Marketing Planning and Management PDF

Marketing Planning and Management Course Material (CM2) Face-to-Face and Synchronous Online 1st Term, AY 2024-2025 MG Matibag Learning Objectives 1. Identify the key tasks required for company and business unit planning. 2.Describe the process of developing a...

Marketing Planning and Management Course Material (CM2) Face-to-Face and Synchronous Online 1st Term, AY 2024-2025 MG Matibag Learning Objectives 1. Identify the key tasks required for company and business unit planning. 2.Describe the process of developing a market offering. 3.Explain the process of marketing planning. Lesson Outline 1.Corporate and Business Unit Planning and Management 2.Developing Market Offerings 3.Planning and Managing Market Offerings Corporate and Business Unit Planning and Management Key Managing the company’s businesses Areas of as an investment portfolio. Strategic Planning Assessing the market's growth rate and the company’s position in the market. Developing a viable business model. Corporate and Business Unit Corporate Planning and Management Business Unit Specific Marketing Offering  Corporate and Business Unit Planning and Management 1. Planning Activities Defining the "To accelerate the world's transition to sustainable corporate mission energy." 2. Planning Activities Building corporate Culture Corporate and Business Unit Planning and Management Corporate and Business Unit Planning and Management 3. Planning Activities Establish Strategic Units Corporate and Business Unit Planning and Management 4. Planning Activities Assigning Resources to each Strategic Business Unit Financial Resources Intellectual Property Research and Development Human Resources Information and Data Sales and Distribution Physical Resources Marketing and Promotion Customer Service and Support Technological Resources Supply Chain and Logistics Legal and Compliance Defining the Corporate Mission ▪ An organization exists to accomplish something. The mission may change to respond to new opportunities or market conditions. ▪ A MISSION is a clear, concise, and enduring statement of reasons for an organization's existence. ▪ Often referred to as its core purposes, ac company’s mission is a long-term goal that provides company employees and management with a shared sense of purpose, direction, and opportunity.  Defining the Corporate Mission What is our Who is the business? customer? What is of What will our value to the business be? customer? What should Peter Drucker our business "father of modern management" be?  Defining the ▪ A clear, thoughtful mission statement, developed collaboratively with Corporate managers, employees, and often customers, provides a shared Mission purpose, direction, and opportunity. ▪ Good mission statements have five major characteristics. 1. They focus on a limited number of specific goals. 2. They stress the company’s major policies and values. 3. They define the major markets that the company aims to serve. 4. They take long-term view. 5. They are as short, memorable, and meaningful as possible.  Defining the Corporate Mission  Building the Corporate Culture ▪ A company’s organization consists of its structure, policies, and corporate culture. ▪ A corporate culture is defined as the shared experiences, stories, beliefs, and norms that characterize an organization.  Defining Strategic Business Units ▪ An SBU has three characteristics: 1. It is a single business, or a collection of related business that can exist separately from the rest of the company. 2. It has its own set of competitors 3. It has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit. Defining Strategic Business Units ▪A specialized portfolio involves SBUs with narrow assortments consisting of one or a few product line. Defining Strategic Business Units ▪A diversified portfolio involves SBU with fairly broad assortments containing multiple products lines.  ▪ Management must decide how to allocate Allocating corporate resources to each unit. Resources Across ▪ This is often done by assessing each SBUs competitive advantage and attractiveness of Business Units the market in which it operates. Developing Market Offerings 1. Developing the Marketing Strategy 2. Designing the Marketing Tactics 3. Creating the Value Map Developing Market Offerings ▪ It is necessary for a company to clearly identify the target market in which it will compete and to design an offering that will deliver meaningful set of benefits to target customers. These activities encompass the two key components of a company’s business model: strategy and tactics. Developing Market Offerings ▪Strategy involves choosing well-defined market in which the company will compete and determining the value it intends to create in this market. Developing Market Offerings Product ▪Tactics also called the marketing mix, Price make the company’s strategy come alive. They define the key aspects of the offering developed to Place create value in a given market. Promotion 1.Developing the Marketing Strategy a. Identifying the Target Market b. Developing a Value Proposition 1.Developing the Marketing Strategy a. Identifying the Target Market ▪ The target market in which a company aims to create and capture value comprises five factors: a. The customers whose needs the company intends to fulfill, b. The competitors that aim to fulfill the same needs of the same target customers, c. The collaborators that help the company fulfill the needs of customers d. The company that develops and manages the offering, e. The context that will affect how the company develops and manages its offerings. The 5-C Framework  1.Developing the Marketing Strategy b. Developing a Value Proposition ▪ A successful offering must create superior value not only for target customers but also for the company and its collaborators. The 3-V Market Value Principle  Types of Value ▪ CUSTOMER VALUE is the worth of an offering to its customers and hinges on customers assessment of how well an offering fulfill their needs. ▪ The customer value proposition should be able to explain why target customers would choose the company’s offering instead of the available alternatives. ▪ COLLABORATOR VALUE is the worth of an offering to the company’s collaborators. ▪ The collaborator value proposition ▪COMPANY VALUE is the should explain why collaborators would choose the company’s worth of the offering to offerings instead of competitive alternatives to achieve their goals. the company. 