Marketing Strategy & Planning Marketing Planning The end point of a Marketing Plan is… not only better planning. It’s about ... Marketing Excellence Marketing Excellence “ Many people believe that the basic issue in marketing is … convincing customers you have a better product, that in the long run the best product will win. Not true … It’s an Illusion… there is no objective reality. The perception is the reality. Marketing is a battle of perceptions not products. All that exists in the world of marketing are perceptions in the mind of customers” Marketing Excellence is ... Consistently winning the battle of perceptions. the 22 immutable laws of marketing by Jack Trout, Al Ries Is Branding Important? “Products often struggle to demonstrate major differences in terms of clinical benefits … highlighting the need to obtain greater insight into user perceptions of brands, and factors motivating them to prescribe” “The company that fails to examine and monitor the equity of its brands in the consistently evolving pharmaceutical markets, does so at its own peril”. “Marketing Managers who don’t take account of the emotional factors in brand choice and prescribing miss the opportunity to maximize the value of their brands” per David Bayton, Managing the Equity of Pharmaceuticals Product or Customer Focused ? Product Focused Customer Focused Segment by products Segment by customers • Scientific focus • Focus on customer perceptions • Relies on relationships; • Tracks market changes & modifies strategy based on • Has difficulty disciplining Sales market research & systematic to provide useful intelligence collection of sales reports • Talks about product performance • Talks about customer needs, and sales volume achieved share, uses & segments. • Knows competitor strategy, • Knows competitive product assumptions, cost & objectives features • Uses Marketing Plan to • Checks Marketing Plan only manage activities when it’s time for a new version. The Challenges of Branding? Consumers buy products but they choose brands. Consumers form relationships with brands, not products, and not corporations. The performance of the product, what it does, and how it does it, is the core identity of the brand. But the brand also has a distinctive personality and character that makes an emotional and trust-based connection with the consumer and distinguishes it from competitive brands. Source: Winning with P&G 1999 Key Elements to Brand Equity 1. The physical element: perceived functionality • relative effectiveness is very important • how well advantages are communicated so that our customers perceive that we offer superior value 2. The emotional element: developing affinity • nostalgia, pleasant associations • bonding, sharing the users values or perspectives • Trust & Innovation Winning the Battle of Perceptions Effective Brand Marketing Is.. First, intimately knowing the values and needs of our customers. Then ensuring that every element of the marketing mix is aligned behind creating, delivering and communicating the values which will trigger customers to prescribe your brand over the competitors. A Common Branding Process 1. 2. 3. 4. 5. 6. Understanding Identifying the Is there a gap Customer customer Design each Implement between how Perceptions value that marketing customers element of Measure & • current will cause perceive our marketing mix customer them to brands and track beliefs prescribe the values mix to Define our brand they seek. results Why do they support ongoing prescribe What are their If so, develop strategy & brand How can we our brand optimal value or our strategy and positioning support track + drivers? competitor positioning to brand? Defining our close this gap. What is brand Optimize measure brand? What are possible essence? commu What values brand do they * what is it? customer nicatio assign reactions to Key messages? equity * what do n roll- each this we want it Images? out brand? positioning? to be? - To be agreed & distributed with Interim TA update (end Feb) The Pyramid Customers Increasing Competitiveness Rep Sales Marketing Branding Customer Segmentation Common Marketing Plan Issues 1. Strategic direction is still vague 2. Roles & responsibilities not yet clarified 3. Process is too complex 4. Process not well linked to Business Plan cycle 5. Planning not yet in the culture, 6. Team can’t support all the deliverables 7. Marketing products not driving perceptions 8. Basic marketing processes not optomized. Typical Planning Cycle Annual Budget Driven Process Timeline Mid-July September October November Overall Corporate Ambition Approve Business Final Business Plan Senior •Link to Company Vision Approved Plan First Draft Management •Top down global sales 3 year sales view • Global Marketing Strategy Strategy + Plan Development Strategy + Plan Development Corporate •Product priorities, launch plans •Branding, Marcom, Marketing •Pricing, Market Research Interim Updates Corporate Target setting Sales Internal planning •Targets to Region/Local • Resource allocation discussions Operations • Trade-off analysis Engineering Common Marketing Needs • Become much more intimate with customers • Understand customer perceptions & values • Develop and state clear strategies • Create and drive branding platform • Set more challenging objectives • Execute more impactful tactics • Understand investment & return trade-off better • Improve implementation & follow-up • Improve alignment between marketing & sales Key Elements of Marketing Plan 9 chapters Market* Marketing Performance analysis Implica- Market mix plan Forecast Competition tions, product analysis Issues strategy Pre-launch Performance Product & SWOT marketing management and information** plan contingency plans Situation Analysis & Implications Goals & Strategy Marketing Mix & Action Plan Performance targets & Control 4 key elements in the marketing plan Solid Results require strong alignment through organization Implementation orientation Company Strategic to tactical Business Plan Action plans per customer segment Return on Investment Branding, Incentive bonus structures Communication Plan Product Devel. Plan Market research plan Company Marketing Plan Key 1 Account Plans Sales plan Global Branding Financial Business Overview Perform. Tracking Individual Resource Deployment 2 M.R. Plan Territory Business Tracking Plans /rep Product Development plan Activity plan HR Resource Plan Perform. measures How Will You Know You Achieve Marketing Excellence? You will have achieved your goal when: You consistently win the battle of perceptions ... and …you are seen externally as a Marketing & Sales powerhouse.
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