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Session 3
Building a case for Marketing
Agenda
• Setting Aims, Goals and Objectives
• Forecasting
• Marketing Project techniques.
• Managing the project
•
What is a business case?
• The reason why the business should want to fund your project
• What is the ‘profit ’to the business?
• What is the opportunity cost of funding you?
• Why?
• Helps the applicant think through the project in a systematic, step-by-step
manner.
• It explains to program administrators, funding partners and other interested
parties why the project should be undertaken.
• It helps potential funding partners understand the economic value of the project.
• It provides a framework for completion of the project on time and on budget.
Investment Measurements
Setting Aims ,objectives, Goals and
• These are the solution to the problem /outcomes or deliverables of the Marketing project .
• Objectives of any project should be SMART. Without which these become broad aims or goals . And do not define business cases.
S Specific M Measurable A AchievableR RealisticT Timescaled
• Objectives broadly fall under Customer objectives, Management andprofit objectives.
Where are we ?
• When building business case we need to
• first analyse where we stand now – audit of all factors
affecting the proposed project
• Then set goals and objectives of the future.
• Use of primary data and/or Secondary data
•
Secondary data
• What is Secondary data? http://youtu.be/zmh4Z0WSsQw
• Limitations
• Research does not directly relate to the research question at hand
• Data may relate to certain markets
• Bias data
• Access to methodology used unavailable
• Unreliable
• International data may have to be translated
• No up to date records
Primary Data collection • What is Primary data? http://youtu.be/yZgCam-sjCw
• Advantages of Primary Research
• Up to date records
• Specifically for the purpose
• Wholly confidential data
• Preferred methodology could be used
• non bias data
• Disadvantages of Primary research
• Time consuming
• Expensive to collect
Forecasting
• Forecast the results obtainable by implementing the project .
• Used to justify the project to top management or to themselves.
• When strategic issues are being considered, they need to forecast the actions and reactions of key decision makers - stakeholders.
• The resulting forecasts allow one to calculate the ‘profit’.
• Forecasting involves methods that derive from judgmental sources and from statistical sources.
Forecasting Methods
Qual
Judgmental
Forecasting
Delphi Method
Sales Force
Composite
Quant
Time Series
Moving Averages
Exponential
Smoothing
Seasonality
Regression
http://youtu.be/rulIUAN0U3w 9m
Segmentation • First we need to consider the big picture and we would then deconstruct it to its
lowest common denominators. We must try and establish clusters of homogenous entities, in order o proceed with a process of exploiting opportunities.
• Several bases for segmentation might exist within the same markets .
• Traditionally we segment markets according to demographics, geographic and socio economic on the quantitative side and psychographic on the qualitative side.
• What defines these bases , however are the nature and scope of the project , the objectives and the deliverables.
• Whenever we have our population segmented we need to score the clusters or segments for attractiveness. Here we set a hierarchy of attractiveness criteria, which in turn becomes our central case for targeting
©Michael Warner & Snowpine Ltd 12
Geography
InfrastructureTopography
Seasons Climate
Demographics
Housing type
EducationIncome
AgeSex
Psychographics
Country of origin Social influences Pictures Images ColourStyle
Advertising
Distribution channel
Convenience
PerceptionLocationImageStyle
Social organisation
Status systemsSocial
mobilityPeer Group HierarchyHousing Culture Friends FamilyMorals
Technology
Energy systems
Communication
Urbanisation
Availability Transport ScienceTools
Values and attitudes
Achievement Risk taking
ChangeWealth WorkTime
Lifestyle
Accommodation
EmploymentSocial class
ConsumptionFamily unit
ClothesTravel Music
Views on Views on SegmentationSegmentation
©The Mechanics of International Trade by Michael Warner
Behaviour at the time of
need
Targeting and Positioning • Having addressed segmentation we can now move on to targeting these
segments through assigning scores to each segments .
• the marketer will select a segment or series of segments and 'target' it/them.
• As a result of our mechanism , identifiable targets present themselves via a
fully quantifiable and justifies process.
• Now we are presenting a case grounded in fundamental techniques, Having
introduced a scientific approach to our justifications .
• after selecting target markets the strategist should develop positioning
objectives to then develop them into a detailed marketing mix.
• The marketing mix comprises of Product , Price , Place and the Promotion.
Marketing Mix
• Product
• Place
• Price Effects
• Promotion of any
• People changes
• Process
• Physical Evidence
Managing People
Project Manager
http://youtu.be/18qAAI0pA9k
Project Team
http://youtu.be/eVJuIZElOXE
Common Team Issues
Project Priorities
Admin. Procedures
Technical Problems
Resources
Cost
Schedules
Personality
• Setting Aims, Goals and Objectives
• Forecasting
• Marketing Project techniques.
• Managing the project
• The Case report
Agenda
Judgmental Forecasting
• Judgmental Forecasting is the most common method of actual forecasting, especially when:
the decision to be undertaken is critical if the exact data required is unavailable or unreliable. No historic data is available .
• The opinions drawn from a selected panel of experts/ key personnel are collated , manipulated , aggregated and averaged in order to instigate some form of consensus.
• Drawn form subjective opinions of internal personnel such as key employees, managers and directors or external individuals .
• Most common methods of judgmental forecasting methods are DELPHI Sales Force Composite
Delphi Method • A tool in which a group of experts could come to some consensus of
opinion when the decisive factors were subjective, and not knowledge-based.
- Used to formulate a group judgment
- It was formulated to overcome problems associated with conventional group opinion assessments due to dominance of powerful opinion leaders.
- It may be used in forward planning to establish hypothesis about how scenarios are likely to develop and on their socio economic implications .
