1. © 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Chapter 02 Marketing planning: an overview of marketing

2. Key planning questions Stages in marketing planning Where are we now? Business mission, marketing audit, SWOT analysis Where would we like to be? Marketing objectives How do we get there? Core strategy, marketing mix decisions, organization implementation Are we on course? Control 2

3. The marketing planning process Strategic thrust Redefinition Business mission Marketing audit SWOT analysis Marketing Objectives Core strategy Competitive advantage Marketing mix decisions Organization and implementation Control Target markets Strategic objectives Competitor targets Marketing planning at the business level Marketing planning at the product level 3

4. Virgin Atlantic Virgin Atlantic Airways makes a contribution to the Virgin Groups corporate identity. 4

5. External marketing audit checklist Macroenvironment ForcesKey topics/Trends MACROENVIRONMENT Political / legal EU and national laws; codes of practice; political instability Economic Economic growth; unemployment; interest and exchange rates; global economic trends (e.g. the growth of the BRICS economies Ecological / physical environment Global warming; pollution; energy and other scarce resources; environmentally friendly ingredients and components; recycling and non-wasteful packaging Social / cultural Changes in world population, age distribution and household structure; attitude and lifestyle changes; subcultures within and across national boundaries; consumerism Technological Innovators, communications, technology infrastructures, bio-technology 5

6. MICROENVIRONMENT Customers Suppliers Market Competitors Distributors Size; growth rates Who they are, their choice criteria, how, when and where they buy; how they rate the competition on product, promotion, price and distribution; how customers group (market segmentation), and what benefits each group Who are the major competitors (actual and potential); their objectives and strategies; strengths and weaknesses; size, market share and profitability; entry barriers to new competitors Channel attractiveness; distributor decision- making unit, decision-making process and choice criteria; strengths and weaknesses; power changes; physical distribution methods Who they are and location; strengths and weaknesses; power changes MICROENVIRONMENT 6

7. Internal marketing audit checklist Operating Results (by product, customer, geographic region Marketing Structures Strategic Issues Analysis Marketing Mix Effectiveness Marketing Systems 7

8. Internal marketing audit checklist Operating Results (by product, customer, geographic region Sales Market share Profit margins Costs Strategic Issues Analysis Marketing objectives Market segmentation Competitive advantage Core competences Positioning Portfolio analysis Marketing Mix Effectiveness Product Price Promotion Distribution Marketing Structures Marketing organisation Marketing training Intra- and interdepartmental communication Marketing Systems Marketing information system Marketing planning system Marketing control system 8

9. SWOT analysis Internal (controllable) External (uncontrollable) Source Opportunities Strengths Threats Weaknesses 9

10. SWOT analysis Strengths 1. Reliable products 2. Well-respected brand name worldwide 3. Competitive prices 4. Tightly focused on a specialist niche market Weaknesses 1. Production limited to 20 cars per week, resulting in six-month waiting lists 2. Outdated production methods 3. Lack of marketing expertise 4. Limited marketing research information 5. Only distributed in UK ( mainly) and USA 6. Low profit margin Opportunities 1. Growing marketing in USA 2. High market potential in Germany, France, Benelux and Scandinavia 3.Untapped market potential in the UK Threats 1. Volume manufacturers could target specialist niche market 2. Increasing number of specialist car manufacturers setting up in Europe 3. Tough European legislation on exhaust emission standards likely 10

11. SWOT analysis and strategy development StrengthsWeaknesses OpportunitiesThreats Conversation Strategies Marketing Strategies 11

12. Strategic thrust Markets Products ExistingNew/related Existing New/related Market Penetration or expansion Market development Product development Enter new markets 12

13. Strategic Objectives Build Hold Harvest Divest 13

14. Core Strategy 1.Target Markets A target market is a market segment that has been selected as a focus for a campaign’s marketing mix. 2.Competitive Advantage The achievement of superior performance through differentiation to provide superior customer value, or by managing to achieve lowest delivered cost. 3.Competitor Targets The organizations against which a company chooses to compete directly. 14

15. Birds Eye Birds Eye aims to be better then the competition by supplying field fresh peas 15

16. Testing core strategy Internally consistent Clearly defines target customers and their needs Resource and managerially supportable Derived to achieve product market objectives Creates a competitive advantage Incurs acceptable risk Core strategy 16

17. The Rewards of Marketing Planning 1.Consistency. 2.Encourages the monitoring of change. 3.Encourages organizational adaptation. 4.Stimulates achievement. 5.Resource allocation. 6.Competitive advantage. 17

18. Problems in Making Planning Work 1.Political. 2.Opportunity cost. 3.Reward systems. 4.Information. 5.Culture. 6.Personalities. 7.Lack of knowledge and skills. 18

19. How to Handle Marketing Planning Problems 1.Senior management support. 2.Matching the planning system to the culture of the business. 3.The reward system. 4.Depoliticize outcomes. 5.Clear communication. 6.Training. 19