Implement a Marketing Solution & Review Marketing Performance

1
Implement a Marketing Solution Review Marketing
Performance

• Created Presented by Peter Tan

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Introduction to Marketing

• This was covered in lesson 1
• Key Essentials
• Value
• Exchange
• Demand management
• Customer Satisfaction

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Marketing Strategies

• Sun Tze
• Four Strategies to plan offensives
• Five factors for success
• Mission Visions
• Strategic Planning
• Developing Marketing Strategies
• Competitive Strategies

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Sun Tzes Strategy of Offense

• Competing head on is the last resort
• Competing by marketing plans (different target
  marketing or serving a segment niche not serve
  appropriately)
• Competing by alliance
• Competing directly the same target markets which
  could be not one of their main markets
• Competing straight on against a well established
  and served segment of a competitor

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Marketing Strategies

• Generic Business Strategies
• By using a cost leadership advantage over
  competitors
• By using some differentiating technique to
  provide a better value offering
• By focusing in what one does better than the
  competitors

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Cost leadership

• Do a better job of controlling cost drivers than
  competitors
• Doing things different and saving enough in the
  process so that customers can be supplied more
  cheaply

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Differentiation

• Something that buyers consider unique or
  different that offers value to the customer
• This can command a premium price or
• Sell more units of its value offering for any
  given price
• Better buyer loyalty

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Focus Strategy

• A segment based competitive advantage
• No 2 companies will serve the same market in the
  same way
• What is the focus of the company

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Market Dominance Strategy

• Same as competitive strategy
• Market Leader (substantial share and extensive
  distribution)
• options expanding the total market by finding
  new users or by encouraging more usage on each
  occasion
• Market Challenger (trying to gain market share by
  aggressive strategy)
• Options Choosing one target at a time or finding
  a weakness in the leaders position
• Price cutting, new product introduction, new
  distribution channel, improve and intensify
  promotions

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Market Dominance Strategy

• Market Follower (play it safe strategy)
• They are content to stay in the same position
• Avoiding expensive RD failures
• Capitalise on promotional activities by the
  leader
• Market Nicher (Target segment specialists)
• Concentrates on a few target segments
• Gain effectiveness through matching needs of
  narrow target segments
• High value added industries and obtain high
  margins
• Market high end products and use premium price
  strategy

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Marketing Implementation

• Marketing implementation is the aspect of company
  structure and behaviour that determines how a
  given strategy or plan is carried out.

Resources Needed
Activity to be implemented
Objectives Targets
Responsibility Assigned
Support of Others
Implementation Plan
Strategy
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Requirements for Effective Implementation

• Ownership of plan team oriented implementation
  is more complex, which should enhance the
  leveraging of unique talents
• Support of Plan providing time to succeed,
  resource allocation, communication and the
  necessary skills
• Adaptive planning- continuous improvements,
  feedback measurements, persistence and corrective
  implementation
• Host of other requirements in the next slide

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Requirements for Effective Implementation
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Prioritising in Planning

• Which tasks is more important at any moment which
  need more attention, energy and time vs. Expense
  lower value activities
• Must Consider
• Time specific
• Culture specific
• Partially capable
• Latent (human technical resources with lack of
  experience)
• Person specific (managers)

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From plan to implementation
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Example of a planning implementation Model
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Conventional Uncoordinated Approach to
implementation
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Functional Approach to Implementation Planning
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Implementation Strategy

• An implementation strategy sets out the stages
  needed to turn the marketing plan into reality.
• It converts plans into actions, it provides a way
  of planning resources( time, effort and finance)
  so that all tasks can be carried out in a given
  timescale.
• Breaking it down to (1) objectives (Milestones to
  achieve), (2) timescale (tasks list with GNATT or
  PERT), (3) monitoring progress (problems
  communicated internally and changes made
  externally, looking at metrics for performance)

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Successful Marketing Implementation

• Requires
• Effective and efficient coordination of
  activities (who is doing what and by when)
• Minimizing distractions by focusing on the tasks
  at hand and determining where time is best spent
• Attention to detail
• Staying on top who is doing what. Not assuming
  someone else is doing it
• Eliminating procrastination (e.g. team member
  facing problems and do not know how to rectify
  the situation)
• Over delivering and under promising
• Doing what you do best and outsourcing or
  delegating the rest
• Tasks accountability managers must know who is
  responsible for what and must monitor and manage
  the completion of it.

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Internal Marketing

• Peoples commitment to succeed. Marketing strategy
  is effective when staff
• Display a high level of clarity about their tasks
  expectations (with permissive allowance for
  initiative and autonomy)
• Understand the corporate mission, vision, goals,
  objectives and targets
• Understand the brand promise
• Display high levels of clarity about the criteria
  by which they will be evaluated
• Believe that they have access to the information
  and resources necessary to perform their jobs

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Marketing Performance

• To implement and monitor marketing performance,
  we require a control mechanism. Control is also
  the identification of problems that resulted from
  unsatisfactory performance. These levels can be
  review and corrected at appropriate times.
• Controls are standards that (1) fixed, (2)
  variable (3) analytical

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Standards

• Fixed e.g. annual sales targets
• Variable e.g. monthly or weekly targets
• Analytical e.g. models built into them
  attempting to define the variance. Using fixed
  and variable together with some statistical
  analysis.

