Transcript marketing planning -1 - Serwis Informacyjny WSJO

Karolina Janiszewska
MARKETING PLANNING
SWOT, mission, objectives
WSJO HND in Bussiness
Marketing Plan
SWOT analysis
• SWOT analysis is a tool for auditing an
organization and its environment. It is the first
stage of planning and helps marketers to focus
on key issues.
• SWOT stands for strengths, weaknesses,
opportunities, and threats.
• Strengths and weaknesses are internal factors.
• Opportunities and threats are external factors.
WSJO HND in Bussiness
Marketing Plan
A strength could be:
•
•
•
•
•
your specialist marketing expertise.
a new, innovative product or service
location of your business
quality processes and procedures
any other aspect of your business that adds
value to your product or service.
WSJO HND in Bussiness
Marketing Plan
A weakness could be:
• lack of marketing expertise
• undifferentiated products or services (i.e. in
relation to your competitors)
• location of your business
• poor quality goods or services
• damaged reputation
WSJO HND in Bussiness
Marketing Plan
An opportunity could be:
•
•
•
•
mergers, joint ventures or strategic alliances
new market segments that offer improved profits
a new international market
a market vacated by an ineffective competitor
WSJO HND in Bussiness
Marketing Plan
A threat could be:
• a new competitor in your home market
• price wars with competitors
• a competitor has a new, innovative product or
service
• competitors have superior access to channels of
distribution
• taxation is introduced on your product or service
WSJO HND in Bussiness
Marketing Plan
Simple rules for successful SWOT
analysis
• be realistic about the strengths and weaknesses of your
organization
• analysis should distinguish between where your
organization is today, and where it could be in the future
• be specific. Avoid grey areas.
• always analyse in relation to your competition i.e. better
than or worse than your competition
• keep your SWOT short and simple. Avoid complexity and
over analysis
• SWOT is subjective.
WSJO HND in Bussiness
Marketing Plan
What is strategy?
• "Strategy is the direction and scope of an
organisation over the long-term: which achieves
advantage for the organisation through its
configuration of resources within a challenging
environment, to meet the needs of markets
and to fulfil stakeholder expectations".
WSJO HND in Bussiness
Marketing Plan
What is strategy?
• Where is the business trying to get to in the long-term
(direction)
• Which markets should a business compete in and what kind
of activities are involved in such markets? (markets; scope)
• How can the business perform better than the competition in
those markets? (advantage)
• What resources (skills, assets, finance, relationships,
technical competence, facilities) are required in order to be
able to compete? (resources)
• What external, environmental factors affect the businesses'
ability to compete? (environment)
• What are the values and expectations of those who have
power in and around the business? (stakeholders)
WSJO HND in Bussiness
Marketing Plan
SWOT strategies
Internal strengths
Internal weaknesses
External options
Maxi-maxi strategies
that maximise options
and strengths
Mini-maxi strategies
that minimise the
weaknesses and
maximise options
External threats
Maxi-mini strategies
that maximise strengths
and minimise threats
Mini-mini strategies
that minimise both
threats and
weaknesses
WSJO HND in Bussiness
Marketing Plan
Ansoff product / market matrix
WSJO HND in Bussiness
Marketing Plan
Market penetration
• The business focuses on selling existing products into existing markets.
• Market penetration seeks to achieve four main objectives:
– Maintain or increase the market share of current products – this can be
achieved by a combination of competitive pricing strategies, advertising,
sales promotion and perhaps more resources dedicated to personal selling
– Secure dominance of growth markets
– Restructure a mature market by driving out competitors; this would require a
much more aggressive promotional campaign, supported by a pricing
strategy designed to make the market unattractive for competitors
– Increase usage by existing customers – for example by introducing loyalty
schemes
• A market penetration marketing strategy is very much about “business
as usual”. The business is focusing on markets and products it knows
well. It is likely to have good information on competitors and on
customer needs. It is unlikely, therefore, that this strategy will require
much investment in new market research.
WSJO HND in Bussiness
Marketing Plan
Market development
• Market development is the name given to a
growth strategy where the business seeks to sell
its existing products into new markets.
• There are many possible ways of approaching
this strategy, including:
– New geographical markets; for example exporting the
product to a new country
– New product dimensions or packaging
– New distribution channels
– Different pricing policies to attract different customers
or create new market segments
WSJO HND in Bussiness
Marketing Plan
Product development
• Product development is the name given to a
growth strategy where a business aims to
introduce new products into existing markets.
• This strategy may require the development of
new competencies and requires the business to
develop modified products which can appeal to
existing markets.
