The CADDIE process [design & develop]

This is the second module in the CADDIE business-marketing planning process. After completing this module you should be able to demonstrate an understanding of the documentation process for the business plan, the marketing plan, and the tactical marketing action plans.

Planning is everything

When I look at The Kelpies, by Andy Scott, I really appreciate the design thinking, the detailed planning, and the steadfast commitment to creating something truly unique and remarkable. These magnificent sculptures, gifted to the people of Scotland, are set in an historic site where they communicate the ancient history of Scotland, with the industrial innovation achieved by Scottish people, and the creative nature of the Scottish people today. For me the Kelpies are a reminder that every marketing practitioner really needs to consider their commitment to creating a unique product value proposition and this can only be achieved through the business-marketing planning process.

Directions

In the previous module we discussed the marketing audit and how data was collected & analysed and a Marketing Audit Report was submitted to the CEO and the SBPG for consideration. And then how often a SWOT summary presentation and a Q&A session will begin the SBPG meeting. The next step in the CADDIE business-marketing planning process is to articulate the strategic intentions of the organisation – Which customers to serve – What products to compete with – How to compete – Where to compete – Whom to compete with. We will now continue our discussion of the business-marketing planning process.

The people involved

This slide identifies the people involved in the design and development of the business plan, [+ the discipline plans], the marketing plan, and the marketing action plans.

Bringing it together

After the market audit of the COMP factors has been completed there is a need to look at each product and each market to determine market attractiveness and the organisation’s ability to compete. People often talk about a gap in the market, the next question is – is there a market in the gap, and does our organisation have the ability to profitably service the market.

The Marketing Audit Report

When information is collected and analysed it needs to be organised and presented to the decision makers in a report format [not necessarily a paper format, however, often a password protected document]. There is a requirement that members of the SBPG would study and analyse the finance audit, operational audit, informational audit, and the marketing audit prior to the meeting it is also likely that there are a number of conversations where clarity is sought.

The strategic business planning group

The business planning process is an iterative process – stakeholders, shareholders, the board of directors and the various business disciplines are involved. Therefore, although the business plan will provide an overview of the various discipline plans, the primary objective is to detail the organisation’s objectives in one strategic reference document. As such, the business plan also documents the basis for evaluating the performance of management in the next financial period. The outcome of the Strategic Business Planning Group is a business plan that articulates the organisation’s strategic intentions. Although the business plan will focus on the next financial period, it is likely the  Strategic Business Planning Group will craft a rolling business plan that will articulate the strategic direction of the organisation for a stated number of years.

Strategic intent

Keep in mind, that it is the Strategic Business Planning Group that determines the overall strategic direction of the organisation and all disciplines. Furthermore, the discipline plans [e.g., marketing plan] are also strategic documents, as they provide the strategic direction for each discipline to design and develop a series of tactical action plans [e.g., the marketing action plans] for implementation –  this process transforms the strategic intentions of the organisation to tactical action plans.

Where does the SWOT presentation fit

The strategic planning group will synthesise the information from the various discipline reports, presentations & discussions & then articulate the desired outcomes for each discipline in the business plan – for marketing, it would to articulate the desired market position and the basis of competition

The business plan structure

The Strategic Business Planning Group will meet and craft the business plan for the organisation. The business plan is an important document; it provides the strategic direction for the various discipline plans [for example, the finance plan, the operational plan, the information plan, and the marketing plan]. The business plan will outline the future directions of the organisation and after an iterative process will set parameters for each discipline to begin the discipline planning process. Sufficient money, time, and effort should be invested to ensure that the objectives outlined in the business strategy can be achieved. All discipline plans must be congruent and work towards the organisational objectives. Generally, the formatting of all organisational plans will be consistent.

The CADDIE business-marketing planning process : design & develop

 Part 1: In this module we outline the documentation process for the business plan, and the marketing plan, and how this leads to the tactical marketing action plans.

 

there is an old saying ‘if you fail to plan – you plan to fail’

In section 2 of the e-book we explored marketing theory – arranged around the 3 mega-marketing concepts. An understanding of marketing theory is necessary to conduct a marketing audit and report the findings. In addition, marketing theory provides a common language for discussion and a theoretical framework for strategic thinking. Strategic thinking is both science and art that explores the organisation as it is and as it could be.

From our earlier discussions, we may conclude that a marketing audit is not necessarily an activity undertaken during a crisis or as a result of a change in management but as a regular and routine part of the business-marketing planning process.

There are significant benefits to organisations that are prepared to comprehensively audit their marketing performance and apply this knowledge in the preparation of the business plan and the discipline plans and discipline action plans.

From the business plan to the marketing plan

Once the business plan has been crafted and accepted by the SBPG [+ others] – the next step, for marketing practitioners, is to begin work on designing and developing the marketing plan.

