MARKETING PLANNING ICESI MBA MARKETING PLANNING Marketing Strategy

MARKETING PLANNING ICESI MBA

MARKETING PLANNING Marketing Strategy its a blue print by which the firm plans to complete David R (1987) Marketing Planning A document that layouts recommendations for a business, what the firm need to accomplish and how Calkins J (2005)

MARKETING PLANNING What is in the document?

MARKETING PLANNING The written marketing plan -An executive summary -Table of contents -A summary of the current situation (SWOT) -A focused assessment of the marketing opportunity -A financial marketing goal -A summary of the company marketing strategy -A month to month budget -A month to month sales and revenue forecast -A plan for monitoring and evaluating action plans and progress and at the end of the period

MARKETING PLANNING Where does planning fit in the marketing process?

MARKETING PLANNING THE MARKETING PROCESS Strategy formulation Marketing Planning Program deployment

MARKETING PLANNING Time Horizon Activities Name of activities Lateral connections Long 1) Set overall, long-term goals and Basic approach to market place 1) Formulation of marketing strategy 1) Corporate strategy Medium 2) Set two-to five-year objectives and plans ; with more detail for shorter time horizons 2) Marketing planning 2) Business plan 3) Set one-year objectives and detailed plan; allocate resources to achieve goals specified in steps 3 and 4 3) Marketing programming, allocating and budgeting 3) Operating programs and budgets 4) Execute plans, programs, and budgets 4) Marketing implementation 4) Operating activities 5) Evaluate results of execution against goals set in steps 1, 3, and 4, above; specify corrective action where necessary 5) Monitoring and auditing 5) Business audits 6) Gather and analyze quantitative and qualitative data from within and outside the company 6) Analysis and research 6) Business analysis and research Short

MARKETING PLANNING Marketing Planning The planning process requires meetings and agreement and an understanding (analyzing) the current situation. Planning requires also communicating the plan and supervising its implementation

MARKETING PLANNING Planning may help people to sell ideas and to get budget allocation Planning can be an unfertile business requirement. The written document may never be read and left getting dust on a shelf

MARKETING PLANNING Planning should ultimately activate decision making A plan without an implementation worth nothing

MARKETING PLANNING Stop making plans, start making decisions How Executives Plan How Executives Decide 66% periodically 100% continuosly 67% unit by unit 70% issue by issue No wonder only 11% of executives are highly satisfied that Strategic Planning is worth the effort

MARKETING PLANNING How is planning conducted in your organization?

MARKETING PLANNING The Planning Process Step 1 Understand situation Step 2 Develop Objetives, Strategies and Tactics Step 3 Write and Present the Plan Gain Support Step 4 Execute

MARKETING PLANNING Marketing Plan Summary OBJETIVES STRATEGIES Key to success 1) Always remember you are selling a recommendation 2) Make the data compelling and; 3) Always deal with the conflicting data. TACTICS

MARKETING PLANNING Practical Recommendations 1) Tell a story but don't write a novel plans should be long enough to be understood but short enough to be read, and they should “speak” to people. 2) Don't make novice mistakes check data accuracy, sources reliability 3) Set demanding but achievable goals 4) Make sure you have the resources to make the plan possible 5) Make sure you have an implementation and follow up process

MARKETING PLANNING The Planning Process It all begins with a clear understanding of business

MARKETING PLANNING Typical business situation sumarizes in two sets of components: Company´s Environment Strength weaknesses Opportunities Threats

MARKETING PLANNING Understanding the situation Behind the typical SWOT analysis we have: 1. 2. 3. 4. 5. Marketing research Analysis of competitors Industry intelligence Analysis of the past performance Organizational and industry constraints

MARKETING PLANNING Understanding the situation We want to understand the market and its segments, and how the competition is doing in those markets and segments

MARKETING PLANNING Situation Analysis At the end we should be able to detect the critical factors we need to deal with in our plan

MARKETING PLANNING Portfolio Planning One of the ways to explain your current situation in the market is poftfolio analysis: - BCG chart - G. E Mckinsey Screen

MARKETING PLANNING BCG Portfolio Chart 20% Product Market Growth Rate 10% 4. 0 2. 0 1. 0 0. 5 Relative Market Share 0. 25

MARKETING PLANNING BCG Portfolio Chart High ? ? “SUCCESS” SEQUENCES Product Market Growth Rate $ “DISASTER” SEQUENCES X X $ Low 4. 0 2. 0 1. 0 0. 5 0. 25 Low High Relative Market Share

MARKETING PLANNING GE Mc. Kinsey Screen INDUSTRY ATTRACTIVENESS Medium Low • Size • Growth • Share • Position • Profitability • Margins • Technology position • Strengh • Image • Pollution • People BUSINESS STRENGTHS High Medium Low Invest/grow Selectivity/earnings Harvest/divest • Size • Market Growth • Market diversity • Competitive structure • Industry Profitability • Technical role • Social • Environment • Legal • Human

MARKETING PLANNING Situation Analysis With the Situation Analysis we intend to see and explain the reality that the company is facing.

