MarketingPlanning - Overview of the Marketing Planning...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Overview of the Marketing Planning Process Why Plan? Marketing Planning - Basic Terms Strategy Tactics Objectives Strategic Business Planning vs. Strategic Marketing Planning vs. Rolling Resource Budgeting Strategic Business Planning Organization Organization Mission Marketing Plan Analysis Objectives Strategies Tasks Budgets Operational Plan Analysis Objectives Strategies Tasks Budgets Personnel Plan Analysis Objectives Strategies Tasks Budgets Finance Plan Analysis Objectives Strategies Tasks Budgets Marketing Planning Planning Question 1. Where are we now? Action Steps Define your business unit I.D. market opportunities Complete market analysis Determine objectives Develop business case Finalize marketing mix Follow-up 2. Where do we want to go? 3. How do we get there? Market Planning Process 1. Define your business (SBU) 2. Make preliminary identification of market opportunities 3. Complete market analysis 4. Determine objectives 5. Develop business case 6. Finalize marketing mix and implement 7. Follow-up As su me d 1. Define Your Business Unit Strategic Business Unit - - also known as an SBU Defined as a part of the firm that can be managed separately for marketing purposes - almost like a free standing business within a business. Key SBU characteristics*: serves an external market has customers and competitors that are distinct from other SBUs within the company strategically autonomous from other SBUs does not need to own its own dedicated resources * "Winning Market Leadership" by Adrian Ryans, Roger More, Donald Barcelay, and Terry Deutscher, page 29. 2000, John Wiley & Sons. SBU Managers' Decision Areas that will Influence Success Targeted customers the SBU seeks to serve. The products and/or services the SBU is able to provide. The SBU's value-adding competencies not provided by others in the market chain. Mission Statement A mission statement is a brief general description defining the basic needs the SBU hopes to fill in the marketplace. Starbucks Mission Statement Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essential way we do business. Apply the highest standards of excellence to the purchasing roasting, and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success. Source: 2. Make Preliminary Identification of Market opportunities Identify potential customer groups (segments) that could be served: Segment size Segment growth Identify potential applications or functionality that could be provided to targeted customers. 3. Complete Market Analysis Begin with three C's as an analysis guide: Company Customers Competitors 3 C's not enough, other topics deserving attention: Economic environment Technological environment Resource environment Social-cultural environment Legal/political environment Summarize problems / opportunities -"SWOT" Internal External Strengths Opportunities Weaknesses Threats Summarize problems / opportunities Sample SWOT Analysis Strengths 1. Ability to develop leading edge engineering software. 2. National sales force is among the strongest in industry. Weaknesses 1. International expertise does not exist. 2. Distribution system is too costly to target most smaller companies. Opportunities 1. Furniture industry is becoming more interested in automating design processes. 2. Many Pacific Rim industries have need for product. Threats 1. Key competitor is rumored to be readying a next edition of product. 2. Expertise to utilize product in many of the attractive foreign markets is lacking. 4. Identify Market Goals Select target markets Find points of difference Developing product positioning strategy Set product objectives Should be quantifiable & attached to a timeline 4. Determine Objectives Successfully Sample Marketing Objectives launch Cherry Flavored Gatorade. Generate $10 MM in 2008 incremental sales. Ensure awareness scores for new Brad Pitt movie reach 85% before premiere. Increase XYZ product market share from 30% to 34% by 2009. Generate $15MM in sales revenues from Pacific Rim markets during 2nd quarter, 2008. 5. Develop Business Case for Management Approval Why now? What is happening that is leading to this opportunity? Can you make it? Who are you targeting and will enough people buy your product? What is the value proposition? What position do you need and how are you going to get it? Will projected volumes and margins justify the investment? 6. Finalize Marketing Mix & Implement Product Price Promotion Distribution The importance of implementation skills Are planned results always delivered in most organizations? What else might our process include? 7. Follow-up Measurement - efficiency Measurement effectiveness Corrective action Honda's Introduction of the S2000 Source: Wall Street Journal Honda's Introduction of the S2000 Analyze the Market BMW Z3 $36,200 Reasons for Buying a Sports Car: Mercedes SLK Porsche Boxster $40,000 $41,000 41% 10% -11% 61% 14% 4% 7% Fun to Drive Styling Well Made Reputation 61% 14% 5% 5% Honda's Introduction of the S2000 Analyze the Market 100000 90000 80000 70000 60000 50000 40000 1995 # Sports Car Sales 1996 1997 1998 1999 2000 2001 2002 2003 Honda's Introduction of the S2000 Market Analysis Expected Honda S2000 Buyer Profile 70% Male 70% Married 40+ median age $100,000+ median income 75% have college education Honda's Introduction of the S2000 Determine Objectives Sell 20,000 vehicles annually - only 5,000 to 6,000 vehicles in the U.S. Honda's Introduction of the S2000 Part of Business Case Recommendations Position the product as a high performance,fun to drive sports car, that is more affordable than rival products. Distribute under the Honda badge rather than the Acura badge to reemphasize Honda's heritage in motorcycles and auto racing. Honda's Introduction of the S2000 Program the Marketing Mix Product - Performance oriented sports car Price - About $30,000 ($5 -$10,000 less than competitors) Promotion - Ads in magazines, some TV, website, other Distribution - Limited quantities through Honda dealers "Competitive Strategy is about being different - It means deliberately choosing a different set of Activities to deliver a unique mix of value" - - Michael Porter ...
View Full Document

This note was uploaded on 09/19/2008 for the course BUAD 307 taught by Professor Morristowns during the Fall '07 term at USC.

Ask a homework question - tutors are online