Marketing Plan to Address External Threats

13443734 Marketing Planning Process 1

SESSION : MARCH 2012

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Prepared for : Zimbabwe Newspapers

Prepared by : Marketing Manager

Date : January 2012

Subject :Medium – term Marketing planning to address threats in the external
environment of Zimbabwe Newspapers


TABLE OF CONTENTS

Content Page

1.Executive Summary 4

2.Corporate Mission 5

3.Summary of audit findings 5

4.SWOT Analysis 6

5.Marketing objectives 6-7

6.Marketing Strategies 7 - 10

7.Marketing mix decisions 11 - 12

8.Budgets 12

9.Implementation 12

10. Evaluation and Control 13

APPENDICES

1.Appendix 1 : Organizational background
2.Appendix 2 : Audit Findings
3.Appendix 3 : Gabriel’s credibility Matrix
4.Appendix 4 : Implementation / Schedule of activities
5.Evaluation Report
6.References


1.0 EXECUTIVE SUMMARY

Zimbabwe Newspapers (1980) Ltd is the oldest newspaper publisher and commercial printer in
Zimbabwe, as well as being easily the largest publisher of newspapers, having dominated the industry
for almost 120 years. The company is the proprietor of Zimbabwe’s leading daily newspapers, The
Herald and the H-Metro and owns two weekly newspapers operating in tandem with the dailies, The
Sunday Mail and Kwayedza. Zimbabwe Newspapers mission is to produce newspapers, print and package
products and offer publishing services that add value to our customers, employees and shareholders

Threats exist because of the following changes in the external environment:
1. Deregulation of the newspaper industry.
2. Political interference
3. The growing use of direct mail is at the expense of newspaper revenues.
4. Great presence of substitutes such as television news, radio news, internet news and mobile news.
5. The growing use of internet as an advertising channel.
6. Demographic change.

Due to the above changes in the external environment Zimbabwe Newspapers wishes to reposition itself
in the next 3 to 4 years in order to maintain its position as market leader and increase sales of all
newspapers by 20% in the next four years and achieve a market share of 52% of its flagship newspaper,
The Herald in 3 years. In order to achieve this Zimbabwe Newspapers needs to invest in a number of
activities that will make it realize a positive change. The activities will include Ansoff growth strategies
such as market penetration, product development, market development and diversification, market
positioning strategies as well as improving the 7 Ps of marketing in order to increase sales.

However there are factors that will affect the implementation of the marketing plan such as limited
funding and managerial, cultural and organizational issues such as poor and inadequate marketing
intelligence, poor internal communication in marketing between functions and lack of skills and training.

RATIONALE
As technology advances, the demand of print media decreases and consumers now opt to read the
news online which is much cheaper. The threat of substitutes such as such as television news, radio
news and other online news which brings news to the customer much faster, cheaper and in a more
visual style than newspapers has also reduced the demand of Zimbabwe Newspapers publications.
The growing use of direct mail is at the expense of newspaper revenues. Over the past 5 years, the amount
spent on direct mail advertising has grown more than 100 %, compared to just over 40% for newspaper
advertising The growing use of internet has gone a step further than television in eroding the advertising
income of newspapers by providing a convenient vehicle for classified advertising, particularly in categories
such as jobs, vehicles and real estate. Furthermore the liberation of the newspaper industry resulted in stiff
competition and market loss. It is against this background that Zimbabwe Newspapers needs a marketing plan
to address threats as a result of changes in the external environment.


2.0 CORPORATE MISSION STATEMENT

To produce Newspapers, Print and Package Product and offer publishing services that add value to our
customers, employees and shareholders.

Core Values
• Customer Satisfaction
• Good corporate governance
• Equal opportunity employer
• Profitability
• Quality products and services

3.0 SUMMARY OF AUDIT FINDINGS

3.1 Political factors
• Unstable political environment
• Growing political focus and pressure
• Government of Nation Unity not agreeing in policy making.
Economic
• High unemployment rate
• Underperforming economy
• Less disposable income
• Lack of borrowing facilities
Social
• HIV/AIDS pandemic
• Growing use of internet
Technological
• Internet and satellite television
Environmental
• Government and pressure groups raise awareness of environmental preservation.
Legal
• Deregulation of newspaper industry

3.2 Competitive environment
Zimbabwe Newspapers main competitors are Alpha Media Holdings and Associated Newspapers of
Zimbabwe.
1. Competitive intensity: Less competitive as there are few firms holding large market share.
2. Barriers of entry: High, requires specialized technology and high minimum efficient scale.
3. Bargaining power of suppliers: High, few suppliers of newsprint and ink in Southern Africa.
4. Bargaining powers of buyers: weak buyers are fragmented, no buyer has influence over price or
product.
5. Threat of substitutes: High because of television news, radio news, mobile news and other
online news.


4.0 SWOT Analysis for Zimbabwe Newspapers

Strengths
• Strong brands
• Innovative company
• Favorable access to distribution networks
Weakness
• No customer retention policy
• Poor customer service delivery
• Newspapers viewed as political biased
• Insufficient operational resources
Opportunities
• High potential readers because of high literacy rate in Zimbabwe
• Stabilized prices because of adoption of foreign currency
• High potential distributors
• Technological advances
• Government support
Threats
• Competition from deregulation of newspaper industry
• Change of government
• Substitutes
• Growing use of internet advertising
• Demographic change
• Growing use of direct mail

4.2 Key issues: Threats
Scenario planning (BP Marketing planning December 2010 Study Text, pg98)

Business Impact
LOW HIGH
H Political instability
I Substitutes
G Competition
H Technological advances

L Political interference
O High unemployment rate Reduced demand of print media
W

5.0 OBJECTIVES

Marketing Objectives
• To increases sales of all newspapers by 20% in the next four years
• Enhance brand visibility of all newspapers and loyalty through repeat purchases
• Establish 50 distribution outlets in the neighboring countries in the next 4 years.


• Achieve advertising sales revenue of $1 billion dollars over 5 years.
• Achieve market share of 52% for The Herald in 3 years.

Financial Objectives
• To achieve a breakeven point within the fourth quarter of the year.
• To increase the profit margin by 1.5 % per quarter for the following four years
• 10% growth rate for the next five years

6.0 STRATEGY

Ansoff Growth Strategies suggest four ways for organizational growth which are through Market Penetration,
Product Development, Market Development and Diversification. In Zimbabwe Newspapers situation, Market
penetration and market development would be adopted.

