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Mc donald english_29th
1. The only sustainable future for marketing
- professionalism and accountability
by Professor Malcolm McDonald
Plekhanov University of Economics 29th January 2013
This presentation is the copyright of Professor Malcolm McDonald
2. Agenda
• What goes wrong without excellent marketing
• The uselessness of Profit and Loss Accounts
and Balance Sheets
• In order to become the drivers of corporate
strategy, marketers must become more
professional and more accountable financially
Page 2
3. Inter Tech’s 5 year performance
Performance (£million) Base Year 1 2 3 4 5
Sales Revenue £254 £293 £318 £387 £431 £454
- Cost of goods sold 135 152 167 201 224 236
Gross Contribution £119 £141 £151 £186 £207 £218
- Manufacturing overhead 48 58 63 82 90 95
- Marketing & Sales 18 23 24 26 27 28
- Research & Development 22 23 23 25 24 24
Net Profit £16 £22 £26 £37 £50 £55
Return on Sales (%) 6.3% 7.5% 8.2% 9.6% 11.6% 12.1%
Assets £141 £162 £167 £194 £205 £206
Assets (% of sales) 56% 55% 53% 50% 48% 45%
Return on Assets (%) 11.3% 13.5% 15.6% 19.1% 24.4% 26.7%
Page 3
5. Measurement of segment profitability
Total Segment Segment Segment Segment Segment Segment
Market 1 2 3 4 5 6
Percentage of market 100.0 14.8 9.5 27.1 18.8 18.8 11.0
represented by segment
Percentage of all profits in 100.0 7.1 4.9 14.7 21.8 28.5 23.0
total market produced by
segment
Ratio of profit produced by 1.00 0.48 0.52 0.54 1.16 1.52 2.09
segment to weight of
segment in total population
Defection rate 23% 20% 17% 15% 28% 30% 35%
Page 5
6. Balance sheet
Assets Liabilities
- Land - Shares
- Buildings - Loans
- Plant - Overdrafts
- Vehicles etc.
etc.
£100 million £100 million
Page 6
7. Balance sheet
Assets Liabilities
- Land - Shares
- Buildings - Loans
- Plant - Overdrafts
- Vehicles etc.
etc.
£100 million £900 million
Page 7
8. Balance sheet
Assets Liabilities
- Land - Shares
- Buildings - Loans
- Plant - Overdrafts
- Vehicles etc.
Goodwill £800m
£900 million £900 million
Page 8
9. Intangibles
P and G have paid £31 billion for Gillette, but have bought only £4 billion of tangible assets
- Gillette brand £ 4.0 billion
- Duracell brand £ 2.5 billion
- Oral B £ 2.0 billion
- Braun £ 1.5 billion
- Retail and supplier network £10.0 billion
- Gillette innovative capability £ 7.0 billion
TOTAL £27.0 billion
(David Haigh, Brand Finance, Marketing Magazine, 1st April 2005)
Page 9
10. Brands Increasingly Drive Business Results
Brands affect business value by influencing the behaviour of a wide range of Shell’s
stakeholders, some of which directly impact Shell’s P&L (and hence value)
STAKEHOLDER STAKEHOLDER FINANCIAL SHAREHOLDER
PERCEPTION BEHAVIOUR IMPACT VALUE
• Pay price premium
Customers Revenues
- individuals,
• Buy more
businesses
Suppliers / • Lower prices
Partners • Better terms Costs
Brand - businesses, • Willingness to partner Revenues
Trademarks
energy asset
owners •(more opportunities)
Employees
• Better retention
- current and potential Costs
• Lower salary expectations
Reputation Shareholders / Productivity
• Better qualified candidates
Bankers
- individual and
institutional • Higher PE ratio
Indirect Other • Lower volatility Costs
influence Stakeholders Influences
on value • Lower borrowing costs Risk business and
- government, media,
opinion formers, • Better repayment conditions brand value
academics, public,
environmentalists
Page 10
11. Asset Breakdown for the top 10 countries by
Enterprise Value (US$ millions, 2011)
Page 11
12. The historic rift between marketers and the finance
department, caused by marketing’s reluctance to be
accountable for what they do, is as marked as ever
Tense relations between
CFOs and Marketers are “Marketers have constantly hidden
dividing boardrooms over behind a fog of measures that are
the value of marketing. based purely on tactical marketing
One in three CFOs said activity, rather than solid financial
they did not believe metrics that are relevant to the City”.
marketing to be crucial
in determining strategy.