- Fundamentally the method serves to shed light on the evolution of a situation , to identify, priorities or to draw up prospective scenarios.
Delphi – Method - Steps
1) Determination and formulation of questions , so as to obtain useful and applicable information .
2) Selection of experts.
3) Formulation of a first questionnaire that is sent to the experts .
4) Analysis of the answers to the questionnaire.
5) Formulation of a second questionnaire that is sent to experts.
6) Sending of a third questionnaire .
7) Summary of the process and drawing up of the final report .
Delphi Method
• Group of “experts”
• A structured process for collecting opinions
• Uses a series of questionnaires interspersed with controlled opinion feedback
• Comments are anonymous
• Used to move a group of people towards consensus
• Alternative to Focus Group
• Makes discussion possible without social interactive behaviour - which hampers
opinion forming
Time series
• Involves the deep and rigorous analysis of historical data in order to establish and identify significant trends over time and fully explained via variance impact analysis.
• This data can then be utilized to extrapolate future results. • Some of the techniques adopted are …
• Moving averages
Simple Moving Averages.
Weighted Moving Average.
Exponential Smoothing
Time Series
Figure 6.1
And When the Trend is ?• Seasonal – It’s a repetitive and predictable movement around the trend line
within a year or less. • To deal with seasonal forecasts –
- A - A forecast must be made for the entire period . - B – Multiply the given forecast by the seasonal factors for each season. - The following is a seasonal trend plotted for sales of Harrisonburg
county sales.
Casual Forecasting
• Casual forecasting examines changes by fluctuations in one or more variables
- Correlation– relationship of variables
- Regression – examines the relationship of the variables itself in the form of
a straight line equation.
• The correlation of two variables could be simply judged by plotting on a scatter
diagram.
• If the relationship is identified and relatively strong then the nature of it can be
found using linear regression .
Regression
Regression
• Often important to understand the relationship between two variables – and how one
changes in response to changes in the other
• We can define some simple relationships by simple linear regression
• And more complex ones by multiple linear/non linear regression
• Algebra!
29Figure 6.2
Scatter Diagram
Forecasting
• Trend
• Continuation of “graph”
• Statistical – regression (causal / time)
Correlation
• A measure of the “strength” of the relationship between x & y
• Start with a scatter diagram (+grid)
• This can vary from -1 to +1
• 0 = no correlation
• Nearer to -1 or +1 the stronger it is
• CAUTION!!
• Setting Aims, Goals and Objectives
• Forecasting
• Marketing Project techniques.
• Managing the project
• The Case report
Agenda
Operational Management
• Segmentation - determine the basis of the segmented population
• Targeting – score against the chosen criteria
• Positioning – mindset of population and competition
Dynamics
• External Market
• Organisational
• Project
• Setting Aims, Goals and Objectives
• Forecasting
• Marketing Project techniques.
• Managing the project
• The Case report
Agenda
Managing Dynamics • Changes over the life of the project are referred to as project dynamics , managing
these is key to a projects success. Changes result from
External market dynamics – such as competitors , the size and value of the
market, the potential media or routes to market .
The business Dynamics – such as business priorities , resource levels ,
personnel , interactions with stakeholders , including suppliers and customers .
Project Dynamics – such as interaction of factors influencing costs and schedules
on the specific project , and the interaction of the people within the project .
Managing People
• The total project regardless of the methodology used depends on the people conducting it , hence people would be the most important resource in a projects.
• In order to manage people a project will have to have an appropriate project manager , there are a number of attributes that a project manager should possess to be successful in managing the conflict and the various issues between individuals that might get in the way of the project at hand.
• Once the project manager is appointed , the Project team has to be formed . Ideally consisting of members who gel with the project managers. Yet issues arise when People are form different backgrounds . Availability of team members. Levels of commitment to the project
• Setting Aims, Goals and Objectives
• Forecasting
• Marketing Project techniques.
• Managing the project
• The Case report
Agenda
Presentation Techniques /Tips
• The use of diagrams in presentations are an effective way to illustrate what is
needed to be conveyed.
• Stating your objectives and throughout its duration convey how your
presentation achieves these outcomes.
• Consider the nature of the audience.
• Appropriate dress code .
• Brief and to the point. Avoid information overload.
• Careful usage of audio visual equipment.
• Clear and slides.
• The following slide gives a few such diagrams that illustrate information in a
more effective , accurate format .
42
A picture paints a thousand words…
http://www.jpowered.com/php-scripts/pie-chart/images/pie-chart-small.png
http://www.everyjoe.com/files/58/2007/08/gantt_chart.gif
Presentation Tips
• Meet your objectives
• State them early
• Know your audience
• Keep it brief
• Be prepared for interruptions
• Maintain control
Making the Presentation• Solo or team presentation?
• Tell them what / tell them / tell them what you said
• Eye contact
• Body language
• No physical barriers
• Face the “enemy”
• Cue cards
• Handouts – but when?
• Timing
• Visual aids / video
• Practise
• Rehearse
• Start & finish on a high note
Qualitative Techniques
• What is Qualitative data?
• Focus groups or group discussions An interactive group discussion headed by a moderator Around 6- 12 participants Moderator would keep the discussion on track, probing further for information
when needed Usually lasts for about 45 minutes to 1 hour Unstructured discussion where the moderator encourages the free flow of
ideas
• In Depth Interviews• One on one discussions, lasting 30 -60 minutes.• Starting with more general questions ,building in to more purposive questions.
(semi structured)• Very rich depth information .• Used when its not practical to organise focus groups or when the deep
discussion with an individual is needed.