Ansoff Product – Market Growth Matrix

PRODUCTS

Existing Products New Products

MARKET PRODUCT
PENETRATION DEVELOPMENT

MARKET DIVERSFICATION
DEVELOPMENT

Market Penetration involves selling more of existing products in existing market. Zimbabwe Newspapers can
penetrate markets by gaining competitors customers this would require a much more aggressive promotional
campaign, supported by a pricing strategy designed to make the market unattractive for competitors, improving
the product quality or level of service and attracting non-readers of Zimbabwe newspaper publications or
convincing current customers to read more of the company’s newspapers, with the use of marketing
communications tools.
Market penetration seeks to achieve four main objectives:
1. Maintain or increase the market share of current products.
2. Secure dominance of growth market.
3. Restructure a mature market by driving out competitors.
4. Increase usage by existing customers.

Market Development is a growth strategy where Zimbabwe Newspapers seeks to sell its existing products into
new markets. Ways of approaching this strategy are new geographical market; newspapers would be sold in
neighboring countries like South Africa and Zambia, new distribution channels and different pricing policies to
attract different customers or create new market segments.


Competitive advantage
“Competitive advantage is the process of identifying a fundamental and sustainable basis from which o
compete. Marketing strategy aims to deliver this advange in the market place”Donnelly, R, and Harrison,G.
(2009,p16). According to Porter (1985), there are 3 generic strategies of competitive advantage and these are:
Cost Leadership
Differentiation
Focus

In face of growing competition from Alpha Media Holdings and Associated Newspapers of Zimbabwe,
Zimbabwe Newspapers will adopt the cost leadership strategy which aims to pursue an overall cost leardship
position and achieve and maintain a low cost structure.

The basic drivers of cost leadership, according to Drummond and Ensor (1999) are :
• Economies of scale- the single biggest influence on cost
• Linkages and relationships- being able to link activities together and form long-lasting customer
relationships, inclusive of customer retention programmes
• Infrastructure- factors such as location, availability of skills and government support.

The organization can pursue economies of scale by acquiring digitalized printing machines that are fast and
efficient and produce less spoiled papers thus reducing newsprint wasted. It can also source for cheaper
newsprint and ink, minimize research and Development expenditure and keep a firm control of overheads.
The organization can establish strong relationships with its customers through customer retention
programmes and Customer Relationship Management. Zimbabwe Newspapers can utilize the existing
infrastructure and availability of skills and utilize government support.

Market Positioning Strategies

Zimbabwe Newspapers can position itself as a market leader, because as a former monopoly it is extremely
dominant and high profile in the newspaper industry and target marketplace. The group possess 56 % market
share, and the flagship newspaper has a daily readership of over one million. However positioning the group as
a market leader leaves it vulnerable for competitor attacks. Typical competitor attacks include market
expansion, aggressive and offensive attacks to regain lost market or even defensive attacks, trying to protect
existing market share from a market contender.

Segmentation

Kotler defines segmentation as the act of dividing the market into specific groups of customers/buyers who
share common needs and who might require separate products and / or marketing mixes. Hooley, Saunders and
Piercy in Marketing Strategy and Competitive Positioning define market segmentation as “identifying the most
productive bases for dividing a market, identifying the customers in different segments and development
segment description”.

Segmenting customers and prospective customers allows Zimbabwe Newspapers to better understand them.
Segmenting allows the group to prioritize resources. A segmented audience allows for more knowledgeable
circulation, advertising, and product development decisions.

AGE CHARACTERISTICS
19 - 24 Find television new and entertainment less biased and more interesting than that of the
newspaper, but use the newspaper as an advertising source.
25 - 34 Use the newspaper as a source of consumer education and daily living information.

35 - 44 Place greater value on advertising content of the newspaper and less critical of its news


coverage.
45 - 65 Less critical of newspaper coverage and less interested in consumer information but rather
more interested in local, national and church stories

Targeting strategies

Targeting is the decision about which market segment(s) a business decides to prioritize for its sales and
marketing efforts.(Dibb, Simpkin, Pride and Ferrell, Marketing Concepts and Strategies, 4th European edition) .
Targeting is the process of that involves evaluating the attractiveness of a range of potential market segments
that have been identified in terms of being commercially viable. (CIM COURSEBOOK Marketing Operations
2001. Karen Beamish, pg 63)

There are three market-coverage strategies: undifferentiated marketing, differentiated marketing and
concentrated marketing. When choosing the suitable strategy Zimbabwe Newspapers must take into
consideration: economies of scale, customer needs, wants and expectations, competitive rivalry, brand strength
and market share and company capability. Zimbabwe Newspapers will concentrate its efforts on one market but
have different versions of each product. This is known as differentiated marketing. Currently the group has four
newspapers serving the market, H-Metro is an gossip and entertainment tabloid currently targeting the 19 – 24
age group, The Herald is targeted at the 25 – 34 and 35 – 44 age groups and Kwayedza is for those that are 45 –
65 years. The group can add a weekly business digest for corporate and national leaders and also a classifieds
weekly tabloid target the 35 – 44 years segment.

By offering product and market variations , we hope for higher sales and a stronger position within each market
segment and that a stronger position in several segments will strengthen consumers’ overall identification of the
group with the product category. Differentiated marketing typically creates more total sales than
undifferentiated marketing but it also increases the costs of doing business.

Positioning
According to Kotler (2008, pg 157), “positioning is arranging for a product to occupy a clear, distinctive and
desirable place relative to competing products in the minds of trget consumers.”

To enhance successful positioning of the newspapers, Zimbabwe Newspapers will maintain clarity, consistency,
credibility and competitive, the keys to successful positioning as per diagram below Jobber (2010)

Clarity

Credibility Successful Consistency
Positioning

Competiveness

Source: Jobber, D. (2010)


Perception is a vital component of positioning strategies, the key tool to support this process is a perceptual
map. When looking at perceptual maps, there are four perceptions to be considered:
• High price and high quality
• High quality and low price
• Low price and low quality
• High price and low quality

High Price

Associated
Newspapers Zimbabwe
Newspaper
s
Low Quality High Quality

Alpha Media
Holdings

Low Price

Figure 3.5 Perceptual positioning map
As shown in the diagram above, newspapers printed by Zimbabwe Newspapers are of a very high standard. The
news content of each publication is well researched and verified, there is wide coverage of the newspapers and
subscription copies are delivered in a timely manner and in the proper condition.

Zimbabwe Newspapers realizes that successful positioning is increasingly about ongoing relationships with
target customers. Morgan & Hunt (1994) defined relationship marketing as “all marketing activities directed
towards establishing, developing and maintain successful relational exchanges”. The group seeks to build long
term relationships with clients with potential of providing a profitable relationship for the business.


7.0 MARKETING MIX DECISIONS

7.1 Products
In order to achieve its objectives, Zimbabwe has identified two main products which it will need offer
in the market. The products are as follows:
Business Digest
A weekly business digest will cater business owners, employees, national leaders and other individual
or groups that are interested in the economic growth of the nation. The Business digest will be released
every Monday, it will cover changes in the macro environment of business in Zimbabwe and coverage
of business in every sector in the economy: mining, tourism, banking, retail, transport and insurance.

