Marketing Navigation:
Marketing Navigation: How to keep your marketing plan on course Edmund Bradford, Director, Malcolm McDonald Marketing Ltd. Steve Erickson, VP Strategic Marketing, Parker Hannifin
ISBM Webinar, January 15, 2013
1
Ships leaving Gibraltar
1 2
3
Ships wrecked on rocks
3 4
Implementation is a perilous journey How often does your organization’s marketing plan hit its key targets? All the time
8.5%
Most of the time 38.6%
52.9%
Some of the time Rarely Never
Source: Survey of 84 senior executives in 70 different organizations across 17 countries, 2011, Bradford & Erickson 5
A multi-billion dollar issue
13% 6
$50 B
Implementation failure
7
Two types of risk
Commercial risk
8
Commitment risk
Borrowing brilliance Project Management • Gantt Charts • Budget Analysis
Physics/Science • Sense & respond
Engineering • Process thinking • Spiral up • FMEA Business Games • Strategy stress testing Strategic Marketing • Planning process • Ansoff strategy risks • Internal marketing • Marketing due diligence
9
Marketing Navigation
Change Management & Leadership • Kotter’s principles • Force-field analysis • Change loop
Key Account Management • Relationship Mapping • Commitment Assessment Entrepreneurship • Dynamic implementation testing
Commitment risk
-5
-4
-3
Low Commitment
10
-2
-1
0
+1
+2
+3
+4
+5
High Commitment
Commercial risk The Ansoff Matrix
Products/Services Existing Low Risk
Existing
New Moderate Risk
Market Penetration
Product Development
Market Development
Diversification
Markets New
Moderate Risk
11
High Risk
“Marketing FMEA” Sense and Respond
Strategic Account Management
12
Engineering
The Risk–Commitment Matrix Danger
Risk Alert
Plan correction required
High
Risk correction required
!
Risk (Commercial risk)
Low Commitment Alert Commit. correction required
Low 13
On course Full speed ahead
High
Commitment (Commitment risk)
Implementation phases • Four Phases – Plan
– Pilot
Refine
Plan Test
– Rollout – Refine
• Continuous testing 14
Rollout
Pilot
The Marketing Navigation Dashboard Implementation Dashboard
Plan/Project:
Plan Date:
Owner:
Revision:
On Course?
• Shows whether your plan is on course, on time and on budget
• Provides a GPS fix of your current position
Action
Who?
When?
Complete?
!
Risk
• Straight-forward, scalable, practical
Key Actions
5.0
3.0
On Course 1.0 -5.0
0.0
5.0
Commitment Updated:
Risk
Commitment
Start of Year 1
4.0
-2.5
Helm Phase
On Time? Yes
Refine
Plan Test
On Budget?
Roll-out
Pilot
Yes
Top Risk Issues No.
Risk
Desired State
Strategy
Test
Current Status
Rating
R1 R2 R3 R4 R5
Score
• All on one page
4.0
Top Commitment Issues No.
Desired State
Stakeholders
Strategy
Test
Current Status
Rating
C1 C2 C3 C4 C5
Score
15
-2.5
Parker example
16
Commercial Risk No.
Risk
Desired State
Strategy
Test
Current Status
Rating
Specifications
Meets or exceeds all requirements
Carefully integrate Parker products to optimize the performance of the OEM's equipment.
Confirmation by Parker systems Pending engineer that this can be accomplished.
4
R2
Pricing & warranty
Competitive at a systems level assuming that will get premium for Parker quality and overall support.
Set pricing and warranty so is competitive at systems level, but more expensive if OEM breaks up into individual component levels.
Confirmation by Sales Team that this is possible.
Pending
4
R3
Engineering assistance for OEM
Parker's engineering assistance level exceeds that of competitors.
Assemble technical team coordinated by Parker KAM.
Verbal agreement to this approach by Parker divisions and sales teams.
Pending
4
R4
Technical assistance at End User plant
End User is comfortable with Parker's ability to provide technical assistance for OEM's equipment in the field.
