Strategic Marketing

Strategic Marketing Plans &

CRM
Marketing Plans
 SOSTAC
• Situation – where are we now? Marketing
Environment Analysis
• Objectives – where do we want to be? Marketing
Objectives
• Strategy – how do we get there? Marketing
Strategies
• Tactics – how exactly do we get there? Marketing
Mix
• Action – what is our plan? Implementation, Budgets
• Control – did we get there? Marketing Controls
 Situation Analysis
• Macro Environment analysis
– PESTILE analysis
• Meso Environment analysis
– Five Force analysis
– Competitor analysis
– Customer analysis
– Market analysis
• Micro Environment Analysis
– Resource and competency analysis
– Value chain analysis
– Portfolio models

• SWOT/ TOWS analysis

 Marketing Objectives
• SMART Marketing Objectives
• To increased Sales & Market share
• To increase customer awareness, satisfaction
• To attract new customers
• To retail existing customers
 Marketing Strategies
• STP Staregies
• Growth strategies
• Competitive strategies
• Value Propositions/ Disciplines
• Warfare Strategies – Leader, Challenger,
Follower and Niche strategies
• Portfolio strategies
 Marketing Tactics
• Marketing Mix
• Communication Mix
– Advertising
– Sales promotion
– Personal selling
– PR
– Direct marketing
– Digital Marketing
 Implementation/ Execution
• Action - Who, What and when
• Time frame
• Use of Gantt charts
• Work breakdown structures
• Budget allocations
– Focus only on marketing activities
 Budgets Methods
• Arbitrary allocation
• The affordable method
• Historical Method
• Percentage of Sales
• Competitive parity
• Return on investment (ROI)
• Objectives and tasks
 Controls
• How would the plan be monitored and
measured?
• What are the measures?
• Who is responsible?
• Milestones within Gantt chart
The Marketing Control Process
 Controlling Marketing Activities
• Marketing Control Process
– Establishing performance standards and trying to match
actual performance to those standards
• Establishing Performance Standards
– Expected levels of performance
• Taking Corrective Action
– Improve actual performance
– Reduce or change the performance standards
– Do both
 Marketing Controls
• The Achievement of Marketing Objectives;
– Sales growth/share growth
– Retention
– Profitability
– Awareness
– Positioning
– Cost reduction
 Common Firm Goal Attainment Metrics

• Awareness rates.
• Satisfaction and Loyalty Ratings
• Growth and Share targets.
• Hurdle rates for Projected ROI
• NPV hurdles.
 Marketing Control
• Budget
• Profitability
• Efficiency (Productivity)
Budget Controls
 Budget Control
• Measurement of results against
monthly/quarterly budgets (goals)
• Reasons for deviations (variances)
• Remedial steps to be taken to close the gaps
between performance and goals
• Review performance in the next
month/quarter and assess results
Profitability Controls
 Profitability Controls
• Profitability control by
– Product
– Territory
– Consumer segment
– Trade channels
– Order size
Efficiency Controls
 Efficiency Control
• Sales force efficiency
• Advertising efficiency
• Sales promotion efficiency
• Distribution efficiency
 Sales force Efficiency
• No. of calls per salesperson per day
• Average revenue per sales call
• Average cost per call
• Average call time per call
• No. of new customers per period
• Sales force cost per unit sales
 Advertising Efficiency
• CPT ( It is the cost an advertiser pays for one
thousand views or clicks of an advertisement)
• Before and after measure of attitude towards
the product
• No. of enquiries per ad
• Cost per enquiry
 Sales Promotion Efficiency
• % sales sold on ‘promotion’
• Display cost per sales rupee
• % coupons redeemed
• No. of enquiries resulting from a
demonstration
 Distribution Efficiency
• Time taken to execute orders
• % order executed
• Service levels
 Benchmarks for Controls

• against last year • % growths

• against budget • % variances
• against targets • % market share
Relationship Marketing
 What is Customer Relationship
Management (CRM)?
• CRM is “the development and maintenance of mutually
beneficial long-term relationships with strategically
significant customers”
(Buttle, 2000)
• CRM is “an IT enhanced value process, which identifies,
develops, integrates and focuses the various
competencies of the firm to the ‘voice’ of the customer
in order to deliver long-term superior customer value,
at a profit to well identified existing and potential
customers”.
(Plakoyiannaki and Tzokas, 2001)
 Customer Relationship Management (CRM)

Traditional Marketing CRM

Goal: Expand customer base, Goal: Establish a profitable,

increase market share by long-term, one-to-one
mass marketing relationship with customers;
understanding their needs,
preferences, expectations
Product oriented view Customer oriented view

Mass marketing / mass Mass customization, one-to-one

production marketing
Standardization of customer Customer-supplier relationship
needs
Transactional relationship Relational approach
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 Customer Relationship Marketing (CRM) & Customer Relationship
Management CRM)

Customer Marketing Mix

Acquisition

Branding strategies
CR
Mark. MIS
CR MkIS Knowledge
Mgt. DSS Management
Other

Sustainable
Customer Customer competitive
Augmentation of
Enhancement Retention advantages and
product/service offer
increase in
shareholder value

© Dr George Panagiotou 2009

 RM Ladder of Loyalty
• Relationship of partner

• Actively recommends you

• Supports you passively

• Repeat business, but

passive or negative attitude

• Carried out one transaction

• Potential customer
 Advantages of relationship marketing

1. Repeat purchases that will lead to increased

profitability
2. Long term orientation of the relationships, avoiding
transactional marketing
3. Cross selling and up selling opportunities
4. Customization helps to increase satisfaction and
mutual trust.
5. Increase in customer loyalty and band image.
6. Customers become brand ambassadors of the
company.
7. Feedback generation from customers. Use this in
increasing product quality.
Questions and Discussions

Thank you.