2. Designing Marketing Tactics a. Market Offering  2. Designing Marketing Tactics a. Market Offering ▪ Market Offering is the actual good that the company deploys in order to fulfill a particular customer need. ▪ The market offering Strategy reflects the company’s Market Offering Tactics tactics – the specific way Product Service Brand the company will create value in the market in Price Incentives Communication which it competes. Distribution 3. Creating a Market Value Map a. Market Value Map 3. Creating a Market Value Map ▪ The two key aspects of a company’s business model – strategy and tactics – can be represented as a value map that defines the way in which a company creates market value. ▪The ultimate purpose of the value map is to facilitate the development of a viable business model that can enable the company to achieve market success. ▪The market map can be thought of as a visual representation of the key components of a company’s business model and the ways in which they are related to one another.  Target Market What customers' needs does the company aim to Customers fulfill? Who are the customers with this need? What other entities will work with the company to Collaborator The fulfill the identified customer need? Market What are the company’s resources that will enable it to fulfill the identified customer need? Company Value What other offering aim to fulfill the same need of the same target customers? Competition Map What are the sociocultural, technological, regulatory, economic, and physical aspects of the environment? Context Strategy  Value Proposition What value does the offering create for Customer value target customers? The What value does the offering create for the company’s collaborators? Collaborator Value Market What value does the offering create for Company Value Value the company? Map Strategy  Market Offering What are the key features of the company’s Product product? What are the key features of the company’s Service service? The What are the key features of the offering ‘s brand? Brand Market What is the offerings price? What incentives does the offering provide? Price Incentives Value How will target customers and collaborators become aware of the company’s offering? Communication Map How will the offering be delivered to target customers and collaborators? Distribution Tactics  Planning and Managing Market offerings 1.The G-STIC Approach to Action Planning 2.Setting a Goal 3.Developing Strategy 4.Designing Tactics 5.Identifying Controls Planning and Managing Market offerings 1. The G-STIC Approach to Action Planning ▪The individual components of the G-STIC approach to marketing planning and management are as follows: a. The GOAL describes the company’s ultimate criterion for success; it specifies the end result that the company plans to achieve. b. The STATEGY provides the basis for the company’s business model by delineating the company’s target market and describing the offerings value proposition in this market. Planning and Managing Market offerings 1. The G-STIC Approach to Action Planning c. TACTICS carry out the strategy by defining the key attributes of the company’s offering. These seven tactics – product, service, brand, price, incentives, communication, and distribution. d. IMPLEMENTATION consists of the process involved in readying the company's offering for sale. e. CONTROL measures the success of the company’s activities over time by monitoring the company’s performance and the changes in the market environment in which the company operates. Planning and Managing Market offerings 2. Setting a Goal ▪Defining the goal that the company aims to achieve sets the marketing plan in motion. ▪The goals can be regarded as the beacon that guides all company activities. ▪Two key decisions are involved in setting a goal: a. Identifying the focus of the company’s action b. Specifying the performance Planning and Managing Market offerings 2. Setting a Goal a. Identifying the focus of the company’s action a.1 Monetary Goals a.2 Strategic Goals Planning and Managing Market offerings 2. Setting a Goal a. Identifying the focus of the company’s action a.1 Monetary Goals are based on such outcomes as net income, profit margins, earnings per share, and return on investment. For-profit firms use monetary goals as their primary performance metric. Planning and Managing Market offerings 2. Setting a Goal a. Identifying the focus of the company’s action a.2 Strategic Goals are centered on nonmonetary outcomes that are of strategic importance to the company. Among the most common strategic goals are increasing sales volume, brand awareness, and social welfare, as well as enhancing the corporate culture and facilitating employee recruitment and retention. Planning and Managing Market offerings 2. Setting a Goal b. Defining Performance Benchmarks a.1 Quantitative benchmarks set out specific milestones to be achieved as the company moves towards its ultimate goal. Example, increasing market share by 10% or achieve sales of 1M units per year. Planning and Managing Market offerings 2. Setting a Goal b. Defining Performance Benchmarks a.2 Temporal benchmarks identify the time frame for achieving specific quantitative or qualitative benchmarks e.g. revamp the company’s website by the end of the first quarter. The timeline for achieving a goal is a key decision that can affect the type of strategy used to implement the goal, the number of people involved, and even costs. Planning and Managing Market offerings 3. Developing the Strategy a. Target Market in which the company aims to create value is defined by