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UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 1
In developing the strategic marketing plan, the strategist needs to take as one of the
starting points the analysis of the three Cs of strategy: Customers, Competitors and
Capabilities.
Customers: Who are they? When, where and how do they buy? What motivates them?
How is the market currently segmented? How might it be segmented?
Competitors: Who are they? What strategies are they pursuing? What are their strengths
and weaknesses? What are their areas of vulnerability? How are they most likely to
develop over the next few years?
Capabilities: What are the organizations relative strengths and weaknesses in each of
the market segments in which it is operating? What levels of investment are available?
How might the capabilities best be leveraged?
Themarketingprocess
UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 2
Anexpandedmodelofthemarketingprocess
Marketingfocusesonthecustomer
UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 3
Themainelementsinamarketingsystem
UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 4
Customer
expectations
and
outcomes
Rising
customer
expectations
toohigh
mightresult
inunsatisfied
customers
UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 5
From1985until2007,theAMAdefinedmarketingthisway:
1985:
Marketingistheprocessofplanningandexecutingtheconception,pricing,
promotion,anddistributionofideas,goods,andservicestocreateexchangesthat
satisfy individual and organizational objectives.
NotehowthisdefinitionfocusesonthefourPs,orthemarketingmix.
In2005,theAMAchangedthedefinitiontobetterreflecttherealitiesofcompetinginthe
marketplace:
Marketingisanorganizationalfunctionandasetofprocessesforcreating,
communicating, anddelivering valuetocustomers andformanagingcustomer
relationshipsinwaysthatbenefittheorganizationanditsstakeholders.
Thisdefinitionshiftsthefocusawayfromthemarketingmixandtowardvaluecreation
forcustomers.
In2013,theAMAchangedthedefinitionofmarketingagain:
Marketingistheactivity,setofinstitutions,andprocessesforcreating,
communicating, delivering, andexchangingofferingsthathavevalueforcustomers,
clients,partners,andsocietyatlarge.(approvedJuly2013)
TheStrategicPlanningProcess
UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 6
TheBusinessUnitStrategicPlanningProcess
Product versusMarketOrientedBusinessMissionsDefinitions
UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 7
The
marketing
planning
process
UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 8
StrategicversusTacticalMarketingPlan
Derivingtacticalplansfrombasicobjectives
UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 9
According to McKay (1972) there are only three basic marketing objectives: to
enlarge the overall market, to increase share of the existing market, and to increase
profitability. These objectives might be seen as strategic, longterm objectives: they
would need to be broken down into subobjectives, and even subsubobjectives.
This might give rise to a set of objectives as follows:
Enlarge the overall market: increase product innovation (either through
improving existing products or through developing new products), or increase
market innovation (either through developing existing enduse markets or through
discovering new enduse markets).
Increase market share: either by emphasizing product development and
improvement (performance, quality or features), or by emphasizing persuasion
(sales effort, or advertising, or sales promotion), or by improving customer service
(after sales, better credit and collection, or better availability and delivery).
Improve profitability: either by increasing sales volume (more sales effort,
stronger advertising and sales promotion), or by eliminating unprofitable activities
(prune product range, prune sales coverage, cut customer services), or by
improving prices (raise prices, or use price differentiation), or by cutting costs
(improved effectiveness of marketing tools).
Contents of
atypical
marketing
plan
UMH - 4 ADE - Marketing Planning 2015/2016 - Unit 1: Introduction to marketing planning - Prof. Andreas Kanther 10
Casestudy:
Tweetsfromaluxuryfashionbrandthatsmorethan150yearsold?
Burberryshistorymayhaveitsrootsinthenineteenthcentury,
butitsbrandhasatwentyfirstcenturyimageandisaprofitleader.
TheBritishfirmhasmorethan1millionTwitterfollowers,14millionlikeson
Facebookand22millionYouTubeviews.ItsPinterestpageanditsbrandrelated
websites (like www.Burberry.com and www.ArtoftheTrench.com) draw thousands
ofvisitorseveryday.
Chief executive Angela Ahrendts wants to connect the brand to its customers
when and where they choose. Thats why Burberry spends 60 percent of its
marketing budget on digital media of all kinds, including social media, mobile
marketing and more. When the firm releases a new collection, it streams fashion
shows live on Facebook as well as on instore screens and media walls at
Heathrow and other transportation hubs. When it introduced its new Body
fragrance, it offered free samples first to Facebook fans, generating excitement
and product trial. When it launched a new branded wristwatch, the first
communications were delivered via mobile marketing. Mobile marketing
continues instore as well, providing shoppers with access to more detailed
product information and to fashion tips.
Because retail sales constitute twothirds of Burberrys revenues, the company has
been expanding its retail presence in international markets such as Brazil, Mexico
and China where demand is especially high for statussymbol clothing and
accessories.
Fastgrowing retail sales in these markets are helping to balance slowergrowing
retail sales in Europe and the United States. The company is also intensifying its new
product development efforts to increase sales of menswear and leather goods.
Finally, for brand fans who want to customize their trenchcoats, Burberry Bespoke
offers the opportunity to select from dozens of choices of fabrics, collars, cuffs, belts
and other features 12 million different combinations in all to make each bespoke
coat oneofakind.
Case questions
1. Which of the nine ways to grow does Burberry appear to be using, and why?
2. What are Burberrys main strengths, and how is the firm building on them to
provide value?
GrowthGrid ninewaystogrow
This is not Campbells first endeavor to alter consumer perceptions of its flagship
brand. In the last few years the company has performed extensive marketing
research that culminated in changing its iconic labels for its condensed soups and
adopting a new advertising slogan. The bowls on the labels got bigger, the soup
got steamier, the spoon was abandoned, and the logo was moved toward the
bottom. To emphasize the quality and versatility of its soups, Campbells adopted
the tagline Its Amazing What Soup Can Do for all of its different soup line-ups
within the United States. It is also working on developing marketing initiatives to
target Millennials and Hispanics.
However, Campbells newest marketing initiatives are set to push the limits of
how its soups are perceived. For many years Campbells has been emphasizing
the healthy nature of its soups. As consumers have become more healthconscious, Campbells responded by reducing the sodium in its soup products. Yet
because the campaign was not successful in increasing purchases, Campbells is
taking the controversial step of de-emphasizing its health initiatives and pouring
marketing dollars into re-portraying its brand as tasty and exciting.
Such a move comes with controversy because Campbells has raised the amount
of sodium in some of its soups. However, when companies try to address
nutritional issues but consumers show little interest, the companies are faced
with the dilemma of dropping their health campaigns in exchange for adopting
attributes, such as taste, that customers value. Campbells had also introduced
discounts on its soups in the hopes of attracting price-conscious consumers. After
the move failed to generate increased sales, Campbells decided to stop
discounting its soup products. Without these discounts, Campbells will have to
increase the perceived value of its products to convince consumers to pay more.
Yet Campbells remains undeterred. The company aims to engage in what
Campbells CEO calls disruptive innovation with the introduction of new
product lines, new packaging, and new flavors. For instance, Campbells released
new exotic flavors in pouches to appeal to the younger generation. Campbells
has even tested marketing through new technology channels. The company has
released iAds through Apple iPhones and iPads, a tactic that appears to aid brand
recall. Initial studies found that consumers who viewed Campbells iAds were five
times more likely to recall them than those who had seen its TV ads. If Campbells
has its way, then a can of soup will become much more valuable to consumers.
Questions for Discussion (visit also www.campbells.com)
1. Evaluate Campbells success in implementing the marketing concept.
2. How would you define Campbells target market for soup?
3. How is Campbells trying to increase the customers perceived value of its soup?