Ins & Outs of Developing a Marketing Plan | DCSBDC | Doing Business in DC
Successful strategies sales and marketing
1. How to create
successful strategies
Linking corporate marketing to your
models of Strategic Management
Stephen Bibby SCi
Steve Bibby 2013 stephen.bibby@structuralchange.co.uk
2. We will cover..
• Marketing – what is it (surprising how many people get it confused with selling)
• What tools help us be good corporate marketeers ? – lots of tools
• Linking Marketing to corporate strategy
• Implementation
3. Recap - Strategy is …
Strategy is the direction and scope of an
organisation over the long term, which achieves
advantage in a changing environment through its
configuration of resources and competences with
the aim of fulfilling stakeholder expectations.
Johnson and Scholes 2006 p 9
4. Key Principles
Marketing is…
• Marketing is the process used to determine
what products or services may be of interest to
customers, and the strategy to use in sales,
communications and business development
5. Holy grail of marketing...
1. knowing the needs and wants of target markets
2. exceeding the customers desired satisfactions
3. anticipate the needs and wants
and satisfy these more effectively than competitors
Sales strategy is different….
Marketing is the process used to determine what
products or services may be of interest to customers, and
the strategy to use in sales, communications and business
development
6. Marketing toolbox - 4 p’s (E J
McCarthy 1960)
1. PRODUCT
The business has to produce a product that people want to buy. They have to decide which ‘market segment’ they are
aiming at – age, income, geographical location etc. They then have to differentiate their product so that it is slightly
different from what is on offer at present so that people can be persuaded to ‘give them a try’.
2. PROMOTION
Customers have to be made aware of the product. The two main considerations are target market and cost. A new
business will not be able to afford to advertise on national television, for instance and would not wish to because its
market will be local to start with. Leaflets, billboards, advertisements in local newspapers, Yellow Pages and ‘word of
mouth’ would be more appropriate.
3. PRICE
The price must be high enough to cover costs and make a profit but low enough to attract customers. There are a number
of possible pricing strategies. The most commonly used are:
PENETRATION PRICING – charging a low price, possibly not quite covering costs, to gain a position in the market. This
is quite popular with new businesses trying to get a ‘toehold’.
CREAMING – the opposite to penetration pricing, this involves charging a deliberately high price to persuade people that
the product is of high quality. Luxury car makers often use this strategy
COST PLUS PRICING – this is the most common form of pricing. Costs are totalled and a margin is added on for profit to
make the total price.
4. PLACE
The business must have a location that it can afford, and that is convenient and suitable for customers and any supplier.
8. Marketing Toolbox – Boston and Market Growth
Understanding Market Share
Matrix
Dogs: Low Market Share/Low Market
Growth
In these areas, your market presence is weak,
so it's going to take a lot of hard work to get
noticed.
Cash Cows:
High Market Share/Low Market Growth
well-established, so it's easier to get attention
and exploit new opportunities. However it's only
worth expending a certain amount of effort,
because the market isn't growing, and your
opportunities are limited.
Stars: High Market Share/High Market Growth
Here you're well-established, and growth is exciting! There should be some strong opportunities here,
and you should work hard to realize them.
Question Marks (Problem Child):
Low Market Share/High Market Growth
These are the opportunities no one knows what to do with. They aren't generating much revenue right
now because you don't have a large market share. But, they are in high growth markets so the
potential to make money is there.
9. Market Segmentation
Understanding different customer needs
Market segmentation increases the effectiveness of marketing spend,
compared with what you'd achieve by marketing to the entire target market
in the same way…
Market segments must always be distinct from each other
Basis for segmentation means that the individuals within each group have
similar need
Market segments should also be:
Accessible – Can you reach the segment through cost effective and
practical communication and distribution channels?
Measurable – Can you estimate the segment's size so that you can
allocate marketing spend accordingly?
Substantial – Is it large and long-lasting enough to justify its own
marketing activity?
Viable – Can people within the segment afford your product, and will they
see clear and desirable advantages compared with other products and
services?
10. Market segmentation – 4 bases
There are four common bases for segmenting your market:
1. Geographical – By country, or region.
2. Demographic – By age, gender, occupation, and so on.
3. Psychographic – By lifestyle, values, interests, and so on.
4. Behavioral – What you use the product for, brand loyalty, the
benefit you're looking for from the product, and so on.
