Transcript MARKETING STRATEGY

Market-Based Management
Chapters 14, 15, 16
Marketing Plans and Performance
1
Marketing Planning Process
Step 1:
Situation
Analysis
Adjust
Marketing
Plan as
Necessary
Step 2:
SWOT
Analysis
Step 7:
Perform
Review
Step 3:
Strategic
Market
Plan
Step 4:
Marketing
Mix
Strategy
Step 6:
Profit
Plan
Step 5:
Marketing
Budget
2
Figure 14-9 Components of a Market Strategy
Review Handout
3
Successful Plan Implementation
Owning the
Marketing Plan
1. Detailed
Action Plans
2. Champion and
Ownership
Team
3. Compensation
4. Management
Involvement
Supporting the
Marketing Plan
Adapting the
Marketing Plan
1. Time to Succeed
1. Continuous
Improvement
2. Resource
Allocation
3. Communication
4. Required Skills
2. Feedback
Measures
3. Persistence
4. Adaptive
Rollout
4
A Hierarchy of Performance
Strategic
Performance
Marketing
Performance
Financial
Performance
Program A
Performance
Program B
Performance
Task 1
Performance
Task 2
Performance
Program C
Performance
Task 3
Performance
5
Marketing Performance is the
End Product of Marketing Plans
and Marketing Actions
Marketing
Plans
Marketing
Actions
Marketing
Performance
But, this model doesn’t account for all that
can go wrong.
6
Marketing
Plans
Marketing
Actions
Poor
Data Analysis
and Planning
Marketing
Performance
Poor
Communication
of Objectives
Insufficient
Resource
Allocation
Changes in
Customer
Needs
Poor
Tracking of
Performance
Insufficient
Training
7
This is Further Complicated by
Difficulties in Problem Diagnosis
8
MARKETING PLANS
APPROPRIATE
I
M
P
L
E
M
E
N
T
A
T
I
O
N
SUCCESS
• All that can be
done to insure
success has
GOOD been done
POOR
INAPPROPRIATE
UNCERTAIN
• Good execution can
mitigate poor strategy,
forcing success.
OR
The same good
execution can
hasten failure
TROUBLE
UNCERTAIN
• Poor execution hampers
good strategy. Mgmt
may never become
aware of strategic
soundness because of
implementation
inadequacies
• Very Difficult to diagnose
because bad strategy is
masked by poor
execution.
• Difficult to fix because
both strategy and
execution are wrong.
9
As with Corporate or Business Unit
Performance, Marketing Performance
Has Multiple Dimensions
10
Performance Relationships
Program Effectiveness
Sales/Share
Increases
New Service
Performance
Profitability
Customer
Satisfaction
Efficiency
11
Defining Marketing Effectiveness
 The Achievement
of Marketing Program
Goals
–Sales growth/share growth
–Retention
–Profitability
–Awareness
–Positioning
–Cost reduction
12
Sub-dimensions of Performance
13
Performance Dimensions - Growth
 Sales
growth
 Share growth
–Increased sales to existing
customers
–Sales to new customers
–Opening new markets
14
Performance Dimensions - Efficiency
 Achieving
goals with minimum
resource invested.
–Productivity
–Outputs/Inputs
Efficiency =
Sales .
Mktg Exp.
15
Performance Dimensions - New
Products Development
 Trial
rate
 Retention rate
 Time to market
 Revenue from new services
16
Performance Dimensions - Customer
Satisfaction
 Satisfaction
 Retention/Loyalty
 Perceived
value received
17
Performance Dimensions Profitability
 ROA =
Profits/Assets
 Cash Flow/Assets = CFROA
 Return on Sales (ROS) = Profits/Sales
 Meeting Margin or Contribution Goals
18
Conclusions:
 Evaluation
of program effectiveness
depends on the objectives set for the
program.
 While profitability is one dimension,
success will be determined by those
variables which drive profitability.
 Many of these variables are marketing
performance indicators.
19
Common Firm Goal Attainment Metrics
 Awareness
rates.
 Satisfaction and Loyalty Ratings
 Growth and Share targets.
 Hurdle rates for Project ROI
 NPV hurdles.
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