FROM MARKETING PLANNING TO CONTROL

C H A P T E R    12

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MOSTAFA PURMEHDI

How Marketing Contributes

O B J E C T I V E S

Marketing Planning

O B J E C T I V E S

A Marketing Plan Answers These Questions?

• Situational Analysis Where are we and where are we going?
• Setting Objectives Where do we want to go?
• Resource Allocation What efforts should we invest in this?
• Marketing Mix How do we want to get there?
• Implementation What should we do?
• Control How do we know if we are in the right direction?

MARKETING

PLAN

Situation Analysis

a set of

Strategies

Action

Program

3 GENERAL ELEMENTS

MARKETING PLAN

Situation Analysis

Setting Objectives

Resource Allocation

Segmentation and Positioning

Marketing Mix

Implementation

Control

1.Market

• Consumers or organizational customers, demand and segments

2.Competition and environment

3.Company

• Mission and objectives
• Strengths and weaknesses
• Distinctive advantage

MARKETING PLAN

Situation Analysis

Setting Objectives

Resource Allocation

Segmentation and Positioning

Marketing Mix

Implementation

Control

Competitive advantage

There are 4 main strategies for gaining a competitive advantage that will differentiate you from your competitors and put you in a position of relative strength:

• Innovation
• Segmentation
• Improving distribution
• Improving communication

MARKETING PLAN

Situation Analysis

Setting Objectives

Resource Allocation

Segmentation and Positioning

Marketing Mix

Implementation

Control

Objectives

• “Where do we want to go?”
• Example: Gain a certain market share

Strategies

• Follows an overall vision
• Example: Setting the lowest price possible

Tactics

• Means used to achieve a final objective
• Example: Inserting rebate coupons in a magazine

MARKETING PLAN

Situation Analysis

Setting Objectives

Resource Allocation

Segmentation and Positioning

Marketing Mix

Implementation

Control

Marketing strategies follow an overall vision from Business strategies

- Business strategies

• Competitive vs. Development strategies

- Marketing strategies

• Segmentation/targeting/positioning
• Product
• Price
• Place
• Promotion

MARKETING PLAN

Situation Analysis

Setting Objectives

Resource Allocation

Segmentation and Positioning

Marketing Mix

Implementation

Control

What efforts do we want to invest in this?

• Budget
• Human resources

MARKETING PLAN

Situation Analysis

Setting Objectives

Resource Allocation

Segmentation and Positioning

Marketing Mix

Implementation

Control

1. Objectives and strategies
2. Marketing strategies
3. Target segments, desired positioning, differentiation and innovation

MARKETING PLAN

Situation Analysis

Setting Objectives

Resource Allocation

Segmentation and Positioning

Marketing Mix

Implementation

Control

Formulating the product, pricing, distribution, communication and customer service strategies

MARKETING PLAN

Situation Analysis

Setting Objectives

Resource Allocation

Segmentation and Positioning

Marketing Mix

Implementation

Control

1. Statement of activities (program) for each of the marketing mix variables
2. Defining responsibilities for each member of the marketing unit
3. Coordinating operations
4. Schedule of activities

MARKETING PLAN

Situation Analysis

Setting Objectives

Resource Allocation

Segmentation and Positioning

Marketing Mix

Implementation

Control

1.Contingency plan

2.Description of the means of control

3.Scorecard

Strategies

O B J E C T I V E S

BUSINESS STRATEGIES

Competitive

Development

(Asnof's Matrix)

• Leader strategies
• Challenger strategies
• Follower strategies
• Specialist (nicher) strategies

• Market penetration
• Market development
• Product development
• Diversification

ASNOF MATRIX

For Development Strategies

Existing

Product

New

Product

Market

Penetration

Product

Development

Diversification

Existing Market

New Market

Market

Development

Example: Using Asnof Matrix to Increase Tourism in a Region

Penetration

Intensive promotion

Market Development

Promotion Abroad or Packages

Product Development

Opening of a nature Interpretation Center

Diversification

Setting up a Summer Theatre or Organizing a Festival

Competitive Strategies

• Leader Strategy has a dominant position in the market
• Challenger Strategy is the main rival of the leader, uses aggressive strategies and seeks to hold a dominant position
• Follower Strategy is for a competitor with a relatively small market share to defend, no attempt to increase it
• Specialist (nicher) focuses on a distinctive market segment

Analysis of Strategic Market Positioning

M   A   T   R   I   X

BCG Matrix

LOW

HIGH

HIGH

LOW

Relative market share

Market

growth

?

BCG Analysis

• Stars products for which we have high market share in a growing market.
    
• Question marks (aka Problem Child) products that we dont know if they are going to be stars or dogs in future
     
• Cash cows products with high market share in a slow-growing market
      
• Dogs products to be eliminated in a weak market.
      

BCG Strategic Decision making

LOW

HIGH

HIGH

LOW

Relative market share

Market

growth

?

 SUPPORT

finance them to help them grow even more

INVEST SELECTIVELY

try and improve their market position if possible

MAXIMIZE RETURN

cash cows make money for you to invest in stars and question-marks

ABANDON

remove dogs or slash their costs to a minimum

Control

O B J E C T I V E S

A Cycle

Objectives

Programs

(means of action)

Standards

Performance measures

Root cause analysis

Corrective action

Organizational Structure

O B J E C T I V E S

Organizational Structure is based on Size of the business, Product range, and Market diversity:

• Functional structure
• Product or brand structure
• Market or region structure
• Matrix structure