Presentation on theme: "Building a case for Marketing"— Presentation transcript:
1 Building a case for Marketing Session 3Building a case for Marketing
2 Agenda Setting Aims, Goals and Objectives Forecasting Marketing Project techniques.Managing the project
3 What is a business case?The reason why the business should want to fund your projectWhat 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.
5 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 SpecificM MeasurableA AchievableR RealisticT TimescaledObjectives broadly fall under Customer objectives, Management andprofit objectives.Objectives of a marketing project , would represent the purpose of the project , and the deliverables that would mark the successful completion of the project.In order to be effective , acceptable objectives these objectives need to adhere to the following criteria .Specific -A specific goal has a much greater chance of being accomplished than a general goal. To set a specific goal you must answer the six "W" questions:who, what , where , when and which .Measurable - Establish concrete criteria for measuring progress toward the attainment of each goal you set. When you measure your progress, you stay on track, reach your target dates, and experience the exhilaration of achievement that spurs you on to continued effort required to reach your goal.How much? How many? How will I know when it is accomplished?Attainable – goals have to be reasonably attainable , when goals may seem too far and out of reach eventually the chances of loosing focus are more.Realistic - Within the availability of resources, knowledge and time .Timescaled - Enough time to achieve the goal ,Not too much time, which can affect project performance .
6 Where are we ? When building business case we need to first analyse where we stand now – audit of all factors affecting the proposed projectThen set goals and objectives of the future.Use of primary data and/or Secondary data
7 Secondary data What is Secondary data? http://youtu.be/zmh4Z0WSsQw LimitationsResearch does not directly relate to the research question at handData may relate to certain marketsBias dataAccess to methodology used unavailableUnreliableInternational data may have to be translatedNo up to date recordsIt is easy to find and collect secondary data, however, you need to be aware of the limitations the data may have and the problems that could arise if these limitations are ignored.Since data does not directly relate to the research question, it is not possible to draw conclusions or arrive at decision simply based on these data. Data would be vague and unrelated.Data collection might have only concentrated on specific markets where as the research question should cover a larger market or sample ?Data collected for a another organisations research might have been manipulated to show a favorable trend to that organisation , hence would be bias.Its difficult to draw a conclusion as to whether the data at hand are relevant without knowing of the methodology used. As in the sample size the assumptions made.Unreliable – the secondary data has been collected by a different party hence reliability cannot be guaranteed.Translation costs of international data in foreign languages could be higher than the budget or the expected benefits of the research .The data may have not been updated ,long and obsolete data.
8 Primary Data collection What is Primary data?Advantages of Primary ResearchUp to date recordsSpecifically for the purposeWholly confidential dataPreferred methodology could be usednon bias dataDisadvantages of Primary researchTime consumingExpensive to collectPrimary data collection involves obtaining original data directly from a sample. The types of Primary data collection are interviews , surveys and observations . They are designed to answer a specific question of interest to the business.1. Interviews are somewhat formal discussion between two parties in which information is exchanged. This is used to gather information from customers in order to capture their perceptions and attitudes2. Survey is a detailed study of a market or geographical area to gather data on attitudes, impressions, opinions, satisfaction level, etc., by polling a section of the population.3. Observation is a research study where data is collected by watching consumer behaviour or events taking place.To collect primary data a business must carry out field research . While primary research might be for qualitative or quantitative data. we will look in detail here at the qualitative research techniques.Qualitative research accounts for 10-15% of total research expenditure of the UK . It is growing in importance as marketing professional recognize its vital role in providing depth of understanding about customers and their behaviour.
