONS STRATEGY - Media

• Direct - phone
• - mail
• - email
• - one to one
• Indirect - advertising
• - public relations
• - literature
• - sales promotion

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MEDIA STRATEGY

• Media neutral
• Inter media decisions
• Intra media decisions
• Media mix
• Direct and indirect media
• Cost effectiveness
• Previous history

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ADVERTISING EXPENDITURE
Country Newspapers Magazines
Television Radio Cinema Posters

France 26.0 23.5 30.7
7.5 0.8 11.4 Germany 44.9
19.0 26.3 4.0 1.1
4.7 Hungary 14.3 13.7 59.5
5.4 0.3 6.8
Italy 23.3 17.2 52.3
3.8 1.0 2.4 Netherlands 44.3
24.9 20.5 6.3 0.2
3.8 Spain 31.5 11.3
41.2 8.3 0.9
6.8 UK 41.2 16.0 31.4
4.2 1.3 5.9
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COMMUNICATIONS STRATEGY - Creative

• Brand as hero
• Slice of life
• Leading Edge
• History
• Personality
• Product demonstration
• Image

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REVIEWING CREATIVE PROPOSALS

• Did it grab my attention ?
• Was it relevant ?
• Did the product stand out clearly ?
• Does it offer the target reader/viewer any
  benefits ?
• Did it meet the objectives ?

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Syndicate Exercise

• Review the creative materials presented to you.

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Tactics and Timing

• Tactics spelt out in detail
• Calendarised event timetable
• Time scales to include approvals
• Build in review dates

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DEVELOPING THE MARKETING PLAN- STAGE 3

• Measurement
• Feedback

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MARKETING AUDIT

• Gather quantitative and qualitative research from
  all stakeholders to determine the effectiveness
  of the marketing plan.

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MARKETING AUDIT

• Internal
• - a review of all the internal
• aspects of the marketing plan
• people
• systems
• training
• vision
• customer focus

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MARKETING AUDIT

• External
• advertising
• sales promotion
• public relations
• distribution channel
• customer relations
• web site
• corporate image

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PLAN EVALUATION

• Sales figures
• Profit levels
• Distribution targets
• Image
• Awareness
• Data collected
• Brand Profile
• Positioning vs competition

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Rewards of Planning

• consistency
• ensures monitoring change
• encourage organisational adaptation
• stimulates achievement
• resource allocation
• creates competitive advantage

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Key Questions in Planning

• what business are we in?
• have we clearly identified the target?
• do we know what the target wants?
• do we satisfy their needs?
• where is the competition?
• what are our competitive advantages?

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Key Questions in Planning

• what are our business objectives?
• what are our marketing objectives?
• is our strategy clearly understood?
• are our tactics consistent with the
• strategy?

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Syndicate Presentations

• Each group will present their solution to the
  Vodafone case

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Examination

• There will be an exam paper covering the course
  content.You will have 1½ hours to complete the
  paper.

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ACTION PLANS

• Set yourself actions which you can implement at
  work based on what you have learnt