syllabus: 6728.889
BK/JO
MARKETING - AN INVESTIGATIVE PROCESS FOR TAKING ACTION
Page
I Introduction 2
If "Portfolio" and "Workplan" methods 4
1. Comments on the working method 4
2. "Portfolio" method 6
3. "Workplan" method 9
4. Decision-making process in connection with 14
"Portfolio" and "Workplan"
5. Strategies 16
6. List of questions on the "Workplan" 18
7. Possible working procedure 19
8. Forms of resistance 20
9. Effects 22
10. How can I recognise that the results of this
method are correct? 24
I Introduction
Observation and analysis remain theoretical procedures if
they do not result in any action being taken.
Since time immemorial science has been divided into
theoretical and practical branches, in other words, the
science of what is and the science of what should be.
Natural science, for example, is referred to as a
theoretical science; it deals with things as they are.
Ethics is referred to as a practical science, because it
makes statements about how things should be.
Marketing in this context brings a third element into this
two-way division, namely in that there is a resulting
increase in the awareness and determination of the
investigating person himself. In this sense the term
marketing is taken to mean an instrument of intervention in
socio-economic life. Investigation - learing - creation,
these elements become unified and require a particular
attitude and particular skills from the person concerned:
* Existing socio-economic forms are a product of conscious
or subconscious human ideas/conceptions.
* The future is looming up in front of us. The ideas and
actions of the past have consequences here and now for
myself and for others. My current behaviour and that of
others create real situations which we shall have to face
tomorrow. It is therefore important te be clear in my own
mind whether I want to transfer the past unchanged into
the future, in other words, extrapolate the past and add a
qualitatively different dimension to my current actions.
Present
a. Past Past = Future
extrapolate/continue
tradition
b. Past
real obligations
New creative concepts
(I choose/decide)
The courage to show "practical imagination". This means
on the one hand "perceiving" reality, facing up to it,
and, on the other hand, "visualising" opportunities, in
other words, thinking in images.
The courage and tenacity to design the future, whereby
value concepts (present in organisations in the form of
corporate policy, company objectives and guiding prin-
ciple) provide the guideline for my actions, insofar as
they alive within me and accepted by me.
The courage to admit to incompleteness and the confi-
dence, based on experience, in the belief that reality
will show me the way. This is meant in the sense that I
shall never be in possession of all the information, but
will actively approach and commit myself to the situation
through the effects of my actions.
If The "Portfolio and Workplan" methods
With the "Portfolio" and "Workplan" methods it is equally
important to establish what I do not know, as well as what I
know.
To venture forth, to investigate and possibibly discover
different things from those previously considered provides
one of the definitions of marketing as it is understood
here.
The other is as follows: how can I and how can we create
together a more aware and active attitude towards our en-
vironment?
1. Comments on the working procedure
a. Both methods are to be applied to markets/target
groups as well as to products or services.
b. The "Workplan" method is to be used in slightly amen-
ded form for "internal customers". The manner in wich
work is divided up means that each person is the cus-
tomer and "manufacturer" or, at the same time, the
supplier of the other.
ec. The difference between final consumers and inter-
mediaries as clients must be consciously practised.
This is not affected by the number of staging posts
within the organisation; the "common ground" for all
those involved is the final consumer.
d. Anything which can be expressed statistically should
be quantified. The effect of this is on the one hand a
"waking up" to the statistics and on the other hand
curiosity: what is the real situation?
e. It is more productive to run through both methods, in
each case within one hour rather than brood over them
for hours.
The work should be carried out intuitively and quickly
(see point f).
It is better if the persons responsible in each in-
stance apply the method individually.
In the case of the "Portfolio" method, this involves
the persons responsible for the company as a whole.
With the Workplans it involves those who take
responsibility for the target group concerned.
With the "portfolio" and "Workplan" methods it is as-
sumed that the person concerned wishes and is able to
become active within the company.
It is advisable to note down on a seperate sheet of
paper all the points about which I am uncertain and
for which I must carry out further investigation.
2. “Portfolio" method
The term "Portfolio" has its origins in the world of
stocks and shares. The owner of stock is careful to
maintain a balance between profit and risk distribution.
The Boston Consulting Group has introduced this concept
into marketing theory.