“Marketing in 3D”
Deloitte
Page 12
13. The Cultural Web (What senior non marketers believe about
marketers)
Symbols
• Cars
• Offices
Stories • Terminology Power
and Myths • Statistics Structures
• Mud doesn‟t stick • Lunch
• Golden child • Research withheld
• Quick promotion • Take credit for
• No loyalty others work
• Churn Paradigm • Jargon
• Costs
• Experience • Unaccountable
• Untouchable
Rituals • Expensive
• Slippery Organisational
• Planning Structures
• Delegating • Lack of structure
• Deadlines • Internal focus
Control
• Off site • Always in
Systems
meetings meetings
• 10.00-16.00 hrs
• Lunch
• Travel
• Soft measurement
• For self
Source: „Defining a Marketing Paradigm‟ (Baker, S. 2000) Page 13
14. The purpose of strategic marketing
The overall purpose of strategic marketing,
and its principal focus is the identification and
creation of sustainable competitive
advantage.
Page 14
15. Definition of marketing
Marketing is a process for:
• defining markets
• quantifying the needs of the customer groups (segments) within these
markets
• putting together the value propositions to meet these needs, communicating
these value propositions to all those people in the organisation responsible
for delivering them and getting their buy-in to their role
• playing an appropriate part in delivering these value propositions (usually only
communications)
• monitoring the value actually delivered.
For this process to be effective, organisations need to be consumer/
customer-driven
Page 15
16. Map of the marketing domain
Define markets
& understand
value
Asset Determine
Monitor
Base value
value
Proposition
Deliver
value
Page 16
17. In capital markets, success is measured in terms
of shareholder value added, having taken account
of the risks associated with future strategies,
the time value of money and the cost of capital.
17
18. Financial Risk and Return
High
1
Return 2
3
Low
Low High
Risk
Adapted from Professor Keith Ward, Cranfield School of Management
Page 18
19. The route to Sustainable Competitive Advantage (SCA)
Differentiation High
Price
Sales Revenue
High
Volume
Economies Low Business
Lower of Scale Risk Positive
Operations SCA
Costs Learning Low Financial NPV
Curve Risk
Gearing
Interest Cover
High Cash
Financial Working Capital Ratio
Flows
Operational Leverage
Page 19
20. Map of the marketing domain
Define markets Strategic zone
& understand where metrics
are defined
value (Level 1)
Asset Determine
Monitor
Base value
value
Proposition
Measurement zone
where metrics
are applied Deliver
(Levels 2 & 3) value
Page Page 20
20
21. What is Marketing Due Diligence?
Marketing Due
Diligence
Risk Assessment
Market Risk: Strategy risk: Implementation risk:
Is the market Will we get our Will we get our
there? planned share? planned profit?
Page 21
22. Sensitivity to business risk
Marketing Due
Diligence
Risk Assessment
Low market share High market share Low competitive intensity High competitive intensity High margins Low margins
Low growth intent High growth intent
Low growth intent High growth intent
Low growth intent High growth intent
market risk
MarketHighly sensitive
Moderately sensitive to
Risk:
to market risk
Share risk: share risk to
Moderately sensitive to
share risk
Highly sensitive Profit risk:
Moderately sensitive to Highly sensitive to
profit risk profit risk
Is the market Will we get our Will we get our
there? planned share? planned profit?
