Managing the Marketing Effort. Nov 20 th, 2009

This section covers: Marketing organisation/management Marketing implementation – drawing up a marketing plan Controlling marketing activity 2 of 15

Marketing Management Decisions  When a company has decided what its basic goals and targets are, it needs a marketing plan  This plan should give a clear guideline about how it should move forward with its business VS $100 Billion Revenues (2008) $120 Billion+ Revenues (2008)

Marketing Organisation & Management Analysing Marketing Opportunities The Marketing Environment Market Research & Information Systems Market Segmentation, Tragetting & Positioning Marketing Mix Development Product Decisions Pricing Decisions Promotion Decisions Place Decisions Marketing of Services Marketing Management Decisions SWOTing your company

Marketing Management Responsibilities To Identify Customer Needs To Satisfy Customer Needs – achieved through the Marketing Mix / the 4Ps Have Strategic Vision – what business are you in? There is a danger of Marketing Myopia (Levitt 1960). This refers to not being able to see the breath and width of your business’ opportunities.

Environmental Management  Environmental Management  Environmental Management involves marketers’ efforts toward achieving organizational objectives by predicting and influencing the competitive, political- legal, economic, technological, and social- cultural environments.  Tools  Tools used in environmental management are: Michael Porter’s 5 Forces, PEST & SWOT

Tool 1: Michael Porter’s 5 Forces (these 5 forces determine industry profitability) 1. Industry competitors Rivalry among existing firms 3. Threat of new entrants 4. Power of suppliers 2. Threat of substitutes 5. Power of buyers

 Political  Economic  Social  Technical Tool 2: PEST- Analysis These are the macro-environmental factors used in the environmental scanning component of strategic management. Give examples of each.

Tool 3: SWOT-Analysis SWOT analysis  One tool that helps with the investigation of your organisation is the SWOT analysis Strengths (internally) Weaknesses (internally) Opportunities (in external environment) Threats (in external environment)

SWOT Sample – Car industry

Marketing Plan  A marketing plan is a written document that outlines the necessary actions to achieve one or more marketing objectives. It usually spans a period of between 1 and 5 years.

Contents of Marketing Plan  Executive Summary  Situational Analysis  Opportunities / Issue Analysis - SWOT Analysis SWOT Analysis  Objectives  Strategy  Action Programme (the operational marketing plan itself for the period under review)  Financial Forecast  Controls

Sample Marketing Plan  ws/includes/business/pdfs/market_ plan.pdf ws/includes/business/pdfs/market_ plan.pdf Plan doesn’t have to be in standard format  SPages/GetFile.aspx?guid=2e6477a a-98ef-48ac-a2d8-4b0ad1b018e3 SPages/GetFile.aspx?guid=2e6477a a-98ef-48ac-a2d8-4b0ad1b018e3

Control Marketing Activities The Marketing Control Process Marketing Objectives Performance Standards - measure Compare results against standard Corrections & Alterations Example: money for trade show vs sales from leads

Next Week – Final Slides Services Marketing Specific characteristics of Services The Servuction System Model The Five Gap Model of Service Quality Defection Management and Customer Retention Management