Classifieds tabloid
This newspaper is set to serve the whole market as people from all age groups and occupation are
interested in the classifieds as it advertises a range of products and services from tuition, nursery
schools, property, building materials, clothing, plumbing services and vehicles on sale.

7.2 Place
Zimbabwe Newspapers practices intensive distribution resulting in wide coverage of its publications.
The different channels of distribution are:
• Vendors. The group has employed over 250 vendors in the capital city, Harare. They collect the
newspapers from the dispatch office on a dairy basis
• Agents. Newspapers are delivered to retails shops, service stations and book store nation wide, in
totals there are 156 agents. They sell the newspapers on commission of 10% the cover price. They
offer convenience for our readers as they are located close to them.
• Home deliveries. When customers subscribe to any of our newspapers they are delivered to their
homes or offices in a timely manner and in the proper condition by deliverymen that are employed
by Zimbabwe Newspapers.
• Online. All newspapers can be viewed online.

7.3 Price
Zimbabwe Newspapers is an established print media house that enjoys economies of scales as a result
the cover prize of its newspapers is below their competitors. By charging a price below the competitors,
it will capture the competitor’s customers because the newspaper market is price sensitive.

7.4 Promotion
Promotion is the way a company communicates what it does and what it can offer to its customer
(www.cim.uk/marketingresources, Marketing and the 7Ps, pg 5). Zimbabwe Newspaper is going to use
the following promotional tools to reach its target market:
1. Direct Marketing
An interactive system of marketing which uses one or more advertising media to effect a measurable
response at any location .Source: Institute of Direct Marketing
Through direct mail and approaching companies and individual to subscribe to the newspapers
2. Public relations
“A planned and sustained effort to establish an maintain goodwill and mutual understanding between an
organization and its target publics”(CIM COURSEBOOK Marketing Operations 2001. Karen Beamish, pg
124)
It aims to disseminate information to the public and to create and maintain the corporate and brand image
through press releases and exhibitions.
3. Advertising


“advertising is a form of non-formal communication that is transmitted through mass media such as
television, radio, newspapers, magazines, direct mail, public transport vehicles, outdoor displays and the
internet” ”(CIM COURSEBOOK Marketing Operations 2001. Karen Beamish, pg 101)
It group puts in-house adverts in its newspapers and uses billboards and also displays on public
transport vehicles.
4. Sales Promotions
“A range of tactical marketing techniques designed within a strategic marketing framework to add
value to a product or service in order to achieve specific sales and marketing objectives”(CIM
COURSEBOOK Marketing Operations 2001. Karen Beamish, pg 101)
sales promotion aim to increase trial and adoption of new and existing products, increase brand and
product awareness and to attract customers to switch brands and products from competing
organizations. This can be achieved by employing the following techniques:
• Discounts for subscriptions
• Buy one and get one free i.e subscribe for a month a get a whole week of free newspaper deliveries.
• Point of sales displays
• Customer loyalty bonus schemes
• Prize draws

7.5 People
Over the past few years Zimbabwe Newspapers as gained bad reputation of poor customer service and
high staff turnover. Considering the marketing objectives it wants to achieve it is necessary for staff to
undergo Customer Care training to be held annually to ensure exceptional service delivery and high
professionalism from staff members. Jobber (2010) states that “Understanding internal marketing will
be key in the success of the organization. Internal marketing is training and communicating with
internal staff.”

7.6 Process
The process of the organization is that journalists present stories that are authentic and written in an
unbiased and professional manner. The printers are to print the newspaper on time and with good
quality, from there the circulation department is to ensure that the newspaper get wide coverage and
that it is delivered on time and in the proper condition.

7.7 Physical Evidence
Zimbabwe Newspapers must clearly brand its offices, with the logo well placed and visible at all
branches and head office as well as on the delivery trucks. All offices are to be neat and of a formal
setting. All staff to wear well branded uniforms and be smart. This plays a major role in establishing
the quality perception of service and institution as sited by Donnelly, R. and Harrison, G. (2009).

8.0 BUDGETS
Investment budgetary will be used for the next 4 years. Top-Down budgetary approach has been
adopted to give management a bigger picture of the project. Below is the proposed budget.

MARCH 2012 TO MARCH 2016 BUDGET IN US DOLLARS
TASK YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTAL
Advertising and hiring 300,000 250,000 200,000 150,000 900,000
Public relations 80,000 70,000 60,000 50,000 260,000
Publicity 50,000 40,000 30,000 30,000 150,000
Distribution 200,000 100,000 80,000 80,000 460,000
Customer Service Expenses 90,000 60,000 50,000 50,000 250,000
Sales promotions 80,000 80,000 70,000 60,000 290,000
Marketing Contigency 150,000 120,000 100,000 100,000 470,000
TOTAL 950,000 720,000 590,000 520,000 2,780,000


9.0 IMPLEMENTATION- SCHEDULE OF ACTIVITIES
Marketing tactics have been broken down into implementable tasks for four years. Refer to appendix 4

10.0 EVALUATION AND CONTROL
The table below show approaches of how to measure this marketing plan

Feedback Information Standards Control Actions
Sales Figures Will be measured against budget Stimulate demand
Circulation Number of copies per week Stimulate circulation
Cost/ Profit Cost/profit ratios Reduce Expenditure
Corporate image Attitudes change Improve internal and external
relations

How marketing activities will be measured and controlled.

ACTIVITY CRITICAL SUCCESS FACTOR
Sales Promotions Number of new subscribers
Advertising Attitude ratings, awareness levels, cost levels
Public Relations Goodwill, mutual understanding, awareness
Pricing Demand and sales levels
Distribution Number of distribution outlets and coverage of newspapers
People High morale, high staff retention, innovation
Process Efficiency and effectiveness
Physical Evidence Staff uniforms, buildings, colour and logo and attractive website

Source: BP CIM Professional Diploma . Marketing Planning December 2010, Study text pg 199


APPENDIX 1

ORGANIZATIONAL BACKGROUND

Newspaper Publication:
The Newspaper Division is made up of 3 branches namely Harare, Bulawayo and Mutare. The
company publishes 4 newspapers

The Herald: 1891 The Vision
To be the leading Newspaper, publishing, printing and
packaging company in Zimbabwe and beyond.

Mission
The Sunday Mail: 1935
To Produce Newspapers, Print and Package Products and
Kwayedza: 1986 offer publishing services that add value to our customers,
employees and shareholders.

