How to build a marketing plan 2015

ADVANCED MASTER IN INNOVATION AND MANAGEMENT - STRATEGIC MARKETING- © Prof. L. Bouty 2015 1
STRATEGIC MARKETING
Advance Master
in Innovation and Management
 
Professor Laurent Bouty
Brussels, 2015
© JEN COLLINS @ Flickr
v1.1
This document is work in progress and I am
waiting to improve it based on your feedbacks

LAURENT BOUTY © 2015 2
WHO
IS
BUILDING
THE
PLAN?

CMO
a strange specie today

SOPHISTICATED
STRATEGIST
ENTREPRENEURIAL
TRAILBLAZER
VS.

BUSINESS LEADER
MARKETING GURU
VS.

SECTOR
SPECIALIST
VERSATILE
PARTNER
VS.

INNOVATION
CHAMPION
VS.
SHOPPER
EXPERT

DIGITAL
EXPERT
VS.
MARKETING
TRADITIONALIST

MARKETING
PLANNING
IS A
COMBINATION OF
ART & SCIENCE

MARKETING
PLANNING
IS
A
DISCIPLINE

Intended Strategy
Deliberate StrategyUnrealized Strategy
Realized Strategy
Strategy is a plan: they are made in advance of the actions to
which they apply and they are developed consciously and
purposefully
Em
ergentStrategy
Source: Mintzberg H., The strategy concept I: Five Ps for Strategy, California Management Review 1987
Strategy is a pattern: the successful
approaches merge into a pattern of
action that becomes our strategy.
DIFFERENT APPROACHES FOR BUILDING A STRATEGY

TODAY, WE ARE IN A VUCA WORLD
VUCA: Volatile, Uncertain, Complex and Ambiguous

WE
ARE
IN A
NEW ERA

STRATEGIC PROCESS HAS BEEN SIMPLIFIED

DESIGN PROCESS IS NOW USED IN BUSINESS SCHOOL

TODAY, WE SHOULD BE LEAN & AGILE

WHY
DO YOU
NEED A
PLAN?

ADVANCED MASTER IN INNOVATION AND MANAGEMENT - STRATEGIC MARKETING- © Prof. L. Bouty 2015
REMEMBER…
19

Money
MONEY!

MARKETING IS A DEDICATED MIX OF ART
AND SCIENCE BUT THE ULTIMATE FOCUS
MUST ALWAYS BE THE BUSINESS
CMO.com (http://www.cmo.com/articles/2011/6/14/10-great-expectations-what-ceos-want-from-their-cmos.html)

MAIN ASSUMPTION OF THE METHODOLOGY
THE MARKETING PLANNING EXERCISE
SHOULD START FROM THE MAIN REASON
WE DO IT:
DELIVERING THE FINANCIAL OBJECTIVES
THUS ALL ELEMENTS OF THIS STRATEGIC
PROCESS SHOULD BE STRONGLY LINKED
WITH THESE FINANCIAL OBJECTIVES.

FINANCIAL OBJECTIVES
THE FINANCIAL OBJECTIVES ARE DETAILED
IN THE P&L:
REVENUE
COGS
OPEX
EBITDA
CAPEX
FCF

THE PROCESS
STEP 1 - START FROM COMPANY FINANCIAL OBJECTIVES
TOPICS ACTIONS
Group/Company objectives
(Constraints)
Revenue, Gross Margin, OPEX (People, Marketing budget, …),
EBITDA, CAPEX, FCF
Current Situation
(The Game)
WHO (Brand)

WHAT (Value Proposition + Price)

WHERE (Channels)

HOW (Cx, Conversations, Advocacy)

FOR (Financial Equation)
Find Growth
(Investigation)
What are the Brakes and Accelerators for growing users,
transactions and/or Prices?

Deﬁne Options
(Scenarios)
Option 1 - Generate Growth with the current situation

Continue As-Is

Option 2 - Generate Growth through improvement of current
situation (improve the game)

Improve VP, Price, Channels, Brand, Cx, Conversation

Option 3 - Generate Growth through extension of current
situation (extend the game)

Extend VP, Price, Channels, Brand, Cx, Conversation

Option 4 - Generate Growth through innovation (change the
game)

Innovate VP, Price, Channels, Brand, Cx, Conversation

Build Roadmap
Consolidate actions identiﬁed in Options in a consistent
roadmap:

GET (New Revenue), KEEP (Existing Revenue), USE (New
Transactions)

THE PROCESS
STEP 1 - START FROM COMPANY FINANCIAL OBJECTIVES
When you build your Marketing Plan, You
need to know what you are expected to
deliver at the end.