11. Marketing Toolbox - Prioritisation (Ansoff matrix)
Product/Market Expansion Grid
Why Use ? – screen options and make choices
Existing markets New markets
Existing Products A - Market penetration B - Market development
More of the same Existing product into new
markets
New products C - Product development D - Diversification
New products into existing New products into new
markets markets
12. Corporate goal is to get as
Brand Pyramid many of your customers as
Level 1: Presence
possible to the higher levels of
aware of your brand, but little else. the pyramid.
Level 2: Relevance
customers start to think about whether the
brand meets their wants and needs. It's
here that they begin comparing the cost of
your products with respect to the value
these provide.
Level 3: Performance
customers begin comparing the brand with
others, to see whether it delivers on its
potential.
Level 4: Advantage
At this level, customers have determined that there is a distinct advantage to using the brand,
compared with others. They're also beginning to associate the brand with their emotions and
with their sense of self.
Level 5: Bonding
Here, customers have established a bond with the brand. They've determined that cost,
advantage, and performance are all at levels that they're happy with.
13. Corporate Social Responsibility (CSR)
3 Main elements
Charitable giving – Many Corporates have a sense of moral and social responsibility,
Although this is basically philanthropy, you can help develop your company's image by
carefully selecting who receives your gifts.
Community investment – Many organizations also see the advantage of developing
local communities in ways that can bring real returns to the business. For example, a
telecommunications provider might want to sponsor Internet access in schools. In practice,
they're helping to create the right long-term social conditions for the business to succeed
by improving their reputation among consumers and as an employer of choice in the area.
Commercial initiatives – Carefully selected commercial initiatives can be very good for
business, making a significant contribution to the bottom line. One possibility is working
with a reputable charity - For example, a "Main Street" optician chain might support an
initiative to improve eye care in the developing world. The idea of this "cause-related
marketing" technique is to promote your brand and your reputation as a socially
responsible company, with whom consumers will want to be associated.
15. Porters Diamond and marketing
Shaping Strategy
to reflect
For organizations to deploy
National strengths and weaknesses
their resources effectively,
they need to understand how
global competition is likely to
play out. An important part
of this is understanding how
the business conditions in
one country differ from those
in another country.
Analyzing the areas of strength and weakness
that can give a country, or industry within a
country, a competitive advantage or
disadvantage.
• Factor Conditions (people, raw materials, land)
• Demand Conditions (give advantage where you therefore export, high hoe demand
breeds advantage and anticipating trends by responding to savvy home consumers)
• Firm (or organization) Strategy, Structure, and Rivalry (matching industries to
conditions such as small firms in Italy; matching investment appetites to firms)
• Related and Supporting Industries (basis of cost and innovation levels)
Competitive Advantage of Nations (1998)
16. Porters Diamond – how to use it
Helps understand how these factors affect your organization, or yourself. Is there a
long term future..
Identify the factor conditions that apply to the industry and country you work in.
If your industry is successful internationally, what factors give the country an
advantage over others? If it is struggling, why? Think about people, raw materials,
capital, land, educational levels and technological expertise.
What are the characteristics of the demand conditions in the country. Are
domestic buyers discerning and demanding in the market or industry? Are there
aspects of demand that are specific to that wouldn't apply anywhere else? And how
do these compare with the situation in the countries that most successfully compete
with it?
Analyze the national approach to organization structure and the levels of
competitive rivalry in your country. Is this what the industry needs?
What are the related and supporting industries in like? Does the industry rely
on imports, or benefit from high quality or low cost (or both) suppliers?
17. Porter – Generic Strategies Begin with the end in
mind..
Step 1: For each generic strategy,
carry out a SWOT Analysis of your
strengths and weaknesses, and the
opportunities and threats you would
face, if you adopted that strategy.
Having done this, it may be clear that
your organization is unlikely to be able
to make a success of some of the
generic strategies.
Step 2: Use Five Forces Analysis to
understand the nature of the industry
you are in.
Step 3: Compare the SWOT Analyses of the viable strategic options with the results of your
Five Forces analysis. For each strategic option, ask yourself how you could use that strategy to:
Reduce or manage supplier power.
