Marketing Planning for Services, Malcolm McDonald and Adrian Payne Marketing Plans (Fourth Edition), Malcolm McDonald. The truth, of course, is that the actual process of marketing planning is simple in outline.
How to use this book to achieve the best results
Marketing planning fast track
This should ensure that everyone is fully aware of the difference between the process and the outcome (i.e. the strategic marketing plan). Because no one should ever forget that in the end what matters is the result of the process.
Learning features
These appear at the end of each chapter and link theory to practice by asking the reader to apply theory to real life. Each exercise helps the reader translate theory into practice and reinforces the lesson learned from each chapter.
An important note to the reader from the
However, before attempting to answer the questions, read the author's brief comments below on what a good marketing plan should look like, and his critique of more than 200 plans from multinational companies around the world.
What an excellent strategic marketing plan should be
What they often are (based on formal critiques of over 200 plans from multinational
ARE YOU GETTING THESE ESSENTIAL DELIVERABLES FROM YOUR STRATEGIC
MARKETING PLAN
Market structure and segmentation Score out
Differentiation
Scope
Value capture
Interpretation
Understanding the marketing process
But for now, it's important to understand what we mean when we talk about a company's capabilities. Definition: There are many definitions of marketing and much confusion about what it is.
Marketing insight
The marketing concept
Company capabilities
The marketing environment
Questions raised for the company
11 'The marketing concept emphasizes the essential importance for effective corporate planning and control, of monitoring both the environment in which the presentation is made and the needs of the customers, so that the process can function as effectively as humanly possible.'. 12 'The organization and performance of those business activities which facilitate the exchange of goods and services between producer and user.'.
Introduction to Chapter 1
13 'The process of: (1) Identifying customer needs, (2) Conceptualizing these needs in terms of the organization's capacity to produce, (3) Communicating that conceptualization to the appropriate locus of power in the organization, (4 ) Conceptualizing the resulting output in terms of the customer needs identified earlier, (5) Communicating that conceptualization to the customer.'. 15 'The performance of those business activities which direct the flow of goods from producer to consumer or user.'.
Scoring for Exercise 1.1
17 "The economic process by which goods and services are exchanged and their values are determined in terms of monetary prices." 18 "The performance of business activities that direct the flow of goods and services from producer to consumer to achieve business goals."
Interpretation of Exercise 1.1
Often there are both positive and negative forces at play. a) List the factors that led to improvements in the space below. 1 Which were the three most important opportunities in the environment that contributed to the company's success/current situation.
Interpretation of Exercise 1.4
Add the ticks down the page and count how many are to the left of the not at position and how many are at the not at position or to the right of it.
The marketing planning process: 1 The main steps
Mission statement
With such confusion at the top of the company, it is not difficult to imagine the chaos further down. It is appropriate at the organization's strategic business unit, department or product group level.
Setting corporate objectives
3 Distinctive Competencies – these are the essential skills/capabilities that underpin the success achieved to date. Competency can consist of one particular item or possession of a number of skills compared to competitors.
The marketing audit
An audit is a systematic, critical and impartial review and assessment of the company's environment and operations. A marketing audit is part of a broader management audit and deals with the marketing environment and marketing operations.
Why is there a need for an audit?
The form of the audit
The place of the marketing audit in the management audit
Channels: main channels; purchase patterns (eg types of product purchased, prices paid, etc.); purchasing power; geographical location;. Monitors profitability performance by product, markets served, etc., to determine where the best profits and greatest costs of the operation are located.
When should the marketing audit be carried out?
Each of these sections should be examined with a view to isolating the factors considered critical to the company's performance. 1 Identification, measurement, collection and analysis of all relevant facts and opinions that affect a company's problems.
Who should carry out the audit?
- SWOT analyses
- Assumptions
- Marketing objectives and strategies
- and 8 Estimate
- The budget
- First year detailed implementation programme
The output of the marketing planning process is, of course, the strategic marketing plan summarized in the box in Figure 2.6.䊉 Provide an assessment of the company's differential strengths and. weaknesses compared to those of its competitors.
The position of key account planning in strategic marketing planning
What is marketing planning?
Why do it?
Will it help us to survive?
Corporate issues
1 Is there a corporate statement for:. i) The nature of the current business mission of the company. ii) His vision for the future.
Introduction to Chapter 2
- Marketing issues 6 Is there a marketing plan?
- SWOT analyses
- Assumptions
- Marketing objectives/strategies 1 Are the marketing objectives clearly stated
- Monitoring evaluation
14 Are the following factors monitored in a regular and deliberate manner in relation to how they affect the company's business prospects. i) Trends in market size/growth in volume. ii) Developments/trends in product use. iii) Development/trends in prices. iv) Developments/trends in physical distribution. iv) Investment levels of competitors. viii). 1 Is there someone (individual or group) responsible for converting the analysis of factors in section 2 into a summary that highlights:. ii) The company's most significant weaknesses (in relation to external opportunities/threats).