MARKETING PLANNING Explaining Reality Esscence Sustantable Marketing Leadership Competitive Positioning Customers Benefits Product/service features Internal capabilities

MARKETING PLANNING Explaining Reality Commoditization Cruise control Sales The surge Planting Time Saturation Replacement

MARKETING PLANNING Strategy Development Process

MARKETING PLANNING Strategy Development Process What do we want to achieve? How do we achieve it?

MARKETING PLANNING Strategy Development Process Setting objetives Responding what? and when?

MARKETING PLANNING Strategy Development Process Objetives should correspond to mission, vission and corporate goals

MARKETING PLANNING Steps in Strategic Planning

MARKETING PLANNING Market-Oriented Mission A mission statement asks. . § § What is our business? Who is the customer? What do consumers value? What should our business be? A mission statement should be: § § § An “invisible hand” Neither too narrow nor too broad Fitting of market environment Based on distinctive competencies Motivating

MARKETING PLANNING Strategic Planning Company Objectives must tie to Marketing Objectives • Company Mission • Business Objectives • Marketing Objectives

MARKETING PLANNING Strategy Development Process Strategic initiatives responding to the how we are achieving the objetives

MARKETING PLANNING Devising the Implementation Tactical implementation should follow the Strategy formulation phase. It refers to a specific “road map” to turn the Strategic initiatives in to reality.

MARKETING PLANNING Tactical implementations Strategy formulation activities (pre-implementation planning) • Project ideation • Developing initial support for project among decision makers • Estimating an expected budget and schedule • Identifying project goals and expected outcomes • Attaining approval for project

MARKETING PLANNING Tactical implementations Implementation planning activities (tactical and project planning) • Detailed action planning • Resource planning • Facilitating buy-in with implementation participants • what. -if analysis • Developing contingency plans

MARKETING PLANNING Tactical implementations Execution activities • Carrying out planned activities • Monitoring and coordinating tasks • Communicating with project participants • Overcoming unanticipated problems

MARKETING PLANNING Managerial Guidelines for Tactical Implementations • Hone your implementation skills • Prepare for the unexpected • Effective excecution is not possible without a supportive infraestructure • Building buy-in is a fundamental implementation task • Top management must provide direction • Like a fine wine, implementation takes time • Management must provide air corver for “reality checkers” • Make simplicity a virtue Peter J, & Harper S (2003) The Devil is in the Detail Business Horizons

MARKETING PLANNING Tactical Implementation Anticipating to problems in the implementation Phase is as important as the strategy it self

MARKETING PLANNING Framework for Diagnosing Implementation Problems Skills Functions Actions Programs Systems Policies Interacting Allocating Monitoring Organizing

MARKETING PLANNING Evaluating Performance No implementation is successful if we don't Clearly define the performance indicators

MARKETING PLANNING Establishing Performance Indicators Financial Performance Market Performance Operating Performance Human Performance

MARKETING PLANNING Establishing Performance Indicators Strategic Imperative Key Performance Indicators (measurements)

MARKETING PLANNING Defining the Resources Requirements Strategic Imperative Human Infrastructures Resources Needed Physical Financial Human Changes

MARKETING PLANNING Defining the Resources Requirements Strategic Imperative Risks Likelihood Of success

MARKETING PLANNING Orchestrating the marketing effort

MARKETING PLANNING Elements of most marketing programs People Processes Systems

MARKETING PLANNING People • Key basic action lies in the marketing task • Certification Processes Systems • Training • Certification • Facilitate the marketing task • Enable best practice sharing • Monitoring the marketing program

MARKETING PLANNING Certification Evaluation programs for marketing units that measure the quality of marketing processes and people’s profile and skills Certification ensures a minimal accepted quality and provides feedback for improvement

MARKETING PLANNING Re so s es sin Bu urc es Companies build capabilities through exploiting developing their resources. Organization

MARKETING PLANNING Re ess sin Bu sou Competitive Advantage rce s The triangle of corporate strategy es Organization Control Coordination Great corporate strategies come in the first instance from strength in each side of the triangle: high-quality rather than pedestrian resources, strong market positions in attractive industries, and an efficient administrative organization. But true corporate advantage requires a tight fit at each angle as well. When a company’s resources are critical to the success of its businesses, the result is competitive advantage. When the organization is configured to leverage those resources into the businesses, synergy can be captured and coordination achieved. Finally, fit between a company’s measurement and reward systems and its businesses produces strategic control. Creating Corporate Advantage, David J. Collis and Cynthia A. Montgomery, May-June 1998.

MARKETING PLANNING l l In order for companies to implement strategies manager’s thinking must be reoriented and core decision-making systems reshaped. This is going from formulating a strategy to assuring its implementation is possible. One way to achieve this is through the management of change.