|


 



 
`
 



 |


‡ Where does it fit?
‡ What is it?
‡ Why do it?
 

‡ Sets out a route from where you are to where
you want to go
‡ Identifies how you can best arrive at your
destination (quickest, most cheaply etc.)
‡ Identifies the resources you will need and whom
you will depend on, and allocates responsibilities
‡ Identifies possible obstructions on the way
‡ Identifies contingencies if your planned route is
obstructed.
‡ Identifies milestones (targets/ objectives) on the
route which must be achieved if you are to
complete your journey.
‡ Allows for dynamic adjustments
 v


 
‡ It must be possible
‡ It must be resourced and the elements
µowned¶
‡ It must have sufficient flexibility to allow for
disruptions and discontinuities
‡ It must have µstaging posts¶ where
progress can be determined.
‡ It must be followed by everyone
 V 



 
Strategic Intent
& Group Plan
[

 

Strategic Plans
 Marketing
 HR [

 
 Finance
 Manufacture Detailed action plans
 etc.  Communications
 Price [

 Sales 
 
 Product

Control Implementation &

Measurement
Review and Revision/ Restatement

! 
  


    
     



 

 |

‡ Creates a shared µknowledge infrastructure¶ about the
market environment, customers and competitors,
including assessment of trends and change.
‡ Creates a language of customers/ customer needs which
can be used throughout the organisation.
‡ Creates a route map for success, as defined by
corporate strategic intent
‡ Identifies and sets necessary tasks, objectives and
targets to follow that route
‡ Identifies and (should) secure resources to be able to
follow that route, on a prioritised basis.
‡ Closes off unsuitable paths which would lead to wasted
resource.
‡ Informs a multiplicity of tactical plans both within and
outside the marketing and sales community.
 !
  


 


‡ µMarket¶ information unavailable or untimely,
leading to critical decisions being made in the
dark.
‡ Objectives set which are not achievable or which
are in conflict with each other and group strategy
‡ Missed commercial opportunities
‡ Squandered marketing and sales resources and
waste
‡ Imbalanced (out of date?) portfolio
‡ Brand value depletion
‡ Unnecessary vulnerability to competition/
external events.
  


  


 

‡ Lack of process/ µplan for the plan¶
‡ Responsibility conflicts
‡ Organisational culture (µseat of the pants¶
management).
‡ Internal conflicts (power politics)
‡ Paralysis by analysis
‡ Prioritisation of resource conflicts
‡ Skills gaps
‡ Systems gaps
  





‡ Gaining (real) commitment to the process
(and outcomes) at board level
‡ Ensuring understanding and commitment
at all implementation levels
‡ Focus and prioritisation
‡ Proper planning for µthe plans¶.
‡ Building trust
‡ Understanding and using motivational
levers.
 V 
 

 |
 
å. Identify Mission 5. Identify Key issues
statement
6. Summarise SWOT
2. Understand corporate using portfolio matrix
financial objectives
7. List assumptions
3. Overview the Market
8. Set market objectives
and the operating
and strategy
environment
‡ Market Audit  Market
9. Summarise marketing
Dynamics, trends and resource requirements
Segmentation for planning period as
4. Identify Key Segments a budget
and produce SWOT
analyses From McDonald
 Î
  



 

 

‡ (Executive Summary)
‡ The Market Environment
‡ Market Mission (as subset of
Organisation)
‡ Market Objectives
‡ Market Strategy
‡ Action Programmes
‡ Budgets (income/ expenditure)
‡ Controls and measures.
 V 

 |
 
A written document which describes
the market environment and the
addressable customers segments
within that market and specifies a set
of actions, with associated resources
to achieve a set of objectives
consistent with the market and
corporate strategic aims.
   


 |

!
‡ A set of projects within a programme
‡ A bible
‡ A motivational tool
‡ A budgetary justifier
‡ AND either a document in a drawer OR a
way of life.
 |





 
" 
‡ Plans can be implemented using project
management processes.
‡ What is wanted leads to a description of
how it will be delivered.
‡ Plans thus include assumptions, risks (and
response), quality criteria, success criteria,
dependencies etc.
‡ Like all projects, market plans require
controls
 V
 
‡ To understand what is happening
‡ To know what action needs to be
taken
‡ To take that action (or cause it to be
taken).
‡ To know what effect that action has
actually had.
 

‡ µThe process of the activities of individuals
and units monitoring, and taking whatever
actions may be necessary to bring
performance into line with plans ± by
adjusting performance or plans
themselves..¶

CIM
 v

  
‡ Information must be relevant, timely
and accurate.
‡ Plans (most) for recovery/ response
must be in place and agreed, and
responsibility allocated.
‡ Proposed actions must be possible.
‡ Actions must be taken effectively and
at the right time.
 