Jointly develop end user Verbal agreement to this approach by technical assistance plan with Parker distributors covering end user Parker distibutors located near plant. End User plant.
Pending
4
R1
Score
17
4.0
Commitment Risk No.
Desired State
Stakeholders
Strategy
Test
Current Status
Rating
OEM Management committed to Parker General Manager solution
Build confidence in 1:1 meetings that partnering with Parker is the best way to Informal verbal support expressed ensure on time and on budget performance for OEM's equipment.
Meeting pending
1
C2
OEM Purchasing committed to Parker Purchasing Manager solution
Build confidence in 1:1 meetings that a Parker systems solution will provide an overall advantage when volume Informal verbal support expressed pricing, system warranties, technical support and logistics are considered.
Meeting pending
1
C3
OEM Engineering committed to Parker Engineering Manager solution
Build confidence in 1:1 meetings that partnering with Parker is the best way to Informal verbal support expressed ensure the technical performance of the OEM's equipment.
Meeting pending
-1
C4
Parker Sales Team unified and committed to the project
Field sales team (all Groups)
Setup field sales team meeting with all groups to emphasize that everyone has a better Informal consensus achieved chance to succeed if we work closely together as "One Parker."
Meeting pending
1
C5
Parker Sales Executives committed to the project
Sales VPs from all relevant groups
Build confidence in 1:1 meetings that everyone has a better chance to succeed if we Informal verbal support expressed work closely together as "One Parker."
Will approach after reach concensus with sales team.
0
C1
Score
18
0.4
Phase 1: Plan Implementation Dashboard
Plan/Project: OEM System Solution Owner: Steve Erickson
On Course?
Revision: 1.0
Key Actions
5.0
Action
!
Risk
Plan Date: Start of Year 1
Who?
When?
Complete?
Meet with Parker sales team.
Steve
Month 1
No
Meet with Parker sales executives.
Steve
Month 1
No
Meet with OEM plant manager and purchasing manager.
Steve, John, Ron
Month 1
No
Meeting with OEM management team.
Steve, John, Ron
Month 1
No
Meet with Parker distributors near End User plant.
Steve, Ron
Month 2
No
Meet with maintenance manager at End User Plant.
Steve, Ron
Month 2
No
Meeting with engineering support team at End User Asian HQ.
Steve, Ron, Chris
Month 2
No
3.0
On Course 1.0
-5.0
0.0
5.0
Commitment Updated:
Risk
Commitment
Start of Year 1
4.0
0.4
Helm Phase
On Time? Yes
On time at this point, but must scheduled meetings carefully. Refine
On Budget? Yes
19
Plan
Test Roll-out
No budget issues at this point.
Pilot
Phase 2: Pilot Implementation Dashboard
Plan/Project: OEM System Solution Owner: Steve Erickson
On Course?
Revision: 1.0
Key Actions
5.0
Action
!
Risk
Plan Date: Start + 4 Months
Who?
When?
Complete?
Meet with OEM GM to review systems concept.
Steve, Ron, John
Month 3
Yes
Meet with OEM Purchasing to review pricing and warranty proposal.
Steve, Ron, John
Month 3
Yes
Complete testing of Parker power units.
Division engineering
Month 3
No
Finalize Parker technical support team.
Steve, Ron, John
Month 3
No
Meet with distributors to develop support plan.
Steve, Ron
Month 3
No
Meet with End User HQ in Asia
Steve, Ron
Month 4
No
3.0
On Course 1.0
-5.0
0.0
5.0
Commitment Updated:
Risk
Commitment
Start + 4 Months
2.0
2.2
Helm Phase
On Time? Yes
Just starting; all is well. Refine
On Budget? Yes
20
Plan Test
Roll-out
No budget issues at this point.
Pilot
Phase 3: Rollout Implementation Dashboard
Plan/Project: OEM System Solution Owner: Steve Erickson
On Course?
Revision: 1.0
Key Actions
5.0
!
