MARKETING PLANNING SWOT, mission, objectives

1. MARKETING PLANNINGSWOT, mission, objectives Karolina Janiszewska Marketing Plan

2. SWOTanalysis • SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. • SWOT stands for strengths, weaknesses, opportunities, and threats. • Strengths and weaknesses are internal factors. • Opportunities and threats are external factors. Marketing Plan

3. A strength could be: • your specialist marketing expertise. • a new, innovative product or service • location of your business • quality processes and procedures • any other aspect of your business that adds value to your product or service. Marketing Plan

4. A weakness could be: • lack of marketing expertise • undifferentiated products or services (i.e. in relation to your competitors) • location of your business • poor quality goods or services • damaged reputation Marketing Plan

5. An opportunity could be: • mergers, joint ventures or strategic alliances • new market segments that offer improved profits • a new international market • a market vacated by an ineffective competitor Marketing Plan

6. A threat could be: • a new competitor in your home market • price wars with competitors • a competitor has a new, innovative product or service • competitors have superior access to channels of distribution • taxation is introduced on your product or service Marketing Plan

7. Simple rules for successful SWOT analysis • be realistic about the strengths and weaknesses of your organization • analysis should distinguish between where your organization is today, and where it could be in the future • be specific. Avoid grey areas. • always analyse in relation to your competition i.e. better than or worse than your competition • keep your SWOT short and simple. Avoid complexity and over analysis • SWOT is subjective. Marketing Plan

8. What is strategy? • "Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations". Marketing Plan

9. What is strategy? • Where is the business trying to get to in the long-term (direction) • Which markets should a business compete in and what kind of activities are involved in such markets? (markets; scope) • How can the business perform better than the competition in those markets? (advantage) • What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete? (resources) • What external, environmental factors affect the businesses' ability to compete? (environment) • What are the values and expectations of those who have power in and around the business? (stakeholders) Marketing Plan

10. SWOT strategies Marketing Plan

11. Ansoff product / market matrix Marketing Plan

12. Market penetration • The business focuses on selling existing products into existing markets. • Market penetration seeks to achieve four main objectives: • Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling • Secure dominance of growth markets • Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors • Increase usage by existing customers – for example by introducing loyalty schemes • A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research. Marketing Plan

13. Market development • Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. • There are many possible ways of approaching this strategy, including: • New geographical markets; for example exporting the product to a new country • New product dimensions or packaging • New distribution channels • Different pricing policies to attract different customers or create new market segments Marketing Plan

14. Product development • Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. • This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. Marketing Plan

15. Diversification • Diversification is the name given to the growth strategy where a business markets new products in new markets. • This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. • For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. Marketing Plan

16. Competitive strategy (generic strategies by Michael Porter) Marketing Plan

17. Differentiation • involves selecting one or more criteria used by buyers in a market - and then positioning the business uniquely to meet those criteria. • usually associated with charging a premium price for the product - often to reflect the higher production costs and extra value-added features provided for the consumer. • gives customers clear reasons to prefer the product over other, less differentiated products. • Examples of Differentiation Strategy: Mercedes cars Marketing Plan

18. Cost Leadership • the objective is to become the lowest-cost producer in the industry • usually associated with large-scale businesses offering "standard" products with relatively little differentiation that are perfectly acceptable to the majority of customers. • occasionally, a low-cost leader will also discount its product to maximise sales, particularly if it has a significant cost advantage over the competition and, in doing so, it can further increase its market share. • Examples of Cost Leadership: Biedronka Marketing Plan

19. Differentiation Focus • a business aims to differentiate within just one or a small number of target market segments • the special customer needs of the segment mean that there are opportunities to provide products that are clearly different from competitors who may be targeting a broader group of customers • ensures that customers really do have different needs and wants - in other words that there is a valid basis for differentiation - and that existing competitor products are not meeting those needs and wants. • Examples of Differentiation Focus: specialist holiday operator – adventure trips in Africa and Asia Marketing Plan

20. Cost Focus • a business seeks a lower-cost advantage in just on or a small number of market segments. • The product will be basic - perhaps a similar product to the higher-priced and featured market leader, but acceptable to sufficient consumers. • Such products are often called "me-too's". Marketing Plan

21. Business mission • A strategic plan starts with a clearly defined business mission. • A mission statementis a written, easy-to-remember sentence, short list of bullet points, or paragraph illustrating a business' goals and purpose. • It has one common function: to guide you and your employees in making critical decisions that effect the direction of your company. Marketing Plan

22. Business mission A mission describes the organisation’s basic function in society, in terms of the products and services it produces for its customers. Marketing Plan

23. A Purpose • Why does the business exist? • Is it to create wealth for shareholders? • Does it exist to satisfy the needs of all stakeholders (including employees, and society at large) ? Marketing Plan

24. A Strategy and Strategic Scope • A mission statement provides the commercial logic for the business and so defines two things: • The products or services it offers (and therefore its competitive position) • The competences through which it tries to succeed and its method of competing • A business’ strategic scope defines the boundaries of its operations. These are set by management. • For example, these boundaries may be set in terms of geography, market, business method, product etc. The decisions management make about strategic scope define the nature of the business. Marketing Plan