9 ForecastingForecast 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.Marketing forecasts are integral to marketing project planning as this will justify to the management of an organisation what benefits a specific project can bring to the organisation, Without viable projections we would be unable to build business cases for onward adoption of our proposals .Marketing opportunity analysis is at the heart of marketing and this requires accurate sales forecasts.There are basically two methods of forecastingJudgmental ForecastingTime Series ForecastingThis method gathers information from industry experts until a consensus is reached about where the market is headed. The advantage of this method is that the information comes from the sources most involved with the market and thus represents the most accurate information available. This method is a macroeconomic statistical time-series analysis and purely quantitative in nature. It fits linear and nonlinear curves into time series and then extrapolating future values. Time series may be correlated to identify leading and lagging indicators. The advantage of this method is that recurring trends can be captured and extrapolated easily.
11 SegmentationFirst 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 targetingThe purpose for segmenting a market is to allow your marketing project to focus on the subset of prospects that are "most likely" to purchase your offering. If done properly this will help to ensure the highest return for your marketing expenditures. Depending on whether you are selling your offering to individual consumers or a business, there are definite differences in what you will consider when defining market segments.In addition to having different needs , for segments to be practical they should be evaluated against the following criteria ,Identifiable The differentiating attributes of the segments must be measurable so that they can be identified.Accessible The segments must be reachable through communication and distribution channels .Substantial segments should be sufficiently large to justify the resources required to target them .Unique needs to justify separate offerings , the segments must respond differently to the different marketing mixes.Durable The segments should be relatively stable to minimise the cost of frequent changes.
13 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.The Product – remember to define this in relation to offer that is made available for consumption , Business case will concentrate on new product development or the reigniting of he product life cycle .The price – Consideration necessary to transact the consumption. Justification will concentrate on skimming and penetration.Place - Defined as a location or a distribution process or making available what is on offer for consumption . The justification here is normally about extracting transactions out of channels .The promotionDefined as communicating what is on offer for consumption. Our business cases here concentrate on push , pull an profile aspects of our integrated marketing communication mix .
14 Marketing MixProductPlacePrice EffectsPromotion of anyPeople changesProcessPhysical Evidence
15 Managing People Common Team Issues Project Manager Project Priorities Project TeamCommon Team IssuesProject PrioritiesAdmin. ProceduresTechnical ProblemsResourcesCostSchedulesPersonality
16 Of the three broad categories of objectives Customer centered objectives – market share , development and market penetration .retained customers, new business captured involving clients , subscribers, end users.Management objectives – would be concerning organisational structure, systems , processes, culture and orientation, emphasis on CSR activities, ethics, customer focus, and technology.Profit objectives – such as bottom line(singular, triple) , extracting cost out of the business, productivity, lifetime value , efficiency , economy of scale and shareholder value .
18 Agenda Setting Aims, Goals and Objectives Forecasting Marketing Project techniques.Managing the projectThe Case report
19 Judgmental Forecasting Judgmental Forecasting is the most common method of actual forecasting, especially when:the decision to be undertaken is criticalif 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 areDELPHISales Force Composite
20 Delphi MethodA 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 judgmentIt 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.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 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.This approach consists of a survey conducted in two or more rounds and provides the participants in the second round with the results of the first so that they can alter the original assessments if they want to - or stick to their previous opinion. Nobody ‘looses face’ because the survey is done anonymously using a questionnaire.Delphi studies are rather complex procedures and require some resources depending on the breadth of the study planned. Delphi studies are processes that include the preparation, a survey in two or more rounds and some analyses and application (implementation) when the survey is finished.
21 Delphi – Method - StepsDetermination and formulation of questions , so as to obtain useful and applicable information .Selection of experts.Formulation of a first questionnaire that is sent to the experts .Analysis of the answers to the questionnaire.Formulation of a second questionnaire that is sent to experts.Sending of a third questionnaire .Summary of the process and drawing up of the final report .Step 1: Particular care should be given to the choice of questions , as to obtain useful and applicable information .Step 2: These must have specific knowledge about the subject and be prepared to engage in this type of process .Step 3: The first questionnaire must contain a reminder of the nature of the study and include both semi open and open questions.Step 4: The answers are analysed by someone other that the experts in order to determine the general trends and the most disproportionate answers.Step 5: Each expert is informed of the results of the first round and is then asked to provide a new answer and to justify it if it differs from the general emerging themes and trends.Step 6: This questionnaire can be further manipulation based on step 5 .Sufficient convergence of opinions generally appears with this questionnaire. If that is not the case , the cycle continues.Step 7: Summarizing the findings and presenting the report.