Low sensitivity to Moderately sensitive to Low sensitivity to Moderately sensitive to
market risk market risk Low sensitivity to Moderately sensitive to
share risk share risk
profit risk profit risk
Sensitivity to each source
of risk is dependent
on the source of
growth, current share and
planned margins
Page 22
23. Market Risk Profile
• Product Category Existence The marketing strategy has a higher
probability of success if the product
category is well established
• Segment Existence If the target segment is well established
If the sales volumes are well supported by
• Sales Volumes evidence
If the forecast growth is in line with
• Forecast Growth historical trends
If the pricing levels are conservative relative
• Pricing Assumptions to current pricing levels
Page 23
24. Ansoff matrix
PRODUCTS
increasing technological
Present newness New
Present Market Product
Penetration Development
MARKETS
increasing
market
newness
Market
New Diversification
Extension
Page 24
25. Gap analysis summary
Profit improvement
Productivity improvement Sales growth
Existing assets Change Market Market Product
asset base penetration development development
Improve
Cost Improve
Asset Increase
reduction Product/ Take New Convert Existing New
Utilisation Increase
Price/ competitors’ segments Non-users markets markets
Customer usage
(eg more/ Reduce
mix customers
better discounts
sales calls)
Cash and margin focus Growth focus
Investment Divestment
•Acquisition Redevelopment
•Joint ventures of capital resources
•etc
Capital Utilisation focus
Page 25
26. Market Share Risk Profile
• Target Market Definition The marketing strategy has a higher probability of success
if the target is defined in terms of homogeneous
segments and is characterised by utilisable data
If the proposition delivered to each segment is different
• Proposition Specification from that delivered to other segments and addresses the
needs which characterised the target segment
If the strengths and weaknesses of the organisation are
• SWOT Alignment independently assessed and the choice of target and
proposition leverages strengths and minimises
weaknesses
If choice of target and proposition is different from that
• Strategy Uniqueness of major competitors
• Anticipation of market change If changes in the external microenvironment and
macroenvironment are identified and their implications
allowed for
Page 26
27. Listen to how customers talk about category need
Customer View Supplier View
Advice
• cutting costs • fast PAD family
• future technology direction • multimedia FRADs
Help • PIX firewall
• design & configuration
• process engineering • Solutions
• electron commerce • Gigabit Ethernet
Run • solutions
• international network
• disaster recovery • high performance
• LAN support
Page 27
28. Understand the different category buyers
Business
Business
perfectionist Save my
budget
Radical thinkers
Business
Profit engineer general
“Reward” “Relief”
Radical Save my
architect career
Technical Conservative
idealist technocrat
Technical
Page 28
29. This is a friend I know…
… she is a busy young lady
… she looks after her health and loves fresh
produce
… she drives to the supermarket on a Saturday
morning
… she reads Hello Magazine
… she has a cat
… she doesn‟t pay attention to the price of products
… she does look out for promotions
I know 12m people in the UK as well as I know
Miss Jones
Page 29
31. Strategic marketing planning exercise – SWOT analysis
1. SEGMENT DESCRIPTION 2. CRITICAL SUCCESS 3. WEIGHTING 4. STRENGTHS / WEAKNESSES
It should be a specific part of FACTORS (How important ANALYSIS
the business and should be In other words, how do is each of these How would your customers score you and
very important to the customers choose? CSFs? Score each of your main competitors out of 10 on
organisation out of 100) each of the CSFs?
Multiply the score by the weight.
1 You Comp A Comp B Comp C Comp D
2 1
3 2
4 3
5 4
5. OPPORTUNITIES / THREATS Total 100 5
What are the few things outside your
direct control that have had, and will
have, an impact on this part of your
business? THREATS
OPPORTUNITIES
1
2
3
4
5
6. KEY ISSUES THAT NEED
TO BE ADDRESSED
What are the really key issues
from the SWOT that need to
be addressed?
Page 31
32. Market map – office equipment
Direct 47% 24%
Type A 5% 3%
Field Sales
Dealer Chain
Type A 7% 3%
Independent
Type B 0% 1%
Dealer Chain
Type B 1% 8%
Independent
Type C 15% 9%
Dealer Chain
Manufacturers Final Users
Type C 7% 18%
Independent
5% 4%
VARs
Buying 7% 10%
Final Users Route to Market Consortia
4% 10%
Retail
Company’s Route to Market
Direct 0% 4%
Extracted from the complete map
Response
0% 6%
Other
Page 32
33. Shareholder Value Risk Profile
• Profit Pool The marketing strategy has a higher
probability of success if the targeted profit
pool is high and growing
If the source of new business is growth in
• Profit Sources the existing profit pool
• Competitor Impact If the profit impact on competitors is
small and distributed
• Internal Gross Margin If the internal gross margin assumptions
are conservative relative to current
Assumptions products
• Assumptions of Other Costs If assumptions regarding other costs,
including marketing support, are higher
than existing costs
Page 33
34. Setting expectations of performance
P P
high Supplier business high/
medium
strength with
High customer Low
C G C G
High
Strategic Star
Strategic Selective
Mkt/Segment investment investment
attractiveness
Status Streamline
P P
medium Pro-active Manage for low
-
maintenance cash
Low
C G C G
Page 34
35. Market attractiveness evaluation
Factor Scoring Criteria
10-7 6-4 3-0 Score Weighting Ranking
1. Market Size (£ millions) > €250 €51-250 < €50 5 15 0.75
2. Volume Growth (Units) > 10% 5-9% < 5% 10 40 4.0
3. Industry Profitability > 15% 10-15% < 10% 8 35 2.8
4. Competitive Intensity Low Medium High 6 10 0.6
Total 8.15
This form illustrates a quantitative approach to evaluating market attractiveness. Each factor is scored, then multiplied by the
percentage weighting and totalled for the overall score. In this example, an overall score of 8.5 out of 10 places this market in the
highly attractive category.
