A FORMAT FOR MARKETING STRATEGY

DIRECTORS ADVISORY SERVICE FACTSHEET

Although a marketing strategy should be capable of standing alone, it is the primary mover of the corporate strategy. It is therefore necessary to preface any marketing strategy and plan with an outline of the corporate mission, corporate objectives and the corporate values of the company. Marketing activity must be directed by these and be in harmony with them.

1.

EVALUATION

It is essential to start with a full market analysis to ensure that the company is fully aware of what the competition is and what they offer. There is no value in being a me too! If already trading, an independent customer / lost customer survey will tell you what customers think of you and probably of your competitors also. 1.1 The Market Analysis

Identify the market the company operates in. Forecast how the market is moving in relation to the local and even global economy. 1.2 Competitive Analysis

Identify who the main competitors are, at all levels. What is their proposition? Compare and analyse each competitor for price, product, place, promotions, physical evidence, people and process the marketing mix.

2.

CORPORATE ASPECT

It is imperative to have clarity about the corporate aspects, these are the values and vision which not only drive the business and influence employees and clients but also directs the marketing to achieve the organisations goals. 2.1 Corporate Mission Statement

Contextual What the company is. Business definition What it does. Distinctive competencies How is it different? What is the vision of the company that is to be achieved?

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2.2 2.3

Corporate Values What the company wants to be internally. How the company wants to treat its people. How the company wants to be perceived by the outside world. How the company wants to treat its clients. Corporate Objectives

What are the objectives that the product or service must achieve? 1-5 year financial objectives; 1-5 year market share or position vs. competitor; 1-5 year growth objectives. Requires SMART objectives: Specific Measurable Achievable Realistic Timely 2.4 Corporate Strategy How the company is going to achieve its corporate objectives. How it will work. Things it might do.

(These should be broad statements including internal functions / operations, not the detail of a marketing strategy). 2.5 Financial Statements over five years Turnover Variable Costs Fixed Costs Expenditure Profit

3.

THE MARKETING STRATEGY

A marketing strategy is an essential part of developing a business. It translates directly into the marketing plan for each financial year. Each years marketing plan is directed by the marketing strategy and should be viewed as part of a five year rolling plan where each year builds on the previous activities. Note: Where a company has a single product or service 3.1 3.2 3.3 will be a repeat of the Corporate Aspects. 3.1 Core Proposition What are you offering your target audience? (Make sure it is tangible and has clear benefits to the end user. Make sure it is something they want, not what you want).

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3.2 3.3 -

What is the central premise to the target market? Is it significantly different and sustainable? Target Markets Which market segments will you focus on? Why? What are their needs and how are they changing? How do they buy? Paint a pen picture of each potential customer group. Competitive Positioning How will this product or service be different from its competitors in the eyes of the target customers? Marketing Objectives (SMART objectives) Which products (goods and/or services) are you taking to which markets (segments) and how do you measure success? Reality check with corporate objectives. Marketing Strategy Having already identified the market, the competition and your product proposition, now identify the following: Who, When, Where? (Database/CRM System?) In line with corporate/brand values. Who are you talking to? What are you trying to get them to do? Why should they do what you want? Where do you find them? When should you speak to them? Email, Advertising, PR, direct sales. (Which media?) Website & New Media. Roles of ICT / Process. Product range, features, value propositions New product development. (if appropriate) What price to whom? (Supply chain / channels?) Discount policy. Bid/negotiation strategies. Sales promotion. The marketing team - in-house / agency? benefits,

3.4 3.5 -

Target Markets & Audiences Brand Image Communication

Communications & Media Strategy

Product Portfolio Product Development Packaging Development Pricing Strategy

People

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Marketing Expenditure The total marketing expenditure will have been included in total financial statements, but it is important to detail the specific costs of all marketing and promotions activities: research, advertising, web site, PR, brochures, print, etc.

4.

THE MARKETING PLAN

The plans Year one (this is how the strategy is turned into reality): What are the activities? How much will they cost? When will they happen? Who is going to do them? When will the activity have impact? What market research and analysis will you need to support the plan? 5. THE EVALUATION

Evaluate the outcome of the strategy and the year one plans: What were the costs vs. the benefits? How profitable has the year been? How could the plans develop? How the market and competitors reacted?

6. -

THE FUTURE How is the corporate plan to evolve? How will this affect the marketing plans? How should the plans develop to take account of the last years evaluation and any evolution of the strategy? More research?

This Factsheet is one of a series produced by The IoD Directors Advisory Service. It is intended as a general introduction to the subject, and is not a definitive guide. If you would like specific advice, please contact the Directors Advisory Service on 020 7451 3188, businessinfo@iod.com. The service is free and is exclusive to members of the IoD.

IoD Information Centre 123 Pall Mall, London SW1Y 5EA March 2013

2013 Institute of Directors. All rights reserved.