Risk
Plan Date: Start + 6 Months
3.0
Action
Who?
When?
Complete?
Arrange Parker engineer to be stationed at OEM.
Ron
Month 5
Yes
Arrange staging location for shipments.
John
Month 5
Yes
Develop and implement delivery tracking method.
John
Month 6
Yes
Meet with End User plant maintenance supervisor.
Steve, Ron
Month 6
Yes
Meet with Parker distributor near End User plant
Steve, Ron
Month 6
Yes
On Course 1.0
-5.0
0.0
5.0
Commitment Updated:
Risk
Commitment
Start + 6 Months
2.0
2.8
Helm Phase
On Time? Yes
Meeting delivery schedules Refine
On Budget? Yes
21
Plan Test
Roll-out
No budget issues
Pilot
Phase 4: Refine Plan/Project: OEM System Solution
Implementation Dashboard
Owner: Steve Erickson
On Course?
Revision: 1.0
Key Actions
5.0
!
Risk
Plan Date: Start of Year 2
Action
Who?
When?
Complete?
Meeting with Parker sales management regarding approval for assignments.
Steve, Ron
Month 1
Yes
End User/Distributor visits by field sales.
Field Sales
Month 3
No
Quaterly report and follow up with Parker stakeholders by KAM.
KAM
Month 3
No
OEM visit by KAM
KAM
Month 3
No
End User/Distributor visits by field sales.
Field Sales
Month 5
No
Quaterly report and follow up with Parker stakeholders by KAM.
KAM
Month 5
No
OEM visit by KAM
KAM
Month 5
No
End User/Distributor visits by field sales.
Field Sales
(Repeat)
Quaterly report and follow up with Parker stakeholders by KAM.
KAM
(Repeat)
OEM visit by KAM
KAM
(Repeat)
3.0
On Course 1.0
-5.0
0.0
5.0
Commitment Updated:
Risk
Commitment
Start of Year 2
3.0
1.0
Helm Phase
On Time? Yes
OEM equipment has been delivered to the End User. Only maintenance and support issues remain until time for the next equipment order. Refine
On Budget? Yes
22
Plan Test
Roll-out
There are no budget challenges at this time.
Pilot
The results • Before implementation: – Parker was an "also ran" supplier, – OEM was second or third in the industry
• After implementation: – – – –
23
Parker wins the lion's share of their business Developed a strong partnership relationship Became a multi-million dollar sales success story for Parker Enabled OEM & Parker to become major players in the industry
The change strategy is key
24
Testing with a simulator
Greenworld Marketing Plan Period: Period 1 to Period 6 (the next three years)
Market: The food and drink market
Contents: Goals
Mission Statement
Situation Review
Summary of Past Performance Financial Projections Market Overview
Scope:
All food and drink sold direct to consumers for home consumption
SWOT Strategy
Competitor Profile Portfolio Summary Assumptions Marketing Sales Objectives Marketing Profit Objectives Product Group Analysis Marketing Strategies (Ansoff)
Resources & Monitoring
Resources Actions
Plan Owner:
Last Updated :
Name: Chris Sharp
Date:
Location: London, UK
Start of Period 1
Version: 3.3
Telephone: +44 (0)20 800 351
Currency: £ Sterling
email: [email protected]
Measurement & Review © 2012 Malcolm McDonald and Edmund Bradford Adapted from: Marketing Plans, How to Prepare Them, How to Use Them, 6th Edition by Professor Malcolm McDonald (published by Butterworth-Heinemann)
25
The leadership triangle The C-Suite
Business Leadership Change Leadership
The Marketing Function
Marketing Leadership
Planning 26
Implementation
Now what? • Read the book
• Use the tools • Practice the ideas • Improve implementation • Share your experience 27
In summary Stormy conditions lie ahead. Great marketing leaders will need reliable navigational aids to ensure the success of their plans.