Core Values

• Customer Satisfaction
H-Metro: 2009 • Good corporate governance
• Equal opportunity employer
• Profitability
• Quality products and services

Newspaper Division
Harare Branch: The Herald, The Sunday Mail, Kwayedza and
H-Metro

The Company
Zimbabwe, as well as being easily the largest publisher of newspapers, having dominated the industry
for over 120 years. The company is the proprietor of Zimbabwe’s leading daily newspapers, The Herald
and the H-Metro and owns two weekly newspapers operating in tandem with the dailies, The Sunday
Mail and Kwayedza.

Besides being the biggest newspaper publisher in the country, Zimbabwe Newspapers is the only
publisher and printer operating as a public company, having been floated on March 8 1927 then as the
Rhodesian Printing and Publishing Company Limited. It changed its name in 1980 when Zimbabwe
became independent. The 1927 launch incidentally makes it one of the oldest listings still on the
Zimbabwe Stock Exchange. For more than 80 years any reader has had the opportunity to buy and trade
in the shares of “their newspaper”, and many have taken that opportunity, the company encouraging
hundreds of smaller investors to join the big institutional investors in taking a stake in the equity. Only
in the very worst of times has the dividend been deferred. Zimbabwe Newspapers has the newspaper
offices in Harare, Bulawayo and Mutare and commercial printing works in Harare and Bulawayo.
Gweru hosts a newspaper bureau and commercial office, while journalists are stationed in Chinhoyi,
Masvingo, and Beitbridge.


The Distribution: Harare, Mutare, The Sunday Distribution: Harare, Mutare, Bulawayo,
Herald: Bulawayo, Gweru, Masvingo. Mail Gweru, Masvingo.
Target Audience: Mass Market. Target Audience: Mass market
Readership: Mostly 22-60 year olds. Readership: Mostly 22-60 year olds,
Content Mix: News, Features, arts, High density residential areas.
sports and Business. Content Mix: news, features, arts, sports.
H-Metro Distribution: Harare, Mutare, Kwayedza Distribution: Harare, Mashonaland
Bulawayo, Gweru, Masvingo Region
Target Audience: Mass market. Target audience: Lower end
Readership: Mostly 22-40 yearolds. Readership: Mostly 15-50 year olds.
Content mix: News, features, arts, Content Mix: News features, arts, sports
sports and business. and Business.
Language: Shona
Distribution: Harare, Mutare, Bulawayo,
Gweru, Masvingo.
Target Audience: Mass Market


APPENDIX 2

MARKET AUDIT FOR ZIMBABWE NEWSPAPERS
“The market audit is a systematic and periodic examination of a company’s environment, objectives, strategies
and activities to determine problem areas and opportunities.” Kotler, et al (2008). A marketing audit appended
below was undertaken to assess the current business environment.

EXTERNAL AUDIT
2. PESTEL analysis
PESTEL analysis is useful for assessing the external environmental influences on a business’ performance
Issue Impact on Business
Political • Increase pressure on editorial policy to
• Growing political focus and pressure on the be changed to meet politician’s
newspaper industry. demands.
• Unstable political environment for over 11 years. • Affected the economic landscape
• A Government of National Unity not agreeing in bringing about incoherent decision
policy making. making and policies.
• Long term strategic planning is affected
due to political instability.
Economic • Reluctance of consumers to spend on
• Unemployment rate is estimated at 95% . newspapers.
• Under-performing economy with a very low • Lack of capital to increase operational
growth in the industry. capacity.
• No borrowing capacity
• Reduced household and business spending.
Social • Reduces productivity and skills base.
• The HIV/AIDS pandemic has greatly affected the • Reduced the demand of print media
nation leaving many households with extended
families to look after.
• Increased use of internet and social networks.
• The impact of intense media attention has brought
a more revolution in the social aspect and creates
a society which is more enlightened and which
appreciates the industry.
Technological
• Trend shift to technology within younger • Reduced the demand of print media
generation
Environmental
• The government and pressure groups within the • As part of promoting awareness on the
country have taken campaigns to raise awareness need to create an environmentally
of the need to preserve the environment. This has friendly planet Zimbabwe Newspaper
seen the adaption of tree planting days, banning of has reduced waste when printing and
materials that are not biodegradable. sells unsold newspapers to National
waste collectors.
Legal • Deregulation of the newspaper industry
The newspaper industry was deregulated 2010 increased competition thus reducing
Zimpapers market share.

COMPETITOR ANALYSIS


Zimbabwe Newspapers main competitors are Alpha Media Holding and Associated Newspapers of
Zimbabwe. Table 1.1 show the competitors, their products,objectives, strategies, strengths and weakness.
ALPHA MEDIA HOLDINGS ASSOCIATED NEWSPAPERS
PRODUCTS • Newsday (Daily) • Daily News (Daily)
• Standard (Weekly) • Daily Sunday ( Weekly)
• Independent (Weekly) • Financial Gazette ( Weekly)

OBJECTIVES • Offer candid, well balanced • To be a market leader
news at an affordable price.
STRATEGIES • Penetration pricing • Mid price level to compete with
• Intensive distribution mid level branded newspapers
• Advertising using billboards and • Intensive distribution
point of sales display. • Promoted online using pop up adverts
STRENGTHS • Well trained and motivated • Strong brand
Staff. • Professional journalism
• Customer loyalty work ethics
WEAKENESS • Ineffective distribution system • Poor customer service

COMPETITIVE ENVIRONMENT
Dibb, Simpkin, Pride and Ferrell in Marketing – 4th European edition page 56 define competition as those
companies marketing products that are similar to, can be substituted for, a given business’s products in the same
geographic area.Donnelly, R. and Harrison, G. (2009) states that an organization should understand it competitive
stance and be clear what the organization means to the customer. An organization then needs to select the strategic
approach which allows it to maximize its strengths recognizing the competition. For us to have a comprehensive
understanding of the forces influencing industry and competitive advantage in the newspaper industry there is need
for use to use Michael Porter’s five forces.

1. Competitive Intensity ( Rivalry Among Sellers)
The newspaper industry was once monopolized by Zimbabwe Newspapers for over 80 years. Associated
Newspapers of Zimbabwe entered the market in 2005, then followed by Alpha Media Holdings in 2009. With only
a few firms holding a large market share, the competitive landscape
is less competitive. All companies have the capacity to expand operations in order to met demand effectively. High
exit barriers cause firms to remain in the industry and compete even when the venture is not profitable. There is low
switching costs, a customers can freely switch from one publication to the other. Because of the nature of the
product which is highly perishable causes a producer to unload at the same time, the competition for customer
intensifies.
2. Barriers of Entry (potential new entrants)
Barriers of Entry in the newspaper industry in Zimbabwe arise from several sorces.
1. The government restricts competition through the granting of monopolies as in the case of Zimbabwe
newspapers which was a monopoly for over 80 years and through regulation of news.
2. Ideas and knowledge that provide competitive advantages are treated as private property, preventing
competitors from using the knowledge.
3. The newspaper industry requires highly specialized technology and equipment that potential entrants are
reluctant to commit to acquiring specialized assets that cannot be sold or converted into other uses if
venture fails.
4. high Minimum efficient Scale (MES) deter entry of small, start-up business.

