Marketing Planning

Marketing planning
• The role of Marketing planning within
business
• Identify the key planning questions
• Discuss the process of Marketing planning
• Describe the concept of the business mission
• Describe the nature of the marketing audit &
SWOT analysis
• Discuss the nature of marketing objectives
 Marketing planning
• Identify the components of core strategy & the
criteria for testing effectiveness
• Where are marketing mix decisions placed in the
Marketing planning process
• Importance of organization, implementation &
control within the Marketing planning process
• Rewards and problems associated with Marketing
planning
• Recommendations to overcome marketing planning
problems
 Marketing planning
• Part of Strategic planning
• Strategic planning involves the fit between –
Production, Finance, Personnel strategies with the
Environment.
• Strategic planning aims to shape and reshape the
organization so that its business and products
continue to meet corporate objectives e.g. sales
growth.
• Nature of business/ products/ services affects the
role of marketing planning
 Key planning questions
1. Where are we now? ( Review versus targets)
2. How did we get here? ( Key planned events?)
3. Where are we heading? (possible outcomes)
4. Where would we like to be? (target/aspirations)
5. How do we get there? (options/ opportunities)
6. Are we on course? (assessment/ way forward)
McDonald 1995
• The Marketing Planning Process
Business Mission
Marketing audit Marketing planning at
the business level
Redefinition SWOT analysis
Strategic thrust Marketing Objectives
Target Markets Core Strategy Strategic objectives

Competitive Advantage Competitor targets

Marketing Mix decisions

Marketing planning @
Org & implementation the product level

Control
 Business Mission
• Ackoff definition: A broadly defined, enduring
statement of purpose that distinguishes a
business from others of its type.

• It is Enduring
• Specific(What business are we in? What
business do we want to be in?)
= reason for business existence
• The task of any business is to deliver
customer value at a profit while being
socially responsible = broadly

• Marketing involves satisfying customer needs

and wants at a profit.
Brand Mission statements
1. Our Roadmap 2. To sustain 3. "To make
starts with our profitable the world's
mission, which is growth by information
enduring. It declares
our purpose as a
providing universally
company and serves the best accessible
as the standard customer and useful“
against which we experience
weigh our actions
and decisions.
and dealer
To refresh the support."
world…
To inspire moments
of optimism and
happiness…
To create value and
make a difference
4. We create 5. Imagine, 6. At …. we strive
happiness by Solve, Build & to lead in the
providing the Lead invention,
finest in development
and manufacture
entertainment of the industry's
for people of most advanced
all ages, information
everywhere technologies,
including
computer
systems,
software,
storage systems
and
microelectronics.
7. Our Mission 8. …to be 9. To bring
At …….., we work the world's inspiration
to help people best quick and
and businesses service innovation
throughout the restaurant to every
world realize their
full potential. This experience. athlete* in
is our mission. Being the best the world
Everything we do means
reflects this providing * If you have
mission and the outstanding a body, you
values that make quality, are an
it possible service, athlete."
cleanliness,
&value…
smile."
1. Coca - Cola 2. Toyota 3. Google

4. Disney 5. GE 6. IBM

7. Microsoft 8. McDonalds 9. Nike

Our mission is to be the world's premier
consumer products company focused on
convenient foods and beverages. We seek to
produce financial rewards to investors as we
provide opportunities for growth and
enrichment to our employees, our business
partners and the communities in which we
operate. And in everything we do, we strive
for honesty, fairness and integrity."  Pepsi
To provide telecommunications to all people of
Zimbabwe Mission: To serve Zimbabwe by
pioneering, developing and sustaining, reliable,
efficient & high quality telecommunications of
uncompromising world class standards and
ethics Values: Pioneering Personal
Professionalism
 Business Mission
• Market
• Needs
• IBM = to solve customers’ information
problems (not manufacturing computers)
• CUZ = As a University in a multi cultural Society, the
Catholic University in Zimbabwe provides wholesome
education in its teaching, research and service
programs, and fosters commitment, service, moral
uprightness and academic excellence.
 Marketing Audit
• Systematic examination of a business’s
marketing environment, objectives, strategies
and activities with a view to identifying key
strategic issues, problem areas and
opportunities.
• The marketing audit provides answers on:
 Where are we now?
 How did we get here?
 Where are we heading?
Macroenvironment (Broad Microenvironment (Actors in
environmental issues that may affect the firms’ immediate env affecting its
the business PEEST) capabilities to operate effectively in its
chosen markets)
Political/ Legal – National/ Market – size, growth rates, trends
Regional laws/ Codes of practice
Economic – Economic growth/ Customers – Who? How? When?
unemployment, interest, exchange Where?
rates, global trends.
Ecological /Physical Env: Competition – Who? Their objs?
global warming, energy/ other scarce Size? Strategies? SWOT? Market
resources, env friendly components, share? Size?
national boundaries