Markets
L Target groups
Products
Services
* Ok Ok Ok
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Wild cats Stars Cash cows Dogs
OE
prospects/opportunities | threat/risk
This involves a lifecycle curve and not a Gaussian normal
distribution curve.
Positions plotted on this graph can indicate, for example,
whether a "Star" is already almost "Cash cow" or has just
the domain of the "Wild cats".
Wild Cats: Can sometimes still make unpredictable leaps, but
have the innate potential to be economically suc-
cessful,
To develop them in the direction of Cash cows
requires above average effort and investment.
Dogs:
Stars:
Cash Cows:
Yesterday's Cash cows. Can I revive them by ta-
king appropriate measures to turn them back into
Stars and Cash Cows, or must we rid ourselves of
them as quickly as possible?. What one person
categorises as Dogs will be seen by someone else
as Wild Cats and vice versa. This is a question
of individual evaluation and temperament and must
be made clear at the latest when the DIA's are
prepared.
Horses in the stable with a lot of promise. Some
will turn out to be racehorses in the short term,
whereas others will produce economic successes
over a longer period.
It is important to be aware that something which
is, for example, a Star from the product point of
view can be a Dog in terms of market strategy.
Are already producing the best turnover/profit
contribution today. Which ones are standing fit
and healthy in the meadow - which are showing di-
minishing yields?
The management of the company or companies which are respon-
sible for the whole project prepare a review of their mar-
kets/target groups or products and plot these on the graph.
This should be done intuitively and quickly. Here two crite-
ria are involved at the same time: what potential or oppor-
tunities does this market offer as it is and what do the
prospects look like for us?
It is often useful to plot two separete life cycle curves to
show on the one hand the potential of our prospects in this
market.
By taking the interim step of DIA's, for each market, for
example, areas of concentration and fields of attention can
be obtained.
DIA's show in essence:
a. the most important factors and considerations;
b. intuitive evaluation by the person concerned;
Cc.
obstacles and difficulties.
A DIA should be no longer than half a sheet of DIN A4 paper.
Areas of concentration means:
We are concentrating all available human capacity and re-
sources on this particular market/target group.
Fields of attention indicate:
We are paying attention to developments in this
market/target group, but at the moment we are not planning
any additional activity.
From this review company management can indicate direction
and impetus in line with company objectives and corporate
policy.
The areas of concentration and fields of attention contain
on the one hand the market aspect and, on the other hand,
the aspect of available resources and the capacity of the
staff.
The areas of concentration and fields of attention from the
"Portfolio" method primarily require setting of objectives
and corporate policy.
The areas of concentration and fields of attention arising
from the 'Workplan' method (see page 7) primarily require
material and cash resources and qualified staff.
Experience has shown that, if there are more than three
areas of concentation in the organisation, the latter be-
comes unbalanced. The risk of self-overestimation, dissipa-
tion and resulting waste of effort is then great.
3.
The “workplan" method
The workplan should be drawn up in each instance by the
persons responsible for particular target groups.
This method includes 12 aspects which are all
interactive, e.g. Point 1 = Trends, produces features
relevant to Point 9 = Prognosis and Point 10 = Plan of
Action.
The Workplan is divided up according to
- future and past
- supply and demand
and goes from the abstract (e.g. trends) to the concrete
(e.g. market share), ultimately in order to harmonise
prognoses and costs.
(See page 3: 1. Comments on the working procedure)
When work is being carried out on any of the 12 points,
however, the relevant target group must always be taken
into consideration.
Target group:
supply Demand
1. Trends 7. Theme (themes)
2. Past 8. Marketing Mix
Segments 9. Prognosis I and II
4. Purchasing Power and 10. Plan of Action I and
Willingness to Purchase II
5. Share 11. Costs I and II
6. Competition 12. Profit I and II
Target group: Recognisable, quantifiable,
and attainable.
Trends: External developments affect-
ing this target group - in
both a favourable and unfa-
vourable sense.
Past:
Segments:
Purchasing power:
Willingness to purchase:
Share:
Theme (themes):
Marketing Mix:
Prognosis I:
Prognosis II:
10.
What have I or has my prede-
cessor done in the past and
what results were achieved?
Can I differentiate more pre-
cisely within the target
group?
