Marketing Management: A South African Perspective PDF 4th Edition

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COPYRIGHT PERMISSION FORM - CP241/LDP1 LEGAL SERVICES: COPYRIGHT 2024 LECTURER MS L DU PREEZ DEPARTMENT AGRICULTURAL MANAGEMENT COURSE SGM 3002 ELECTRONIC 45 CODE COPIES ONLY TITLE Marketing Management: PERMISSION PRASA Permission (JUTA) RECEIVED Permission is restricted to the unadjusted power points included by the Publisher in this prescribed book © Some rights reserved. This time-limited emergency licence (Covid-19) permits non- commercial use, distribution, and reproduction in any medium, provided the original author and source are credited in the customary fashion and provided re- used snippets link back to the original available from the publisher. The moral rights of the author have been asserted. M. HANSFORD COPYRIGHT OFFICER  MARKETING MANAGEMENT: A SOUTH AFRICAN PERSPECTIVE 4th EDITION MC CANT & CH VAN HEERDEN (EDITORS) M MAKHITHA (CONSULTING EDITIOR) INSPIRING POSSIBILITIES TOGETHER  COPYRIGHT PERMISSION FORM - CP227/LDP LEGAL SERVICES: COPYRIGHT 2022 LECTURER MS L DU PREEZ DEPARTMENT AGRICULTURAL MANAGEMENT COURSE SGM 3122 / 3002 ELECTRONIC 39 CODE COPIES ONLY TITLE Marketing Management: PERMISSION PASA- Lockdown South African RECEIVED license CHAPTER 14 Perspective - JUTA Permission is restricted to the unadjusted power points included by the Publisher in this prescribed book © Some rights reserved. This time-limited emergency licence (Covid-19) permits non- commercial use, distribution, and reproduction in any medium, provided the original author and source are credited in the customary fashion and provided re- used snippets link back to the original available from the publisher. The moral rights of the author have been asserted. M. HANSFORD COPYRIGHT OFFICER MARKETING MANAGEMENT: A SOUTH AFRICAN PERSPECTIVE 3 INSPIRING POSSIBILITIES 4th EDITION TOGETHER Learning objectives After studying this chapter, you should be able to: 1. Discuss the relationship between planning, implementation and control 2. the advantages of planning 3. Advantages of marketing plan 4. Discuss the marketing planning process 5. Discuss the BCG planning model 6. Discuss implementation in full  Introduction ▪ Up to this point, we have covered all the aspects of marketing, the need for research, consumer behaviour, the development of strategies etc. ▪ This chapter aims to, bring everything together and form a more strategic element to the marketing management process. ▪ This chapter deals with the main management tasks of marketing planning and implementation, as well as control over the market and marketing strategies. ▪ Marketing strategies must be planned and then implemented. ▪ Finally all marketing efforts must be controlled to ensure success and further survival and growth.  Strategic marketing management The process of strategic marketing management involves the following three steps: – Step 1 – Planning – Step 2 – Implementation – Step 3 – Evaluation Marketing management process Planning Nature of planning The advantages of planning: – Planning facilitates management by objectives – Planning reduces uncertainties – Planning facilitates coordination – Planning improves employee morale – Planning helps in achieving economies of scale – Planning facilitates controlling – Planning provides a competitive edge – Planning encourages innovation The marketing plan The use of marketing plans can offer the following benefits: – Target market focus. Having a marketing plan helps businesses to focus on their current target market, as well as to identify any gaps in the market that could be opportunities for new markets. – Ability to measure progress. Marketing plans provide a tool against which a business can measure its progress in relation to its goals. In this way, an organisation can identify which strategies work well and which do not. – Confidence when approaching investors. A solid marketing plan enables a business to show potential external financiers, with great confidence, that it is able to reach its planned goals. – New leads. Good marketing plans create new networking opportunities for businesses, thus enabling them to source new leads. Steps in the marketing planning process  Step 1: Historic appraisal – General market data (sales and market shares) – Market activity information (advertising and price history as well as historical cost and profit data) – Facts related to changes in technology, regulations or any other general environmental conditions Step 2: Environmental analysis – The Internal environment – The customer environment – The external environment – Swot analysis  Step 3: Planning assumptions – The market potential of the product – Market and brand forecasts – Exogenous factors Step 4: Marketing objectives – Mission