Proposal of a marketing strategy



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12 LIST OF TABLES


TAB. 1 Basic Marketing Concepts 10

TAB. 2 Differences in B2C and B2B End User Sector 11

TAB. 3 Eight-step Strategy Planning Process 13

TAB. 4 An Example of SWOT Analysis Table 16

TAB. 5 Five Forces Analysis 17

TAB. 6 The GE Matrix 20

TAB. 7 Shell Directional Policy Matrix 20

TAB. 8 Decision-making Methods USed to Draw Up a Strategic Marketing Plan 21

TAB. 9 Criteria on Market Segmentation 21

TAB. 10 Intuitive and Data-based Segmentation Processes 22

TAB. 11 Characteristics of Product Lifecycle and Corresponding Marketing Targets 23

TAB. 12 Kotler´s Model on Four Positions in a Market 24

TAB. 13 Ansoff´s Matrix 24

TAB. 14 Basic Strategic Question: Assimilation or Expansion 24

TAB. 15 Most Common Objectives 26

TAB. 16 Strategies of Product Lifecycle – Product 27

TAB. 17 Strategies of Product Lifecycle – Price 28

TAB. 18 Possible Positioning Strategies 29

TAB. 19 Strategies of Product Lifecycle – Channels 29

TAB. 20 Strategies of Product Lifecycle – Promotion 30

TAB. 21 Performance Metrics Used by Sector 31

TAB. 22 Cathegorization of CRM Benefits 35

TAB. 23 Comparing Customer Relationship Revenues with Relationship Costs 35

TAB. 24 Overview of Objectives 39

TAB. 25 Basic Data of The Czech Economy 44

TAB. 26 Households Total by Net Money Income per Person - Deciles - Housing Characteristics 45

TAB. 27 Potential Entrants 46

TAB. 28 Buyers versus Product Groups 48

TAB. 29 Potential Substitutes 49

TAB. 30 Main company´s competitors 49

TAB. 31 Company´s Balance Scorecard 53

TAB. 32 Profitability, Liquidity and Efficiency Ratios 55

TAB. 33 Summary of Financial Analysis - Impact on Choice of a Strategy 56

TAB. 34 GE/McKinsey Matrix – Supporting constructions 58

TAB. 35 GE/McKinsey Matrix - Ceramics 58

TAB. 36 GE/McKinsey Matrix - Mosaics 59

TAB. 37 GE/McKinsey Matrix - Pensile Facades 59

TAB. 38 Cost of Marketing Promotional Activities 2007 63

TAB. 39 Responsiveness and Effectivity of Promotional Activities 2007 63

TAB. 40 Key Characteristics of Chosen Customer Segment 66

TAB. 41 New Supplier Acquiring Process Cost 69

TAB. 42 Differentiation through Services 69

TAB. 43 Key factors in Company´s Services 70

TAB. 44 CRM Benefits in Marketing of Styl 2000 71

TAB. 45 CRM Software Provision Cost 72

TAB. 46 Comparison of Product Portfolio Items 74

TAB. 47 Showroom Reorganisation Cost 75

TAB. 48 Cost Breakdown - Current Situation 75

TAB. 49 Cost Breakdown - Strategy proposal 76

TAB. 50 Strategies for Promotion 78

TAB. 51 List of Strategies 80

TAB. 52 Key Variables for Introduction of Relationship Management 80

TAB. 53 Cost Benefit Analysis 81



13 LIST OF FIGURES


FIG. 1 Process of Strategical Business Planning 8

FIG. 2 Process of Value Transmission 9

FIG. 3 Decision Process and Strategy to Be Applied 10

FIG. 4 Marketing Planning Process 14

FIG. 5 Forces Driving Industry Competition 18

FIG. 6 The Balanced Scorecard 19

FIG. 7 Bowman´s Strategic Options 25

FIG. 8 The Four Dimension of CRM 34

FIG. 9 The KMV Model of Relationship Marketing 36

FIG. 10 Average Gross Annual Earnings and Total Household Consumption Expenditure 44