3. Bargaining power of suppliers
Suppliers of newsprint are powerful as they are few in Southern Africa and can exert an influence in the newspaper
industry such as selling newsprint and ink at high price to capture some of the industry’s profits.
4. Bargaining power of buyers
Weak because buyers are fragmented, no buyer has any particular influence on product or price.


5. Threat of substitutes
There is high threat of substitutes in the newspaper industry as the target audience is offered a variety of news
mediums of getting informed. They can be informed of national, international and sports news through television,
radio stations s well as reading other online publication for less.

THE MARKET ENVIRONMENTAL AUDIT
Total market size growth and trends: Zimbabwe Newspapers currently holds the largest share of the
newspaper marketing in Zimbabwe. The Herald, which is the flagship newspaper of the group has an average
daily circulation of 50 000 copies and a readership of over one million. According to ZAMPS results released in
December 2011, The Herald has 46% market share. It is a strong brand, evidenced by the papers winning The
SuperBrand award in Print media for the past 10 years. The latest edition by the is H-metro, which is a daily
gossip and entertainment tabloid, is the fastest growing newspaper in the market, it has gained a market share of
25% in 2 years and an average weekly circulation of 15 000 copies. The Sunday Mail is also the top selling
weekly newspaper with a market share of 40% and an average weekly circulation of 100 000 copies. Lastly
there is Kwayedza a weekly newspaper written in the native language Shona, has the lowest market of 6% and
an average weekly circulation of 5 000 copies.

Value Chain
Primary activities are directly related to production, sales, marketing, delivery and service.
Activity Comment
Inbound logistics Newsprint and ink warehousing and stock control
Operations Printing of newspapers, allocation of newspapers and reporters writing stories.
Outbound logistics Distribution the newspapers to customers through home delivery, street vendors or
retailers
Marketing and The group informs customers about discounts and subscriptions by putting an advert in the in
sales newspapers and attending business exhibition
Service Zimbabwe Newspaper has worked hard to develop a service that meets customer needs
Through producing different publications that meet the needs of different segments.

Support activities provide purchased inputs, human resources, technology and infrastructural functions to support
primary activities.
Activity Comment
Procurement Purchase of newsprint, ink, machine spare parts of printing machine
Technology Computerized dispatch point and warehousing
development Continuous availability and reliability are essential for its website which generates 52
Million readers.
Human resource Recruitment of mature staff, customer care training and awarding journalists for
management Outstanding performance.
Firm Finance, planning, quality control and senior management
Infrastructure

Mc Kinsey’s 7s
It is important to look at the micro environment to clearly understand the issues relating specifically to
Zimbabwe Nesspapers. This can be achieved by analyzing McKinsey’s 7s framework (Peter and
Waterman, 1982).
Strategy
Zimbabwe Newspapers marketing strategy to is to maintain its position a market leader an trend setter
in the newspaper industry. Leadership style is autocratic as directors make all decisions, issues
instructions which must be obeyed without questions.
Shared Value


The group is market driven. It is passionate about satisfying the market with different products for
each segment, professional journalism, total coverage of the newspaper across the country and
newspaper to be available to its customers on time.
Skills
The group boosts of its skilled works force, which possess skills in journalism, printing, customer care,
technical, marketing, auditing, accounting, secretarial, production, advertising and managerial skills.
Systems
For all departments, there are procedure manuals that are put in place to ensure the smooth flow of
processes which are used to meet customer needs. The Group prepares annual, long term and strategic
plans. Most of the annual plan objectives are reached.
Structure
Zimbabwe Newspapers is a functional organization, appendix 2 typically defined each of its business
function.
Style
Management style at Zimbabwe Newspapers is autocratic although some mangers encourage dialogue
with staff members. The decision making process is lengthy and sometimes wears employees out.
Staff
The Group employees 1399 employees that qualified with requisite skills and experience, also
motivated.

MARKETING ACTIVITIES AUDIT

The 7ps of marketing activities has been audited as below:
Product
Product variety: Zimbabwe newspapers has a variety of publications serving the market. There is The Herald, a daily
newspaper, Sunday Mail is a weekly family newspaper, H-metro is a daily lifestyle and entertainment tabloid and
Kwayedza a weekly tabloid written in the native language, Shona.
Product coverage: Zimbabwe Newspapers uses intensive distribution, resulting in wide coverage of its publications
across the country.
Product quality: the quality of newsprint used and the general appearance of the newspaper is good from both the
customers and stakeholders view.
Product demand: the demand of Zimbabwe Newspapers products has reduced due to increasing competition and the
reduced of use of print media across the country.
Branding: the flagship newspaper, The Herald has been winning the SuperBrand award in print media for the past 5
years.
Product life stage: As a result of technological advances, the growing use of internet and less disposable income
consumers now prefer to read the newspaper online. This as reduced the demand of print media, thereby reducing
circulation figures and adjusting output to match demand. Furthermore the growth of online news and other
substitutes for news such as radio news, television news and mobile news as also affect the newspaper industry.
Consequently we can discern that the industry is in its maturity stage.
Price
Competitive pricing, priced to compete with other newspapers in the market. All newspaper in Zimbabwe are pegged
at $1 per copy.
Place (distribution)
Intensive distribution, channels include street vendors, retailers, service stations, bookshops and through home
delivery after customers have subscribed the newspapers.
Promotion
The group advertises through billboards and placing adverts in its publication. It religiously exhibits its products at
expos and the annual trade fairs. Each newspaper run a competition for an example the Sunday Mail has the Baby of
the year competition
Process


Zimbabwe Newspapers does not have a culture of service, the group’s overall process is slow for example a when
buying a back dated issue, the client is tossed from one office to another.
Physical evidence
Delivery trucks display company logo however the staff does have a uniform and the building itself is not decorated
with company colours.