22 Delphi Method Group of “experts” A structured process for collecting opinionsUses a series of questionnaires interspersed with controlled opinion feedbackComments are anonymousUsed to move a group of people towards consensusAlternative to Focus GroupMakes discussion possible without social interactive behaviour - which hampers opinion forming
23 Time seriesInvolves 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 averagesSimple Moving Averages.Weighted Moving Average.Exponential SmoothingMoving Average – By identifying an arithmetic average over time , a trend is identified through the increase or decrease of the average over time.These trends could be seasonal , cyclical and any other variation that cannot be explained is a random error.Simple moving average – forecasts demand by calculating an average of data over time , and drops all old data and replaces it with new data …keeping the average moving with time .Example: Forecast for June sales = (April Sales + May Sales)/2Weighted Moving Average – a moving average where each historical demand may be weighted differentlyExponential Smoothing – Gives greater weight to demand in more recent periods and less weight to demand in earlier periods.
25 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.There has been little change in the way that a multiplicative seasonal index is generated for many years. Generally, data is deseasonalized using a seasonal index obtained from a ratio of data to a moving average or a centered moving average. The seasonal index is then used again to reseasonalize forecasts after extrapolation of the trend. The method has become sufficiently well accepted that authors will often not bother to specify the process used to obtain the seasonal index.
26 Casual ForecastingCasual forecasting examines changes by fluctuations in one or more variablesCorrelation– relationship of variablesRegression – 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 .The correlation is one of the most common and most useful statistics. A correlation is a single number that describes the degree of relationship between two variables. is a statistical technique that can show whether and how strongly pairs of variables are related. For example, height and weight are related; taller people tend to be heavier than shorter people. The relationship isn't perfect. People of the same height vary in weight, and you can easily think of two people you know where the shorter one is heavier than the taller one. Nonetheless, the average weight of people 5'5'' is less than the average weight of people 5'6'', and their average weight is less than that of people 5'7'', etc. Correlation can tell you just how much of the variation in peoples' weights is related to their heights.Although this correlation is fairly obvious your data may contain unsuspected correlations. You may also suspect there are correlations, but don't know which are the strongest. An intelligent correlation analysis can lead to a greater understanding of your data.Regression - Linear regression analyzes the relationship between two variables, X and Y. For each subject (or experimental unit), you know both X and Y and you want to find the best straight line through the data. In some situations, the slope and/or intercept have a scientific meaning. In other cases, you use the linear regression line as a standard curve to find new values of X from Y, or Y from X.The term "regression", like many statistical terms, is used in statistics quite differently than it is used in other contexts. The method was first used to examine the relationship between the heights of fathers and sons. The two were related, of course, but the slope is less than 1.0. A tall father tended to have sons shorter than himself; a short father tended to have sons taller than himself. The height of sons regressed to the mean.
28 RegressionOften important to understand the relationship between two variables – and how one changes in response to changes in the otherWe can define some simple relationships by simple linear regressionAnd more complex ones by multiple linear/non linear regressionAlgebra!
31 CorrelationA measure of the “strength” of the relationship between x & yStart with a scatter diagram (+grid)This can vary from -1 to +10 = no correlationNearer to -1 or +1 the stronger it isCAUTION!!
32 Agenda Setting Aims, Goals and Objectives Forecasting Marketing Project techniques.Managing the projectThe Case report
33 geographic segmentation following are some examples of geographic variables often used in segmentation .Region – by continent , country , state , or even neighborhood.Size – of metropolitan area : segmented according to sixe of population .Population Density - often classifieds as urban , suburban or rural .Climate - according to weather patters common to certain geographic regions .Demographic SegmentationAge / gender /family size / family lifecycle / generation , baby boomers, income , occupation , education .Psychographic segmentationGroups customers according to their lifestyle. Activities interests , opinions , surveys are one tool for measuring lifestyle . Some psychographic variables include :Activities.InterestsOpinionsAttitudesValues.