WSJO HND in Bussiness
Marketing Plan
Diversification
• Diversification is the name given to the growth
strategy where a business markets new
products in new markets.
• This is an inherently more risk strategy because
the business is moving into markets in which it
has little or no experience.
• For a business to adopt a diversification
strategy, therefore, it must have a clear idea
about what it expects to gain from the strategy
and an honest assessment of the risks.
WSJO HND in Bussiness
Marketing Plan
Competitive strategy
(generic strategies by Michael Porter)
WSJO HND in Bussiness
Marketing Plan
Differentiation
• involves selecting one or more criteria used by buyers in
a market - and then positioning the business uniquely to
meet those criteria.
• usually associated with charging a premium price for
the product - often to reflect the higher production costs
and extra value-added features provided for the
consumer.
• gives customers clear reasons to prefer the product over
other, less differentiated products.
• Examples of Differentiation Strategy: Mercedes cars
WSJO HND in Bussiness
Marketing Plan
Cost Leadership
• the objective is to become the lowest-cost producer in
the industry
• usually associated with large-scale businesses offering
"standard" products with relatively little differentiation
that are perfectly acceptable to the majority of
customers.
• occasionally, a low-cost leader will also discount its
product to maximise sales, particularly if it has a
significant cost advantage over the competition and, in
doing so, it can further increase its market share.
• Examples of Cost Leadership: Biedronka
WSJO HND in Bussiness
Marketing Plan
Differentiation Focus
• a business aims to differentiate within just one or a small
number of target market segments
• the special customer needs of the segment mean that
there are opportunities to provide products that are
clearly different from competitors who may be targeting a
broader group of customers
• ensures that customers really do have different needs
and wants - in other words that there is a valid basis for
differentiation - and that existing competitor products are
not meeting those needs and wants.
• Examples of Differentiation Focus: specialist holiday
operator – adventure trips in Africa and Asia
WSJO HND in Bussiness
Marketing Plan
Cost Focus
• a business seeks a lower-cost advantage in just
on or a small number of market segments.
• The product will be basic - perhaps a similar
product to the higher-priced and featured market
leader, but acceptable to sufficient consumers.
• Such products are often called "me-too's".
WSJO HND in Bussiness
Marketing Plan
Business mission
• A strategic plan starts with a clearly defined
business mission.
• A mission statement is a written, easy-toremember sentence, short list of bullet points, or
paragraph illustrating a business' goals and
purpose.
• It has one common function: to guide you and
your employees in making critical decisions that
effect the direction of your company.
WSJO HND in Bussiness
Marketing Plan
Business mission
A mission
describes the
organisation’s
basic function
in society, in
terms of the
products and
services it
produces for
its customers.
WSJO HND in Bussiness
Marketing Plan
A Purpose
• Why does the business exist?
• Is it to create wealth for shareholders?
• Does it exist to satisfy the needs of all
stakeholders (including employees, and society
at large) ?
WSJO HND in Bussiness
Marketing Plan
A Strategy and Strategic Scope
• A mission statement provides the commercial logic for
the business and so defines two things:
– The products or services it offers (and therefore its competitive
position)
– The competences through which it tries to succeed and its
method of competing
• A business’ strategic scope defines the boundaries of its
operations. These are set by management.
• For example, these boundaries may be set in terms of
geography, market, business method, product etc. The
decisions management make about strategic scope
define the nature of the business.
WSJO HND in Bussiness
Marketing Plan
Policies and Standards of Behaviour
• A mission needs to be translated into everyday
actions. For example, if the business mission
includes delivering “outstanding customer
service”, then policies and standards should be
created and monitored that test delivery.
• These might include monitoring the speed with
which telephone calls are answered in the sales
call centre, the number of complaints received
from customers, or the extent of positive
customer feedback via questionnaires.
WSJO HND in Bussiness
Marketing Plan
Values and Culture
• The values of a business are the basic, often un-stated,
beliefs of the people who work in the business. These
would include:
• Business principles (e.g. social policy, commitments to
customers)
• Loyalty and commitment (e.g. are employees inspired to
sacrifice their personal goals for the good of the
business as a whole? And does the business
demonstrate a high level of commitment and loyalty to its
staff?)
• Guidance on expected behaviour – a strong sense of
mission helps create a work environment where there is
a common purpose
WSJO HND in Bussiness
Marketing Plan
What role does the mission statement
play in marketing planning?