Reduce or manage buyer/customer power.
Come out on top of the competitive rivalry.
Reduce or eliminate the threat of substitution.
Reduce or eliminate the threat of new entry.
Select the generic strategy that gives you the strongest set of options.
18. Developing the strategy
Stage 1: Analyzing Your Context and Environment
In this first stage, you ensure that you fully understand yourself and your
environment. Analyze Your Organization look at your Core Competencies .
Analyze Your Environment
PEST Analysis , Porter's Diamond , and Porter's Five Forces are great starting
points for analyzing your environment.
Analyze Your Customers and Stakeholders
look at your market in detail. Answer key questions such as "How is our
market segmented ?", "What subpopulations can we reach cost-effectively?" and
"What is our optimal Marketing Mix ?"
Analyze Your Competitors
USP Analysis helps you identify ways in which you can compete effectively.
19. Strategy development…
Stage 2: Identifying Strategic Options
Brainstorm Options
Use creativity tools like Brainstorming , Reverse Brainstorming to explore
projects that you could run to develop competitive advantage.
Stage 3: Evaluating and Selecting Strategic Options
Evaluate Options
By this stage, you've probably identified a range of good projects that you
could run. Start by evaluating each option in the light of the contextual
factors you identified in Stage 1.
- Choose the Best Way Forward
Implementing Strategy
- It's no good developing a strategy if you don't implement it successfully,
and this is where many people go astray.
- VMOST Analysis and the Balanced Scorecard can bridge the gap (Vision,
Mission, Objectives, Strategy, Tactics)
20. Porters 5 Forces
- use the tool to understand your
situation, look at each of these forces
one-by-one
Brainstorm the relevant factors for
your market or situation, and then
check against the factors listed for
the force in the diagram
mark the key factors on the diagram,
and summarize the size and scale of
the force on the diagram. An easy
way of doing this is to use, for
example, a single "+" sign for a force
moderately in your favor, or "--" for a
force strongly against you
22. Creating value - Porters value chain
The value that's
created and
captured by a
company is the
profit margin:
Value Created and
Captured – Cost of
Creating that Value
= Margin
Step 1 – Identify subactivities for each primary activity.
For each primary activity, determine which specific subactivities create value
Step 2 – Identify subactivities for each support activity.
Step 3 – Identify links.
Step 4 – Look for Opportunities to Increase Value.
23. Mintzberg 5Ps (1987)
1. Strategy as a Plan
Planning is something that many managers are happy with, and it's something that comes naturally to us. As such, this
is the default, automatic approach that we adopt - brainstorming options and planning how to deliver them.
PEST Analysis , SWOT Analysis and Brainstorming help think about and identify opportunities; The problem with
planning, however, is that it's not enough on its own. This is where the other four Ps come into play.
2. Strategy as Ploy
Mintzberg says that getting the better of competitors, by plotting to disrupt, dissuade, discourage, or otherwise influence
them, can be part of a strategy. This is where strategy can be a ploy, as well as a plan.
For example, a grocery chain might threaten to expand a store, so that a competitor doesn't move into the same area;
3. Strategy as Pattern
Strategic plans and ploys are both deliberate exercises. Sometimes, however, strategy emerges from past organizational
behavior. Rather than being an intentional choice, a consistent and successful way of doing business can develop into a
strategy.
Tools such as USP Analysis and Core Competence Analysis can help you with this. A related tool, VRIO Analysis (Value;
Rarity; Imitability; Organisational), can help you explore resources and assets (rather than patterns) that you should
focus on when thinking about strategy.
4. Strategy as Position
"Position" is another way to define strategy - that is, how you decide to position yourself in the marketplace. When you
think about strategic position, it helps to understand the organization's "bigger picture" in relation to external factors. To
do this, use PEST Analysis , Porter's Diamond , and Porter's Five Forces to analyze your environment
5. Strategy as Perspective
The choices an organization makes about its strategy rely heavily on its culture - just as patterns of behavior can
emerge as strategy, patterns of thinking will shape an organization's perspective, and the things that it is able to do well.
24. Implementing your marketing strategy
Question 1 – "why" –
refers to your
organization's values,
mission, and vision.
