5. Purpose of Strategic Marketing Planning
5
Strategy is the way in which an organisation achieves its goals
Principle focus Marketing Planning:
• Identification and creation of a competitive advantage
• Identify and capitalise on opportunities
6. Where
are we
now?
Where do
we want
to be?
How are
we going
to get
there?
How will
we know
when we
are there?
The Planning Process
6
10. Vision Statement
10
Where your organisation wants to go
What it wants to be
Should be a source of inspiration
Example:
To become the most successful premium
manufacturer in the car industry
13. Mission Statement
13
Example:
Krispy Kreme seeks to maintain its loyal customer base and attract
new customers in both current and developing markets with its
commitment to quality and consistency in its doughnuts, other
baked goods, and beverages .
Krispy Kreme will lead the industry via a commitment to
innovation, service, growth, and quality . Its channel system and
franchise system ensure profitability for retailers and franchisees
while providing convenient access for customers. Krispy Kreme
desires to instill the belief that the company is a set of capabilities,
not just a product or brand .
14. Corporate Mission & Objectives
14
• Statement of the organisation’s role
• Business Definition – distinctive competences
• Indication of the future market performance
• Summary of financial performance
• Typically 3 – 5 year planning period
16. Example - The ABC Motor Company
Established 16 November 2010
Sports Coupe´
Family Hybrid 4 x 4
Small Hatchback
16
17. Market Segments
17
Group of customers with same or similar requirements
Each has own critical success factors – address to
succeed
Affects marketing / promotional mix
19. Example - The ABC Motor Company
Established 16 November 2010
Sports Coupe´
Family Hybrid 4 x 4
Small Hatchback
19
Segment: Young Drivers - C1C2D
Limited disposable income
Segment: Families - BC1C2
Moderate disposable income
Segment: Executive – ABC1
Large disposable income
CSF: Cheap to insure!
CSF: Safe and economical
CSF: Indicate status – excite!
20. SWOT Analysis
Example - ABC Motor Company
Two areas of analysis:
Internal – Strengths and Weaknesses
External – Opportunities and Threats
20
22. Strengths
• Very strong loyal UK following
• Low insurance grouping for hatchback and family model
• Recent addition of hybrid family car
• Excellent Research and Development (R&D) Resources
22
SWOT - Internal Analysis
Example - ABC Motor Company
23. Weaknesses
• Marketing / Brand Development – small department
• Customer Relations / Database
• Not a strong brand yet – perception of coupe as exec model
• Product Reliability Issues
• Sports Coupe – very heavy on fuel and high emissions
• Hatchback now a bit long in the tooth – spec falling behind
competition
23
SWOT - Internal Analysis
Example - ABC Motor Company
25. Considers Opportunities and Threats
PEST or PESTLE Model:
25
External Analysis
Political
Economic
Social
Technology
Legal
Environmental
26. SWOT Analysis ABC Motor Company
Political
• Potential increased taxation 4 x 4 – not hybrids
26
Opportunities
Economic
• Escalating fuel prices – selling point for hybrids
Social
• UK designed and produced vehicles – strong selling feature
in UK market
Technology
• Digital / Social media – inexpensive marketing tools
27. SWOT Analysis ABC Motor Company
Political
• VAT to reach 20% for 2011 will impact sales for at least 1st two
quarters
27
Threats
Economic
• Escalating fuel prices
• Sales of new cars still low
Social
• Increasing environmental awareness – impact on performance
cars
Technology
• Development of battery technology – competition from electric
cars
28. • Strength of brand - poor
• Customer Relations / Database - limited
• Product Reliability Issues
• Sports Coupe – very heavy on fuel and high emissions
• Hatchback now a bit long in the tooth – spec falling
behind competition
28
Issues to be Addressed from Analysis
Example - ABC Motor Company
30. High Low
Relative Market Share
(In Relation to Largest Competitor)
BCG Growth Matrix
High
Low
Market Growth
(Annual Rate of
growth)
Divest
Divest
Prioritize
Invest
Star
Cash Cow
Question Mark
Dog
30
31. Sports Coupe´Family Hybrid 4 x 4
Small Hatchback
The ABC Motor Company
High Low
Relative Market Share
(In Relation to Largest Competitor)
BCG Growth Matrix
High
Low
Market Growth
(Annual Rate of
growth)
Star
Cash Cow
Question Mark
Dog
31
32. • Develop ABC Motor Company Brand
• Develop Customer Relations / Marketing Database
• Resolve Product Reliability Issues
• Focused marketing for Sports Coupe to increase
market share
• Re-design of Hatchback – to gain larger market share
• Increased marketing on Family Hybrid – Cash Cow
32
Marketing Objectives (From Issues)
