Marketing Plan NOW danny abramovich. Chapter 2 out of 4 Marketing Objectives 1
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1 Chapter Two Marketing Plan NOW danny abramovich Marketing Objectives Chapter 2 out of 4 Marketing Objectives 1
2 2. Marketing strategic planning & objectives Chapter 2 out of 4 Marketing Objectives 2. Tourism Intro 2
3 2. Marketing strategic planning & objectives Strategic planning is an organization's process of defining its and making decisions on allocating its resources to pursue this. Resources can include people (HR), capital assets, know-how, etc. Marketing strategic planning leans on most of the marketing analytical tools we have covered in the previous chapter. In a practical way, we are going to transform the analytical findings from the past year into marketing objectives for next year. Chapter 2 out of 4 Marketing Objectives 3
4 2. Marketing strategic planning & objectives Past year analysis 1.1 Environmental analysis 1.2 Market analysis 1.3 Competitive analysis 1.4 Segmentation 1.5 Marketing-mix 1.6 SWOT analysis 1.7 Positioning 1.8* Sources of info (research) Next year s objectives Marketing strategic planning Desired segmentation Desired marketing-mix SWOT-driven objectives Perceptual gaps Sales forecast *Comment: the only section in chapter ONE that does not transform into an objective in chapter TWO is 1.8 Chapter 2 out of 4 Marketing Objectives 4
5 2.1 Marketing strategic planning Past year analysis 1.1 Environmental analysis 1.2 Market analysis 1.3 Competitive analysis Next year s objectives 2.1 Marketing strategic planning A matrix called Product- Market Growth Matrix, known more as Ansoff Matrix (Igor Ansoff, 1957) is a basic tool to clarify what is marketing strategic planning and how to use it. The background considerations of this model are to do with the following analysis: Business environment, market & competition. Chapter 2 out of 4 Marketing Objectives 5
6 2.1 Marketing strategic planning Ansoff Matrix proposes four strategies between offer (products) and demand (markets) with some recommended paths for a controlled. The matrix interrelates between products and market demand showing the way of developing a business via existing or new products, in existing or new markets. The model demonstrates the importance of setting priorities when conducting transitions between one to another. Comment: the term products also represent services or ideas Chapter 2 out of 4 Marketing Objectives 6
7 2.1 Marketing strategic planning Ansoff matrix, introduction the obvious existing X products/ services markets existing Y Penetration First phase in every business - promoting first X products to first Y consumers as much as possible by enhancing retention/ loyalty often by developing standards and direct marketing Chapter 2 out of 4 Marketing Objectives 7
8 2.1 Marketing strategic planning Ansoff matrix, introduction the choice of strategies existing X products/ services new X+ markets existing Y new Y+ Penetration Market Product Recommended second phase by developing new products (X+1) and/or new customers (Y+1) on top of the existing offer & demand Chapter 2 out of 4 Marketing Objectives 8
9 2.1 Marketing strategic planning Ansoff matrix, introduction the mature markets existing Y new Y+ existing X Penetration Market products/ services new X+ Product Diversification Following the intermediate strategies, it is only then recommended to shift into a more mature choice of moving into diversified/ peripheral profit centers Chapter 2 out of 4 Marketing Objectives 9
10 2.1 Marketing strategic planning Ansoff matrix - a practical illustration an example of year 1 existing 8 products/ services markets existing 150 Penetration An example of a restaurant that has launch its operations during this year, has a basic menu of 8 dishes and a loyal customer base of 150 businessmen. The red circle represents the yearly marketing budget Chapter 2 out of 4 Marketing Objectives 10
11 2.1 Marketing strategic planning Ansoff matrix - a practical illustration budget Assumption a first option in year 2 existing 8 products/ services new +4 (total 12) + = markets existing 150 new Penetration Market Product A year following its opening, should the restaurant develop 4 new menu items to better serve the existing 150 loyal businessmen? Chapter 2 out of 4 Marketing Objectives 11
