Transcript Marketing Slides Handout

Marketing
“Marketing is the process of
planning and executing the
conception, pricing, promotion,
and distribution of ideas, goods
and services to create exchanges
that satisfy individual and
organisational objectives.”
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Marketing Orientated
Listen & understand
Put customer first
Target…focus
Plan change and innovation
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Marketing Levels
Corporate
Business
Operational
Functional
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Marketing Process
Marketing
Analysis
Identifying
Value
Company
Customer
Competition
Market
Segmentation
Context
Collaboration
Target
Market
Selection
Product &
Service
Positioning
Marketing Mix – The 4 P’s
Creating
Value
Sustaining
Value
Product/Service
Customer
Acquisition
Price
Promotion
Place
Customer
Retention
Profit or Other Result
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Hierarchy of Plans
Corporate
Plan
Business
Plan
Marketing Plans
Functional
Plans
Operational
Plans
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Marketing Planning
Monitoring
Programmes
Marketing
Strategies
Marketing
Objectives
Assumptions
SWOT
Analysis
Marketing
Audit
Input
Objectives
Operations
Control
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Marketing Audit
External
Internal
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SWOT
STRENGTHS
WEAKNESSES
Factors
Internal
to the
Organisation
OPPORTUNITIES
THREATS
Factors
External
to the
Organisation
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Good Strategies
Customer
Intimacy
Operational
Excellence
More efficient,
less cost,
quicker
Strong relationships,
thorough knowledge,
solution-based
Product/Service
Leadership
State-of-the-art,
creative,
risk taking
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Marketing Objectives
Draw on SWOT
Set marketing objectives around
•
•
•
•
Markets
Products
Sales
Profit
Specific, Measurable, Agreed,
Relevant, Timebound, Extending,
Rewarding
S.M.A.R.T.E.R.
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Marketing Audit
Providing context
Raising issues and challenges
Stakeholder analysis
External
Internal
External
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Marketing Audit
Internal
External
Strengths
Weaknesses
Opportunities
Threats
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Marketing Research
List information needed
Identify sources (secondary and
primary)
Choose most appropriate method
• Time
• Cost
• Effectiveness
Action Plan (W3)
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Marketing Research
List Information
Source
Action Plan
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Market Research
Performance History
Income Generated
Variable Costs
Fixed Costs
Surplus/Deficit per Service
Activity Levels
Income per Employee
Environmental Issues
Marketing Spend
Marketing Effectiveness
Market Research
Desk Research
Field or Primary Research
Observation
Consultation
Focus Groups
Delphi Technique
Information Needed
Customer Needs & Wants
PEST Trends
Competition
Best practice
Funding required
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Market Research
ISSUES/ELEMENTS
SOURCES OF INFORMATION
DEMOGRAPHY
 Population
 NI Census 1991 and 2001
 Age structure
 NISRA (www.nisra.gov.uk)
 Distribution and Settlement Patterns
 Changes/immigration
 Office for National Statistics
 www.detini.gov.uk
ECONOMY
 www.economicstatistics-ni.gov.uk
 Sector Information
 www.dardni.gov.uk
 Labour Forced/Unemployment/Skills
 www.nitb.com/tourismfacts/Default.htm
 Invest NI
 www.dcalni.gov.uk
 DCAL/Arts Council
 www.artscouncil-ni.org/
SOCIAL/COMMUNITY
 Trade Bodies/Institutes
 Planning
 Noble Index
 Housing
 District Housing Plan (NIHE)
 Education
 House Condition Survey (NIHE)
 Health and Social Services
 HPSS Trust Strategy and Annual Report
 Deprivation
 Director of Public Health Annual Report (HSSB)
 www.deni.gov.uk/facts_figures/index.htm
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Make Assumptions…
Facts and figures but…make
assumptions
• Restrict to the critical few
• Use Best Guess/’Guestimate’
• Necessary for informed decisions
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PEST
Political
Social
Economic
Technological
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PESTLE
POLITICAL
ECONOMIC
SOCIAL
TECHNICAL
LEGAL
ENVIRONMENTAL
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SWOT
STRENGTHS
WEAKNESSES
Factors
Internal
to the
Organisation
OPPORTUNITIES
THREATS
Factors
External
to the
Organisation
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Robust Analysis
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If you
folded an
A4 Sheet
32 times,
how thick
would it
be?