HOW
TO
PLAY
THE
GAME?

How do you make the link
between Company Objectives
and Marketing Initiatives?
QUESTION

PROFIT = PRICE - COST
SHAREHOLDER VALUE CREATION IS ABOUT THE
FUNDAMENTAL EQUATION

STEP 1 - CONSTRAINTS & OBJECTIVES
UNDERSTAND WHERE YOU PLAY AND YOUR OBJECTIVES
PRICE - COST = Proﬁt
Substitutes
Threat of entry Buyer power
--
Supplier power
Rivalry
-
-+-

Good Marketing Analysis
ties the details of strategy
to the ﬁnancial implications
Source: Barwise, P., Marsh, P., & Wensley, R. (1989). Must ﬁnance and strategy clash. Harvard
Business Review, (September-October), 85.

YOU NEED
AN EQUATION!!

!"# = % &'"!×)!*+'*,)-.+×/!-,"
AVG PRICE PER
TRANSACTION
# TRANSACTION PER YEAR PER
CUSTOMER
# CUSTOMERS
(or Users)
MY PROPOSAL

MY PROPOSAL
Revenue
Y0
U0,T0,P0
Users
Transactions
Price
Revenue
Y1
U1,T1,P1
Incremental revenue
due to user increase
∆UxT0xP0
Incremental revenue due to
transaction increase
U0x∆TxP0
Incremental revenue
due to price increase
U0xT0x∆P
Assumption: Second degree factors are considered not relevant

Marketers are focused
on being the
GROWTH
engine for the ﬁrm
source: Forbes CEO/CMO dilemma

MORE
USERS

USERS ARE IMPACTED BY DIFFERENT FACTORS
QUESTION TO ASK:
How is the evolution of our Customer Base?
Flat, (Rapid) Growth, (Rapid) Decrease
How can we get more users?
How can we loose less users?

MORE
TRANSACTIONS

TRANSACTIONS ARE IMPACTED BY DIFFERENT FACTORS
UP-SELL
CROSS-SELL ELASTICITY

HIGHER
PRICES

504 BRAND VALUATION
Price
Without a
strong brand
Volume
premium
Price
premium
Volume
With a
strong brand
Figure 18.1 What is ‘brand equity’?
PRICES ARE IMPACTED BY DIFFERENT FACTORS
OPTIONS
Be Honest, Thank you Customers, Explain
Your Costs, Add Features, Give a Lower-
Priced Option, Over-Delivered First, Add More
Value, Raide Prices for Reasons Other Than
Proﬁtability, Explain But Don’t Apologise,
Inform Your Customers

BUT
THE
BUDGET IS
NOT
UNLIMITED!

!"#$%& = ( )*!+×$+&-*&.$#/-×0+#.!1 − ./3*1 − /0!4
SO!
MAXIMIZEMore Users, More Transaction, Higher (Margin on) Price
MINIMIZEAutomation, Purchasing power, Channel
efﬁciency, Acquisition cost, Retention cost

HOW
TO
MAXIMIZE
THE
EQUATION?

You (BRAND)
ARE PROPOSING
Something (VP)
At a (PRICE)
To Someone (PERSONA)

You (BRAND)
ARE INTERACTING
Across (TOUCHPOINTS)
And having
(CONVERSATIONS)
With Someone (PERSONA)

YOU MARKETING
NEEDS FOUNDATION
BRAND VALUE
PROPOSITION
PRICE

YOU MARKETING
NEEDS INTERACTIONS
TOUCH-
POINTS
CONVER-
SATIONS
BRAND

THE PROCESS
STEP 2 - WHAT IS THE CURRENT SITUATION?
TOPICS ACTIONS
(Constraints)
EBITDA, CAPEX, FCF
Current Situation
(The Game)
WHO (Brand)


WHERE (Touchpoints)


Find Growth
(Investigation)

Deﬁne Options
(Scenarios)

Continue As-Is





game)


Build Roadmap
roadmap:

Transactions)

SO
THE
GAME
IS ?

