031001 Session1 Handouts

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Marketing Redefined Or “Marketing Is Too Important to Leave to the Marketing Guys”

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Session #1 Topics A need for doing things differently…better! Strategic planning Destination vs. incremental planning - clearly define success The need to align key constituencies Meaningful, deliverable and defendable Focus – ‘can do, should do, must do’ ITD Hungary destination discussion Patagonia goals and objectives case discussion

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A Choice For Business Captains Downsize, cut back and try to ‘weather the storm’ Or Take the ‘rudder’ and steer the boat to a better destination. But remember: If the primary objective of the captain is to simply protect the ship – he should never leave the harbor. The objective is too get somewhere!

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Marketing is too important to leave to the marketing guys. In a performance driven organization all managers understand and embrace the concept that their actions affect the bottom line. All employees and activities in a enterprise either improve the value customers place on the products and services…or not!

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Break Your Routine and Re-Invent Your Business Future Routines can be good in managing a business Allow us to accomplish repetitive tasks with minimal thought FREE us to use our creative energy elsewhere But routines can inhibit breakthrough business growth Trap us in an existing way of doing things PREVENT us from using our creative energies Make us afraid of trying new things

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A New Time Requires New Rules Many business practices don’t work in the environment of today and will not deliver in the future - They aren’t efficient - And they don’t stimulate breakthrough ideas Many of the ‘tried and true’ strategies and tactics have been ‘tried’ again and again and they simply aren’t as effective anymore.

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Out With the Old Rules © zmarketing

Selling more stuff to more people, more often, for more money, more efficiently. : 

Selling more stuff to more people, more often, for more money, more efficiently. Marketing is:

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What is the Future For Business Performance? Develop a vision of the future Create strategies to support that vision Set a plan to implement those strategies Learn, modify, learn and modify

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Where Is the Growth? In practice there are three basic forms of growth planning Incremental planning Stretch planning Destination planning

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Incremental Objective START Incremental Planning Invest in current model to yield incremental increases C A P A B I L I T I E S S T R U C T U R E S

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That’s Where We Were Two Years Ago When the Economy Began to Stagnate But the world had changed! Global recession has reduced the level of business investment Bubble bursts on internet and telecom Fear of terrorism hits travel industry SARS hits the Far East as it emerges from recession The ‘current growth model’ doesn’t work anymore and there was a timing gap in understanding this new reality

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Stretch Objective Incremental Objective START So Then Came Stretch Planning Push and pull current model to somehow achieve growth C A P A B I L I T I E S S T R U C T U R E S

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But We Were Still Pushing Against the Same Model and the Same Way of Thinking It isn’t a question of working harder And cost cutting certainly won’t help What is needed is a new way of thinking that is in line with a new reality

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Destination START Destination Planning Decide where you really want to be and solve backwards to determine what it takes to get there

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C A P A B I L I T I E S S T R U C T U R E S Problem/ Opportunity Problem/ Opportunity Problem/ Opportunity Problem/ Opportunity Problem/ Opportunity Problem/ Opportunity Problem/ Opportunity START The Benefit of Straight Line Focus Target only the opportunities that really matter and focus on solving the problems that stand in the way of that destination Destination

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Good Managers Know How to Focus Managers often get lost in all they can do..and think they can achieve Can do Should do Must do A clear destination provides the focus to separate one from the other

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w w w . z m a r k e t i n g . c o m Madonna Has Evolved Her “Brand Positioning” But Her Destination Remains the Same © zmarketing

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Destination Planning Example: Business Definition Target Consumer What do we want them to THINK What do we want them to FEEL How do we want them to ACT Brand DESTINATION Running shoes » athletic shoes » apparel » equipment Competitive runners and other athletes Cutting edge design that will provide me with world class performance I am cool because I wear Nike Choose Nike first when considering athletic apparel and equipment Nike will be the biggest sport brand in the world Nike © zmarketing

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Leaders Lead What is a leader? Knows where he wants to go Knows how to get there Has the ability to get others to follow him to that place The problems is others want to lead and they have their own agenda about where they want to be

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Different Constituencies = Different Agendas Community Suppliers Shareholders Consumers Employees Customers

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The Solution - Schedule a Destination Planning Session Invite all the constituencies that will be involved or could be involved in helping you get to your destination Uncover the land mines Understand their perceptions, attitudes and preconceptions Discuss the competitive strengths and weaknesses of the business What has been working in growing the business and what has not? Why? Why not?

