2. Definition of marketing
Marketing is a process for:
q understanding markets
q quantifying the value required by the different groups
(segments) within these markets
q communicating this value to those responsible for
delivering it
q measuring the effectiveness of the value actually
delivered
3. Map of the marketing domain
Define markets
& understand
value
Asset
Monitor Create
Base
value value
Deliver
value
4. Application areas
Define markets
Planning
& understand support
value tools
Data
warehouse
Intranet
Monitor Create
value value proposition
CRM
Internet
Communicate
& deliver
value
5. Define markets and understand value
Define
markets & segments
- Corporate
mission/objectives
- External data
*
Understand
inc. market research
value required
- Internal data
(by the customers)
from value delivery
* Understand
Evaluate
competitor value
market/segment
positioning
attractiveness
Analysis
6. Key elements of world class marketing
1. Profound understanding of the market-place
2. Creative segmentation and selection
3. Powerful differentiation positioning and branding
4. Effective marketing planning processes
5. Long-term integrated marketing strategies
6. Institutionalised creativity and innovation
7. Total supply chain management
8. Market-driven organisation structures
9. Careful recruitment, training and career management
10. Vigorous line management implementation
8. Create the value proposition
Analysis
Choose markets/
Corporate
segments
objectives
*
Define objectives
value received
Define price/value
proposition
Define marketing
Cost
strategies
Convenience
How value is to be delivered /
Communication
communicated
Consumer wants
Price
& needs
- product/service Place - distribution
benefits Promotion * - marketing
communications
Product/service - features
- customer service
Estimate expected results
Value received and budgeting
Marketing Plan(s)
9. Deliver value
Create value
Define
proposition
Markets
modifications to value
New market creation
proposition / marketing strategy
Supplies Products Services
Deliver the product / service
Research & Inbound Outbound
Operations Service
development logistics logistics
Exchange information
Communicate the offer (implement integrated marketing communications plan) Monitor Mgr. Comm.
*
programs
Measurement:
Across media:
*
Design and implement Attitudes
• Mass media
- awareness
marketing communication programs • Mail
- perceptions
• Telephone
- etc
• Personal contact
Design program Negotiate/tailor
Behaviour
• Electronic eg Net
Initiate dialogue Commit
- conversion rates
• etc
Exchange information Exchange value
- etc
Customer information
10. Define marketing strategy for promotion
e.g test drive,
demonstration,
5 senses
Place
Distribution
Channel/Medium
Strategy
Choice
Mass media Telephone
Direct mail Other
Electronic
Personal
contact
- objectives - objectives - PR
- objectives
- objectives
- message strategy - objectives
- strategy - POS
- strategy
- strategy
- media strategy - strategy - etc
Integrated marketing
communications plan
11. Monitor value
Value required Value received
Value delivered How value delivered
(by customers) (by us)
vs proposition / communicated vs
latest vs vs objectives marketing strategies
expected
• Product / service vs
plan (R&D, Operations)
• Promotions vs plan
• (IMCP)
• Place vs plan
• (Distribution Plan)
• Price vs plan
12. Define markets & understand value
Analysis
IT Market research
Define
aggregation/
Support markets/segments
Planning
analysis
for Market mapping support
Causal
Understand value Segmentation tools
Marketing Plan models
required SWOT
Effectiveness Create
Compet. Analysis NPD
Portfolio analysis
Evaluate Understand value
Planning
market/segment competitor value Forecasting
proposition
attractiveness positioning
Monitor
value Size/share Choose
Purchase
Revenue/Profit markets/segments
Monitor vs
propensity
Retention
Plan
Value Value
CLV
Operational Data Channel
required delivered
EIS Warehouse choice Define objectives
How value Allocation of customers
Value
delivered/ to segments
received
Define price/value
communicated Operational implications
proposition
ERP
CRM
System
Define marketing
Deliver value Program monitoring
strategies
Customer interface
Deliver product/service
Customer
Inbound Outbound Estimate expected
Operations
information R&D Service
logistics logistics results
Exchange information
Communicate value Marketing
Design/implement marketing communication programmes Plan(s)
Monitor
R&D support Design program Negotiate/ tailor
marcom
Data analysis Initiate dialogue Commit
programmes
Project Exchange information Exchange value
management
13. Key areas for improvements in strategic
marketing planning
General comments
A strategic marketing plan should be a clear and simple
summary of key market trends, key target segments, the
value required by each of them, how we intend to create
superior value (to competitors), with a clear prioritisation of
marketing objectives and strategies, together with the
financial consequences.
Frequently, they are diffuse, confusing compilations for
unconnected individual sections.
14. Barriers to marketing planning
1. Cultural Lack of belief in planning and/or
marketing and/or need to change
2. Behavioural Lack of top management support;
lack of cross functional involvement
3. Cognitive Lack of knowledge and skill
4. Systems & Lack of data and/or inappropriate
procedures systems
5. Resources Lack of time, people and money
All of these factors are inter-dependent i.e. change
one, it impacts on another
18. Cranfield Centre for Advanced
Technology in Marketing
Objective of Centre
To develop solutions, via information technology,
which make available the power of marketing tools,
techniques and processes, to personnel at all
levels within an organisation, who have an
influence on marketing.
19. Hierarchical decomposition of the
tasks involved in producing a strategic
marketing plan (1)
Business unit
Mission & targets
Definitions
Product markets
Financial performance
Conduct audit SWOT analysis
Summarise audit
Financial performance
Produce a
Predict trends
strategic Update SWOT analysis
marketing
Summarise trends
plan
Define marketing objectives
Set objectives
Define marketing strategies
& strategies
Assess objectives
20. Hierarchical decomposition of the tasks involved in
producing a strategic marketing plan (2)
Life cycle
Financial
performance
Porter
matrix
Strengths &
CSF bar
weaknesses
chart
Perpetual
map
SWOT
Opportunities
analysis
& threats
Competitor
Conduct audit analysis
Market MAF bar
attractiveness chart
Aggregated
life cycle
Gap
analysis
Summarise
audit
Boston
matrix
Directional
policy matrix
21. Some major technique interrelationships
used in strategic marketing planning
Cost volume forecast
Product life Gap
experience cycle analysis
curve
future data
cost Market risk
gap
segmentation categories
Boston
Porter
New product
matrix
matrix
development
priorities,
portfolio
differentiation balance
positioning new
ideas,
Strategy risk
CSF bar Ansoff
horizontal
chart Matrix
Formulation
axis
product-
axes future potential
priorities, market
positioning portfolio balance choice
vertical
Directional
Perceptual Market
axis
policy matrix
map attractiveness
Key: provides x as input to