WHO
(Brand)

WHAT

(Value Proposition + Prices)

WHERE

(Touchpoints)

HOW

(Cx, Conversations, Advocacy)

FOR

(Financial Equation)

BRAND
TOUCH-
POINTS
DESIGN
PAID
EARNED
OWNED
SHARED
PRODUCTS & SERVICES
GAIN CREATORS
FOUNDATIONSINTERACTIONS
DESIGN
CONVER-
SATIONS
VALUE
PROPOSITION
PRICES
PAIN RELIEVERS
PRICING MECHANISMS
COST STRUCTURES
MOMENT OF TRUTH
OMNICHANNEL
MICRO-MOMENTS
EXPERIENCES
PERSONAS
GROWTH HACKING
RETENTION
REVENUESOPEX, CAPEX

YOU
NEED
SOME
MODELS

YOU MARKETING
NEEDS FOUNDATION
BRAND VALUE
PROPOSITION
PRICE

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new_strategic_brand_aw:Layout 1 6/12/07 16:25 Page 1

PERSONAS, VP, BRAND AND PRICING
BRAND VP
The Value Proposition Canvas
Customer (Segment)
Profile:
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer strategyzer.com
Pains
Gains
Customer
Job(s)
Gain Creators
Pain Relievers
Products
& Services
Value (Proposition)
Map:
appearance is important but it is not all.
Nevertheless, the first step in developing a
brand is to define its physical aspect: What
is it concretely? What does it do? What
does it look like? The physical facet also
comprises the brand’s prototype: the
flagship product that is representative of
the brand’s qualities.
That is why the small round bottle is so
important each time Orangina is
launched in a new country. The bottle
used today is the same as it has always
been. From the beginning, it has served to
position Orangina, thanks to its unique
shape and to the orange pulp that we can
actually see. Only later was it marketed in
standard family-size PET bottles and in
cans. In this respect, it is also quite signif-
icant that there used to be a picture of the
famous Coca-Cola bottle on all Coke cans.
It is true that modern packaging tends to
standardise brands, making them all
clones of one another. Thus, in using the
image of its traditional bottle, Coca-Cola
aims to remind us of its roots.
There are several delicate issues
regarding Coke’s physical facet. For
example, is the dark colour part of its
identity? It is certainly a key contributor
to the mystery of the brand. If it belongs
to the brand’s kernel, key identity traits,
then there could never be any such thing
as colourless Crystal Coke, even though
there is such a thing as Crystal Pepsi.
Likewise, would grapefruit Orangina in
the classic round bottle be possible?
Many brands have problems with their
physical facet because their functional
added value is weak. Even an image-based
brand must deliver material benefits.
Brands are two-legged value-adding
systems.
2. A brand has a personality. By communi-
cating, it gradually builds up character.
The way in which it speaks of its products
or services shows what kind of person it
would be if it were human.
‘Brand personality’ has been the main
focus of brand advertising since 1970.
BRAND IDENTITY AND POSITIONING 183
PICTURE OF SENDER
PICTURE OF RECIPIENT
Relationship Culture
Reflection
Physique Personality
Self-image
EXTERNALISATION
INTERNALISATION
gure 7.4 Brand identity prism
FIT
PERSONASFOUNDATIONS

YOU MARKETING
NEEDS INTERACTIONS
TOUCH-
POINTS
CONVER-
SATIONS
BRAND

CHANNELS BECOME EXPERIENCES (CX)
COMMUNICATION BECOMES CONVERSATION (POSE)
POE stands for Paid, Owned and Earned
ExperiencingPre-Arrival Post-Check Out
PLANNING BOOKING TRAVELING CHECK IN DINING GAMING SHOPPING ENTERTAINMENT RELAXING IN ROOM CHECK OUT TRAVELING SHARING PLANNING
EXCITEMENT
SURPRISE
EMPOWERED
OVERWHELMING
FRUSTRATION
INTENSITY

Touch points copyright: Strategyzer AG
Pains
Gains
Customer
Job(s)
Brand Experience
Channels
Conversations
Pains, Gains, Jobs
Alternatives (Competition, Substitution)
Brand Proposition (Externalisation, Internalisation)
Service Level Agreement vs Competition
Doing, Thinking, Feeling
On-line, Off-line
Static, Mobile
Direct & Indirect
Human, Automated
Paid, Owned, Earned, Shared
Stories
Von Restorff effect
Advocacies

@ia
The New Consumer Decision Journey
via Google ZMOT 2012

morville@semanticstudios.com
60

QUESTION
Can I deliver growth
with the current
situation?