SWOT analysis
“ the strengths and weakness in the SWOT analysis do not list all features of a company, but only those relating to
critical success factors “Kotler et al, (2008, p 138). The table below analyses the strengths and weaknesses,
opportunities and strength of Zimbabwe Newspapers.
Strengths Weakness
• The flagship newspaper The Herald is a • Has no customer retention policy
strong brand, this is evidenced the it winning • Poor customer service delivery.
superbrand in print media for the past 5 years. • The group’s newspapers are viewed by
• It is seen as an innovative company this is Readers as political biased.
Shown by its different publications. • Lack of operational resources such as
• Favorable access to distribution networks, Up to date computer, digitalized printing
resulting in wide coverage. Machines.
Opportunity Threats

• High literacy rate in Zimbabwe creates high • Liberation of the newspaper industry
potential readers for its newspapers. resulted in stiff competition and market
• Adoption of the foreign currency in Zimbabwe loss.
has stabilized the cover price of our • A change of government in the upcoming
publications. presidential elections will reduce some of
• The opening of new supermarkets and shops the benefits the group was enjoying such
in Zimbabwe creates potential distributors for as government funding and other strategic
our publication. relationship it was exploiting
• Technological advances such as new Oracle • Great presence of substitutes such as
based systems around the world enables to work television news, radio news, internet news
effectively and efficient resulting in less and mobile news which bring news to the
duplication of work and meeting dead lines. consumer much faster and in a more
• Government support visual style than newspapers.
• The growing use of internet has gone a
. step further than television in eroding the
advertising income of newspapers by
providing a convenient vehicle for
classified advertising, particularly in
categories such as jobs, vehicles and real
estate.
• The growing use of direct mail is at the
expense of newspaper revenues. Over the
past 5 years, the amount spent on direct
mail advertising has grown more than 100
%, compared to just over 40% for
newspaper advertising.
• Demographic change, the number of news
readers has grown noticeably in the age of
18 to 24 however fewer of them pay. In
the next few decades old-school readers
will be replaced by technology driven
news consumers and print media will


decline in demand.

ZIMBABWE NEWSPAPERS STAKEHOLDER NETWORK AUDIT
Mendlows Stakeholder Analysis Model
The following are key stakeholders of Zimbabwe Newspapers:

MENDOW’s STAKEHOLDER MATIX

Power
H L
H
Government Customers
Employees
Suppliers
Interest

A B

Pressure Groups SMEs Suppliers

L C D

RATIONALE
As technology advances, the demand of print media decreases and consumers now opt to read the news
online which is much cheaper. The threat of substitutes such as such as television news, radio news and
other online news which brings news to the customer much faster, cheaper and in a more visual style than
newspapers has also reduced the demand of Zimbabwe Newspapers publications. The growing use of direct
mail is at the expense of newspaper revenues. Over the past 5 years, the amount spent on direct mail advertising has
grown more than 100 %, compared to just over 40% for newspaper advertising The growing use of internet has
gone a step further than television in eroding the advertising income of newspapers by providing a convenient
vehicle for classified advertising, particularly in categories such as jobs, vehicles and real estate. Furthermore the
liberation of the newspaper industry resulted in stiff competition and market loss. It is against this background that
Zimbabwe Newspapers needs a marketing plan to address threats as a result of changes in the external environment.

.


Appendix 4

SCHEDULE OF ACTIVITIES

Key
Performance Activities Time Responsibility Actions
Area
Financial Achieve breakeven December General Aggressive marketing of all
point 2011 Manager newspapers

Increase profit margin 2012– 2016 General
by 1.5 per quarter Manager

10% growth rate for the 2012 - 2016 General
next four years Manager

Advertising Street billboards Informing customers about
Display adverts in the Ongoing Advertising sales promotions and
newspapers Manager persuading them to buy our
Flyers newspapers
Direct mail
Public disseminate information Press releases
Relations to the public and to Ongoing Public Exhibitions
create and maintain the Relations
corporate and brand Officer
Sales increase sales Discounts for subscriptions
promotions newspapers, increase Ongoing Group Competitions
brand and product Marketing Point of sales displays
awareness and to attract Director Customer loyalty bonus
customers to switch schemes
brands and products Prize draws
from competing
organizations.

Internal Retention of key staff Ongoing Human Competitive remuneration
Staff Resources levels and benefits
Training Identify training needs and
put in place a training
calendar.
Distribution Establish 50 Identify retail outlets in
distribution outlets in Ongoing Circulation South Africa, Zambia and
neighboring countries Manager Botswana to sell our
newspapers
Corporate Increase corporate 2012- 2013 General Brand delivery truck with
image visibility Manager logos and staff uniforms
Customer Market positioning Ongoing Marketing and Engage in social
Public responsibility activities that
Relations help enhance image of the
Group
Process Effective internal Ongoing Marketing and Enhancement of an internal
communication systems Public communications policy.


Relations

TASK THREE : EVALUATION REPORT

To : Senior Management

From : Marketing Manager

Date : 03 February 2012

Subject : Evaluation Report

Contents:
1. Introduction
2. The benefits of marketing planning to Zimbabwe Newspapers in responding to changes in
the external environment.
3. The role of marketing audit as part of the marketing planning process
4. Problems of information gathering and analysis encountered in undertaking the audit
5. Explanation and justification of an appropriate competitive strategy developed
6. Issues encountered in implementing the marketing plan and operational proposals for
addressing them
7. Conclusion

1. Introduction

Zimbabwe, as well as being easily the largest publisher of newspapers, having dominated the
industry for almost 120 years. The company is the proprietor of Zimbabwe’s leading daily
newspapers, The Herald, The Chronicle and the H-Metro and owns two Sunday newspapers
operating in tandem with the dailies, The Sunday Mail and The Sunday News. The largest Provincial
newspaper in Zimbabwe, The Manica Post, a weekly, anchors the Mutare branch. In recent decades
Zimbabwe newspapers launched two newspapers in the two main indigenous languages, Kwayedza,
a Shona weekly in Harare, and Umthunywa, an Ndebele weekly in Bulawayo.

Zimbabwe Newspapers has the newspaper offices in Harare, Bulawayo and Mutare and commercial
printing works in Harare and Bulawayo. Gweru hosts a newspaper bureau and commercial office,
while journalists are stationed in Chinhoyi, Masvingo, and Beitbridge.


2. The benefits of marketing planning to Zimbabwe Newspapers in responding to changes in
the external environment.

Dibb and Simkin (2008) defines marketing planning as a systematic process involving assessing
marketing opportunities and capabilities, determining marketing objectives, agreeing target market
and brand positioning strategies, seeking competitive advantage, creating marketing programmes,
allocating resources and developing a plan for implementation and control.

Doyle (1994, cited by Drummond, et al, 2008 p.247) says that planning can help companies
deploy their resources to meet strategic ‘windows of opportunity’ which are major changes in the
market such as: new technology; new market segments, new channels of distribution, market
redefinition where the nature of demand changes; legislative changes and sudden unexpected
economic and political change. Marketing planning can benefit Zimbabwe Newspapers in
responding to changes in the external environment; political, economic, social, technological, legal
and environmental.

Marketing planning enables Zimbabwe Newspapers to assess the environment and the market in
which it operates in, as a result of environment scanning. For an example a change in technology
and lifestyle of people which resulted in the growing use of internet and mobile phones, enable the
organization to respond by offering mobile news. It also enables the organization to understand
competition and to be better equipped to identify where there are opportunities in the market place.
Once competition is understood and having identified our strengths and weakness, our products
and services are packaged in a way that is different and more appealing to customers.