 
#


‡ Effective and timely

measurement
‡ «.of the RIGHT things
‡ A deliverable course of action
‡ Commitment
 


ã! 
 

 

å. Because there is no incentive
2. Because there is no knowledge
3. Because there is no ownership
 

 
‡ Appropriate
± Measure what makes the difference ± and define the
difference for whom.
‡ Cost effective
± Don¶t spend £å to save 0.50p
‡ Timely
± Available in time for action to be taken.
‡ Believed
± Where actions are called for, the trigger must be
accepted.
 
 
 $$
‡ Delivering what you promised in changing
circumstances
± Internal ± are we doing what we said we
would do?
± External ± are things (economy, competitors,
customers, technology etc.) acting as we said
they would?
 
 |

Agree Objectives

Set Performance Standards/

outcome criteria
Allocate Ownership

Measure

Evaluate

Correct/ Review
Ë  ã
    



  ã 
 

  %&%'
‡ In a complex world all plans contain
assumptions ± about the economy, about
customers and competitors, about capabilities
‡ These need to be documented, agreed, and
common as necessary.
‡ Most plans also have dependencies ± µa¶
happens as long as µb¶ is achieved.
‡ These two form risk statements ± and risk needs
control.
 
 |





Financial Non Financial
‡ Profit (EBIT/ EBITDA)
‡ Market Share
‡ Profitability (Margins)
‡ Growth
‡ Shareholder return
‡ Competitive advantage
‡ Cash flow/ liquidity
‡ Competitive position
‡ Share price
‡ Sales volumes
‡ Earnings per Share
‡ Market penetration
‡ Return on net Assets
‡ Customer satisfaction
‡ Return on Capital employed
‡ Image and awareness
‡ Return on sales
‡ Cash Value add.
 A

 


‡ Sales (channel) performance
‡ Market Share
‡ Marketing Costs (Valueadd)
‡ µShare of voice¶ (Advertising)
‡ Image and Awareness
‡ Customer retention
‡ Product innovation
‡ Time to Market/ time to first cash
 
 |



‡ Sales revenues against budget
‡ Cost per sale/ channel margins
‡ % conversions (lead to closure)
‡ Time to close
‡ Followup and corrections
‡ Lost sales
 

 (


‡ Share of what (defined) market?
± Customer needs
± Product type
± Geography
‡ Implicit cost of share (are incremental
customers being bought for more than
they are worth?)
 

  
‡ How much value is the marketing
expenditure (people, accommodation,
advertising and promotion etc.) creating?
M  

 (

)
‡ If you are advertising, is your expenditure
being µheard¶ over that of others?




   




 `




‡ Of what ± company or Brand?
‡ Fatal combination ± bad image, high
awareness!
  

  
‡ Winning a customer costs more than
keeping one
‡ Every existing customer can be a further
sales opportunity, with the relationship
builtin (i.e. crosssales).
‡ Customers are currency.
 |
 

‡ New products introduced
‡ %age earnings from products launched in
last x years.
‡ Products withdrawn
 V 


‡ Occupy market space early ± gain share
(µFirst mover¶ advantage)
‡ Bring forward revenues (cash flow)
‡ Earn µlost¶ revenues. (Every week you
can¶t buy a consumable is one week¶s
consumption lost).
 

 |




Setting and handling Budgets for Marketing

   
A budget is a consolidated statement of
the resources required to achieve
objectives or to implement planned
activities
It is a planning and control tool relevant to
all aspects of management activities.
   v


‡ A forecast proposes what the future might
be
‡ A budget determines what the future will/
must be.
‡ Forecasts will inform initial planning
analysis and may be used in the early
stages of budget setting, but strategy and
intent sets the budget.
 ( 

  
‡ 
 
± Advertising budget set as a %age of overall revenues ± industry
norm
± Market research budget as a %age of advertising budget
‡    
± Last year +/ a fixed %age
± Budget flexes with revenue outturns ± the old question ± do
salesmen make sales, or sales make salesmen?
‡ 
 
± state what you want to do, and how much it will cost ± justified
against the benefit it will bring.
   

‡ Control what matters
‡ Understand volatility
‡ Look for cause (price: volume variance, poor
performance, changed circumstances)
‡ Cure the problem, not the symptom
‡ The sitting ducks of discretionary spend ±
research, advertising, NPD  easy but not always
right solutions.
 &
   
‡ Some (much) of what needs to be
achieved in a Market Plan will be
budgeted for elsewhere in the business.
‡ Marketing needs to ensure that budgets
are aligned, and that budget changes are
coordinated.
‡ This is VERY DIFFICULT in most large
businesses.