If the target group is too
large or undifferentiated, I
am groping in the dark. I
don't know which way I'm
going. Do I know the language
of the target group?
This may be great, but people
prefer to put their money in
the bank. if they do that, the
Not great for this product.
Which market share do we hope
to gain?
Why does the customer say
"yes" to us? Discover motives
for buying. (e.g. travel
agents have discovered that
many holidaymakers are looking
for "adventure in safety").
This involves a "strengths-
weaknesses" analysis - always
making comparisons with the
strongest competiton.
If we change nothing, then
...? Thus, with unchanging
corporate policy and activi-
ties and considering this mar-
keting mix - how wili this
product, this service behave
on the life cycle curve, which
market share shall we acquire
etc.?
If we do more or something
qualitatively different, then
11.
Plan of Action I: Activities in order of priori-
and II ty and scheduled.
Costs I and II: Material and financial resour-
ces/staff.
Profits I and II: Profits or yields need not be
the only yardstick. Acquiring
experience and expertise or
entering this particular mar-
ket is also important.
Marketing Mix
The method enables a "strengths-weaknesses" analysis com-
pared with the most important competitor or competitors. It
must be noted here that "the chain is only as strong as its
weakest link". It is also true to say here that the "5 P's"
are taken into consideration in respect of the relevant tar-
get group.
Product/Service
75
60 50
Price Place:
- distribution cha
- opinion formers
40 80
Promotion Personnel
Product/Service: Speaks for itself.
Price: Amount and pricing/accounting system.
Promotion: All activities which promote our exter-
nal visibility.
In a narrower sense: advertising and pu-
blicity. These are often directed only at
the final consumer. It can, however, be
just as important, for example, to create
the opinion formers.
12.
Staff: This involves in the first instance all
colleagues who are in contact with our
customers (e.g. telephonists; invoice
clerks, representatives etc.); do their
attitude and behaviour promote sales?
'Place': Distribution channels and opinion for-
mers. The latter in both a positive and
negative sense. Which "human networks"
can we envisage?
As mentioned in “Section I. Comments ....", as much as pos-
sible should be quantified.
In this context the following system can be of some assis-
tance, wherein the various categories are assigned to the "5
Pigtt.
100 - 75 = excellent
75 - 50 = average
50 - 30 = something must be done
30 - O = red alert
In a case where I am targeting the same target group with
several products, the following system can provide addition-
al assistance:
Supply: (which products)
How important is 2 How well does this
this product? product sell?
Product A 8 X 2 = 16
Product B 6 X 1 = 6
Product C 7 X 7 = 49
Product D 5 X 0 = _ 0
ii
iim
i—-
He
The maximum attainable in
this case would be:
10 x 8
10 x 6 etc. = 260
13.
Weighting and evaluation can be viewed separately by this
process.
The investigative process of the Workplan provides areas of
concentration and fields of attention and is complemented by
the DIA's (see page 7).
14.
4. Decision-making process in relation to Portfolio and
Workplan
The decisions made regarding priorities and definition of
objectives and related investments should take place on
three different levels.
Macro Level Company management
Business
Portfolio
* Areas of concentration
DIA's
* Fiels of attention
Meso Level set through discussion/
creative confrontation
Micro Level relevant responsible
persons
Workplans
* Areas of concentration
DIA's
* Fields of attention
The company management (Macro-level) indicates direction and
impetus by means of, for example, the Portfolio results.
They are responsible for the whole project and examine the
results of the Workplan in the light of current corporate
policy and company objectives. They exercise a "conscience
function" and are responsible for (corporate) identity and
company image.
15.
The relevant responsible persons ("sub-contractors") at the
Micro-level are responsible for their target groups and for
seeing that the available material and financial resources
and human skills are tailored to fit the definition of ob-
jectives.
Both levels converge at the Meso-level. Appropriate discus-
sion and creative confrontation lead to reciprocal influ-
ence.
The result of this process is ideally a joint setting of
priorities. The final decision rest with the company manage-
ment, since they have overall responsibility. Since unilate-
ral, authoritarian decisions in most cases create problems
when put into operation, the art here is to establish a
balance: how do I turn the people concerned into subcontrac-
tors? Conflicts often arise within a company management
group, because decision-making has not taken place at the
Meso-level.
De
16.