A marketing plan helps to keep Zimbabwe Newspapers prepared for unexpected changes in the
economic and political environment of Zimbabwe. For an example the formation a Government of
National Unity in 2008. A marketing plan that caters for such political changes for our newspapers
builds reader’s confidence by reporting news that is not baised to one political party.

It provides a basis for monitoring and controlling the activities with regard to the change in
external environment. For an example a change in the economic environment such as the
dollarization of the Zimbabwean economy in 2009. Zimbabwe Newspapers was able to change the
currency of the cover price from the Zimbabwe dollar to the United States dollar. This ensures that
all activities are carried out effectively by the company in responding to the change in the
environment.

Marketing planning provide a clear sense of direction for the marketing management and
employees in response to the change in the external environment by enabling them to act
appropriately in response to change in the environment. Without a clear marketing plan, employees
may be clear about each other’s role.

Marketing Planning ensures that everyone in the objectives through proper communication by
setting clear objectives and targets in response to an environmental change, everyone in the
company works towards the same goals. Without proper marketing planning employees will not be
clear about the company’s goals and targets. More over effective Marketing planning ensures
proper communication to make certain that every employee is clear about the plan. All these are
positive factors are considered beneficial in responding to a change in the environment.


3. Role of market audit as part of the marketing planning process

Kotler, et al. 2008 defines the marketing audit as a systematic and periodic examination of a
company’s environment, objectives, strategies and activities to determine problem areas and
opportunities. Mc Donald (2007) recommends conducting a marketing audit once a year at an
appropriate point in the planning cycle. Mc Donald states that an audit is a way of defining
problems, and hopefully preventing them from happening.

The role of marketing audit as part of the marketing planning process is that the audit provides
the marketers with a in depth view of the marketing activities that are going on in the
newspaper industry. It brings out a complete picture of the entire operations in concern. While
revealing the various draws backs the audit process also leads to efficiency. This process can
also be used to lay down an improved marketing plan.

Marketing audit assists marketing executives, top management and investors to ensure that
they are proposing suitable growth strategies in the marketing plan. Marketing audit is a careful
examination and evaluation of marketing practices and results. It offers a baseline for
performance measurements and framework for effective planning to maximize positive
external perception and demand generation.

An audit helps the company determine the value of a sale and a sales lead. Customer’s needs
and wants are moving targets, and marketing programs require testing and retesting to find the
most profitable formula. A marketing audit is the way to achieve success by providing an
interim report card to help the Zimbabwe Newspapers and staff tap into inherent resource.

The marketing audit involves diagnostic steps covering the organization’s marketing
environment, internal marketing system, and specific marketing activities. The diagnosis
provides an important insight into the improvement of marketing planning thereby improving
marketing efficiency and effectiveness.

4. Problems of information gathering and analysis encountered in undertaking
marketing audit

When conducting a marketing audit information gathered can be primary or secondary data or
even both. The marketing audit is normally conducted by an inside or outside party who has
sufficient independence from the marketing department to attain top management’s confidence
and the needed objectivity.

However there are problem that are encountered when gathering information. In the case of
secondary data information gathered may be outdated or the kind of information sort after may
not be accessible to the company or may not be available. Accuracy of data collected from
various sources such as internet, market reports, via researches is not known.

Since there is vast information available, filtering and obtaining relevant data is a challenge.
The information collectors should be aware of this and collect only the relevant data for
Zimbabwe Newspapers. Information gathered may not meet the requirements of the problem,
to avoid this problem the units of measurements should be the same and the concepts used
must be same and currency of the data should not be outdated.


Another problem of information gathering is that sometime obtaining certain type of data may
be very costly for the organization and there is limited technology to gather information
efficiently.

Problems of information analysis are as follows.
• The data may be presented in different forms which make it difficult to analyze
• Zimbabwe Newspapers may not have employees with necessary expertise required to
analyze the collect data.
• Sufficient statistical analysis packages may not be available in the organization.
• Data may lack consistency since it is from different sources it will not arrive at the
same result or conclusion.
• The cost of analyzing the data may be too high in some instances, especially when the
company hire an outside party to analyze the data
• Different sources of data define and classify terms differently.

5. Explanation and justification of an appropriate competitive strategy developed

After undertaking a competitor analysis, a competitor profile is developed, identifying likely
competitive attacks and understanding various forces that define the shape of newspaper market,
through the analysis of Porter’s Five Forces. Michel Porter has defined a Competitive Advantage
Grid based upon three generic strategies, that enables Zimbabwe Newspapers to closely identify
the various options open to them. Typically they would include: Differentiation, Focus and Cost
Leadership.

The diagram below outlines the generic strategies.

Uniqueness perceived Low cost position

Differentiation Overall cost leadership

Focused Differentiation Focused Cost leadership

Michael Porter suggested competitive strategy is primarily about creating and sustaining a
profitable position in the marketplace. Zimbabwe Newspapers need to identify the competitive
scope available to it, considering the approach to targeting and segmenting the market,
ensuring that the organization is operating in a closely-defined market.


Zimbabwe newspapers must adopt Cost Leadership. The organization will be looking to
achieve economies of scale, cost reduction policies, zero defects, minimum expenditure on
research and development and very closely defined cost-effective marketing strategies.

Drivers of cost leadership identified by Michael Porter are:
• Economies of scale – volume can drive efficiency and enhance purchasing leverage
• Linkages and relationships- just-in-time manufacturing systems can reduce
stockholding costs and enhance product quality.
• Forge relationships with other industry specialists and partners to share development
and distribution costs.
• Infrastructure, location, availability of skills and government support can also all
affect the cost base.

Segmentation

Kotler defines segmentation as The act of dividing the marketing into specific groups of
consumers/buyers who share common needs and who might require separate products and /or
marketing mixes. Hooley, Saunders and Piercy in Marketing Strategy and Competitive
Positioning defines Market Segmentation as Identifying the most productive bases for
dividing a marketing, identifying the customers in different segments and development
segment description.

Segmentation is mainly done based on the income/occupation/ social status of customers. The
following segments can be identified:

Social grades Social status Characteristics of occupation
A Upper middle class High managerial/ professional
B Middle class Intermediate managerial/ administrative professional
C1 Lower middle class Supervisory/clerical/junior
managerial/administrative/professional
C2 Skilled working class Skilled manual labour
D Working class Semi-skilled and unskilled manual labour
E Lowest level of Widows, casual workers, state pensioners
subsitence

Segmenting is also carried out on the basis of customer behavior or style. The following
segments are identified under that classification;
• Business people – These are people that read the newspapers on a daily basis and are
mostly interest in the business news and global markets.
• Politicians – people that are mainly interested in political news and current affairs of
the nation.
• Students – these are mainly teenagers and university student that read the Saturday
Herald because it has an educational supplement.
• Subscribers – these people are frequent readers of the newspapers and they pay in
advance
• Government institutes and hospitals – these include ministries and civil servants,
school that read the newspaper daily


Market segmentation is essential for the successful implementation of the competitive strategy
because it can lengthen the product life cycle increased sales and profits, achieve strategic
marketing planning, manage effective resource allocation and capture some of competitors’ share
of the market.