Scoring and interpretation for Exercise 2.1
Personal notes
Questions
Scoring and interpretation for Exercise 2.2
1 Our approach to marketing planning ensures that we get a high level of coordination of our various marketing. 3 Because of the way we approach marketing planning, there is an increased willingness for the organization to change.
Scoring and interpretation for Exercise 2.3
With your business in mind, rate each benefit using the scale below. Before tackling this exercise, it's important to remember that profitability and high market growth are almost always interrelated.
Instructions
The crisis comes when the once vibrant growth of the market slows down and other companies clearly demonstrate their superior performance.
Scoring and interpretation for Exercise 2.4
The marketing planning process: 2 Removing the
The marketing planning process is concerned with determining what and to whom will be sold in the long term. In the case of companies that do not have effective marketing planning systems, it is possible to be profitable for several years, especially in
Weak support from chief executive and top management
This means that it is people who make systems work, and that system design and implementation must take into account the "personality" of the organization and the people involved, and that these are different in all organizations. The active interest of the CEO and senior management is vital if a formalized marketing planning system is to be successful.
Lack of a plan for planning
Not surprisingly, in companies led by people like this, marketing planning is either non-existent, or where it is attempted, it fails.
Lack of line management support
Lack of an appropriate organizational structure for an integrated marketing function, compounded by a lack of meaningful information about market segments, means that marketing planning is unlikely to succeed. Where there is a marketing manager, he or she tends to be somewhat isolated from the regular activities.
Confusion over planning terms
The most successful organizations are those with a fully integrated marketing function, be it line management responsible for sales or the HR function, with the operating units being a microcosm of the head office organization. It is clear, however, that without an appropriate organizational structure, any attempt to implement a marketing planning system that requires the collection, analysis and synthesis of market information is unlikely to be successful.
Numbers in lieu of written objectives and strategies
Thus, when a marketing planning system suddenly requires them to make explicit their implicit economic model for the business, they cannot do so. The companies with successful marketing planning systems ask only for essential data and place greater emphasis on narrative to explain the underlying thinking behind the goals and strategies.
Too much detail, too far ahead
In companies with successful planning systems, there is a widespread understanding at all levels of the key objectives to be achieved and the means of achieving them. In such companies, the rationale of every layer of the business is clear, and actions and decisions are disciplined by clear objectives that are logically interrelated as part of a rational, overall goal.
Once-a-year ritual
This means, for example, that top management at a conglomerate's headquarters has a clear understanding of the really important macro issues that matter to the entire company, while management at the lower level of profit responsibility also has a clear understanding of the really important micro issues . significant to the unit. Thus, by spreading the planning activity over a longer period of time and through the active participation of all levels of management at the right time, planning becomes an accepted and integral part of management behavior, rather than an addition to it that requires unusual behavior. .
Separation of operational planning from strategic planning
Indeed, wherever possible, they should be completed simultaneously, using the same managers and the same information inputs. A detailed operational plan should be the first year of the long-term plan, and operational managers should be encouraged to complete their long-term projections at the same time as their short-term projections.
Failure to integrate marketing planning into a total corporate planning system
At the same time, operational plans will become increasingly limited and will not include decisions that need to be made today to protect the future. Operational planning should therefore be largely part of the strategic planning process and vice versa.
Delegation of planning to a planner
Ignorance
Common implementation problems
Introduction to Chapter 3
10 There is a feeling that we do not run the business, but instead it and external forces control us. If you find it difficult to put an 'X' next to a statement, you should consult with some colleagues instead of guessing.
Interpretation of Exercise 3.1
34 Inputs into the marketing planning process are an integral part of the work of all line managers. 48 Marketing research studies (from internal staff or agencies) are often used as inputs into our marketing planning process.
The rationale behind the questionnaire
So it is clear that the level of 'education' will also be a determining factor in the quality and extent of the company's marketing planning process. From the above explanation, it is possible to see how the various aspects of the organization are all interconnected. a) "corporate education", for marketing planning;.
Interpretation of Exercise 3.2
Thus, introducing an improved marketing planning system may require changes in all of these areas. Some personnel may need training, more or different resources may be required, routines or systems may need to be improved, roles and relationships may need to be reassessed, and the structure and climate of the organization reconsidered.
Completing the marketing audit
1 The customer and market audit
This is only relevant because it is always necessary to be aware of the needs of the final consumers further down the purchasing chain. However, many of the opportunities in the potentially available market represent possible strategies for the future.
Market leverage points
The more detailed market map you have now constructed should be measured as shown in Figure 4.11 with the volumes or values allocated to the various types of intersections (again, guess if necessary). Note: This market map is based on the map shown in Figure 4.11 except that it is now split between domestic and business-to-business end users.