Strategies
Strategic questions arise mostly in the case of Stars and
Cash cows. In what type of interaction with our environ-
ment do we wish to be involved as a company, in order to
achieve our defined objecctives with the capacity avail-
able in terms of people and resources?
Strategies are of a long-term nature and correspond to
our vision of the future/guiding principle, company ob-
jectives and corporate policy.
Possible strategies:
a. invest, in order to strengthen and maintain a leading
position;
b. invest and grow, in order to catch up or overtake
others;
c. exhaust all possibilities for as long as possible;
d.. exhaust all possibilities and at the same time begin a
systematic winding-down process;
e. end or wind down immediately.
A more qualitative description would appear as follows:
a. adopt an aggressive, direct approach; attack with all
your might, charge ahead;
b. manoevre with care, let sleeping dogs lie: give and
take;
c. bide my time, wait and see what happens - but at the
same time monitor everything with attentive and vigi-
lant eyes;
d. defend if we are attacked, and hit back strongly and
directly.
These four qualitative reactions to one's environment can
be found in metaphorical language, in card games, for ex-
ample. In the game of tarot we can see the symbols of
swords (attack), coins (give and take), goblets (hold,
bide your time) and sticks (defend).
In this context Anshoff's product marketing matrix seems
worth mentioning, as described in his book "Corporate
Strategy":
17.
* increasing turnover in your own market,
* product development/renewal in the existing market,
* market development with existing products or
* through diversification.
18.
6. List of questions on the Workplan
*
Describe the target group you are aiming at. Is it too
large, too smal, or just right?
What external developments affect this target group?
Which do you find favourable, which are unfavourable?
What has your predecessor/what have you yourself done
with regard to this target group? Which results could
be seen? Can these results be represented in the form
of statistics/graphs?
Every target group can normally be divided up into seg-
ments. Make these visible and indicate how large these
are.
Do these segments always require more or less attention
or effort, or always the same amount?
Where are the most important developments in purchasing
power to be found? What, however, is the state of pur-
chasing power with regard to your products?
How much time do you wish to devote to the various seg-
ments? Is this the same amount of time as before - or
less - or more? Indicate in figures.
What competitors exist with regard to target group? In
order of importance. Can you see any helpers?
What do you really hope to achieve from this target
group? Can you see any connections with other things or
people?
What is your theme? Can you track down purchasing mo-
tives? And how does your theme relate to these?
What instruments/means are at your disposal in this
matter?
What activities do you wish to develop and on what sort
of timescale?
What means are required for this? Are there any other
preconditions to be met?
What will this cost? New investments? Resulting costs?
What results can be expected? Are there any benefits
other than financial?
19.
7. Possible working procedure
*
Write down the things which you do not know but which
may possibly need further investigation.
Where do you want to/have to investigate these things -
and which questions must you then ask?
Complement your Workplan with the results of your in-
vestigations and pass it on to third parties to be read
with the following questions:
- which aspects appeal?
- which aspects throw up questions?
- what is missing?
Work through your Workplan again.
Write down again whatever strikes you and what throws
up questions.
Prepare the DIA's.,
Determine the areas of concentration and fields of at-
tention from the global picture.
e.
20.
Forms of resistance
Resistance to both of these methods occurs in various
forms:
* I've got time for this - and it won't produce anything
which I don't already know.
* I refuse to commit myself to anything - if I do, I
shall be held to that.
* No one can predict the future - but I shall do what I
can.
* If I quote figures, I'll be pinned down by them.
* In this company a systematic approach is pointless,
everyone has his own “individual creativity".
* Reality is always different anyway.
* If I do things differently, I'm admitting that I did
not do them well in the past.
* This will involve even more work - and what will it
achieve?
From a completely different level of human nature:
* Fear, and therefore rejection, of innovation, since
this requires a change in my past behaviour.
* My older colleagues are putting pressure on me, either
consciously or subconsciously, in the sense of: 'This
is how we have always done it; in other words, the
durability of ‘'rituals'.
* The ‘old boss' or the company management is being in-
fluenced by new ideas - it will pass over.
* My retirement is soon coming up, I'll survive these
last few years.
* If I do this any differently, I'll be all at sea; the
way I did it before is familiar - but these new ideas
eve
* It's up to my younger colleagues first of all to show
what they can do.