Social/ Cultural: changes in Distribution – Channel

world population, attractiveness? SWOT?Entry barriers?
Technological – new product and Suppliers – Who? Where? SWOT?
process technologies Trends? Power changes?
 Internal Marketing audit checklist
Operating results by product Marketing mix effectiveness
Sales Product
Market share Price
Profit margin Promotion
Costs Distribution
Strategic issues analysis Marketing Structures
Marketing objectives Marketing organization
Market segmentation Marketing training
Competitive advantage Intra and inter departmental
communications
Competitive advantage Marketing Systems
Positioning Marketing information systems
Portfolio Analysis Marketing planning system
Marketing control system
Examples of Competitive advantage/ core
competencies investment
• Canon invest 8% of its sales revenue in Research &
Development of its core competencies of copier, printer
and camera technologies = to maintain the lead in these
markets .
• ABB invests in its core competencies in power
technology. The pay off is that they are able to increase
energy efficiencies by 25%.
• The risk of moving away from your core competencies is
that management are distracted & this results in skills
and capabilities not leading to competitive advantage.
Focusing on core competencies: s:
• Diversified into clothing, bags, accessories
• Different skills required
• Led to an overcomplicated product set
• Overstretching the Lego brand
 Refocused on toys for boys aged 5-9years
 Strengths
• Established business – has survived many
business cycles
• Committed & technically qualified Staff ( long
service)
• Established processes – within the businesses –
ISO certified
• Strong Management team - experienced
• Continuous Staff training - with respective
suppliers
• Good product/ service range – Postilion /
Verifone / Ingenico
• Staff have good product knowledge – Postilion /
Verifone / Ingenico
 Strengths
• Strong networks – Suppliers = Postilion, Verifone, Ingenico
• Established customers – Banks, Retail outlets
• Business model – different income streams allows risk
management
• Established roots – heritage Econet & Liquid Telecomms
• Business is open to change & growth - industry characterised
by change – self perpetuating – as long as we stay ahead of
the industry learning curve
• Resource base is strong – Human resources - Skill
• Business Model has low capital requirement – Customer
financed
• Good & growing reputation in the industry – in the chosen
markets
• Liquid Telecom base in technology is strong – at the fore
front of technological developments – provides beacon for
the business to follow direction
 Strengths
• Small team – reaction time to
opportunities / issues is quick
• Market associates us with Econet –
assumed resource and capacity
which we don’t necessarily have
• Independent business disposition –
able to survive without direct
financial assistance from Liquid /
Econet
 Weaknesses
• Limited growth – coming out of cost management mode
• Business model is Supplier dependent = (Postilion / Verifone/ Ingenico)
• Limited internal focus on Research & Development ( especially new
applications in line with technological advancements / customer needs
– e.g. biometric applications / internet & mobile banking – supplier
dependent)
• Human resources limited :business in growth /expansion phase
(Technical/Sales / R & D areas of opportunity ) Customer Satisfaction
Survey feedback – project management continuity /completion issues
• Successful Parent shadow – Econet – comparison / pressure / fall back
• Customer concentration by industry – banking / retail (changing with
the change in business model)
• Cannibalisation of parent company business – EVD Airtime vs recharge
cards? Impact on relationship?
 Weaknesses
• Strategy congruency? Are we in clear consistent dialogue
on strategy with parent company Liquid / Econet (e.g.
EVD)
• Reactive strategy / Acceptance strategy driven by
Suppliers output ( not pushing for change / development)
• Staff dependent – no proprietary resource / asset,
knowledge driven business
• Distribution channel strategy development – area for
development (EVD)
• Operating below business capacity – limited resources to
support the full scope of the business
• Limited brand visibility ( driven by nature of original
business model – changing from Wholesale to Retail
approach)
 Opportunities
• Staff Customer Service & Motivational training / team
building – to disseminate & allow for embracing of vision ,
mission, values & develop strong customer focus.
• Business development scope is wide – air time,
technological advancements, new products – internet /
mobile scope is wide – business is about change /
technology ( staying ahead of the learning curve =
opportunity)
• Market is wide – Africa wide agreements with suppliers –
scope for growth ( beyond Africa?)
• Potential markets stabilising e.g. Kenya, Botswana, Malawi,
Ghana, Uganda, Zimbabwe
• Business growth strategy definition – brings clarity in focus
• Scope for Business model replication in other markets
 Opportunities