34 Operational Management Segmentation - determine the basis of the segmented populationTargeting – score against the chosen criteriaPositioning – mindset of population and competition
36 Agenda Setting Aims, Goals and Objectives Forecasting Marketing Project techniques.Managing the projectThe Case report
37 Managing DynamicsChanges over the life of the project are referred to as project dynamics , managing these is key to a projects success. Changes result fromExternal 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 .
38 Managing PeopleThe 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 whenPeople are form different backgrounds .Availability of team members.Levels of commitment to the projectProject Manager should have the following project management skills to manage the problems that arise .Communication skillsListeningPersuading Breakdowns in communicationOrganizational skillsPlanningGoal settingAnalysing - Insufficient planning/inadequate resources.Team building SkillsEmpathyMotivationEspirit De corps - Weak inter unit integrationLeadership skillsSetting an exampleEnergeticVisionDelegatesPositive - Interpersonal conflicts / unclear goals
39 Coping skillsFlexibilityCreativityPatiencePersistence - Handling changesTechnological skillsExperienceProject Knowledge - Meeting Deadlines .When managing a project teamThere might be people on board who are not willing to be on the project in the first placeCore teams managed by a project managers consisting of heads of each subteams responsible for different areas.Initial team building activities are advisable to sustain a strong motivated team .Project Conflicts ,Project priorities – Team members view the importance and flow of activities and tasks differentlyAdministrative procedures – team members often have conflicting view over how the project should be managed or run.Technical problems – team members disagree over technical matters such as specifications , performance and priorities.Resources – such as getting staff and computers from functional departments and having access to shared services.Cost – project manager and team members disagree over the costs of the WBS activities and tasks .Schedules – project manager and team member disagree over the order timing of project tasks .Personality – managing interpersonal behavior to create a culture of collaboration , and respect.
40 Agenda Setting Aims, Goals and Objectives Forecasting Marketing Project techniques.Managing the projectThe Case report
41 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 .Its useful to follow the following tips when preparing for the presentation be it a report or a verbal one .Making it interesting – through the use of graphs, charts and images to keep the audience /reader glued to the report . (without making it over busy of course)Keeping it clear and conciseMinimising technical jargon and conjecture.Communicate all facts as part of the overall story.Let the reader or the audience what your objectives are.Demonstrate the value of the case to the organisation .Keeping eye contact with your audience .Carful body language. Never turn your back to your audience.Use cue cards if necessary .Provide handout for your audience .Listen to your audience … have Q & A time .
44 Presentation Tips Meet your objectives State them early Know your audienceKeep it briefBe prepared for interruptionsMaintain control
45 Making the Presentation Solo or team presentation?Tell them what / tell them / tell them what you saidEye contactBody languageNo physical barriersFace the “enemy”Cue cardsHandouts – but when?TimingVisual aids / videoPractiseRehearseStart & finish on a high note
46 Qualitative Techniques What is Qualitative data?Focus groups or group discussionsAn interactive group discussion headed by a moderatorAround participantsModerator would keep the discussion on track, probing further for information when neededUsually lasts for about 45 minutes to 1 hourUnstructured discussion where the moderator encourages the free flow of ideasIn Depth InterviewsOne on one discussions, lasting 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.Information collected through these techniques could be used to fill in the gaps in information to base a business case on .Care must be taken not to manipulate the resultant data here.It is these information that adds value, weight and support to our everyday marketing cases .Hence using secondary and primary information we can come to a conclusion as to where we stand a business , we will not know where we want to be…If we are not able to state where we want to be …we have no business case.After a successful situational analysis …we are now able to set our goals and objectives.