12 2.1 Marketing strategic planning Ansoff matrix - a practical illustration budget Assumption a second option in year 2 existing 8 products/ services new + = markets existing 150 new +75 Penetration Market Product A year following its opening, should the restaurant promote the same menu to reach 75 new loyal businesswomen? Chapter 2 out of 4 Marketing Objectives 12
13 2.1 Marketing strategic planning Ansoff matrix - a practical illustration budget Assumption + a third option in year 2 existing 8 products/ services new +2 (total 10) + = markets existing 150 new +50 Penetration Market Product A year following its opening, should the restaurant develop 2 (not 4) new menu items - and in parallel attract new demand to reach 50 (not 75) new loyal businesswomen? Chapter 2 out of 4 Marketing Objectives 13
14 2.1 Marketing strategic planning budget Assumption = Ansoff matrix - a practical illustration an example of year 3 markets existing 200 new +120 existing 10 Penetration Market products/ services new +2 services Product Diversification In two-years time, should the restaurant develop home delivery service and live music in the evening, 2 new services that are expected to attract 120 new loyal students? Chapter 2 out of 4 Marketing Objectives 14
15 2.1 Marketing strategic planning Ansoff matrix products/ services existing new markets existing new Penetration Market Product Diversification Chapter 2 out of 4 Marketing Objectives 15
16 2.1 Marketing strategic planning Past year analysis 1.1 Environmental analysis 1.2 Market analysis 1.3 Competitive analysis Next year s objectives 2.1 Marketing strategic planning Formulating one marketing objective such as: Next year we (restaurant) will develop two new seasonal lunch menus, mainly for our existing customers (est. 60% of resources), and in parallel promote the existing dinner menu & upcoming lunch menus to students (est. 25% of resources). Furthermore, we will operate a new home delivery service in the last quarter of next year (est. 15% of efforts). Chapter 2 out of 4 Marketing Objectives 16
17 M a r k e t i n g S t r a t e g i c Planning Chapter 2 out of 4 Marketing Objectives 17
18 Marketing objectives After formulating marketing strategic planning and before setting marketing objectives, what are the standards for a proper objective? C S M A R T challenging specific measurable achievable realistic time frame Chapter 2 out of 4 Marketing Objectives 18
19 2.2 Desired segmentation Past year analysis 1.4 Segmentation Next year s objectives 2.2 Desired segmentation Based mainly on the findings of the past year (1.4), segmenting existing targeted audiences, we can formulate two-three marketing objectives to clarify the desired segmentation of existing and new segments: Next year we will target C-SMART Chapter 2 out of 4 Marketing Objectives 19
20 2.3 Desired marketing-mix Past year analysis 1.5 Marketing-mix Next year s objectives 2.3 Desired marketing-mix Based mainly on the findings of the past year (1.5), proportional mapping of the mix, we can formulate two-three marketing objectives to clarify the main variables as per their importance next year: Next year we will emphasize C-SMART Chapter 2 out of 4 Marketing Objectives 20
21 2.4 SWOT-driven objectives Past year analysis 1.6 SWOT analysis Next year s objectives 2.4 SWOT-driven objectives Based on the findings of the past year (1.6), SWOT, as well as by using TOWS matrix, we can formulate at least four marketing objectives (SO/ST/WO/WT) : Next year we will C-SMART Chapter 2 out of 4 Marketing Objectives 21
22 2.5 Perceptual gaps Past year analysis 1.7 Positioning Next year s objectives 2.5 Perceptual gaps Based on the findings of the past year (1.7), perceptual maps as perceived by customers & consumers, we can formulate two-three marketing objectives in order to minimize perceptual gaps: Next year we will highlight C-SMART Chapter 2 out of 4 Marketing Objectives 22
23 2.6 Sales forecast Next year s objectives 2.6 Sales forecast we can transform several bottoms line-indications of a sales forecast into two-three marketing objectives. The lowest common basis includes a rough estimate of the average price and the units to be sold to give us a top of the line revenue figure: Next year our revenue is expected to C-SMART Chapter 2 out of 4 Marketing Objectives 23
24
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