21.
If I say "yes" to this new idea, what else will be
foisted upon me?
I can't do this, but what happens if I admit it?
If they would only leave me in peace - I've got my own
separate private problems to deal with.
Consciously or subconsciously, the following notion
comes to light:
"I'm not the enterprising type - if only I could get
clear guidelines - but the company management doesn't
know what it wants".
If I apply this new method consistently then "I'11
rationalise myself away". Where do I then get my self-
esteem from?
Until now other people have told me what I should do -
what, in fact, can I and do I want to achieve on my
own?
9.
22.
Effects
The Workplan method does not only affect the skills of
the people involved and their relationships with their
areas of operational duty and responsibility, but also
the organisation itself.
In conjunction with company objectives, corporate policy
and the relevant economic guidance and control instru-
ments of the company, it promotes the independence and
entrepreneurial qualities of the people involved. Opera-
tional duties and responsibilities become evident and
provide a real platform for discussion on the themes of
orientation and development. *)
In orientation and development discussions the general
attention is focussed on the areas of operational duty
and responsibility of fellow workers, whereby the boss's
contribution, or lack of it, is also examined.
It becomes clearer to those involved where my problem-
solving tasks and where my renewal problems lie; the lat-
ter are especially clear if I have maintained a systema-
tic approach and if I define what I do not yet know as
“areas for investigation".
This strengthens the power of "inner orientation", or
makes me less of a plaything to those around me. The ex-
change of information especially at the so-called inter-
faces can produce moments of creative encounter and no
longer need to be "organised out of existence" by rules
and regulations.
If the Workplan is not reduced at the outset to be turned
into a different kind of. planning technique or budget
system, but serves as an awareness support, I can adopt a
more flexible and competent approach to unforeseen and
changing situations
Only when facts, considerations, assumptions and blind
spots have been recognised and pointed out to others does
a change of course become possible.
By regularly considering the past, present and future I
do not lose with events, but manage to keep abreast.
*) These concepts are used here in place of the concept
of evaluation discussions, since the latter in most
instances involves a one-way disscussion between boss
and colleague.
23.
Al Workplans, including areas of concentration and fields
of attention and DIA's form the building blocks for the
future vision/guiding principle of the company.
Company objectives and corporate policy will be no more
than the pious whises of management, if the Workplans do
not reflect them and do not come to fruition through
them.
Investment plans only acquire an appropriate foundation
through these and partial budgets take their place in a
broader context and wider perspective.
Workplans in this sense form a useful working basis for
analysis and assessment of:
* Quality of the Workplan;
* Creativity and sense of reality;
* Systematic approach and efficiency of implementation;
* Nature of the areas for investigation and procedural
method;
* The difference between the aspects of problem-solving
and renewal.
24.
10. How can I recognise that the results of this method are
correct.
As already mentioned in the introduction, one of the main
values of the Workplan method lies in its effect in terms
of increased awareness, vigilance and openness with re-
gard to my environment.
I myself become an instrument, or in other words: I de-
velop the capabilities of ‘thinking in images' and of in-
tuition.
In this way I acquire for myself an increased capacity
for perceiving the real world and a feeling for facts
which are not yet visible or quantifiable. An ‘inner
security' develops, which is not confirmed by facts until
a later date.
Experiences with this method have furthermore produced
the following points of view:
* If the trends produce an optimistic picture and if the
marketing mix is
a. weak: I then expect a negative picture from prog-
nosis I and a positive picture and concrete
proposals from prognosis II;
b. strong: I then expect a positive picture from prog-
nosis I.
* If I have a strong marketing mix, I can expect that
a. Cash cows will continue to be workable as such,
b. Stars will develop into Cash Cows.
* If I have a weak marketing mix,
a. Cash cows will develop into Dogs, and
b. Stars into Wild cats.
Literature:
25.
1. W.J.J.Hasper - "Marketing en organisatie-ontwikkeling"
2. R. Steiner
COPYRIGHT NPI
("Marketing and organisational develop-
ment"), 1982, Samsom Uitgeverij; Alphen
aan den Rijn/Brussels.
"Nationalédkonomischer Kurs" ("National
economic policy"), 4th edition 1965,
Verlag der R. Steiner Nachlassverwal-
tung, Dornach/Switzerland.