Page 35
36. Profit Risk
• Profit Risk
– The probability that your marketing strategy will create
the anticipated value even if you win the anticipated
market share from the predicted market size
• Begins by explaining the sources of the growth in value generation
• There are five Profit Risk factors
– Taken from many years of research and incorporating the
ideas of game theory based strategy development
– 5 characteristics that differentiate low risk strategies
from high risk ones
Page 36
38. The components of Profit Risk
• Profit pool risk
– The marketing strategy has a higher probability of
achieving its aims if the targeted profit pool is
large and growing and the marketing strategy’s
objectives only require a small share of this pool.
– In such cases, these objectives will not have
dramatically negative impacts on existing or
potential competitors. Hence the probability of
aggressive competitor reaction is much lower.
Page 38
39. The components of Profit Risk
• Sources of profit growth risk
– Marketing strategies have a higher probability of achieving
their aims if the source of profit growth is primarily from
growth in the total profit pool.
– Where profit growth comes totally from such overall growth
in the profit pool, this means that no competitor actually
loses existing profits as a direct result of this marketing
strategy. Once again therefore the probability of competitor
reaction is reduced.
Page 39
40. The components of Profit Risk
• Competitor impact risk
– The marketing strategy has a higher probability of
success if any adverse profit impact on
competitors is small and evenly distributed.
– The worst case is where the potential impact of
the marketing strategy actually threatens the
continued existence of a specific competitor. This
competitor may well cease to behave in an
economically rational way as it fights for survival.
This can seriously damage the total profit pool of
the market segment or complete industry.
Page 40
41. The components of Profit Risk
• Internal gross margin assumptions risk
– Probabilities of success are increased if gross margin
assumptions in the marketing strategy are conservatively
based on existing, or otherwise provable, levels.
– This risk tends to be critical when the marketing strategy is
based on either ‘new’ products or on selling existing
products into a new market segment where pricing and
comparative cost information is not readily available.
Page 41
42. The components of Profit Risk
• Other cost assumptions risk
– Probabilities of success are increased if other cost
assumptions are conservatively based on existing
levels.
– The most common source of error in this area is the
assessment of ongoing marketing support that will be
needed to maintain the sales revenues that are
predicted in the marketing strategy. Often high levels
of launch marketing are included but these decline
rapidly even where high levels of competitor response
should be expected.
Page 42
43. What do most marketing strategies look like in this
area?
1. They do not quantify the total profit pool
2. They do not specifically identify sources of profit growth
3. They do not quantify the impact on key competitors
4. They often assume higher levels of gross margin in the future
5. They frequently include significant improvements in other cost levels, even though the
plans may require new product developments and launches
Page 43
44. Market segment objectives:
Directional Policy Matrix
Analysis process
Relative company competitiveness •Attractiveness of each segment
(ranked)
High Low
•Projected net free cash flow (3/5yrs) -
for each segment
High
Strategic •Key risk factors influencing cash flows
Selectively
invest/ invest •Risk assessment for each segment
build
Segment
attractiveness •Risk adjusted future cash flows per
Pro-actively segment
maintain Manage for
cash •Deduct risk-adjusted cash flows from
No the capital x cost of capital
change for each segment
Low
•Aggregated positive net present value
Present position Forecast position in 3 yrs
Strategies to
Critical success factors increase present value
•Increase future cash flows
•Cash flow happens earlier
•Reducing the risk in the cash flows
Page 44
45. Map of the marketing domain
Define markets Strategic zone
& understand where metrics
are defined
value (Level 1)
Asset Determine
Monitor
Base value
value
Proposition
Measurement zone
where metrics
are applied Deliver
(Levels 2 & 3) value
Page 45
46. Overall Marketing Metrics Model
Lead indicators Lag indicators
Resource Forecast/
Intention/ Plan/ Strategy/ Objectives/
allocation/ profit
actuality action achievement results
spend
PFs
budget actions, esp. product corporate
Business funds & performance
marketing market
element time segment
HFs
£ what who
£ what who ms% corporate
budget sales£ rev£
£ what who CSFs
profit£ profit£
£ what who