Question 2 – "what" –
covers objectives and
goals.
Question 3 – "how" –
refers the actions needed
to realize these goals.
Question 4 – "who" –
refers to the people,
systems and tools which
deliver these.
26. Summary
• Marketing – what is it (surprising how many people get it confused with
selling)
• What tools help us be good corporate marketeers ?
• Linking Marketing to corporate strategy
• Implementation
27. Marketing Toolbox - Product Diffusion
Curve
Innovators: Members of this group include in-the-
know consumers who are willing to take a risk on a new
product. Innovators represent the first 2.5% of people
to adopt a new product.
Early Adopters: gauge the response of the Innovators
before rushing in purchasing a new product. They'll
probably be educated and somewhat product savvy.
Early Adopters represent about 13.5% of the total
consumer population.
Early Majority: more cautious and prefer to avoid the
risk associated with purchasing an unproven product.
Accept a product only after it has been approved by
members of the Early Adopters group. The Early
Majority represents 34% of consumers.
Late Majority: more skeptical. They are late to jump on board and do so only after a new product
becomes mainstream. The Late Majority represents about 34% of consumers.
Laggards: Members of this group are more than simply sceptical. In fact, they generally do not accept a
new product until more traditional alternatives no longer are available. Laggards represent about 16% of
consumers.
28.
29. Customer Satisfaction
Adds Customer Value Destroys Customer Value
Give you a testimonial Complain (inc to others)
Good news story Wouldn’t want reported
Repeat business Embarrass you
Recommendation Customer expectations vs
Good customer service delivered
Staff feel ‘good’ about Staff ‘cringe’
30. Actions
• For A – list customers you have now, sell more,
monitor contacts and seek new deal targets
• For B – list new clients who want what you have
now, produce materials, contact
• For C – list potential clients, contact names and
key information about them
• For D – Frame commercial offer, identify new
clients and route to market
31. Exercise – for your product fill in your current methods by
product type
Increasing awareness Repeat business new
PR Advertising Direct Promotion Personal selling
marketing
A – existing
product, sell
more
B – new
clients
existing
product
C – new
1= all the time
products to 2 = sometimes
existing
clients
3 = never
D – new
product to
new clients
32. Exercise – now try to fill in your future methods by product
type – how might you do things differently ?
Increasing awareness Repeat business new
PR Advertising Direct Promotion Personal selling
marketing
A – existing
product, sell
more
B – new
clients
existing
product
C – new
1= all the time
products to 2 = sometimes
existing
clients
3 = never
D – new
product to
new clients
33. What information are you collecting
on your customers ?
How satisfied are they with your service ?
Is the service better or worse than your competitors ?
If you are using indirect or distributors – how can
we find out ?
If you asked your customers the 3 things you could do
to improve your service what would they say ?
34. What information are you collecting on
your competitors ?
Are they making any money ?
Are they losing or gaining market
share ?
Are they targeting your distributor contracts ?
Are you being ‘blindsided’ by a new technology ?
If you could listen in on your competitors planning to
steal your market what 3 things would they be saying ?
35. The sales process
What is the documented sales process in Arbil?
Does it look like this ? :
- Discovery
- Establishing value
- Competitive strategy
- Political strategy
- Implementation plan
Price – given or reached ?
Discounts – accepted or hard won ?
Negotiation Techniques – do you use them ?
Value added service – what is added that exceeds
expectations
36. Establish value
Value Statement Value proposition
Based on industry, market and Based on results oriented dialogue
Client research With the client
Corporate Focus
+ +
Meaningful Measurable
+ +
Curiosity compelling Business specific and
= Financially compelling
A reason to receive me as a value-add =
Professional A logical business reason to do
Business with my company
Enabling me
Enabling me to
Get the right meetings focused on
The right issues Offer superior business solutions
Value Application
Based on an individuals professional and personal agendas
Personal focus
+
Memorable
+
Personally compelling
=
A personal reason to give my offering favoured status
Enabling me to
Gain advantage over my competitors
37. Differentiation Analysis
Your
strengths Maintain Attack
Your
weaknesses Defend Explore
Competitors Competitors
Strengths Weaknesses