25. Policies and Standards of Behaviour • A mission needs to be translated into everyday actions. For example, if the business mission includes delivering “outstanding customer service”, then policies and standards should be created and monitored that test delivery. • These might include monitoring the speed with which telephone calls are answered in the sales call centre, the number of complaints received from customers, or the extent of positive customer feedback via questionnaires. Marketing Plan

26. Values and Culture • The values of a business are the basic, often un-stated, beliefs of the people who work in the business. These would include: • Business principles (e.g. social policy, commitments to customers) • Loyalty and commitment (e.g. are employees inspired to sacrifice their personal goals for the good of the business as a whole? And does the business demonstrate a high level of commitment and loyalty to its staff?) • Guidance on expected behaviour – a strong sense of mission helps create a work environment where there is a common purpose Marketing Plan

27. What role does the mission statement play in marketing planning? • In practice, a strong mission statement can help in three main ways: • It provides an outline of how the marketing plan should seek to fulfil the mission • It provides a means of evaluating and screening the marketing plan; are marketing decisions consistent with the mission? • It provides an incentive to implement the marketing plan Marketing Plan

28. Basic guidelines in writing a mission statement • A mission statement should say who your company is, what you do, what you stand for and why you do it. • An effective mission statement is best developed with input by all the members of an organization. • The best mission statements tend to be 3-4 sentences long. • Avoid saying how great you are, what great quality and what great service you provide. • Examine other company's mission statements, but make certain your statement is you and not some other company. That is why you should not copy a statement. • Make sure you actually believe in your mission statement, if you don't, it's a lie, and your customers will soon realize it. Marketing Plan

29. Examples of mission statement • 3M "To solve unsolved problems innovatively" • Mary Kay Cosmetics "To give unlimited opportunity to women." • Wal-Mart "To give ordinary folk the chance to buy the same thing as rich people." • Walt Disney "To make people happy." • Boeing "To push the leading edge of aviation, taking huge challenges doing what others cannot do" Marketing Plan

30. Examples of mission statement Northamptonshire Public Libraries (England, UK) Our mission is to serve the people of Northamptonshire by delivering the vision of Northamptonshire Libraries and Information Service through the development and maintenance of a coherent range of policies and services, understood and valued by the community. Marketing Plan

31. Examples of mission statement At the Developmental Studies Center we develop, evaluate, and disseminate programs [business] that foster children's ethical, social, and intellectual development [purpose]. While nurturing children's capacity to think skillfully and critically, we also strive to deepen children's commitment to prosocial values such as kindness, helpfulness, personal responsibility, and respect for others - qualities we believe are essential to leading humane and productive lives in a democratic society [values]. Marketing Plan

32. Examples of mission statement The YMCA of San Francisco, based in Judeo-Christian heritage [values], seeks to enhance the lives of all people [purpose] through programs designed to develop spirit, mind and body [business]. Marketing Plan

33. Setting objectives • The objective is the starting point of the marketing plan. • Once environmental analyses (such as SWOT, Five Forces Analysis and PEST) and marketing audit have been conducted, their results will inform objectives. • Objectives should seek to answer the question 'Where do we want to go?'. • The purposes of objectives include: • to enable a company to control its marketing plan. • to help to motivate individuals and teams to reach a common goal. • to provide an agreed, consistent focus for all functions of an organization. Marketing Plan

34. (1) Corporate level These are objectives that concern the business or organisation as a whole. Examples of “corporate objectives might include: We aim for a return on investment of at least 15% We aim to achieve an operating profit of over £10 million on sales of at least £100 million We aim to increase earnings per share by at least 10% every year for the foreseeable future (2) Functional level e.g. specific objectives for marketing activities Examples of functional marketing objectives” might include: We aim to build customer database of at least 250,000 households within the next 12 months We aim to achieve a market share of 10% We aim to achieve 75% customer awareness of our brand in our target markets Objectives can be set at two levels Marketing Plan

35. All objectives should be SMART • Specific - Be precise about what you are going to achieve • Measurable - Quantify you objectives • Achievable - Are you attempting too much? • Realistic - Do you have the resource to make the objective happen (men, money, machines, materials)? • Timed - State when you will achieve the objective (within a month? By February 2010?) Marketing Plan

36. Examples of marketing aims • Profitability Objectives • To achieve a 20% return on capital employed by August 2007. • Market Share Objectives • To gain 25% of the market for sports shoes by September 2006 in USA • Promotional Objectives • To increase awareness of the dangers of AIDS in France from 12% to 25% by June 2004. • To increase trail of X washing powder from 2% to 5% of our target group by January 2005. • Objectives for Growth • To increase the size of our German Brazilian operation from $200,000 in 2002 to $400,000 in 2003. • Objectives for Branding • To make Y brand of bottled beer the preferred brand of 21-28 year old females in North America by February 2006. Marketing Plan