Tuesday, January 14, 2014

MARKETING TACTICS PLANNING TOOL


In December I introduced a process for developing marketing strategies.

The example given assumed that a newspaper organization developing a marketing strategy existed.

The process in the example began with a situation analysis to identify the state of the market environment, potential market disruptions and potential market opportunities.  The example then used the information to develop strategies for price, place, product and promotion. These strategies were then placed in an Organizational Impact Chart to show the impact of the strategies on the organization’s workforce, cash requirements, operating procedures and capital equipment requirements.  The impact chart is shown below.

Organizational Impact Chart

PRODUCT - Focus on local and regional news coverage, develop products for conversion of print products including digital preprints, develop customized news and information delivery capabilities and software applications. Develop classified free digital classified ads with a print up grade.

PRICE– Low cost for all digital products and cost based pricing for print products. Preprint delivery would be priced to compete with “marriage mail” products


PLACE - Print products delivered with long-term plan to convert to digital delivery. Preprint delivery would be by news carrier or post office with long-term plan to convert to digital delivery.

PROMOTION– emphasize local news and shopping information, original content, and classified ads with impact. For advertisers, emphasize low cost per reach.
WORKFORCE
Content stringers, mixed with employees for content. Internal sales staff.

High productivity for staff through technology
Outsource and contract for printing and distribution.
Internal brand manager. Outsource ad campaigns.
CASH REQUIREMENTS
Minimize fixed expenses for facilities etc.
Cash flows maximized
Distribution costs below revenues.
Utilize efficient promotions but have constant market pressure
OP. PROCEDURES
High use of technology and outsourcing
High use of technology and outsourcing
High use of technology and outsourcing
High use of technology and outsourcing
CAP. EQUIP. REQUIREMENTS
Outsource software development and lease equipment.
Outsource software development and lease equipment.
Outsource software development and lease equipment.
Outsource software development and lease equipment.



The blog goes on to say that after the development of the strategy and the Organizational Impact Chart the strategist can then develop tactics and a comprehensive plan.

This left the reader in a bit of a lurch for implementing the most difficult elements of executing a marketing strategy. The Organizational Impact Chart shows how the various strategies must work in concert with the organizations resources but this chart does not indicate how the organization should plan, organize direct and control the resources for a successful implementation.

Since the execution of a successful marketing strategy must have all elements of strategy, organizational resources and management actions in concert, it is useful to have a chart that acts as a checklist to insure that all of the elements are accounted for and provide a quick check to make certain all of the actions are in concert.

Below is an example of how a marketing tactics planning chart would look.

Marketing Tactics Planning Chart

PRODUCT
PRICE
PLACE
PROMOTION
WORKFORCE PLAN
Content stringers, mixed with employees for content. Internal sales staff. Outsource printing.
High productivity for staff through technology
Outsource and contract for distribution.
Internal brand manager. Outsource ad campaigns.
WORKFORCE ORGANIZATION
DEVELOP PROGRAM TO ENCOURAGE STRINGERS TO FIND COMPELLING LOCAL AND REIGIONAL STORIES. INTERNAL SALES STAFF STRUCTRED BY CUSTOMER SEGMENT
CONTRACTORS are given a set price for articles.

Sales force commissions are focused on achieving sales goals. Inability to meet sales goals results in reduced pay.
Printing outsourced to quality printers based on bid process and guarantee of press time.  Alternate printers would be available for overflows and emergencies.