FIG. 11 GE/McKinsey Matrix for Product Portfolio of Styl 2000 60

FIG. 12 General Overview of Marketing Promotion Activites in 2007 62

FIG. 13 Financial Intensity of Marketing Promotion Activities 62

FIG. 14 Operational Cost and Income 67

FIG. 15 Gannt´s Chart for CRM Strategy 73



14 APPENDICES

Marketing Audit Questions



Questions to Include in a Marketing Audit


Products: the Reason for Existence

  1. Is the product free from deadwood?

  2. What is the life-cycle stage?

  3. How will user demands or trends affect you?

  4. Are you a leader in new product innovation?

  5. Are inexpensive methods used to estimate new product potentiasl before considerable amounts are spent on RaD and market introduction?

  6. Do you have different quality levels for different markets?

  7. Are packages/brochures effective salespeople for the products they present?

  8. Do you present products in the most appealing colours (formats) for markets being served?

  9. Are there features or benefits to exploit?

  10. Is the level of customer service adequate?

  11. How are quality and realiability viewed by customers?

Customer: User Profiles

  1. Who is the current and potential customer?

  2. Are there geographic aspects of use: regional, rural, urban?

  3. Why do people buy the product, what motivates their preferences?

  4. Who makes buying decisions, when, where?

  5. What is the frequency and quantity of use?

  6. Are intermediaries making money from the line?

  7. Can the product support marketing communications programs?

  8. Will the manufacturin process require more volume?

Distribution Channels: Selling Paths

  1. Does the systém offer the best access to all target markets?

  2. Do product characteristics require specials?

  3. What is the most profitable type of presentation for each market: direct vs. reps, master distributors or dealers, etc.?

  4. What are the trends in distribution methods?

Sales Administration: Selling Efficiency

  1. Are customers getting coverage in proportion to their potential?

  2. Are sales costs planned and controlled?

  3. Does the compensation plan provide optimum incentive and security for reasonable cost?

  4. Is performance measured against potential?

  5. Are selling expenses proportionate to results and potentials within markets or territories?

  6. Are there deficiencies in recruitment, selection, training, motivation, supervision, performance, promotion, or compensation?

  7. Are effective selling aids and sales tools provided?

Markets: Where Products are Sold

  1. Have you identified and measure major segments?

  2. Are small, potential market segments overlooked in trying to satisfy the majority?

  3. Are the markets for the products expending or declining?

  4. Should different segments be developed, are there gaps in penetration?

Competitors: Their Influence

  1. Who are the principal competitors, how are they positioned, and where are they headed?

  2. What are their market shares?

  3. What features of competitors´ products stand out?

  4. Is the market easily entered or dominated?

Pricing: Profitability Planning

  1. What are the objectives of current pricing policy: acquiring, defencing, or expanding?

  2. Are price policies set to produce volume or profit?

  3. How does pricing compare with competition in similar levels of quality?

  4. Does cost information show profitability of each item?

  5. What is the history of price deals, discounts, and promotions?

Advertising: Media Program

  1. Are media objectives and strategies linked to the marketing plan?

  2. What are the objectives of the advertising program?

  3. How is media effectiveness measured?

  4. Is advertising integrated with promotion and sales activity?

  5. Is the ad agency´s effectiveness periodically evaluated?

  6. Do you dictate copy theme and content to the agency?

  7. Are you spending realistically, in relation to budget?

Sales Promotion: Sales Inducement

  1. Does the sales promotion support a marketing objective?

  2. Is it integrated with advertising and selling activities?

  3. How is it measured for results?

  4. Are slogans, trademarks, logos, and brands being used effectively?

  5. Is point-of-sale material cost effective?

  6. Are you effectively using couponing, tie-ins, incentives, sampling, stuffers, combination effects?

  7. How do you evaluate trade shows for effectiveness?

Resource: Kotler, P. Principles of Marketing , p.69
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