Firms Should Consider Key Questions

What is our business? Can we learn from the past? How should the present be evaluated? What do we envision for the future?

Product Orientation vs. Market Orientation Company

Xerox
Columbia Pictures Encyclopedia Britannica Carrier

Product
We make copying equipment
We make movies We sell encyclopedias We make air conditioners and furnaces

Market
We improve office productivity
We entertain people We distribute information We provide climate control inside homes

Dimensions That Define a Business

Customer groups

Customer needs

Technology

Implementing Marketing Strategies

Create a Marketing plan which is a subsystem of a business plan . Implementation The process of putting marketing strategies into action Intended Strategy The strategy that the company decides on during the planning phase Realized Strategy The strategy that actually takes place
Intended Strategy Realized Strategy

Implementation

Business plan and Marketing plan of an organisation

What is a Marketing Plan?

A marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at a strategic and tactical level.

What does it propose ?

A marketing plan is the blueprint or the map you intend to follow in order to achieve your goals. If you are planning for existing programs, the plan will incorporate the strengths of your current effort with needed changes and improvements. If the plan is for a brand new product or service, it will pull all the elements together for an effective start on marketing.
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Why have a marketing plan?

To find out where you are To know where youre going How to get there

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Some considerations
See it as a process Form a team Keep it simple Develop a time-frame Give it a life Get feedback Have a simple revision process Consistent with mission statement
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Components of a marketing plan

Mission Statement
Executive Summary Internal Analysis Marketing Strategies Identify Resources Implementation Plan

External Analysis
Objectives

Marketing Budget
Evaluation Methods

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Levels of a Marketing Plan

Strategic
Target marketing decisions Value proposition Analysis of marketing opportunities

Tactical
Product features Promotion Place Pricing Sales channels Service

The Planning, Implementation, and Control Processes

Mission Statement

A clear, concise description of:

The organizational identity What business is the organization really in Results the organization wants to accomplish
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Some considerations
A mission statement describes who the organization is and what business its really in. Its what makes the organization go reflects its internal and external perception. It must be understood by everyone. It drives the organization and dictates how things are done. It should be kept simple.

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Executive Summary
An overview

Readable and concise

Summary of main objectives of the plan

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Internal Analysis

Background Current status Future directions Current resources Strengths and weaknesses

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External Analysis
Economy Demographics Trends Competition Target market

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Opportunities and Threats

Estimate probability
Severe, not severe Very likely, very unlikely

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Market Opportunity Analysis (MOA)

Can the benefits involved in the opportunity be articulated convincingly to a defined target market? Can the target market be located and reached with cost-effective media and trade channels? Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?

Market Opportunity Analysis (MOA) (cont.)

Can the company deliver the benefits better than any actual or potential competitors? Will the financial rate of return meet or exceed the companys required threshold for investment?

Opportunity Matrix

Threat Matrix

The Competition
Who they are Product/service features Pricing, packaging, promotion Competitor strengths/weaknesses How are you different?

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Customers and Target Markets

Current and potential customers Customer requirements Market clusters

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Marketing Strategies

Customers/target markets Programs and services Packaging Pricing Promotion

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Implementation Plan
Steps Responsibility Deadlines Budget

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Marketing budget
Advertising/media

Direct mail
Databases Printing/production Mailing

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Evaluating the marketing plan

Success measures
Completion of action dates Accomplishment of goals and strategies Results
New/repeat customers Win rate on sales Average size of contracts Revenue

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Summary
The marketing plan
Its a process!

It has discipline
It results in a positive ROI

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Marketing plan for re-launch

SWOT and competitive analysis to assess where the business or brand is currently and what competitors are doing Objectives what the plan needs to achieve

The marketing strategy how the objectives will be achieved

Sales forecast by how much sales are likely to increase Budget how much the marketing activities will cost and how the plan will be financed

Evaluation how outcomes will be monitored and measured.

 Targeting the male consumer, women are also an important target market for NIVEA FOR MEN. This is because women often buy male grooming products for their partners as well as helping them choose which products to buy.

NIVEA FOR MEN used a SWOT analysis to help it assess the market. This takes a detailed look at the internal strengths and weaknesses of the business, as well as external opportunities and threats in the marketplace.

Mission
The marketing plan must fit with the overall company strategy that is set out in the business plan. Beiersdorf states its goal as ...to increase our market share through qualitative growth. At the same time we want to further improve our sound earnings performance so that we can fulfill our consumers wishes and needs with innovations today and in the future. This will give us a strong position within the global competitive environment.

Working the plan

The marketing team set SMART objectives for the NIVEA FOR MEN relaunch. These are Specific, Measurable, Achievable, Realistic (given the available resources) and Time constrained (to be achieved by a given date).

Working the plan

The marketing team used research data to forecast market trends over the next three-to-five years to set specific targets for increasing sales, growing market share and improving its brand image. Beiersdorf wanted to increase its UK market share for NIVEA FOR MEN, but also wanted greater market penetration for male skincare products. Wanted not just a greater share of the existing market; it wanted to expand that market. It wanted more men buying skincare products.

Working the plan

key aim was to move men from just considering skincare products to making actual purchases but to sell more male skincare products to women. Research had indicated that women were often the initial purchaser of skincare products for men. Another objective was to develop the NIVEA FOR MEN brand image. The NIVEA brand has always stood for good quality products that are reliable, userfriendly and good value for money..

Strategies on how the objectives would be achieved within the designated budget the management team.

The 4 Ps
Product- Nievia for men skin care Pricing- Targeting the Upper & Middle segment Place- Initially UK and then Global Promotion Above-the-line promotions: Direct expenditure on advertising, such as for a TV commercial. Below-the-line promotions: Indirect expenditure on promotion, such as through free gifts, PR or competitions.

Promotional Mix
The use of sport for brand affinity for NIVEA FOR MEN among men. Press advertorials in popular mens magazines, making the daily usage of their products more acceptable.

Promotions by way of distribution of free samples encouraged trial of NIVEA FOR MEN products which drove purchase.

Evaluation -Was this in line with objectives?

Overall sales - Internationally, NIVEA FOR MEN skincare products grew by almost 20%. Its sales in the UK market at retail in 2008 were nearly 30 million and in line with expectations. Brand image ratings - NIVEA FOR MEN was the Best Skincare Range winner in the FHM Grooming Award 2008 for the fifth year running.

Product innovation - In response to consumer feedback and following extensive product innovation and development, the NIVEA FOR MEN range has been expanded and the existing formulations improved