statement – Requirements of objectives – Hierarchy of objectives A high rate of return on investment (ROI) An increase in sales An increase in relative market share Continued growth  Step 5: Formulating marketing strategies Strategic competitive positions: – Market leader – Market challenger – Market follower – Market specialist (Nicher) Step 6: Finalising of the plan – Format of a marketing plan Executive summary Current marketing situation Threats and opportunities Objectives and issues Market and marketing strategies Action programmes Budget Controls  Step 7: Reviewing progress Benefits of correct and strategic marketing planning: – Consistency – Responsibility – Environmental scanning – Organisational adaptation – Achievement – Resource allocation – Competitive advantages – Communication – Commitment Planning models The market growth-market share matrix – Growth rate and market share – Product portfolio analysis – Product portfolio and product lifecycle – Usefulness of the market growth-market share mix  Planning models ▪ Star: new product, each star has attained a relatively large market share and has growth potential. This is generally when you launch a new product. Initially this product will cost you more money than what it generates ▪ Cash cow: these are the successful “stars”. They are well- established. Makes money and is nearing their maturing phase. ▪ Problem children: small market share and require a lot of marketing just to stay at the same level of market share. The problem child can become a star but a lot of cash is needed. ▪ Dogs: low market share and market growth are poor. Cash flow of the products are limited. These are later sold or closed. Implementation  The importance of implementation Drivers of strategy implementation – Organisational structure – Organisational leadership – The organisational culture – Managerial processes  Implementation – Pg504 The next step is implementation This is one of the key routes to improved business performance. It is easy to develop and plan but implementation is difficult. Successful implementation depend on: formulation, communication, monitoring and management of the implementation process. Drivers of strategy Implementation: - Organisational structure - Organisational leadership - Organisational culture - Managerial processes  1. Organisational Culture ▪ When you decide on your marketing strategy, you have to make sure that your chain of command is set-up in such a way that it compliments the strategy. ▪ Example: you have decided that you want to enter new markets. – Then you should enable your marketing, R&D and sales people to work together and decide on markets to explore. ▪ Example you want to be more ecologically friendly and market the farm as such – You have to ensure that you employ engineers and specialists in the field. They then need to be able to make changes to products, the way products are produced and marketed.  2. Organisational leadership ▪ Leadership is an integral part of the implementation of strategies. ▪ It includes: – Delegation – Communication – Establishing corporate culture ▪ Delegation – To be able to make decisions on farm level. – Example: Westfalia have different farms in different locations and on each farm that manager must be able to make day-to-day decisions without having to first get approval from the main farm. ▪ 2. Communication ▪ Communication is vital and there should be systems and process in place to make sure that top management communicate to lower managers, employees on the same level communicate and then also different departments communicate. ▪ Examples to enable this: team meetings, monthly meetings with management and then once a term you sit in on the meetings with other departments and discuss important aspects ▪ 3. Motivation ▪ Motivate employees to stay positive and create a culture of team work ▪ Different team work activities can be launched and prizes for the teams who achieve the goals.  Evaluation and control contd. ▪ Evaluation methods – pg528 – Obtaining feedback from customers – Getting feedback from the business itself – Comparing the business’s service standard to its objectives and customers attitudes – Taking corrective action  Evaluation methods – Sales analysis – Marketing costs analysis – Efficiency analysis – Customer value analysis – Obtaining feedback from customers – Getting feedback from the business itself – Comparing the business’s service standard to its objectives and customer attitudes – Taking the correct corrective action ▪ The marketing audit – Components of a marketing audit – Conducting a marketing audit ▪ https://www.gov.za/documents/agricultural-marketing- discussion-document ▪ https://www.youtube.com/watch?v=XqcKPH1QTxs ▪ https://smallbusiness.chron.com/benefits-driedfish-retailing- 16080.html