LMS S&P Session 2 - Student PDF

9/16/24 Strategy & Planning SESSION 2 16 OC TOBER 2024 1 Agenda Auditing the Auditing the Developing SWOT environment organisation...

9/16/24 Strategy & Planning SESSION 2 16 OC TOBER 2024 1 Agenda Auditing the Auditing the Developing SWOT environment organisation insights analysis 2 This Photo by Unknown Author is licensed under CC BY-ND Auditing the marketing environment 3 1  9/16/24 What is a marketing audit? The econom y Cultural Dem ography forces Custom ers The Com petitors public Social The Legal factors organisation structures Channels Distributors Suppliers & dealers Political structures Technology 4 Using marketing models and frameworks 5 Looking outside the organisation Where are the opportunities for growth? Who are our stakeholders? How competitive is our environment? Which customers do we need and which do we have? 6 2  9/16/24 Ansoff Growth Matrix Options for growth 7 The BCG (growth/share) matrix Options for growth Stars Product groups which have a high market share in a growing market Question marks (or problem child) Product groups in a growing market, which do not yet have a high market share Cash cows Product groups that have a high market share in a mature market Dogs Product groups that have a low market share in a static or declining market 8 GE Attractiveness of markets Options for growth 9 3  9/16/24 Mendelow’s Power-Interest Matrix Stakeholder analysis Power is the ability of an individual or Low High group to influence others Interest Interest Types of power: High ◦ Positional Keep Satisfied Key Players ◦ Resource ◦ System Power ◦ Expert Low Priority Keep Informed ◦ Personal Low 10 6 Markets Model (Payne et al) Stakeholder analysis An expanded view of where marketing can be applied Not just aimed towards existing and potential customers (the central circle) But also at other markets: Referral, Supplier, Employer Recruitment, Influence and Internal markets Payne, Adrian, David Ballantyne, and Martin Christopher (2005) 11 Porter’s Five Forces Competitive environment Competitive rivalry Threat of substitute products Bargaining power of buyers Threat of new entrants Bargaining power of suppliers Read Forbes Advisor article in Dropbox Reading folder 12 4  9/16/24 Competitor Analysis Competitive environment Direct competitors. are firms which offer a similar product to the same market. Indirect competitors are firms that offer different products that meet same need. Potential competitors do not currently compete but will be a threat in the future. Incipient competitors are the competitors who do not exist currently, but may emerge as a result of transformation in the industry Begen et al 13 Competitor benchmarking Competitive environment Internal capabilities Different aspects of the customer lifecycle Qualitative to quantitative In-sector and out-of-sector Financial to non-financial measures From user experience to expert evaluation See Chaffey & Ellis-Chadwick, 2016 p 92 for details Read the CIM Practical Guide to Gathering Competitor Intelligence in Dropbox Reading folder. 14 Value Curve (Chan Kim & Mauborgne) Competitive environment Read the Value Curve article here https://www.mindtools.com/page s/article/value-curve-model.htm or in your Dropbox Reading folder 15 5  9/16/24 6W Model of Customer Analysis by Ferrell Customer analysis Who Why #2 What Janse, B. (2019). 6W Model of Custom er Analysis by Ferrell. Why #1 Where https://www.toolshero.com /m arke ting/6w-m odel-of-custom er- analysis/ When 16 Looking inside the organisation 17 Inside the organisation How is the organisation structured and managed? What impact does that have on what it does and how it does it? What sort of staff does it have, with what levels of skills? What are the organisation’s strengths and weaknesses? How does that create a competitive advantage? How well do the marketing activities compare to best practice? 18 6  9/16/24 Internal Marketing Environment An internal audit is a comprehensive, Marketing Strategy: review objectives and systematic, and periodic evaluation of a strategy for suitability in market conditions. company’s marketing assets. Marketing Organisation: understand structural capability of organisation and suitability for It is a useful tool to review the market conditions. competence and effectiveness of a Marketing Systems: evaluate for analysis, company’s marketing objectives, planning and control of the marketing plan. strategy and tactics and how these are Marketing Productivity: how well are deployed. components of current plan performing and how cost effective are they? Are there alternatives? The internal audit provides information Marketing Functions: evaluation of the on a company’s strengths and marketing mix. weaknesses. 19 McKinsey 7Ss Operation and structure Shared Values Staff Structure (inside the (What sort of staff does the What is it (flat? organisation) organisation employ?) hierarchal?) and what would be best? Style Skills Strategy Systems (What is the (What sort of staff (how does the (Which systems leadership skills are organisation are in place to style?) required?) compete in the measure marketplace?) effectiveness?) 