28
Thank you Ed Bradford [email protected] Steve Erickson [email protected] Professor Malcolm McDonald [email protected]
www.marketingnavigation.com Email: [email protected] for discounted copies of the book 29
ISBM Webinar, January 15, 2013
1
Ships leaving Gibraltar
1 2
3
Ships wrecked on rocks
3 4
Implementation is a perilous journey How often does your organization’s marketing plan hit its key targets? All the time
8.5%
Most of the time 38.6%
52.9%
Some of the time Rarely Never
Source: Survey of 84 senior executives in 70 different organizations across 17 countries, 2011, Bradford & Erickson 5
A multi-billion dollar issue
13% 6
$50 B
Implementation failure
7
Two types of risk
Commercial risk
8
Commitment risk
Borrowing brilliance Project Management • Gantt Charts • Budget Analysis
Physics/Science • Sense & respond
Engineering • Process thinking • Spiral up • FMEA Business Games • Strategy stress testing Strategic Marketing • Planning process • Ansoff strategy risks • Internal marketing • Marketing due diligence
9
Marketing Navigation
Change Management & Leadership • Kotter’s principles • Force-field analysis • Change loop
Key Account Management • Relationship Mapping • Commitment Assessment Entrepreneurship • Dynamic implementation testing
Commitment risk
-5
-4
-3
Low Commitment
10
-2
-1
0
+1
+2
+3
+4
+5
High Commitment
Commercial risk The Ansoff Matrix
Products/Services Existing Low Risk
Existing
New Moderate Risk
Market Penetration
Product Development
Market Development
Diversification
Markets New
Moderate Risk
11
High Risk
“Marketing FMEA” Sense and Respond
Strategic Account Management
12
Engineering
The Risk–Commitment Matrix Danger
Risk Alert
Plan correction required
High
Risk correction required
!
Risk (Commercial risk)
Low Commitment Alert Commit. correction required
Low 13
On course Full speed ahead
High
Commitment (Commitment risk)
Implementation phases • Four Phases – Plan
– Pilot
Refine
Plan Test
– Rollout – Refine
• Continuous testing 14
Rollout
Pilot
The Marketing Navigation Dashboard Implementation Dashboard
Plan/Project:
Plan Date:
Owner:
Revision:
On Course?
• Shows whether your plan is on course, on time and on budget
• Provides a GPS fix of your current position
Action
Who?
When?
Complete?
!
Risk
• Straight-forward, scalable, practical
Key Actions
5.0
3.0
On Course 1.0 -5.0
0.0
5.0
Commitment Updated:
Risk
Commitment
Start of Year 1
4.0
-2.5
Helm Phase
On Time? Yes
Refine
Plan Test
On Budget?
Roll-out
Pilot
Yes
Top Risk Issues No.
Risk
Desired State
Strategy
Test
Current Status
Rating
R1 R2 R3 R4 R5
Score
• All on one page
4.0
Top Commitment Issues No.
Desired State
Stakeholders
Strategy
Test
Current Status
Rating
C1 C2 C3 C4 C5
Score
15
-2.5
Parker example
16
Commercial Risk No.
Risk
Desired State
Strategy
Test
Current Status
Rating
Specifications
Meets or exceeds all requirements
Carefully integrate Parker products to optimize the performance of the OEM's equipment.
Confirmation by Parker systems Pending engineer that this can be accomplished.
4
R2
Pricing & warranty
Competitive at a systems level assuming that will get premium for Parker quality and overall support.
Set pricing and warranty so is competitive at systems level, but more expensive if OEM breaks up into individual component levels.
Confirmation by Sales Team that this is possible.
Pending
4
R3
Engineering assistance for OEM
Parker's engineering assistance level exceeds that of competitors.
Assemble technical team coordinated by Parker KAM.
Verbal agreement to this approach by Parker divisions and sales teams.
Pending
4
R4
Technical assistance at End User plant
End User is comfortable with Parker's ability to provide technical assistance for OEM's equipment in the field.
