Chapter 3 - AC 3.2 - CIM Strategy & Planning PDF

Strategy & Planning CIM | Level 6 Diploma in Professional Digital Marketing Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Module Content Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK)...

Strategy & Planning CIM | Level 6 Diploma in Professional Digital Marketing Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Module Content Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Kotler et al (1997) define market segmentation as: “Dividing a market up into distinct groups of buyers with different needs/ characteristics or behaviors, who might require separate products or marketing mixes.” Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA  Region - Continents, nations, Purchase Occasion - Wedding, tea time, new year or birthday states, province 4 Bases of Segmentation Benefit Sought - Economy, convenience, prestige or easy to use Country size - Population, area User Status - Nonuser, ex-user, potential user, first time user or regular user City - Municipality, local town Usage Rate - Light, medium or heavy users Loyalty Status - None, medium, strong or council, neighbourhoods absolute Readiness stage - Unaware, aware, Density - Urban, suburban, rural informed, interested, desirous or intending villages to buy Attitude towards the product - Enthusiastic, positive, indifferent, negative Climate - Dry zone, wet zone, arid or hostile zone Age - Infant, toddler, child, teenager, young Social Class/Status - Mass market, adult, adult or senior citizen Gender - Male , Female emerging mass, mass affluent, Monthly Household income - Income Range affluent or super affluent Family size or type - Nucleus, small extended, large extended Life-style - Achievers, believers, Family Life Cycle - Bachelor, newly wed, full nest, empty nest or solitary survivor strivers or aspirers Occupation - Professional, academic, student, housewife, proprietors, civil service Personality - Generous, Education - Primary, secondary, diploma, graduate, postgraduate introverted, extroverted, Religion - Buddhist, Christian, Islam, Hindu authoritarian, ambitious, Race - Sinhalese , Tamil, Muslim, Burgher compulsive, aggressive or Nationality - Sri Lankan, Indian, Japanese, assertive Maldivian` Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Software Developer https://visme.co/blog/buyer- persona- template/#:~:text=A%20buye r%20persona%20template%2 0is%20a%20tool%20used%20 by%20marketers,behaviors%2 C%20motivations%20and%20 pain%20points Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Benefits of Market Segmentation Meet customers’ needs more precisely - Segmentation Focus marketing communications - should increase benefits to customers by providing a Segmentation enables a firm to identify those closer match with their needs. An organization can most likely to buy from it, thus avoiding gain a deeper market and customer knowledge on unnecessary communication and promotional individual segments, allowing it to tailor its offerings. effort. Increase profits - By grouping customers together Retain customers - By providing specific based on their on their needs, organizations can obtain products and services focused on specific needs, the best price for their products and services. an organization is more likely to generate loyalty among its customers. Gain segment leadership - Most organizations are concerned with creating a specific competitive position and the leader’s position confers benefits in the form of higher profits and return on investments (ROI). Focusing on a specific segment can also avoid competition with large players. Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Bases of segmentation | B2B Industry type : Services, manufacturing, not for profit etc. Benefit sought : E.g. a precious metal supplier could segment his market into those customers needing purity and those customers requiring strength. Purchase potential : By order size of revenue or quantity. Company demographics : E.g. When was it established, where is it based, how many employees does it have, what is its turnover? Purchasing approach : E.g. Is buying done centrally or is it decentralized. What are the buying criteria, what are the buying policies? Situational factors : E.g. The size or frequency of the order, the urgency of the purchase etc. Personal characteristics : The individual characteristics of the buyers within the firms do have an impact on purchase behavior. Individual personalities affect the way relationships develop, the ease with which a marketer can get to see a customer. Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Distinct Accessibility Measurability Profitability DAMP Framewrk (Richardson, 2020) Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Once the organization has identified prospective segments, it has to evaluate them and decide which ones it will service or target. Kotler et al (1997) define targeting as: “The process of evaluating each market segment’s attractiveness and selecting one/more segments to enter.” Targeting involves evaluating market opportunities against their fit with the organization. Are they aligned with the organization’s competencies and assets and is there a synergy with a particular market segment? Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Target Marketing Strategies Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Invitation for Competition! Targeting is spot-on with Digital Campaigns.. Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Once an organization has selected its target markets it has to decide the position from which it will compete. Kotler et al (1997) defines positioning as: “Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers and formulating competitive positioning for a product and a detailed marketing mix.” Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Perceptual Map Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Choose a Brand Positioning Strategy Product feature or attribute driven (functional positioning) - Dual air bags Benefit driven - Peace of mind, safety, durability Price Driven - Wal-Marts every day, low prices, value for money Quality driven - Luxury brands Positioning by application or use - Shampoo + Conditioner by Garnier User or personality driven - Porsche: For sports enthusiasts Problem solution positioning - Insurance companies Emotional positioning - Love, fear, joy Aspirational positioning - Premium brands Occasion driven - Summertime, teatime Activity driven - sport or relaxation Country of origin - Made in Sri Lanka Symbolic positioning - Nikes swoosh First mover positioning - positioning as the leader Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Evaluating Market Segments Homogeneous - Do customers have similar needs? Measurable - Is data available to measure the segment? Substantial - Is the segment big enough in terms of sales and profitability to be worth targeting? Accessible - Is the segment reachable through communications and distributions channels? Actionable - Can the company put marketing mix together that targets the specific group? Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA SFA : https://getlucidity.com/strategy- resources/guide-to-the-sfa-matrix/ Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Suitability Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Risk assessment and Contingency Planning Strategy implementation involves taking Risks. Some risks will be uncontrollable events in the external environment whereas others may arise from the internal politics that are common in all but the smallest organizations. How do marketers prepare for unexpected and unwelcome events? Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Risk assessment - 6 Categories 1. Political - The level of senior management support towards the strategy, or the defection of a key supplier or distributor to a rival. 2. Social - Media or pressure groups can pose risks to a strategy in some circumstances. 3. Physical - Plant, equipment and buildings being affected by disasters such as fire. 4. Technical - Systems failures, such as ecommerce websites or CRM systems. 5. Labor - Loss of key staff as a result of illness or death. 6. Legal - Action by customers or other connected stakeholders to seek redress through the courts. Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Risk Management Plan Step 1 - Identify the risks Step 2 - Prioritise the risks Step 3 - Create a risk using the risk matrix schedule Identify all the potential Create a comprehensive list of categories of risk such as the risks scope, schedule and budget. Identify actions required to Then, for each category, list the reduce the likelihood of them risks that are likely to adversely happening, or, if they do affect the project. happen, to reduce their impact. For example: The scheduled delivery Gauge the overall priority of timeframe will be exceeded the risk (low, medium, high) The project will spend more Preventative actions to reduce than the budget allocated the likelihood of the risk occurring Change requests will lead to scope creep and delays. Priority 1 – Critical Contingent actions to lessen Priority 2 – Significant the impact of the risk Priority 3 – Minor Resource responsible for taking the actions identified Priority 4 – Insignifiicant Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Risk Management Contingency Strategies Planning Avoidance - (Eliminate, or not ‘Contingency plans are activities to deal with become involved) events that may be unlikely, but which could have a big impact. Each of the major risks Reduction - (Optimize, limit, identified using the impact, probability matrix mitigate) will need a contingency plan covering; Sharing - (Transfer - outsource to Activities and milestones designed to bring the strategy back on track? third party or insure) Key personnel who need to be involved, Retention - (Accept, plan on with clear roles and responsibilities. dealing with any incidence and Details of how the plan will be tested? budget accordingly) Additional training for staff? How the plan will be updated? Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Thank you, and I’ll see you next week.. Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA Chalaka Bogoda MBA (UK), ACIM (UK), ACMA (UK), CGMA