STEP 3 - INVESTIGATION
UNDERSTAND CONTRIBUTION OF EACH ELEMENTS
REV USER TRANSACTION REV/TRANS.
BRAND
VP
PRICE
CHANNELS
CONVERSATION
FOUNDATIONS
INTERACTIONS
{
{
Accelerators
Brakes

STEP 3 - SCENARIOS FOUNDATIONS
WHAT SHOULD BE CHANGED IN THE FOUNDATIONS?
BRAND VP
Customer (Segment)
Profile:
Pains
Gains
Customer
Job(s)
Gain Creators
Pain Relievers
Products
& Services
Value (Proposition)
Map:
appearance is important but it is not all.
Nevertheless, the first step in developing a
brand is to define its physical aspect: What
is it concretely? What does it do? What
does it look like? The physical facet also
comprises the brand’s prototype: the
flagship product that is representative of
the brand’s qualities.
That is why the small round bottle is so
important each time Orangina is
launched in a new country. The bottle
used today is the same as it has always
been. From the beginning, it has served to
position Orangina, thanks to its unique
shape and to the orange pulp that we can
actually see. Only later was it marketed in
standard family-size PET bottles and in
cans. In this respect, it is also quite signif-
icant that there used to be a picture of the
famous Coca-Cola bottle on all Coke cans.
It is true that modern packaging tends to
standardise brands, making them all
clones of one another. Thus, in using the
image of its traditional bottle, Coca-Cola
aims to remind us of its roots.
There are several delicate issues
regarding Coke’s physical facet. For
example, is the dark colour part of its
identity? It is certainly a key contributor
to the mystery of the brand. If it belongs
to the brand’s kernel, key identity traits,
then there could never be any such thing
as colourless Crystal Coke, even though
there is such a thing as Crystal Pepsi.
Likewise, would grapefruit Orangina in
the classic round bottle be possible?
Many brands have problems with their
physical facet because their functional
added value is weak. Even an image-based
brand must deliver material benefits.
Brands are two-legged value-adding
systems.
2. A brand has a personality. By communi-
cating, it gradually builds up character.
The way in which it speaks of its products
or services shows what kind of person it
would be if it were human.
‘Brand personality’ has been the main
focus of brand advertising since 1970.
BRAND IDENTITY AND POSITIONING 183
PICTURE OF SENDER
PICTURE OF RECIPIENT
Relationship Culture
Reflection
Physique Personality
Self-image
EXTERNALISATION
INTERNALISATION
gure 7.4 Brand identity prism
1. OBSERVATION OF PERSONAS
2. FIT BETWEEN PERSONAS AND
FOUNDATIONS
3. CONSISTENCY BETWEEN ELEMENTS
4. SIMPLICITY (Ockham’s razor)
5. MAXIMIZATION OF FINANCIAL
EQUATION (U,T, P)
FIT
PERSONASFOUNDATIONS
External environment is a constraint

STEP 4 - SCENARIOS AMPLIFICATIONS
WHAT SHOULD BE CHANGED IN THE INTERACTIONS?
McKinsey Quarterly 2009 Number 32
and more complicated than the funnel suggests. We call this approach
the consumer decision journey. Our thinking is applicable to any
geographic market that has different kinds of media, Internet access,
and wide product choice, including big cities in emerging markets
such as China and India.
We developed this approach by examining the purchase decisions of
almost 20,000 consumers across five industries and three continents.
Our research showed that the proliferation of media and products
requires marketers to find new ways to get their brands included in
the initial-consideration set that consumers develop as they begin
their decision journey. We also found that because of the shift away
from one-way communication—from marketers to consumers—
Exhibit 1 of 4
Glance: In the traditional funnel metaphor, consumers start with a set of potential brands and
methodically reduce that number to make a purchase.
Exhibit title: The traditional funnel
Awareness Familiarity Consideration Purchase Loyalty
Exhibit 1
The traditional funnel
ExperiencingPre-Arrival Post-Check Out
PLANNING BOOKING TRAVELING CHECK IN DINING GAMING SHOPPING ENTERTAINMENT RELAXING IN ROOM CHECK OUT TRAVELING SHARING PLANNING
EXCITEMENT
SURPRISE
EMPOWERED
OVERWHELMING
FRUSTRATION
INTENSITY
1. JOURNEY MAPPING
2. YOUR BRAND SLA AT EACH
TOUCHPOINT
3. CHANNEL EXECUTION AT EACH
TOUCHPOINT
4. CONVERSATIONS AT EACH
TOUCHPOINTS
5. OMNI-CHANNEL (ALIGNMENT)
6. CONVERSION BETWEEN
CHANNELS