Jointly develop end user Verbal agreement to this approach by technical assistance plan with Parker distributors covering end user Parker distibutors located near plant. End User plant.
Pending
4
R1
Score
17
4.0
Commitment Risk No.
Desired State
Stakeholders
Strategy
Test
Current Status
Rating
OEM Management committed to Parker General Manager solution
Build confidence in 1:1 meetings that partnering with Parker is the best way to Informal verbal support expressed ensure on time and on budget performance for OEM's equipment.
Meeting pending
1
C2
OEM Purchasing committed to Parker Purchasing Manager solution
Build confidence in 1:1 meetings that a Parker systems solution will provide an overall advantage when volume Informal verbal support expressed pricing, system warranties, technical support and logistics are considered.
Meeting pending
1
C3
OEM Engineering committed to Parker Engineering Manager solution
Build confidence in 1:1 meetings that partnering with Parker is the best way to Informal verbal support expressed ensure the technical performance of the OEM's equipment.
Meeting pending
-1
C4
Parker Sales Team unified and committed to the project
Field sales team (all Groups)
Setup field sales team meeting with all groups to emphasize that everyone has a better Informal consensus achieved chance to succeed if we work closely together as "One Parker."
Meeting pending
1
C5
Parker Sales Executives committed to the project
Sales VPs from all relevant groups
Build confidence in 1:1 meetings that everyone has a better chance to succeed if we Informal verbal support expressed work closely together as "One Parker."
Will approach after reach concensus with sales team.
0
C1
Score
18
0.4
Phase 1: Plan Implementation Dashboard
Plan/Project: OEM System Solution Owner: Steve Erickson
On Course?
Revision: 1.0
Key Actions
5.0
Action
!
Risk
Plan Date: Start of Year 1
Who?
When?
Complete?
Meet with Parker sales team.
Steve
Month 1
No
Meet with Parker sales executives.
Steve
Month 1
No
Meet with OEM plant manager and purchasing manager.
Steve, John, Ron
Month 1
No
Meeting with OEM management team.
Steve, John, Ron
Month 1
No
Meet with Parker distributors near End User plant.
Steve, Ron
Month 2
No
Meet with maintenance manager at End User Plant.
Steve, Ron
Month 2
No
Meeting with engineering support team at End User Asian HQ.
Steve, Ron, Chris
Month 2
No
3.0
On Course 1.0
-5.0
0.0
5.0
Commitment Updated:
Risk
Commitment
Start of Year 1
4.0
0.4
Helm Phase
On Time? Yes
On time at this point, but must scheduled meetings carefully. Refine
On Budget? Yes
19
Plan
Test Roll-out
No budget issues at this point.
Pilot
Phase 2: Pilot Implementation Dashboard
Plan/Project: OEM System Solution Owner: Steve Erickson
On Course?
Revision: 1.0
Key Actions
5.0
Action
!
Risk
Plan Date: Start + 4 Months
Who?
When?
Complete?
Meet with OEM GM to review systems concept.
Steve, Ron, John
Month 3
Yes
Meet with OEM Purchasing to review pricing and warranty proposal.
Steve, Ron, John
Month 3
Yes
Complete testing of Parker power units.
Division engineering
Month 3
No
Finalize Parker technical support team.
Steve, Ron, John
Month 3
No
Meet with distributors to develop support plan.
Steve, Ron
Month 3
No
Meet with End User HQ in Asia
Steve, Ron
Month 4
No
3.0
On Course 1.0
-5.0
0.0
5.0
Commitment Updated:
Risk
Commitment
Start + 4 Months
2.0
2.2
Helm Phase
On Time? Yes
Just starting; all is well. Refine
On Budget? Yes
20
Plan Test
Roll-out
No budget issues at this point.
Pilot
Phase 3: Rollout Implementation Dashboard
Plan/Project: OEM System Solution Owner: Steve Erickson
On Course?
Revision: 1.0
Key Actions
5.0
!
Risk
Plan Date: Start + 6 Months
3.0
Action
Who?
When?
Complete?