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Strategy Evaluation

• Here we will develop metrics to assist in
  analysis
• Good evaluation quantitative objectives
• Good Analysis quantitative objectives and
  qualitative criteria
• Common use in evaluating strategies
• Firms performance compared over different time
  periods
• Firms performance compared to competitors
  performance
• Firms performance compared to industry averages

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General Business Metrics

• Metrics are models or ways of numerically
  assessing a process
• Essential
• Metrics that drive business results
• That reflect business results
• Of things that can be influence
• That can be measured accurately
• Measured consistently
• Measured cost effectively

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GB Metrics

• GB metrics are used to compare the company to the
  competition
• Operations/production plant or store capacity,
  skill of labour force, quality control
• Financial profitability cash flow, retain
  earnings, ROI
• Administrative staff turnover, age of
  facilities, expenses
• Management experience, depth and turnover of
  top, middle and supervisory managers,
  implementation record
• Technology/RD production technology, RD
  budget, innovation and engineering abilities
• Marketing sales growth, market share, customer
  retention rates, etc

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Marketing Performance Measurement

• Marketing Performance Measurement allows for
  accountability of marketing efforts.
• Activity Based Metrics, e.g. trade shows count
  the number of booth attendees and leads
• Operations performance metrics e.g. cost and lead
  which is the connection between marketing program
  and business output
• Outcome base metrics e.g. 15 market share in the
  hospitality industry in 3 years. This depends on
  the marketing strategy which is to focus on a
  particular segment such as city hotels. The
  outcome strategy serve as the determinant for
  what performance indicators will matter most.

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MPM

• Leading indicator metrics
• Facilitates business decisions regarding
  strategic direction. For example, if a primary
  business objective is to increase the no. of
  products used by a customer, then tracking share
  of wallet and the degree ti which improving
  lifetime value serve as a leading indicator.

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Sales Metrics

• Sales analysis is the performance evaluation
  procedure designed to identify the areas in which
  sales performance exists. To clarify above or
  below targets.
• Sales revenue
• Sales volume
• Sales expenses
• Sales by product, model or variation
• Sales by type of customer industry
• Sales by territory, individual sales rep
• Sales by package size
• Sales by size of order
• Sales margins
• Sales calls, current and potential customers
• Number of product demonstration
• Sales presentation to customers
• Coverage of trade area

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General marketing metrics

• Measuring marketing effectiveness through
  quantifiable, useful and insightful benchmarks,
  focusing on efforts and resources that best
  builds the business
• Market share by product line, geographical
• Marketing expenses
• Product line analysis, objectives, strategies,
  old versus new and ranking
• Sales by territory, region, divisions
• Brand awareness and preference, brand loyalty
• Pricing effectiveness
• Target segment penetration
• Awareness to demand ratio
• Company or Brand reputation r image

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Promotional Metrics

• Promotional metrics covers the effectiveness of
  activities such as advertising, sales promotion,
  personal selling, direct marketing and public
  relations
• Overall response rate to promotional activities
• Advertising recall, expenditures
• Share of mind, media effectiveness, advertising
  reach, media mix effectiveness
• Sales promotion objectives, strategies,
  effectiveness, expenditures
• Number of promotions, cost per promotion, cost
  per acquisition, cost per mailer, coupon
  redemption rate
• PR effectiveness, Press release to media
  exposure, number of media exposure within the
  year, quarter
• Website measurement, conversion and abandonment

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Pricing Strategy Metrics

• Pricing analysis by product lines
• Pricing analysis of all channels
• Analysis of organisation prices versus
  competitors
• Seasonal effects on price
• Buyer price sensitivity
• Effect on pricing of deals discounts and
  allowances
• Number of discounts

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Distribution Metrics (logistics and Channels)

• Distribution costs by type of channel, by retail
  outlet
• Inventory turnover and expense
• Channels of distribution objectives and
  strategies
• Analysis of channels of distribution currently
  used
• Market share per channel, effectiveness
• Channel member participation levels

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Customer acquisition metrics

• Rate of new customer acquisition
• Cost of customer acquisition
• Incremental revenue
• Share of customer wallet, segment awareness and
  preference levels of the product/brand
• Customer service and purchase drivers

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Relationship and partnering Metrics

• Retention Rate
• RFM (Recency, frequency, monetary value)
• LTV (lifetime value)
• Overall customer service level
• No. of Customer complaints
• Partner participation
• Warranty claims