33. Fundamental Questions
1. Why should customers come to you?
2. Do you deliver what you promise and more?
3. Are your customers delighted?
Or just satisfied?
33
Planning Reality Check
Roger Staubach
34. • Emphasizes superiority of brand based upon unique
features and benefits
• Differentiates company from competitors
• Reinforces customers decision to purchase
34
Unique Selling Proposition (USP)
(Rosser Reeves, USA)
35. Approach to identifying USP: -
1. Identify you 3 biggest benefits
2. Be unique & specific
3. Solve and industry Performance Gap
• Current issues in the market
• What do you do that your competitors don’t do
4. Condense into one single concise sentence
35
Unique Selling Proposition (USP)
39. Marketing Strategies
Price
Pricing Policies regarding: -
• Pricing objectives – e.g. max revenue, profit, survival,
market share
• Strategies – Skimming, Penetration, loss leaders etc
• Loyalty discounts
• Pricing for different products
• Pricing for different segments
e.g. reduce price of Coupe to increase market share
and move into “cash cow”
42. Marketing Strategies
Promotion
Policies regarding the promotional mix: -
• Advertising
• Sales promotion
• Public Relations
• Personal selling
• Direct Marketing
e.g. sales promotions for end of line Hatchback before
re-spec
43. Marketing Strategies
Promotion – 5M’s
• Mission - Objectives
• Money – Cost Implications
• Message – to suit market segment
• Media – Appropriate media
• Measurement – how can the result be measured?
47. Implementation – e.g. Promotion
Action Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Advertising
Sales
Promotion
Public
Relations
Personal
Selling
Direct
Marketing
48. Measurement ROI (Metrics)
• Increase in turnover
• Advertising – impressions from view listener volumes
• Consumer surveys
• Sales promotions – return of coupons / loyalty cards
• Wide range of methods to measure digital marketing
• Analytics
• Number of conversations regarding your product
• Number of tweets / retweets
• Number of followers
• Number impressions
• Number of views (video / slides)
• Etc etc.
49. Measurement ROI (Metrics)
Financial Analysis
• Cost per enquiry (CPE) / Response (CPR)
• Response%
• Conversion Ratios
• Cost per order (CPO)
• Return on investment
• Lifetime Value
Mission statement is an internal statement
Not written for customers (although can be used)
Communicated to all staff
Driven and inspired by vision statement
CSF start to provide strategic focus – on product spec
and also marketing message!
Note, not all issues are marketing –
Could be resource / systems procedures etc
Note, not all issues are marketing –
Could be resource / systems procedures etc
Note, not all issues are marketing –
Could be resource / systems procedures etc
Note, not all issues are marketing –
Could be resource / systems procedures etc
Note, not all issues are marketing –
Could be resource / systems procedures etc
Note, not all issues are marketing –
Could be resource / systems procedures etc
Skimming - high prices – reduce as sales slow down
Penetration pricing – low to encourage purchases
Skimming - high prices – reduce as sales slow down
Penetration pricing – low to encourage purchases
Skimming - high prices – reduce as sales slow down
Penetration pricing – low to encourage purchases