Arrange Parker engineer to be stationed at OEM.
Ron
Month 5
Yes
Arrange staging location for shipments.
John
Month 5
Yes
Develop and implement delivery tracking method.
John
Month 6
Yes
Meet with End User plant maintenance supervisor.
Steve, Ron
Month 6
Yes
Meet with Parker distributor near End User plant
Steve, Ron
Month 6
Yes
On Course 1.0
-5.0
0.0
5.0
Commitment Updated:
Risk
Commitment
Start + 6 Months
2.0
2.8
Helm Phase
On Time? Yes
Meeting delivery schedules Refine
On Budget? Yes
21
Plan Test
Roll-out
No budget issues
Pilot
Phase 4: Refine Plan/Project: OEM System Solution
Implementation Dashboard
Owner: Steve Erickson
On Course?
Revision: 1.0
Key Actions
5.0
!
Risk
Plan Date: Start of Year 2
Action
Who?
When?
Complete?
Meeting with Parker sales management regarding approval for assignments.
Steve, Ron
Month 1
Yes
End User/Distributor visits by field sales.
Field Sales
Month 3
No
Quaterly report and follow up with Parker stakeholders by KAM.
KAM
Month 3
No
OEM visit by KAM
KAM
Month 3
No
End User/Distributor visits by field sales.
Field Sales
Month 5
No
Quaterly report and follow up with Parker stakeholders by KAM.
KAM
Month 5
No
OEM visit by KAM
KAM
Month 5
No
End User/Distributor visits by field sales.
Field Sales
(Repeat)
Quaterly report and follow up with Parker stakeholders by KAM.
KAM
(Repeat)
OEM visit by KAM
KAM
(Repeat)
3.0
On Course 1.0
-5.0
0.0
5.0
Commitment Updated:
Risk
Commitment
Start of Year 2
3.0
1.0
Helm Phase
On Time? Yes
OEM equipment has been delivered to the End User. Only maintenance and support issues remain until time for the next equipment order. Refine
On Budget? Yes
22
Plan Test
Roll-out
There are no budget challenges at this time.
Pilot
The results • Before implementation: – Parker was an "also ran" supplier, – OEM was second or third in the industry
• After implementation: – – – –
23
Parker wins the lion's share of their business Developed a strong partnership relationship Became a multi-million dollar sales success story for Parker Enabled OEM & Parker to become major players in the industry
The change strategy is key
24
Testing with a simulator
Greenworld Marketing Plan Period: Period 1 to Period 6 (the next three years)
Market: The food and drink market
Contents: Goals
Mission Statement
Situation Review
Summary of Past Performance Financial Projections Market Overview
Scope:
All food and drink sold direct to consumers for home consumption
SWOT Strategy
Competitor Profile Portfolio Summary Assumptions Marketing Sales Objectives Marketing Profit Objectives Product Group Analysis Marketing Strategies (Ansoff)
Resources & Monitoring
Resources Actions
Plan Owner:
Last Updated :
Name: Chris Sharp
Date:
Location: London, UK
Start of Period 1
Version: 3.3
Telephone: +44 (0)20 800 351
Currency: £ Sterling
email: [email protected]
Measurement & Review © 2012 Malcolm McDonald and Edmund Bradford Adapted from: Marketing Plans, How to Prepare Them, How to Use Them, 6th Edition by Professor Malcolm McDonald (published by Butterworth-Heinemann)
25
The leadership triangle The C-Suite
Business Leadership Change Leadership
The Marketing Function
Marketing Leadership
Planning 26
Implementation
Now what? • Read the book
• Use the tools • Practice the ideas • Improve implementation • Share your experience 27
In summary Stormy conditions lie ahead. Great marketing leaders will need reliable navigational aids to ensure the success of their plans.
28
Thank you Ed Bradford [email protected] Steve Erickson [email protected] Professor Malcolm McDonald [email protected]
www.marketingnavigation.com Email: [email protected] for discounted copies of the book 29