five factors: 1. customer whose needs will be fulfilled by the offering; 2. competitors whose offerings aim to fulfill the same needs of the same target customers; 3. collaborators that help the company meet the needs of the target customers; 4. the company managing the offering; 5. the context in which the company operates. Planning and Managing Market offerings 3. Developing the Strategy b. Value Proposition defines the benefits and costs of the market offering with which the company plans to meet target customers’ needs. The three components of a VP are customer, collaborator value, and company value. The VP is often complemented by a positioning statement that highlights the key benefits of the company’s offering in a competitive context. Planning and Managing Market offerings 4. Designing Tactics ▪ Tactics or the marketing mix are a logical sequence of components of the company’s strategy that make this strategy a market reality. ▪ Implementation is a direct outcropping of the company’s strategy and tactics. ▪After the strategy is translated into a set of tactics, it is converted into an implementation plan that spells out the activities that will give life to the business model. Planning and Managing Market offerings 4. Designing Tactics a. Resource development ▪ Entails securing the competencies and assets needed to implement the company’s offering. ▪ Resource development may involve developing manufacturing, service, and technology infrastructure, securing reliable suppliers, recruiting, training, and retaining skilled employees, creating products, services, and brands that serve as a platform for the new offering, acquiring the skills necessary for development, production, and management of the offering, developing the communication and distribution channels that inform target customers about the company’s offering and make it available to them, securing the necessary capital to make development possible. Planning and Managing Market offerings 4. Designing Tactics b. Developing of the offering ▪ Transforms the company's strategy and tactics into an actual good that will be offered to target customers. ▪ This involves overseeing the flow of information, materials, labor, and money that will create the offering the company brings to the market. Planning and Managing Market offerings 4. Designing Tactics c. Commercial deployment ▪ Is the logical outcome of offering development and establishes the company’s offering in the market. ▪ Deployment includes setting the timing of the offering’s market launch, as well as determining the resources involved and the scale of the market launch. Planning and Managing Market offerings 5. Identifying Controls ▪ Controls have one primary function: to inform the company whether it should stay with its current course of action, modify the underlying strategy and tactics, or completely abandon its current course of action and develop an offering that better reflects the realities of the market. Planning and Managing Market offerings 5. Identifying Controls a. Evaluating Performance ▪ Evaluating a company’s performance means using benchmarks to track the company’s progress toward its goal. ▪Examples of performance measure: o Sales metrics such as sales volume, sale growth, and market share o Customer readiness- to buy – metrics such as awareness, preference, purchase intent, trial rate and repurchase rate Planning and Managing Market offerings 5. Identifying Controls b. Monitoring the Environment ▪ Monitoring the environment allows early identification of changes in the market context that have implications for the company. ▪ It enables the company to take advantage of opportunities such as favorable government regulations, a decrease in competition, or an increase in consumer demand. In addition, it alerts a company of impending threats such as unfavorable gov’t regulations, an increase in competition, or a decline in customer demand. Summary 1. Market-oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organization’s objectives, skills, and resources as its changing market opportunities. The aim of strategic planning is to shape the company’s businesses and products so that they yield target profits and growth. Strategic planning takes place on three levels: corporate, business unit, and market offering. Summary 2. The corporate strategy establishes the framework within which the divisions and business units prepare their strategic plans. Setting a corporate strategy means defining the corporate mission, establishing strategic business units, assigning resources to each, an assessing growth opportunities. Summary 3. Strategic planning for individual business units includes defining their mission, analyzing external opportunities and threats, analyzing internal strengths and weaknesses, and crafting market offerings that will enable the company to achieve its mission. Summary 4. Marketing planning and management can occur on two levels. They can focus on analyzing, planning, managing the company (or a specific business unit within the company), or they can focus on analyzing, planning, and managing on or more of the company’s offerings. Summary 5. From the point of view of designing a particular offering, marketing planning is a process defined by five main steps: setting a goal, developing the strategy, designing tactics, defining the implementation plan, and identifying the control metrics to measure progress toward the set goal. These five step constitute the G-STIC framework , which is the backbone or market planning. Reference Kotler, P., & Keller, K. L. (2021). Marketing Management, Global Edition. Pearson. Other Resources ▪Various photo stock from https://www.freepik.com/; https://www.pexels.com/ Disclaimer The purpose of this course material is for academic use. The contents of this material have been gathered from various authors, other materials, and/or references. This material should not be shared, posted, uploaded, and/or published in any form, be it mechanically or digitally and other than those forms.