• In practice, a strong mission statement can help
in three main ways:
• It provides an outline of how the marketing plan
should seek to fulfil the mission
• It provides a means of evaluating and screening
the marketing plan; are marketing decisions
consistent with the mission?
• It provides an incentive to implement the
marketing plan
WSJO HND in Bussiness
Marketing Plan
Basic guidelines in writing a mission
statement
• A mission statement should say who your company is, what
you do, what you stand for and why you do it.
• An effective mission statement is best developed with input
by all the members of an organization.
• The best mission statements tend to be 3-4 sentences long.
• Avoid saying how great you are, what great quality and what
great service you provide.
• Examine other company's mission statements, but make
certain your statement is you and not some other company.
That is why you should not copy a statement.
• Make sure you actually believe in your mission statement, if
you don't, it's a lie, and your customers will soon realize it.
WSJO HND in Bussiness
Marketing Plan
Examples of mission statement
• 3M "To solve unsolved problems innovatively"
• Mary Kay Cosmetics "To give unlimited
opportunity to women."
• Wal-Mart "To give ordinary folk the chance to
buy the same thing as rich people."
• Walt Disney "To make people happy."
• Boeing "To push the leading edge of aviation,
taking huge challenges doing what others
cannot do"
WSJO HND in Bussiness
Marketing Plan
Examples of mission statement
Northamptonshire Public Libraries (England, UK)
Our mission is to serve the people of
Northamptonshire by delivering the vision of
Northamptonshire Libraries and Information
Service through the development and
maintenance of a coherent range of policies
and services, understood and valued by the
community.
WSJO HND in Bussiness
Marketing Plan
Examples of mission statement
At the Developmental Studies Center we develop,
evaluate, and disseminate programs [business]
that foster children's ethical, social, and
intellectual development [purpose]. While
nurturing children's capacity to think skillfully and
critically, we also strive to deepen children's
commitment to prosocial values such as
kindness, helpfulness, personal responsibility,
and respect for others - qualities we believe are
essential to leading humane and productive lives
in a democratic society [values].
WSJO HND in Bussiness
Marketing Plan
Examples of mission statement
The YMCA of San Francisco, based in JudeoChristian heritage [values], seeks to enhance the
lives of all people [purpose] through programs
designed to develop spirit, mind and body
[business].
WSJO HND in Bussiness
Marketing Plan
Setting objectives
• The objective is the starting point of the marketing plan.
• Once environmental analyses (such as SWOT, Five
Forces Analysis and PEST) and marketing audit have
been conducted, their results will inform objectives.
• Objectives should seek to answer the question 'Where
do we want to go?'.
• The purposes of objectives include:
– to enable a company to control its marketing plan.
– to help to motivate individuals and teams to reach a common
goal.
– to provide an agreed, consistent focus for all functions of an
organization.
WSJO HND in Bussiness
Marketing Plan
Objectives can be set at two levels
• (1) Corporate level
• These are objectives that
concern the business or
organisation as a whole.
• Examples of “corporate
objectives might include:
• (2) Functional level
• e.g. specific objectives for
marketing activities
• Examples of functional
marketing objectives” might
include:
– We aim for a return on
investment of at least 15%
– We aim to achieve an
operating profit of over £10
million on sales of at least
£100 million
– We aim to increase earnings
per share by at least 10%
every year for the foreseeable
future
WSJO HND in Bussiness
– We aim to build customer
database of at least 250,000
households within the next 12
months
– We aim to achieve a market
share of 10%
– We aim to achieve 75%
customer awareness of our
brand in our target markets
Marketing Plan
All objectives should be SMART
• Specific - Be precise about what you are going
to achieve
• Measurable - Quantify you objectives
• Achievable - Are you attempting too much?
• Realistic - Do you have the resource to make
the objective happen (men, money, machines,
materials)?
• Timed - State when you will achieve the
objective (within a month? By February 2010?)
WSJO HND in Bussiness
Marketing Plan
Examples of marketing aims
• Profitability Objectives
– To achieve a 20% return on capital employed by August 2007.
• Market Share Objectives
– To gain 25% of the market for sports shoes by September 2006 in USA
• Promotional Objectives
– To increase awareness of the dangers of AIDS in France from 12% to
25% by June 2004.
– To increase trail of X washing powder from 2% to 5% of our target group
by January 2005.
• Objectives for Growth
– To increase the size of our German Brazilian operation from $200,000 in
2002 to $400,000 in 2003.
• Objectives for Branding
– To make Y brand of bottled beer the preferred brand of 21-28 year old
females in North America by February 2006.
WSJO HND in Bussiness
Marketing Plan