Viva Voce Revision

Define Marketing
“An organisational function and set of processes for creating, communicating
and delivering value to customers and for managing customer relationships in
ways that benefit the organisation and it’s stakeholders” (Kotler)

Lecture 1

Marketing Planning Sequence

• Collect current situation data
• Data analysis
• Develop objectives, strategies and programs
• Develop financial documents
• Negotiate final plan
• Measure progress towards objectives
• Audit
• Update historical data

Lecture 2

Strategic Planning
• Process of developing and maintaining a strategic fit
• Between the organisations goals and capabilities and changing marketing
opportunities

Steps in Strategic Planning

1. Define mission
2. Set objectives and goals
3. Design business portfolio
4. Planning, marketing and other functional strategies

All plans should explain:

• What firm wants to accomplish [objectives based on market assessment]
• How firm will accomplish [strategies]
• Implementation
• Resource allocation

Levels of Planning
• Corporate
• SBU (strategic business unit)
o Finance
o Marketing
o R&D

Corporate Plan
• Mission
• Guide marketing plan
• Implementation, monitoring and control
• Resource allocation and profitability focus
• 3-5 years (vs 12 months)

Marketing Plan
• Written document
• Containing guidelines for business centre’s marketing programs and
allocations
 • Over the planning period

** Components ** (Lecture: 2, 3, 4, 5, 6…)

Executive Summary

Situation Analysis
• Business definition and scope
o Guided by mission statement and organisational objectives
o Products
o Needs
o Segments

• External Environment
o Macro (PESTN)
 Demographic, economic, socio-cultural, political-legal,
technological, natural
o Industrial
 Industry size, growth, structure, channels, dynamics, power,
future competitors
 Critical success factors
 Porters five forces:
• Power of buyers
• Power of suppliers
• Threat of new entrants
• Threat of rivalry
• Overall attractiveness
 Product life cycle
• Development
• Introduction
• Growth
• Maturity
• Decline

o Competition
 Who
 Skills
 Resources
 Aspirations
 Strategies
 Level’s of competition
• Budget
• Generic Needs
• Product category (comparable characteristics)
• Product form (brands for segment)
 Competitive Set
• Managerial judgement
o Products and markets
o Strategic groups
• Customer based
o Behavioural
o Perceptual

o Customers
 Whole market
 Segmentation
• “The process of partitioning a market into groups
of potential customers who are similar in
designated ways and likely to exhibit similar
purchase behaviour respond to similar
communications”
• Potential and Current customers
• Create new segments from the market based on
behaviour, needs etc as well as internal need for
certain segments
o The 6 W’s and a H
 Who buys and uses
 What they buy
 Where they buy
 When they buy
 How they choose (brand / product
perceptions)
 Why they prefer
 Will they buy again

o Key Segmentation Variables

 Geographic
 Demographic
 Psychographic
 Behavioural
 Benefit
 Occasions of Use

• Adoption of innovations
o Innovators
o Early adopters
o Early majority
o Late majority
o Laggards

• Segmentation Approaches
o Normative: Econometric approach to
determine buyer similarities through
coefficients, marginal revenue and response
function coefficients
o A Priori: Secondary sourced, segmented based
on appropriate variables
o Post Hoc: Study conducted to determine info
of a representative sample of market
o Data mining: Customer data analysed to
determine patterns and relationships

 Target markets
• Approaches to targeting
o Concentrated / focus / niche
o Differentiated / complete coverage
 Different offers for each segment
o Selective
 Multiple segments and offers
 • Positioning Statement:
o Who
o Problem / need / issue
o Brand
o Support
o What you do
• Colgate: “For people who are concerned with the
long term health of their teeth and gums, Colgate
Total and toothpaste in the only toothpaste with TG
that gives you 12 hour protection against the oral
bacteria that cause plaque and gingivitis.”
• For people who are concerned with ____ ‘Business’
enables ____ .

• Internal Environment
o Current / past performance
o Skills
o Resources
o Capabilities
 IE – marketing mix
o “Porter’s Value Chain”
 Research and Development
 Design of product, services or processes
 Production
 Marketing and Sales
 Distribution
 Customer Service

o Review past target markers / mkt mix and revise

• SWOT
• Strengths and Weaknesses (internal)
• Opportunities and Threats (external)

Objectives, strategies and tactics

• Objectives
o SMART!
o Define target market
o Determine positioning

• Strategies (to achieve objectives)

o Marketing Mix (4 Ps)

• Tactics (to achieve strategies)

o Very specific
o Who (allocation of responsibility)
o When (timeframe)
o How (resources)

• Budget
o Market and sales forecasts
 Forecasting methods:
• Extrapolation
o Moving average, weighted average
o Regression analysis
 • Causal
o Econometric
o Leading indicators
• Intentions
o Consumer research
o Organisational research
• Opinions
o Consulting
o Delphi
o Group

o Profitability projections
o Essentially a P/L statement for planning
o Approval = implementation can occur

• Monitoring and Control

o Monitor  evaluate
o Control  are we there?
 Performance Management
• What measuring
• Compare actual with budgeted / planned
• Identify mistakes
 Contingency Plans