Targeting

Dibb, Simpkin, Pride and Ferrell in Marketing Concepts and Strategies, 4th European edition
define targeting as The decision about which market segment(s)a business decides to prioritize
for its sales and marketing efforts.
When selecting the appropriate target market strategy Zimbabwe Newspapers must take into
consideration the following:
• Company capability
• Economies of scale – production and marketing
• Customer needs, wants and expectations
• Product market – size and structure
• Competitive rivalry
• Brand strength and market share

Through market research Zimbabwe Newspapers must use target marketing , having a product
that meet the need of each segment within the market with a specific product. Zimbabwe
Newspapers flagship newspaper The Herald seeks to the market by offering a variety of news
content.
• The Sport news – for the sportsmen, football clubs, sponsors and those generally
interested in sports
• Lifestyle – for fashion followers, holiday makers, shoppers and supermodels, housewifes
• Entertainment – musicians , music promoters, sponsors, night club owners and the people
interested in leisure
• Political and Current affairs - politicians, government officials and the general population
at large
• Business – working class, business owners, government officials and university studies
• The Classified – job seekers, property moguls, and anyone seeking to sell or buy
anything.
• Cool lifestyle – for teenagers

Positioning

Kotler defines positioning as the act of designing an offer so that it occupies a distinct and
valued place in the minds of target customers. Positioning refers to how Zimbabwe Newspapers
present its newspapers to the marketplace.

Ries and Trout (1998) suggests that there are three positioning alternatives available:
• Distintive attributes- identify the distinctive attributes of the product and service as a
source of credible positioning.
• Fill the gaps in unfilled positions- where there is a positional gap in the perceptional map,
this may present a business opportunity for exploit.


• Repositioning- changes in consumer behaviour may mean that the product life cycle
could be maturing or going into decline, therefore the necessity to reposition the products
to attract a different market might be required.

6. Issues encountered when implementing the marketing plan over 4 years and
operational proposals for resolving them.

Many organizations encounter issues when implementing their marketing plans. Nigel Pearcy
suggests that: the real strategic problem in marketing is not strategy; it is the implementation
and change. When implementing the marketing plan to increase sales and readership of its
publications over 4 years, Zimbabwe Newspapers will face barriers as the organization is not
marketing oriented, the existing culture may not be amenable to the marketing plans. To
overcome this problem the organization will need to be marketing oriented, the marketing
concept in the words of Kotler et al. (1996): Holds that achieving organizational goals
depends on the determining the needs and wants of target marketd and delivering the desired
satisfactions more effectively and more efficiently than competitors do. In order to achieve this
Zimbabwe Newspapers must create customer focus throughout the organization, build
customer relationships and loyalty, target customer precisely and define the nature of the
organizations key abilities.

Zimbabwe Newspapers is subject to internal politics and line managers fight each other’s
proposals in order to gain resources and status. The internal information that the marketing
planning process depends on is controlled by heads of departments which are reluctant to
cooperate. To eradicate this problem strong and committed leadership must be cultivated,
leaders must demonstrate commitment at the highest level to the proposed strategy and plans.
They need to be eefective communicators, motivators and facilitators.

If the purpose and the nature of marketing concept is not introduced with care by
communicating and providing training it will not gain management support. Hostility, lack of
skill or lack of information among line managers marketing planning will fail. According to
Dibb and Simkin (2000), the major causes of inadequate planning stem from a combination of
managerial, cultural and organizational issues, outline in the table below.

Dibb and Simkin observed barriers of implementation of marketing planning
• Poor grasp of the marketing concept
• Little or no market analyses undertaken
• Strategy determined in isolation of analyses or formulation of tactical
programmes
• Blinkered view of the external environment
• Poor and inadequate marketing intelligence
• Little internal sharing of marketing intelligence
• Inadequate understanding and support from senior management
• Poor internal communications in marketing between functions
• Planning activity fades out


• Planning and personal overtaken by events
• Lack of confidence or conviction
• Little opportunity for lateral thinking

Source : Dibb,S and Simkin, L. (2000)

Internal Marketing plays a pivotal role in ensuring that the above barriers of implementation of
marketing planning observed by Dibb and Simkin. Internal marketing is defined by Dibb,
Simkin, Pribe and Ferrell in Marketing Concepts and Strategies as the application of
marketing internally within the company, with programmes of communication and guidance
targeted at internal audiences to develop responsiveness and a unified sense of purpose
among employees. Nigel Piercy in His book Market Led Strategic Change, suggests that:
Marketplace success is frequently largely dependent on employees who are far removed from
the excitement of creating marketing strategies. In order for Zimbabwe Newspapers to
achieved internal synergy and employee co-operation it must create awareness of corporate
aims, objectives and overall mission, determine the expectations of the internal customer and
communicate to internal customers.

Most business rarely gives much budget concern to marketing activities and this culminates to
inefficiencies on the part of undertaking marketing activities. Zimbabwe Newspaper has
downsized and strives for increased efficiencies, it is resource-starved. It lack financial
resources stated in the budget. A comprehensive budget for Zimbabwe Newspapers is required
to take into account all relevant requisite within the marketing plan. This mainly includes
investing in staff training, undertaking the marketing audit and promotional activities.

Employees lack of knowledge and skills in sales and distribution may affect implementation
of the plan. Continuous training of staff in customer service delivery and distribution of
newspapers knowledge will overcome this barrier.

When a marketing plan has too much data, it mainly leads to incoherence and have a
demotivating effect on employees. Effective summaries and simple points will lead to better
understanding of the required marketing plan.

Lack of consistency of the marketing planning review may be a potential barrier to effective
implementation of the plan. Regular and more appropriate scheduled reviews of the marketing
plan should be undertaken with corrective action taken were necessary.

(2 974 words)


References

CIM COURSE BOOK, Marketing operations,2001, Karen Beamish

CIM Professional Diploma in Marketing Study Text , December 2010

Marketing Concepts and Strategies, Dibb, Simkin, Pribe and Ferrell

Market Led Strategic Change, Nigel Piercy

Marketing Concepts and Strategies, 4th European edition, Dibb, Simpkin, Pride and Ferrell

(www.cim.uk/marketingresources, Marketing and the 7Ps, pg 5).

Marketing Strategy and Competitive Positioning,

Dibb, Simpkin, Pride and Ferrell

Marketing Plan to Address External Threats

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