THE PROCESS
STEP 3 - INVESTIGATION
TOPICS ACTIONS
(Constraints)
EBITDA, CAPEX, FCF
Current Situation
(The Game)
WHO (Brand)


WHERE (Touchpoints)


Find Growth
(Investigation)

Deﬁne Options
(Scenarios)

Continue As-Is





game)


Build Roadmap
roadmap:

Transactions)

4 OPTIONS
As Is
Improve
Extend
Innovate

STEP 3 - OPTIONS
FIND GROWTH
REV AS IS IMPROVE EXTEND INNOVATE
BRAND
Reach
Objectives
with
current
game
Reach
Objectives
by
improving
current
game
Reach
Objectives
by
extending
current
game
Reach
Objectives
by
changing
the game
VP
PRICE
CHANNELS
CONVERSATION

IMPROVEMENT EXTENSION INNOVATION
77
EXAMPLE

THE PROCESS
STEP 4 - OPTIONS
TOPICS ACTIONS
(Constraints)
EBITDA, CAPEX, FCF
Current Situation
(The Game)
WHO (Brand)


WHERE (Touchpoints)


Find Growth
(Investigation)

Deﬁne Options
(Scenarios)

Continue As-Is





game)


Build Roadmap
roadmap:

Transactions)

BUILD
a plan with your
actions

Strategies Targets
Business
Measures
Initiatives
Continue
Strong Growth Increase Sales
500 million
by 2008
• Conduct on-line training for
every rep (Q1)
• Change compensation
System (Q3)
Description of
your strategic
choice
How this will
be
measured
and tracked
Expected
performance /
Improvement
Level
What We Will Do to
Achieve This
Performance /
Improvement Level
80
STEP 5 - ROADMAP
DEFINE YOUR ROADMAP AND BUDGET

Strategies Targets
Business
Measures
Continue
Strong
Growth
Increase Sales
Report Annualised
Proﬁts
Gain Market share
500 million by 2012
50 million by 2012
33% of Our Market
Segment by End of 2012
81
STEP 5 - ROADMAP
DEFINE YOUR ROADMAP AND BUDGET

THE PROCESS
STEP 5 - ROADMAP
TOPICS ACTIONS
(Constraints)
EBITDA, CAPEX, FCF
Current Situation
(The Game)
WHO (Brand)


WHERE (Touchpoints)


Find Growth
(Investigation)

Deﬁne Options
(Scenarios)

Continue As-Is





game)


Build Roadmap
roadmap:

Transactions)

DIGITAL
is not a strategy!

DIGITAL FOR BUSINESS IS LIKE WATER FOR FISH!
YOU CAN’T SURVIVE WITHOUT IT

THE
PROCESS

BRAND
TOUCH-
POINTS
DESIGN
PAID
EARNED
OWNED
SHARED
PRODUCTS & SERVICES
GAIN CREATORS
FOUNDATIONSINTERACTIONS
DESIGN
CONVER-
SATIONS
VALUE
PROPOSITION
PRICES
PAIN RELIEVERS
PRICING MECHANISMS
COST STRUCTURES
MOMENT OF TRUTH
OMNICHANNEL
MICRO-MOMENTS
EXPERIENCES
PERSONAS
GROWTH HACKING
RETENTION
REVENUESOPEX, CAPEX

THE PROCESS
TOPICS ACTIONS
(Constraints)
EBITDA, CAPEX, FCF

Brand equity
Current Situation
(The Game)
WHO (Brand)


WHERE (Channels)


Find Growth
(Investigation)

Deﬁne Options
(Scenarios)

Continue As-Is





game)


Build Roadmap
roadmap:

Transactions)

AND DON’T
FORGET!

DO THE
BASICS,RIGHT

Marketing is my passion. I am Academic
Director at Solvay Brussels Schools in
Belgium where I teach Strategy and
Marketing.
I am a CMO veteran. I have managed large
teams and budgets in real life (not only
academic) where I learned the hard way!
I am interested in your views to make this
approach better.
Join me on:
Twitter @lbouty
Facebook: Laurent Bouty
Email: laurent@bouty.net
Blog: www.bouty.net

How to build a marketing plan 2015

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