Material 1 - Blog - Learn, do and growth
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This document provides an outline for a strategic marketing plan, describing the key sections it should contain. It begins by outlining 10 sections that every strategic marketing plan should include: 1. Management Summary 2. Economic Projections 3. The Market - Qualitative 4. The Market - Quantitative 5. Trend Analysis 6. Competition 7. Threats and Opportunities 8. Objectives and Goals 9. Action Programs 10. Conclusion It then discusses guides for developing the strategic marketing plan, including defining the business mission, analyzing competitors, performing a situational assessment using SWOT and PESTEL, specifying a market position, and focusing on
Material 1 - Blog - Learn, do and growth
- 1. FIRST PART OF “LEARN, DO, GROWTH” The Strategic Marketing Planning process describes the direction an organization will pursue within its chosen environment and guides the allocation of resources and efforts. First of all, I summarize the key content every strategic marketing plan should contain and then I´m going to introduce some guides to work in it making up process. Marketing Plan Outline I. MANAGEMENT SUMMARY What is the marketing plan in brief? This is a brief summary of the basic factors involving the marketing of the brand for the next three years along with the main results expected from implementing the plan. II. ECONOMIC PROJECTIONS What factors in the overall environment will affect the marketing plan and how? This section will comprise a summary of the specific environment factors that will affect the marketing of the brand throughout next years. III. THE MARKET- Qualitative How is our market? Movements and main trends Find your perfect equilibrium
- 2. This section will define the qualitative nature of our market. It will include demographic information, business profiles, consumer and prospects profiles, for all people or organizations that could be customers. IV. THE MARKET - Quantitative What is the potential market for the brand? This section will apply specific quantitative measures to our brand. Here we include numbers of current and potential customers, volume of business, market growth, our current and potential share of the market, markets size, - any specific measures that will outline our business. V. TREND ANALYSIS Based on the history of main movements and past trends, where do we appear to be headed? This section is a review of the market and the brand in the past. Ideally, we should include quarterly figures for the last five years showing business volume, accounts opened, accounts closed, share of market, competition actions, new market players and all other applicable historical data. VI. COMPETITION Who are our competitors and how do we stand competitively? This section should define our current and future competition. It should be a thoughtful analysis outlining who our competitors are, how successful they are, why they have (or have not) been successful, and what actions they might be expected to take during the next years. VII. THREATS AND OPPORTUNITIES Internally and externally, are there threats inhibiting the brand, or are there opportunities we have not taken advantage of? This section will comprise a frank commentary on both inhibiting threats and unrealized opportunities. It should include a discussion on the internal and external problems we can control, for example, by changes in policies or operational procedures. It should also point up areas of opportunity that we are not now exploiting. VIII. OBJECTIVES AND GOALS Where do we want to go with the brand? This section will outline the immediate short and long-range objectives. Short-range goals should be specific, and will apply to next year. Long-range goals will necessarily be less specific and should project for the next five years. Objectives should be stated in two forms: 1. qualitative - reasoning behind the offering of brand and what modifications or other changes we expect to make. 2. quantitative - number of accounts, sales volume, share of market, profit goals, new business, launches, subsidiaries, among others. IX. ACTION PROGRAMS What must we do to reach the goals we have set for the brand? This section will be a description of the specific actions we plan to take during the coming year to assure reaching the objectives we have set for the brand in VIII. It should cover what is to be done, schedules for completion, methods of evaluation, and officers in charge of executing the program and measuring results.