Who buys
From this, it will be found that there is a very useful correlation between readership and viewing patterns and these socio-economic groupings, and this can be more useful in helping us to cost-effectively communicate with our target market through of advertising. Clearly, at different stages of the family cycle, we have different needs, and this may be another more useful way of describing our market.
What is bought
Another example is identified in the domestic paint market, where the paint selection process differs according to the type of room it is being purchased for – the purchase criteria for gloss in the living room are different from the purchase criteria for gloss in the bedroom. Then try to build a representative market model by recording all the unique combinations of "what is bought" and identify for each of these "micro-segments" the different customer characteristics associated with them ("who buys").
Differential benefits
A national off-licence chain
Instead of sitting back in the belief that the business was just going through a rough patch and what worked yesterday would work again, the company embarked on a project designed to understand their current and potential customer base. Instead of looking at each store individually, the company subjected the catchment area profiles for each store to an aggregation routine in order to place similar catchment areas together.
Sodium Tri-Poly Phosphate!
The chain was already associated with one type of offering, which included basic store design and overall merchandising in addition to a specific beverage offering. They also sit comfortably together in the same mall, enabling the group to effectively meet the diverse demands of the segments found within that mall's catchment area.
Amber nectar
The market for this company was the metropolitan area in which it was already operating, and its competitors were other local brewers in the same area. This brewer segment was the 'Regional Chauvinist', and in the specific region in which it operated, the company already had an overwhelming market share.
Case history conclusion
Customers or consumers?
Market share
Critical success factors
Market segmentation
䊉 Set marketing goals and strategies 3 How can we keep track of all our competitors. But, as is so often the case, what appears to be a relatively simple task can turn out to be extremely testing.
Introduction to Chapter 4
2 Analysis of customer characteristics (who they are): 䊉 Cultural/geographical factors Try exercise 4.5. Questions for the company. Until this is clearly understood, issues such as market share, the identification of target audiences and their needs, and even the recognition of competitors will continue to cause problems.
Interpretation and scoring for Exercise 4.1
The answer to the riddle, therefore, is that it is purely a matter of management judgment. 2 How you would define it so that it clearly differentiates itself from any other market.
Standard benefits
It is essential for suppliers of products or services to be aware that their output is only salable for as long as it provides the benefits required by the customer, and as long as it is considered good value by the customer compared to other possible methods of solving their problems. to solve. Therefore, it is extremely important to know as much about the benefits they offer as it is to know about the products or services themselves.
Company benefits
Customers buy products and services because they seek to obtain a range of benefits that come with them. So customers buy aspirin to solve the problem of headaches, they buy drills because they need holes, they buy convenience foods because they solve the problem of not having enough hours in the day.
Note
The customer audit applied to your own company
As a prerequisite to establishing marketing goals for your business, it will be important to analyze the customers of your products or services. For some companies, it is sufficient to focus on the needs of groups of individual customers; for others, it is more important to look at customers as entire industries.
Types of customer audit
Car Mart objective
Materials for Car Mart
Assumptions
Generating the data for Car Mart
The customer audit (socio-economic groups and buying motives)
3 Likewise look at benefits (column 8) and enter R or P in column 9, depending on whether or not the benefit is likely to appeal to the 'rational customer' or his/her psychological needs. 6 If time permits, you can discuss any interesting points that came out of the Car Mart sales record sheet.
The customer audit (segmentation)
2 Look at customers' needs (column 3) and decide which are rational and which are more psychological. 4 Mark all those advantages where the R or P in column 9 corresponds to an R or P in column 4.
Interpretation of Exercise 4.5 – rationale behind Car Mart
Standard approaches to business market segmentation
Manufacture of machinery and equipment (29) Manufacture of office machinery and computers (30) Manufacture of electrical machinery (31). Manufacture of motor vehicles and trailers (34) Manufacture of other means of transport (35) Manufacture of furniture and manufacturing activities not elsewhere specified (36).
Standard approaches to consumer market segmentation
Family Housewife and head of household, under 65 years of age, with one or more children in the family. In the UK, the three main providers of lifestyle data are NDL (National Demographs and Lifestyles), CMT (Computerized Marketing Technologies) and ICD (International Communications and Data).
2 The product audit
A product (or service) is the total experience of the customer or consumer in dealing with an organization. This is one of the best indications of the value of what we have called the "product environment".
The difference between successful and unsuccessful brands
The company must invest in everything it does so that the product meets the physical needs of customers, as well as having an image that matches their emotional needs. With considerable effort, British Telecom is close to changing from a household name to a successful brand.
The components of a brand
At its simplest, it is a brand's personality that transforms a commodity into something unique and makes it possible to command a higher price for it. In addition, the quality of the brand must be maintained through high standards of quality control and continuous product development.
The company as a brand
Global versus local brands
Even more important are the implications of the product life cycle concept on each element of the marketing mix. An interesting and useful extension of the product life cycle is what is known as the 'diffusion of innovation'.