• Scope for collaboration with competition? In selected

markets?? (technology)
• Distribution channel development / new channels
potential
• Marketing the business – Brand Building & Activation
• Scope for Research & Development – focus on
customer needs through internal / collaborated R & D
and drive supplier R & D with customer feedback
( continuous change in customer needs)
• Econet / Liquid Telecomms relationship leveraging for
business
• Opportunity for Business Process Review – to make the
system more customer focused i.e. Customer
Relationship Management system – potential for
improvement – to have more checks and balances to
alert manager of sales trends by client daily - growth
trends / opportunities( e.g. on EVD)
 Opportunities
• Customer Service training opportunity – technical
focus – limited customer service orientation – e.g.
no clear customer service standards – Customer
satisfaction survey feedback issues largely on
service standards – e.g. project management
milestones not clear in a few projects
• Business plan articulation to staff – followed by
resourcing the business to support the plan ( Staff /
Capital)
• Scope for new product & service introduction – e.g.
ATMs, POS devices range growth, applications
development – e.g. mobile/ internet banking, POS
applications e.g. biometric applications to service
customer needs fully.
 Threats
• Postilion overdependence – obsolescence threats (Is there life
after Postilion/without P?)
• New products from Postilion /Ingenico/ Verifone competition
– what if competition have a technology breakthrough ahead
of our suppliers? Do we have the capacity to scan the market
for opportunities continuously?
• Aggressive / hungry competition – Interswitch / Fintech
• Ability to stay ahead of the technology learning curve – how to
develop that capability – as TPS? Our suppliers?
• TPS technology strategy not clear – yet it is the core of the
business (seems too supplier driven)( e.g. Vericentre
development cycle long/protracted – still not fully developed)
• Staff retention – being the key business resource – the business
is very staff dependent – how to ensure staff retention versus
competitive threats given limited business resources
 Threats
• Competitive disadvantage – Established suppliers have
strength over us - relationship is hard to protect - other
agents can be appointed over time = relatively low
barriers to entry (suppliers looking for volumes of
business)
• Business markets are predominantly in Africa and Africa is
generally characterised by Socio Political Economic
Instability - High risk – high return
• Margin business – margins growing thinner ( EVD, POS
devices pricing, Postilion customers looking for better
pricing) – where will the volumes come from in the face of
growing competition?
• No clear differentiating factor from competition – ( strong
heritage – but the impact is not yet felt on the market)
• Lack of Strategy and structure for execution fit – e.g. the
business decision that Electronic airtime( through PayBay)
should contribute 70% of total airtime sales in Zim – no
clear commitment to the execution – resulting in potential
resource waste( Commitment? )
Strengths Weaknesses

Strategi

Conver
sion
Matching

es
strategie
s

Opportunities Threats

strategie

Conversi
on
s
 Why is the SWOT Analysis important?

• The Marketing Audit and Swot analysis lead

to the Marketing Objectives
- Products to sell?
- Markets to serve?