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Define Success What does success look like five years from now? Ten years from now? Establish a clear 360º picture including the goal and measurable objectives What can, should and must the business do get there? Establish business growth priorities

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Desired Result – A Destination That Unifies All Constituencies Within A Single Growth Strategy Community Suppliers Shareholder Consumers Employees Customers Shared Destination

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The Advantages of Destination Planning? It is the only way to get out of the existing way of doing business and get to a better place Gives break-out permission for key managers to focus their energies on solving problems and addressing opportunities that result in long-term success Enables the structure and capabilities to be aligned and focused on the end-game And gets everyone across all constituencies locked on a common view of long-term success in growing the business

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Destination Planning and Key Constituency Alignment Session Destination Planning Example:

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Critical Issues ITD has typically been reactive rather proactive The lack of a clear strategy has been recognized as a major inhibitor to FDI growth The old benefits and tactics in attracting FDI are obsolete Different constituencies that impact FDI have divergent perspectives on how to be successful in this new political and economic environment To be successful going forward we must have a clear strategy that is understood and shared by everyone involved in attracting FDI into Hungary

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ITD Must Move From Being An ‘Ala Carte’ Provider Of Information and Data To A Focused Organization That Consistently Achieves 1 Billion Euros of FDI Annually

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Destination Planning Before ITD can succeed, it must clearly define success. Primary focus Long term goals Success measurements ITD must have a destination (strategic vision) that is shared by all constituencies to be successful over the long-term

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Example: Hungary FDI Development Different Constituencies = Different Agendas Foreign Investors Prime Minister’s Office Economics Ministry Foreign Ministry ITD offices & Employees Business Community

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Desired Result – An ITD Destination That Unifies All Constituencies Within A Single FDI Growth Strategy Foreign Investors Prime Minister’s Office Economics Ministry Foreign Ministry ITD Offices & Employees Business Community Shared ITD Destination

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What Do We Want To Accomplish? Determine core perceptions, attitudes and preconceptions What are the competitive strengths and weaknesses of ‘Business Hungary’ What does success look like five years from now? Ten years from now? What has been working in attracting FDI and what has not? Why? Why not? Prioritize what can be done, should be done, and must be done do to attract greater FDI

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w w w . z m a r k e t i n g . c o m ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ Target Audience How we want them to THINK How do we want them to FEEL What RESULTS are we seeking How do we want them to ACT End Result - What Do We Want To Be? The Destination Hungary Positioning To __(Target)__ business investors, Hungary is the _(Frame of Reference)___ with the __(Point of Difference)__

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C A P A B I L I T I E S S T R U C T U R E S Problem/ Opportunity Problem/ Opportunity Problem/ Opportunity Problem/ Opportunity Problem/ Opportunity Problem/ Opportunity Problem/ Opportunity START Reactive versus Proactive? How can ITD best use it’s capabilities and resources

Criteria for Success - the Destination Must Be: : 

Criteria for Success - the Destination Must Be: Meaningful both in meeting targeted investor needs as well as in achieving the long-term FDI goals for the people and government of Hungary. Deliverable in that Hungary can and will continue to be able to offer sustainable advantages in the strategic areas identified in the destination – can we really do it? Defendable so that what new business success is gained cannot be easily offered by competitors. …or lost five–ten years later when a better offer is made to move the business investment out of Hungary

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Investor’s Perceptual Map Quality of Life Financial Advantages Austria Croatia Poland Hungary Czech Ukraine Serbia Slovakia Romania

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Example Of Emotional and Functional Needs

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Key Question Is Hungary only one of many small Central European countries competing against each other to develop foreign trade and investment opportunities? … Or the hub of all Central European business development?

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w w w . z m a r k e t i n g . c o m Small and medium sized companies (Why not larger?) Hungary is the best location to center my operations in the region Enthusiastic about the total Hungary experience. They feel that they would like to spend more time personally enjoying Hungary while here on business To invest in Hungary on a on-going basis. They recommend Hungary to their associates and colleagues. Increased FDI (min. 1 billion USD per year) Business hub of Central Europe Target Audience How we want them to THINK How do we want them to FEEL What RESULTS are we seeking How do we want them to ACT Possible End Result The DESTINATION Hungary Positioning For forward thinking business leaders seeking to control the costs of their operations in East Central Europe, Hungary is the pre-eminent hub location because only Hungary has the perfect balance of total business life benefits to allow your business and employees to thrive

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Repositioned ‘Business Hungary’ Quality of Life Financial Advantages Hungary ‘Live’ The Hub of Central Europe Austria Croatia Poland Czech Ukraine Serbia Slovakia Romania