20 Understanding organisational culture Operation and structure The cultural web shows the behavioural, physical and symbolic manifestations of a culture that inform and are informed by the taken-for-granted assumptions, or paradigm, of an organisation. Johnson et al The cultural web of an organisation 21 7  9/16/24 Culture’s influence on strategy Operation and structure Chart adapted by Turner et al from P. Gringer and J.-C. Spender, Turnaround: Managerial Recipes for Strategic Success, Associated Business Press, 1979 22 Leadership Types Operation and structure Action Centred leaders (Adair model) - three elements - Achieving the Task, Developing the Team and Developing Individuals - are mutually dependent, as well as being separately essential to the overall leadership role Situational leaders - different leadership styles are contingent to different situations. Charismatic leaders- brave, risk takers. Transactional leaders- more common than other leaders. Focuses more on a series of "transactions". Interested in looking out for oneself, exchanging benefits with their subordinates and clarifying a sense of duty with rewards and punishments to reach goals. Transformational leaders- conform to network and co-workers in the best fashion in order to benefit the organization while still sharing ideas. 23 Impact of leadership Operation and structure 24 8  9/16/24 Assessing Resources & Competencies Organisational strengths and weaknesses R esou rces Com petencies (w hat you are (w hat you have got) good at doing) Physical Threshold capabilities List your threshold (required to compete in the Financial List your threshold resources here competencies here market) Human Physical Distinctive capabilities List your distinctive resources List your distinctive (required to achieve Financial here competencies here competitive advantage Human 25 Core competencies Organisational strengths and weaknesses The core competencies explain competitive advantage and are particularly focused on knowledge-based assets (resources) and capabilities. A CORE competence meets ALL THREE of the following criteria: 1. Provides the organisation with the possibility of accessing a wide range of markets 2. It needs to underpin and add significantly to the customer value of the product or service. 3. It must be difficult for rivals to imitate. Source: Prahalad and Hamel, 1990 26 Threshold and distinctive capabilities Organisational strengths and weaknesses Threshold capabilities are those needed for an organisation to meet the necessary requirements to compete in a given market and achieve parity with competitors in that market – ‘qualifiers’. Distinctive capabilities are those that are required to achieve competitive advantage. Distinctive or unique capabilities that are of value to customers and which competitors find difficult to imitate – ‘winners’. 27 9  9/16/24 Supply chain or Value chain analysis Organisational strengths and weaknesses Porter, 1985 28 Competitive advantage from resources – VRIN Analysis Organisational strengths and weaknesses Valuable – exploits opportunities or mitigates threats Rare – only a few organisations in the sector/market have this Inimitable – hard to copy Non-substitutable – no equivalent alternatives Source: VRIN analysis, Thompson et al, 2013 29 Is the organisation exploiting the resources – VRIO Organisational strengths and weaknesses https://www.youtube.com/watch?v=RM lbCpcpSt8 Source: Barney and Hesterly, 2011 30 10  9/16/24 Resource and Capability Matrix Organisational strengths and weaknesses Strategic importance of resource in creating customer value Black Holes Crown (Superfluous Jewels (Key Relative resource strength Strengths) Strengths) compared to competitors Sleepers Achilles’ (Zone of Heels (Key irrelevance) weaknesses) Source: Adapted from Grant 2000 and Hooley et al 2012 31 Digital Culture Framework –benchmark tool Auditing marketing activities Source: https://www.targetinternet.com/digital-transformation-the-essential-guide-to-understanding-digital-capability/ 32 RACE model to review marketing activities Auditing marketing activities Reach Building awareness and visibility Act Interacting with customers, nurturing leads Conversion to sale (or donation, application) Convert Develop a long-term relationship, loyalty Engage Chaffey, 2009 33 11  9/16/24 Understand the customer journey Auditing marketing activities (and a bit of Customer analysis) Image source: Qualtrics 34 Benchmarking channel performance Auditing marketing activities 1. Identify channels to benchmark Example: SEO 2. Select relevant metrics Metrics: Organic traffic, domain authority, keyword rankings. 3. Gather benchmark data Benchmarking Data: Compare your domain authority 4. Analyse performance gaps and keyword rankings against competitors using tools like Ahrefs or Moz. Compare your organic traffic 5. Identify improvement actions growth against industry benchmarks (available in reports from SEMrush or similar). Analysis: Identify if you are lagging in any areas, such as specific keywords where competitors rank higher or overall domain authority. Action Plan: Improve content optimization, enhance technical SEO, or increase link-building efforts. 