Practical Marketing Planning

272 Pages·1997·15.58 MB·English

by  John Cooper, Peter Lane (auth.)

PRACTICAL
MARKETING
PLANNING
JOHN COOPER
PETER LANE
PRACTICAL MARKETING PLANNING
PRACTICAL MARKETING
PLANNING
John Cooper
and
Peter Lane
\I \C\111.1. \\
Business
© John Cooper and Peter Lane 1997
Softcover reprint of the hardcover 1st edition 1997
All rights reserved. No reproduction, copy or transmission of
this publication may be made without written permission.
No paragraph of this publication may be reproduced, copied or
transmitted save with written permission or in accordance with
the provisions of the Copyright, Designs and Patents Act 1988,
or under the terms of any licence permitting limited copying
issued by the Copyright Licensing Agency, 90 Tottenham Court
Road, London W1P 9HE.
Any person who does any unauthorised act in relation to this
publication may be liable to criminal prosecution and civil
claims for damages.
The authors have asserted their rights to be identified
as the authors of this work in accordance with the
Copyright, Designs and Patents Act 1988.
First published 1997 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 6XS
and London
Companies and representatives
throughout the world
ISBN 978-0-333-67908-1 ISBN 978-1-349-25551-1 (eBook)
DOI 10.1007/978-1-349-25551-1
A catalogue record for this book is available
from the British Library.
10 9 8 7 6 5 4 3 2 1
06 05 04 03 02 01 00 99 98 97
Copy-edited and typeset by Povey-Edmondson
Tavistock and Rochdale, England
I
Contents
List of Figures viii
PART I THE MARKETING PLANNING PROCESS
1 Marketing: What's It All About? 3
A Market-Focused Business 7
The Components of Marketing 9
2 Market Appraisal: The Internal Audit 21
Company Structure 21
Overheads 22
Customer Base 23
Production and Distribution Costs 24
Sales and Marketing Methods and Costs 24
3 Market Appraisal: The External Audit 27
Market Definition 27
Market Size 28
Market Segmentation 31
4 Market Appraisal: Research 39
Quantitative Research 40
Qualitative Research 40
Researching Your Market 41
5 Market Appraisal: The Marketing Mix Matrix 47
The Product 47
The Price 50
The Place 54
The Promotion 56
The People 57
The Process 58
The Presence 60
The Components of Your Marketing Mix 62
Answer to Problem 63
v
Vl Contents
6 Market Appraisal: SWOT Analysis 65
7 Market Planning: Establishing Objectives 71
Objective 71
Mission Statement 72
Strategic Business Objectives 72
Marketing Objectives 73
Setting Objectives for Your Business 76
8 Targeting: The Targeted Approach 81
The Targeted Approach 81
The Shotgun Approach 81
The Importance of Targeting 82
Your Market 83
Targeting Consumer Products 84
Economic and Social Descriptors 86
Regional Targeting 90
Market Segmentation 92
Commercial and Industrial Targeting 94
9 Pricing for the Market: Pricing Policy 99
Cost Plus Pricing 99
Cost Plus and Plus 101
Determining the Acceptable Price Band 102
Product Repositioning 104
Intangible Products and Services 106
Relationship Pricing 106
Subcontractors and Other Business-to-Business Services 107
Estimating the Market Price 109
10 Market Planning: Forecasting 113
What Do You Want to Predict? 113
Seasonality 114
Trends 114
The Product Life Cycle 120
The Boston Matrix 124
Key Monitors 125
External Variables 130
11 Marketing Communication: Sending the Message 133
The Medium is More Important than the Message 133
Planning an Advertising Campaign 133
Contents vu
12 Sales Promotions 145
Which Promotion Should I Use? 146
Suitable Promotions for Business-to-Business 147
13 Marketing Service: Customer Care 151
The Importance of Customer Care 151
The Principles of Customer Care 152
The Need for Customer Retention 153
Customer Service Standards 153
Cost-Benefit of Customer Service 155
Customer Service Standards of Some Firms 156
Customer Service Levels 156
Customer Care Strengths and Weaknesses 157
Developing Your Customer Care Package 158
Service Level Strategy 159
Allocation of Resources 159
Monitor and Control Procedures 160
Quality Assurance 160
14 Planning: Putting the Numbers Together 163
Developing The Profit and Loss Account 164
The Cash Flow 166
The Forecast Balance Sheet 166
PART II THE MARKETING PLANNER: MARKETING
PLANNING FORMS
15 The Marketing Planner 171
Primary Information 172
The Operating Environment 180
Marketing and Sales Operating Parameters 207
Global Overheads and Contributions 224
Profit and Loss Forecasting 230
Cash Flow Forecasting 257
Glossary of Terms 271
Index 274
I
List of Figures
1.1 Elizabethan shield 4
1.2 UK visible balance of trade 5
1.3 The marketing mix 11
1.4 The product 11
1.5 The price 12
1.6 The promotion 12
1.7 The place 13
1.8 The people 13
1.9 The process 14
1.10 The presence 14
1.11 The marketing planning process 15
2.1 Organisational structures 22
2.2 Sales and marketing costs, and contributions to other
overheads 24
3.1 How big is your market? 30
3.2 Are you keeping your share? 30
3.3 Three-section marketing triangle 32
3.4 Graded triangle 34
3.5 Marketing triangle 35
3.6 (1) Competitor-perceived positions 37
3.6 (2) Competitor size 37
3.6 (3) Competitor image 38
so
5.1 Product chart
5.2 Price wars gross profit graph 53
5.3 Price chart 53
5.4 Pricing and positioning bell chart 54
5.5 Place chart 56
5.6 Promotion chart 57
5.7 People chart 58
5.8 Process chart 59
5.9 Presence chart 61
5.10 The P ranking chart 62
5.11 Price wars answer chart 63
6.1 SWOT analysis- strengths 66
6.2 SWOT analysis- weaknesses 67
6.3 SWOT analysis - opportunities 68
6.4 SWOT analysis- threats 69
Vlll
List of Figures 1x
7.1 Establishing objectives 75
8.1 Bullseye (hit) 81
8.2 Bullseye (miss) 82
8.3 ISBA TV regions 91
8.4 Registrar General's regions 91
8.5 A. C. Nielsen regions 92
9.1 Pricing policy chart 101
9.2 The acceptable price band 102
9.3 The acceptable price band for your product 103
9.4 The acceptable price band (repositioning) 105
9.5 Typical industry cycles 110
10.1 Monthly sales 115
10.2 Deseasonalised monthly sales 115
10.3 Forecast and actual sales (linear) 116
10.4 Forecast and actual sales (regression) 117
10.5 Logistic curve 118
10.6 Gompertz curve 118
10.7 Product life cycle 120
10.8 Product X: years 1-17 121
10.9 Product X: years 1-21 122
10.10 Product X: years 1-35 122
10.11 The Boston matrix 124
10.12 Key monitors 128
10.13 Key monitor charts 129
10.14 Bank interest rates and retail price index 131
11.1 A typical advertising-led sales pattern (graph) 137
11.2 A typical advertising-led sales pattern (chart) 137
11.3 Target group segments 137
11.4 The fundamental components of an advertisement 142
11.5 The ten point plan for advertising success 144
13.1 Customer service levels chart 157
14.1 The marketing planning process 163
PART I
The Marketing Planning
Process