Measure- application costs, metrics on performance turnover,
ment of spend activity achievement by product profit &
milestones of factor to market shareholder
& outputs required level segment value
Positioning
of issues in
the model Cost to achieve Required by Market growth
Responsibilities customers. Customer acquisition/ retention/
Relative to uptrading/ X-selling/ regained
competitors Product/customer mix
Channel performance
47. Marketing Metrics Model
Business
element
Corporate Market Impact Marketing & Budget
performance segments factors other actions resource
Segment
needs
Segment
attributes Productivi Other
ty factors actions
Qualifyin Marketing
g factors actions
Corporate Competitive Budget
advantage
Revenue factors
Profit Segment Funds
outcomes: Time
sales, GM,
MS
Forecast/ Objectives/ Strategy/ Plan/ Resource
results outcomes response action allocation/
spend
Future/
actuality
Page 47
48. Map of the marketing domain
Define markets Strategic zone
& understand where metrics
are defined
value (Level 1)
Asset Determine
Monitor
Base value
value
Proposition
Measurement zone
where metrics
are applied Deliver
(Levels 2 & 3) value
Page 48
49. Expenditures to develop marketing assets make
sense if the sum of the discounted cash flows they
generate is positive.
Page 49
50. Projected cash DCF and NPV
flows from methods
investing in a implicitly make
promotion A this comparison
B
Companies
should be Assumed cash
C making this flow resulting
comparison from doing
More likely nothing
cash flow
resulting from
doing nothing
Note: Most executives compare the cash flow from
promotion against the default scenario of doing nothing
assuming, incorrectly, that the present health of the
company will persist indefinitely if the investment is not
made. For a better assessment of the promotion’s value,
the comparison should be between the projected
discounted cash flow and the more likely scenario of a
decline in performance in the absence of promotional Figure 10
investment.
Adapted from Christensen CM et al, ( 2008 )
2 + 2 + 2 + 2 = £-0.6 million
£ - 7 million + (1+r) (1+r)² (1+r)³ (1+r)4
£ - 1 million + 2 + 2 + 2 + 2 = £5.4 million
(1+r) (1+r)² (1+r)³ (1+r)4
Page 50
51. Over 40 years of research into the link between long run financial success and
excellent marketing strategies reveal the following:
Excellent Strategies Weak Strategies
• Define markets in terms of needs • Define markets in terms of
• Target needs based segments products
• Make a specific offer to each • Target product categories
segment • Make similar offers to all segments
• Leverage their strengths and • Have little understanding of their
minimise their weaknesses strengths and weaknesses
• Anticipate the future • Plan using historical data
• Spell out the financial effectiveness • Make unjustified forecasts of
of marketing expenditure revenue and profits
Page 51
52. Key Elements of World Class Marketing
1. A deep understanding of the market place
2. Correct needs-based segmentation and prioritisation
3. Segment-specific propositions
4. Powerful differentiation, positioning and branding
5. Effective strategic marketing planning processes
6. Long-term integrated marketing strategies
7. A deep understanding of the needs of major customers
8. Market/customer-driven organisation structures
9. Professionally-qualified marketing people
10. Institutionalised creativity and innovation
Page 52
54. Valuing Key Market Segments
Background/Facts
Risk and return are positively correlated, ie. as risk increases, investors require a
higher return.
Risk is measured by the volatility in returns, ie. high risk is the likelihood of either
making a very good return or losing all your money. This can be described as the
quality of returns.
All assets are defined as having future value to the organisation. Hence assets
to be valued include not only tangible assets like plant and machinery, but intangible
assets, such as Key Market Segments.
The present value of future cash flows is the most acceptable method to
value assets including key market segments.
The present value is increased by:
- increasing the future cash flows
- making the future cash flows „happen‟ earlier
- reducing the risk in these cash flows, ie. improving the certainty of these cash flows,
and, hence, reducing the required rate of return.
Page 54
55. Suggested Approach
Identify your key market segments. It is helpful if they can be classified on a vertical axis (a kind of
thermometer) according to their attractiveness to your company. „Attractiveness‟ usually means the
potential of each for growth in your profits over a period of between 3 and 5 years. (See the attached
matrix)
Based on your current experience and planning horizon that you are confident with, make a projection of
future net free cash in-flows from your segments. It is normal to select a period such as 3 or 5 years.