Ansoff’s Matrix
 Market Penetration
• Existing product/ Existing Market
 Existing customers may become more brand
loyal
 New customer in the same market may start
to buy
 Tactics e.g. encourage more frequent use,
increases quantities of use ( e.g. 2
teaspoonfuls instead of one)
 Product development
• Increased sales by improving present
products/ developing new products for current
markets.
 New products must improve on previous offers
 New products maybe brand extensions e.g.
Anadin Extra – maximum strength, & soluble
E.G Econet Solar Chargers now with radio, two
points to charge your mobile phones
 Market Development
• Existing products/ New Markets
 New geographical markets
 Or new market segments
 Tesco Supermarket UK
• The UK’s most successful super market chain
• 12.5% of all consumer spending in the UK is done at Tesco
• Traditionally Tesco offered large range of food & non food
shopping –clothing, electronics, petrol, Cd’s
• Generally located at the edge of town with free
supermarket parking facilities, including cafés and petrol
service stations.
• Target customers shopping for the family = big trolley
shopping.
• Good quality value for money positioning
 Tesco Market development strategy
• Target -Convenience shoppers, top up or replace home essentials
e.g. milk, bread etc
• Two new store formats were created
= Tesco Metro, allowing convenience shopping in city/town centres.
= Tesco Express found at petrol stations
• Tesco Market development in new geographical markets with the
same/similar range = USA, China, India, S. Korea, Thailand,
Hungary, Poland & Turkey seeking to compete globally with Wal-
Mart.
• Tesco have been very successful in growing sales and profits
through market development
 New/related products//New/related
markets
• Risky but maybe the option when the current
products/ markets offer limited growth
prospects
• Synergy between existing products/market
increases chance of success.
e.g. Apple’s experience & competences in
electronics provided the platform for new
product design for the iPod
Different target market
- Young people
- Looking for downloadable music on a portable music player
- iPhone launch also taking advantage of the core competencies
of experience & competencies in computer electronics
 Intel the world leader in
micro processors is entering
the mobile phone business

Core competences = processor design & development which can help it penetrate the
mobile phone market as mobile phones become more like computers
Smart phones –seen as value proposition offering full internet access with voice
capability.
Believe that its easier to add voice to a computer than vice versa.
Mobile phone business driven by Intel’s launch of a new lo-power microprocessor
Strategic objectives (planning at the product
level)

• Build (new products aim to build sales/market share)

• Hold (maintanance)
• Harvest (continue /redirect resources)
• Divest (exit)
GE Market attractiveness matrix
 Rewards Of Marketing Planning
• Consistency
• Encourage monitoring of change
• Encourages organizational adaptation
• Stimulates achievement
• Resources allocation
• competitive advantage
Addressing Market planning challenges

• Senior management support

• Match the planning system to the
organizations culture reward system to be
linked to the longer term objectives
• Remove organizational politics from outcomes
• Clear communication
 Matrixes limitation
• Can be difficult to implement time consuming
and costly
• Some companies developing their own
evaluation methods
• More decentralized strategic planning
 Core strategy
• Core strategy focuses on delivering objectives
 Target Markets
 Competitor targets
 Establishing competitive advantage
 Target markets
• Identify target market
• Match supply with customer needs
e.g. The Economist magazine targetted at
professional & knowledgeable business people
• Target market decisions are guided by the
SWOT analysis
 Competitor targets
• Competitor focus review
• Competitor SWOT and strategy development
to deal with competitors
 Competitive advantage
• Competitive advantage links the target market with
competitor targets
• Competitive advantage is achieving superior performance
through differentiation to provide superior customer value
or by managing to achieve lowest delivered cost.
 Advantages can be a combination of
- Being better = quality (BMW)
- Being Faster = respond to customers faster(Zara)
- Being closer = establish close long term relationships (IBM)
- Better value =low cost
 Effective core strategy tests
Clearly defines Creates a
target customers + competitive
needs advantage

Internally Core Incurs

consistent Strategy acceptable
risk

Derived to achieve Resource +

product/market managerially
objective supportable
Marketing Mix decisions
 The Marketing Mix
When marketing their products firms need to create a successful mix
of:
• the right product
• sold at the right price
• in the right place
• using the most suitable promotion.
• People
= Integrated Marketing. The marketers devise marketing activities
and assemble fully integrated marketing programs to create,
communicate and deliver value for consumers. Marketing activities
come in all forms, McCarthy described these activities as marketing
mix tools of 4 broad kinds which are called the 4 Ps’ of marketing.