271
Miles
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Strategy
“Operational effectiveness
means you’re running the same
race faster. But strategy is
choosing to run a different race
because it’s the one you’ve set
yourself up to win”.
Michael Porter
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Ansoff’s Matrix
Current
Products
New
Products
Current
Markets
Market
Penetration
Product
Development
New
Markets
Market
Development
Diversification
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Product/Market Expansion Grid
Existing
Products
Existing
Markets
Markets
New
Markets
Products
New
Products
Market Penetration
Product Development
Market penetration is a strategy of
Product development is a strategy
increasing your share of existing markets.
This might be achieved by raising
customers’ awareness of products and
services or finding new customers.
for enhancing benefits you deliver to
customers by improving existing products
and services or developing new ones.
Market Development
Diversification
Market development is a strategy of
Diversification is a strategy that
finding and entering new markets with
current product or service range. The new
market could be a new region, a new
country or a new segment of the market.
usually carries high costs and high risks. It
often requires organisations to adopt new
ways of doing business and so has
consequences far beyond simply offering
new products/services in a new market. It
is therefore usually a strategy to be
adopted when other options are not
feasible.
Adapted from Ansoff I. (1968)
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Boston Box
Relative Market Growth Rate
+
Stars
Question Marks
Cash Cows
Dogs
-
+
Relative Market Share
-
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Directional Policy Matrix
Attractive
MARKET
PROSPECTS
Leader
Average
Leader/
Growth
Unattractive
Cash
generator
Strong
Try harder
Growth/
custodial:
Proceed with
care
Phased
withdrawal
Average
Double
or quit
Phased
withdrawal
Disinvest
Weak
BUSINESS
POSITION
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Cost|Focus|Differentiation
Differentiation
Focus
Low Cost
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Scenarios
What if …?
A visioning-type exercise
Informed speculation … not prediction
Aim for four scenarios
• Strategic issues
• Key assumptions
• Implications
Plan on one (or more) scenario
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Blue Ocean
•Create uncontested market space
•Make the competition irrelevant
•Create and capture new demand
•Break the value-cost trade-off
•Align the organisation to
differentiation and low cost
Red Ocean
•Compete in existing markets
•Beat the competition
•Exploit existing demand
•Make the value-cost trade-off
•Align the organisation to
differentiation and low cost
Kim, Chan W., and Mauborgne, Renee (2005) Blue Ocean Strategy: How to Create Uncontested
Market Space and Make the Competition Irrelevant Boston, Harvard Business School Press.
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The Four Actions Framework
Reduce
Which factors should be
reduced well below the
industry standard?
Eliminate
Which of the factors the
industry takes for
granted should be
eliminated?
A New
Value
Curve
Create
Which factors should be
created that the industry
has never offered?
Raise
Which factors should be
raised well above the
industry standard?
Particularly eliminate and create to make the existing
rules of competition irrelevant and move beyond
competition onto new space…
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Six principles
•Formulation
•Reconstruct market boundaries
•Focus on the big picture, not the
numbers
•Reach beyond existing demand
•Get the strategic sequence right
•Execution
•Overcome key organisational
hurdles
•Build execution into strategy
Kim, Chan W., and Mauborgne, Renee (2005) Blue Ocean Strategy: How to Create Uncontested
Market Space and Make the Competition Irrelevant Boston, Harvard Business School Press.
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Strategy Canvas and Value Curve
High
Blue Ocean
Red Ocean
Low
Price
Marketing
Prestige
Quality
Factors
New
Factors
New
Factors
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Marketing Mix
Stealth Marketing?
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