These calculations will consist of three parts:
revenue forecasts for each year;
cost forecasts for each year;
net free cash flow for each segment for each year.
Identify the key factors that are likely to either increase or decrease these future cash flows.
These factors are likely to be assessed according to the following factors:
the riskiness of the product/market segment relative to its position on the ANSOFF matrix;
the riskiness of the marketing strategies to achieve the revenue and market share;
the riskiness of the forecast profitability (e.g. the cost forecast accuracy ).
Now recalculate the revenues, costs and net free cash flows for each year, having adjusted the figures
using the risks (probabilities) from the above.
Ask your accountant to provide you with the overall SBU cost of capital and capital used in the SBU. This
will not consist only of tangible assets. Thus, £1,000,000 capital at a required shareholder rate of return of
10% would give £100,000 as the minimum return necessary.
Deduct the proportional cost of capital from the free cash flow for each segment for each year.
An aggregate positive net present value indicates that you are creating shareholder value – ie.
achieving overall returns greater than the weighted average cost of capital, having taken
into account the risk associated with future cash flows.
Page 55
56. Portfolio analysis - directional policy matrix (DPM)
Relative company competitiveness
High Low
High
?
Invest/
build
Segment NB. Suggested
time period -
attractiveness 3 years
Maintain
Manage for
Low No cash
change
Present position Forecast position in 3 years
Page 56
58. The Contents of a Strategic Marketing Plan (<20 pages)
• Mission or Purpose Statement
Products
• Financial Summary
Existing New
Existing
1 2
Markets
Revenue
New
Profit 3 4
t.0 T+1 T+2 T+3
Page 58
59. Key (revenue and profit growth)
• from productivity
• by product for market for existing products from existing markets
• from new products in existing markets
• from existing products in new markets
• from new products in new markets
Plus a few words of commentary
Market Overview/Summary
Market definition
Market map showing vol/rev flows from supplier through to
end user, with major decision points highlighted
Where appropriate, provide a future market map
Include commentary/conclusions/implications for the company
At major decision points, include key segments
Page 59
60. SWOT Analyses on Key Segments
• include pictorial representations of the SWOTs, such as bar charts
• highlight major conclusions/issues to be addressed
Portfolio Summaries of the SWOTs
• include Directional Policy Matrix (DPM) summaries of:-
- the attractiveness of the segments over the next 3-5 years
- the current relative competitive position of your company in
each segment
- the planned competitive position of each segment over the
next 3-5 years
Marketing Objectives and Strategies for the next 3-5 years
• include objectives (volume, value, market share, profit, as appropriate)
for the next 3-5 years for each segment as represented by the planned
position of each circle on the DPM
• include strategies (the 4XPs) with costs for each objective
Consolidated Budget for the next 3-5 years
• this will be a consolidation of all the revenues, costs and profits for
the next 3-5 years and should accord with the financial summary
provided earlier
Page 60
62. Are you getting these essential deliverables from your
strategic marketing plan?
Score out of 10
Market structure and segmentation
• Is there a clear and unambiguous definition of the market we are interested in
serving?
• Is it clearly mapped, showing product/service flows, volumes/values in total,
our shares and critical conclusions for our organisation?
• Are the segments clearly described and quantified? These must be groups of
customers with the same or similar needs, not sectors.
• Are the real needs of these segments properly quantified with the relative
importance of these needs clearly identified?
Differentiation
• Is there a clear and quantified analysis of how well our company satisfies
these needs compared to competitors?
• Are the opportunities and threats clearly identified by segment?
Page 62
63. Score out of 10
Scope
· Are all the segments classified according to their relative potential for growth
in profits over the next three years and according to our company’s relative
competitive position in each?
· Are the objectives consistent with their position in the portfolio? (volume,
value, market share, profit)
· Are the strategies (including products, services and solutions) consistent with
the objectives?
· Are the measurement metrics proposed relevant to the objectives and
strategies?
· Are the key issues for action for all departments clearly spelled out as key
issues to be addressed?
Value capture
· Do the objectives and strategies add up to the profit goals required by our
company?
· Does the budget follow on logically and clearly from all the above,
or is it merely an add on?
Page 63
65. Take marketing into the boardroom,
and connect marketing strategy to
shareholder value
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Page 65