- 3. X. CONCLUSION How much, how many, when, where and how This section should include a brief summary of the suggested marketing plan with focus on results. Strategic Planning Process In order to build the strategic marketing plan, I suggest some guides and tools to clarify the right approach. Let´s start defining the Business Mission Mission Organizational mission refers to the organization’s fundamental purpose for existing, defining who the organization is, it vision, its values, and the customers it wishes to serve. Organizations can establish missions that are either broad or narrow, but it’s important to establish a mission with the greatest likelihood of success in a competitive marketplace. Life is not about all the steps you have taken, it´s about the footprints you leave behind
- 4. Folowing the analysis, let´s identify which are our main competitors and benchmarks Just analyze their main strengths and weaknesses, their star products and services, try to obtain figures of their market (volume sales, market share, profits, among others), which is their main target, last applied actions and market activities and make an effort trying to identify their next steps in strategic terms Let´s go to analize the competitive environment This analysis provides a perspective on the cost of competing and on the bases around which the competition will occur. A major focus of the competitive analysis is also to assess the degree to which competition is cost-based. Knowing what we want to be and which are our main competitors, analyze your internal and external forces: Situational Assessment.
- 5. The Situational Assessment is an analysis of the organization’s environment and of the organization itself. This process is referred to as the SWOT analysis (so named because it examines the Strengths and weaknesses of the organization in a micro-environment, as well as the Opportunities and Threats relevant to the organization’s future strategy – macro-environment). It is at this stage in the process where the organization must consider the economic, competitive, regulatory, social, and technological changes occurring in the marketplace: The PESTEL Analysis With this situational analysis, it is important for the organization to consider the barriers that exist in the marketplace. Barriers to entry might be regulatory, technological, financial, or strategic. In the same regard, the organization must also consider the barriers to exit, or the costs of leaving a particular business line. Within this situational analysis, an organization must also consider its own strengths and weaknesses. At this point, an organization should assess what it does that is better than the competition and gives it a differential advantage, which has been defined as the incremental benefits of a product relative to competing products that are important to the buyer as perceived by the buyer. This analysis and specification of the differential advantage are based on the core competencies of the firm that are critical to success. Most important: Make´s the difference There are four important criteria that are the hallmarks of a good differential advantage: 1. Valuable: First a differential advantage must be important to the buyer. A myriad of processes and elements are essential in the delivery of high-quality product/service, but if they are not important to the buyer it is not a differential advantage. 2. Memorable: when an organization has elements that it considers the market would view as important, the requirement then is to ensure that these advantages are emotional perceived throughout exclusive experiences. 3. Uniqueness: A third important component of a differential advantage is that it must be unique from other providers. 4. Sustainable: for some period of time.
- 6. The management of these values - both visible and invisible ones - has been referred to as Evidence Management. Evidence management is an organized and explicit approach to presenting the organization’s capabilities to the customer. The third step is to specify the Market Position Your company must decide which one of several market positions it will take. The options are to be a market leader, market challenger, market follower, or a market niche. Within a single industry, one organization usually tries to be the market leader - the firm that has the largest market share and dominates the competitors in a given market. This leader dictates the pricing strategies of its competitors and is the first to introduce new products. The market leader defends its position against all new entries and will seek to expand the market or expand its current market share. A second market position is that of being the market challenger - the firm that attempts to confront the market leader. These companies tend to be smaller than the market leaders, but aggressive in their strategy formulation. They attack the market leader, either through directly vying for the leader’s customers, or by trying to attract customers or market segments where the market leader is weak. A market challenger can follow several approaches that might involve any one or more of the marketing mix elements, such as price cutting, less costly product alternatives, an improved distribution strategy, or a novel promotional approach. A market follower is a business that competes in the marketplace by following the market leader rather than by attacking it directly. These companies try to maintain existing customers and attract new ones. In industries where there is little product differentiation and high price sensitivity, a follower strategy is often useful. By implementing this approach, an organization tries to prevent aggressive price competition. It will gain new customers by offering a quality service at a good value. A final market position that a firm may try to create is that of a market niche, which it achieves by following a strategy of targeting a narrow segment or segments in a large market with specialized products or services. This is a common approach for many small, successful companies. Make your beliefs come true. Be authentic
- 7. We will continue the article next Sunday, just the last part. Enjoy the week. Kisses,