35 Auditing specific marketing activities Specific areas can be audited in more detail, see Reading folder on Dropbox Brand audit – Brand Audits_ Is your house in order Digital marketing audit – What is digital marketing 7Ds Content audit – How to Run a Content Audit in 2024 Hubspot Innovation/ product development/GTM strategy – see Innovation audit Tidd and Bessant Sustainability – How to conduct a simple but comprehensive Sustainability audit 36 12  9/16/24 What data do we NEED? IN-HOUSE SOURCES EXTERNAL SOURCES 37 37 What data do we NEED? IN-HOUSE SOURCES EXTERNAL SOURCES CRM/In-house system Demographics Customer surveys Psychographics Web analytics Webographics Mobile/app analytics Trends Web exit surveys Changes Social media engagement by platform Social media sentiment Shopping cart activity 38 38 Environmental Scanning & Market Intelligence Environmental scanning is a Size and breakdown of market process that systematically surveys and interprets relevant data to Key players and relative strengths and weaknesses identify external opportunities and threats. Trends and forecasts An organization gathers Key players, influencers and information about the external thinkers world, its competitors and itself. The company should then respond to the information gathered by changing its strategies and plans when the need arises. 39 13  9/16/24 Demand Forecasting Using intelligence to forecast Can include: demand for products and services. Assessing current demand This can help predict resources Trend analysis on past required for the marketing plan demand but forecasting needs to be done carefully using a variety of sources Concept testing and test to give an accurate prediction. marketing Focused market research More info here:https://documents.software.dell.com/statistics/textbook/demand-forecasting 40 40 Market Research The process that organisations can use to generate the information they need to answer questions about their customers, market and industry. Marketing Research is a systematic approach to gathering facts and figures related to the marketing of goods and services. (Tull & Hawkins 1992). The action or activity of gathering information about consumers' needs and preferences. 41 41 Insight from the audit "An effective SWOT should be concise, authentic, significant and actionable." Coman & Ronen (2009) 42 14  9/16/24 SWOT STRENGTHS WEAKNESSES What you do well What you do less well INTERNAL What differentiates you from competitors What competitors do better than you Internal resources, skills & expertise Skills/expertise/resources gaps Reputation & Market share Limitations OPPORTUNITIES THREATS Opportunities from PESTLE factors Threats from PESTLE factors Opportunities from Micro factors: Threats from Micro factors: EXTERNAL Customers Customers Suppliers Suppliers Intermediaries Intermediaries Competitors Competitors Other stakeholders Other stakeholders 43 Develop a SWOT for FilmsRUs Using the worksheet with some audit information, develop a SWOT. Be sure to have something in every quadrant of the SWOT. Be ready to share your SWOT with the rest of the class. 44 Quality check your SWOT Strengths Weaknesses It can create value for It is meaningful to the organisation or the customer customer It is unique It is unique It is difficult to fix It is inimitable It is lasting Opportunities Threats It is large It is significant It is accessible It is lasting It is lasting 45 15  9/16/24 OPTIONS – how do they influence the audit? For-profit organisations Not-for-profit organisations 1. Improving return on marketing 2. Enabling surplus to be increased by a investment (ROMI) by a minimum of minimum of 10% pa for the life of the plan 10% pa for three years in order to increase to safeguard the organisation going business success. forward. 3. Increasing customers retention 4. Increasing members/donor/supporter by 5% pa for three years. retention by 5% pa for three years. 5. Delivering sustainable competitive 6. Delivering sustainable advantage in your advantage in a key market for the next chosen markets for the next three years, three years, increasing market share increasing market awareness by 5% pa. by 5% pa. 46 Starting your marketing plan – organisational summary and the audit Task 1a Provide a background to your chosen organisation Watch video on Dropbox about this. Task 1b A strategic audit of where your organisation is now, using relevant analytical models and frameworks to assess the current situation. Use the material we’ve covered in Session1 & 2 to do this. 47 Your course workbook Capture what you learn in each session Build up valuable notes for exam revision Draft parts of your marketing plan In your Dropbox folder 48 16  9/16/24 Prep for next week Read up on areas that are not clear to you Watch video for Task 1a and complete that task Start writing your audit You will need to select your OPTION before you start Audit (Tasks 1a and 1b) have to be submitted for tutor review by Wednesday 30 October 49 Thank you! 0800 002 9886 [email protected] www.londonmarketingset.co.uk M etal Box Factory 30 Great Guildford St London SE1 0HS 50 17