Distribution contractors bids for delivery area would be awarded based on rate and quality.
Brand manager would find a mix of media to meet goals within prescribed budget.
WORKFORCE PROCEDURES
DEVELOP STANDARDS OF PERFORMANCE FOR CONTRACTORS AND EMPLOYEES.
DEVELOP STANDARDS OF PERFORMANCE FOR CONTRACTORS AND EMPLOYEES.
DEVELOP STANDARDS OF PERFORMANCE FOR CONTRACTORS AND EMPLOYEES.
DEVELOP STANDARDS OF PERFORMANCE FOR CONTRACTORS AND EMPLOYEES.
WORKFORCE CONTROLS
DEVELOP METRICS TO EVALUATE WORKFORCE PRODUCTIVITY AND SUCCESS. EG. SALES PER PERSON, ARTICLES PER WEEK ETC.
DEVELOP METRICS TO EVALUATE WORKFORCE PRODUCTIVITY AND SUCCESS.. EG. SALES PER PERSON, ARTICLES PER WEEK ETC.
DEVELOP METRICS TO EVALUATE WORKFORCE PRODUCTIVITY AND SUCCESS. EG. COST PER PAGE, COST PER ADDRESS DELIVERED.
DEVELOP METRICS TO EVALUATE WORKFORCE PRODUCTIVITY AND SUCCESS.. NEW CUSTOMERS PER PROMOTION.
CASH PLAN
CASH NEEDED TO COVER OPERATING COSTS, OPERATING FACILITIES AND CAPITAL EXPENDUTURES
USE DISCOUNTS FOR EARLY PAYMENT AND PENALTIES FOR SLOW PAYMENTS. NEGOTIATEVENDOR PAYMENTS THAT ALLOW CASH COLLECTIONS TO COVER PAYMENTS
LONG TERM LEASE FOR OFFICES. PURCHASE OF CENTRAL OFFICE IF BETTER USE OF CASH
PRODUCTION COSTS INCLUDED IN PROMO EXPENSE. NEGOTIATE FOR MEDIA RATES USE TRADE OUT IF POSSIBLE.
CASH ORGANIZATION
ALL RECEIPTS AND VENDOR PMTS MADE THROUGH CENTRAL BANK
ALL RECEIPTS AND VENDOR PMTS MADE THROUGH CENTRAL BANK
ALL RECEIPTS AND VENDOR PMTS MADE THROUGH CENTRAL BANK
ALL RECEIPTS AND VENDOR PMTS MADE THROUGH CENTRAL BANK
CASH PROCEDURES
INVOICES APPROVED BY OPERATING MANAGER, SUBMITTED TO AP FOR PMT. LOCK BOX FOR CUSTOMER PMTS
INVOICES APPROVED BY OPERATING MANAGER, SUBMITTED TO AP FOR PMT. LOCK BOX FOR CUSTOMER PMTS
INVOICES APPROVED BY OPERATING MANAGER, SUBMITTED TO AP FOR PMT. LOCK BOX FOR CUSTOMER PMTS
INVOICES APPROVED BY OPERATING MANAGER, SUBMITTED TO AP FOR PMT. LOCK BOX FOR CUSTOMER PMTS
CASH CONTROLS
PERFORMANCE METRICS – PROFIT/UNIT, NET CASH FLOWS ETC.
METRICS – MARK UP /PRODUCT,  PROFIT/UNIT, SALES VOLUME.
REV./SQ.FT., COST/SQ.FT. ETC.

Cost/customer delivery vs. rev/ customer delivery
SALES VOLUME CHANGE PER  $ OF MEDIA EXPENDITURE, SURVEYS TO MEASURE IMPACT



SYSTEMS PLAN
Financial and MIS reporting
Financial and MIS reporting
Financial and MIS reporting
Financial and MIS reporting
SYSTEMS ORGANIZATION
Departments prepare reports for mgt each month
Departments prepare reports for mgt each month
Departments prepare reports for mgt each month
Departments prepare reports for mgt each month
SYSTEMS PROCEDURES
Departments prepare reports for mgt each month
Departments prepare reports for mgt each month
Departments prepare reports for mgt each month
Departments prepare reports for mgt each month
SYSTEMS CONTROLS
Financial, MIS and performance metrics reviewed each month
Financial, MIS and performance metrics reviewed each month
Financial, MIS and performance metrics reviewed each month
Financial, MIS and performance metrics reviewed each month
EQUIPMENT PLAN
Lease major equipment, purchase small equipment
Lease major equipment, purchase small equipment
Lease major equipment, purchase small equipment
Lease major equipment, purchase small equipment
EQUIPMENT ORGANIZATION
By department
By department
By department
By department
EQUIPMENT PROCEDURES
Defined by dept. mgt and approved by senior mgt.
Defined by dept. mgt and approved by senior mgt.
Defined by dept. mgt and approved by senior mgt.
Defined by dept. mgt and approved by senior mgt.
EQUIPMENT CONTROLS
R&M costs vs. revenue production, Rev/FTE, Cost/Unit
R&M costs vs. revenue production, Rev/FTE, Cost/Unit
R&M costs vs. revenue production, Rev/FTE, Cost/Unit
R&M costs vs. revenue production or brand impact.






This is a simple example but gives you an idea of how to use this tool to keep the strategic marketing process on target and when completed have a document that can guide the implementation process.

As I have mentioned before, the marketing process begins with an objective, then strategy development then the development of tactics. The tools presented in the December blog and here can help a strategist keep all aspects of strategy and tactics development in concert. When in concert the execution will be more effective and the objective has the best chance of being realized.

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