Design & develop

The articulation of the desired position and basis of competition outlines the strategic intentions of the organisation, this will determine the financial, strategic, and communication marketing objectives, the priorities and the budget it will also address the positioning of new products and the repositioning of existing products prior to designing & developing the marketing plan which will detail the strategic marketing objectives of the organisation and the strategies and the tactics needed to achieve the marketing objectives of the organisation.

Design & develop

The articulation of the desired position and basis of competition outlines the strategic intentions of the organisation, this will determine the financial, strategic, and communication marketing objectives, the priorities and the budget it will also address the positioning of new products and the repositioning of existing products prior to designing & developing the marketing plan which will detail the strategic marketing objectives of the organisation and the strategies and the tactics needed to achieve the marketing objectives of the organisation.

A marketing plan is not a promotional document

Keep in mind that the marketing planning process is not about creating a convincing argument to  ‘sell an idea up and down an organisation’ – it is about uncovering what may only be revealed by an iterative discussion with deep thought and then designing, developing, and delivering a product[s] with a compelling and unique product value proposition.

From prevailing to forecast COMP factors

Remembering that the business plan and the marketing plan will often be viewed by different staff – the marketing plan needs to re-articulate the desired market position and basis of competition. Keep in mind that COMP factors are no longer the historical and prevailing COMP factors outlined in the marketing audit report but the forecast COMP factors of the next planning period and the basis of the marketing plan and the marketing action plans.

 

Once the collecting and analysing process has been completed and the report has been presented to the executive team the next step for marketing practitioners is to design and develop the marketing plan and the marketing action plans. This process will vary from organisation to organisation, however, designing and developing a marketing plan begins with the articulation of the desired market position and the basis of competition – this is also referred to as Strategic Intent:

  • Which customers to serve
    • What products to compete with
    • How to compete
    • Where to compete
    • Whom to compete with

The articulation process ensures that the business plan and the marketing plan are congruent. The marketing plan is a strategic document; it will provide the directions for the tactical action plans of various marketing departments/functions.

 

Selection of product - market strategies

As we have discussed previously, the selection of distribution strategy will be one of three approaches –  A whole-of-market approach is offering one product, at one price, with one message to the entire market. A segments-of-market approach is where more than one attractive segments are selected, an a segment of the market approach is where one segment is selected.

Segmenting - Targeting - Positioning

The marketing plans will identify the selected segments that the organisation will serve and with what products. Some of this information will be expanded in the tactical marketing action plans and it could be that special business units are tasked with particular products and segments

Product decisions

Closely related to customer segmentation decisions and market decisions are product decisions. The product decisions will vary due to organisational factors; however, a comprehensive marketing plan will detail the total product, including the product considerations, product layers, & product components. Also taken into consideration when designing and developing a marketing plan is the data from the product audit. The goal is product leadership and achieving the objectives outlined in the business plan.

The UPVP must be communicated internally

A marketing plan is not advertising – it is an internal communication document [keep in mind the circle of satisfaction and the importance of internal quality]. Therefore a key component of the marketing plan is to communicate the unique product value proposition internally to internal customers and boundary spanners.

Managing the product layers

The product layers enables marketing practitioners to discuss the product within the organisation and this is particularly important during the business marketing planning process. The layers enables conversations about what is core [essential], what are the customer expectations, how to augment the product to be distinct, discernible, and desirable and in keeping with the quest for best satisfying products discuss potential products.

Managing the product components

The product components enables marketing practitioners to discuss the product within the organisation and this is particularly important during the marketing planning process. The product components allow marketing practitioners to reposition the product offering in light of any gaps [e.g customer expectations] identified during marketing research, furthermore the product components will allow marketing practitioners to measure what is delivered and ensure that product promises are fulfilled. Any deviations from specifiactions should be managed during the implement and evaluate stage.

Branding

A central theme of our discussion has been directed towards developing best satisfying products – To be best satisfying, organisations must design and develop products that are distinct, discernible, and desirable; deliver products that satisfy the dreams and demands of customers. Furthermore, organisations must act in a dignified manner and thus motivate customers to provide loyalty services for the organisation. With organisations and customers co-producing an enduring involvement, brand equity, and a competitive advantage.

The marketing plan structure

Information from the strategic business plan will also appear in the various discipline plans, therefore, the structure, formatting, and organisation of the marketing plan should be consistent with the business plan and discipline plans. The marketing plan outlines the short and long-term marketing objectives of the organisation, how the organisation will go to market, and forecast the predicted revenue. Although many organisations will have a template for such documents a typical structure is outlined on this slide. Note how the marketing plan will only provide an overview of the marketing action plans.

The CADDIE business-marketing planning process : design & develop

Part 2: In this module we outline the documentation process for the business plan, and the marketing plan, and how this leads to the tactical marketing action plans.

 

Author’s comment: During the research for section 3 of themarketingconcept [e-book] over 140 business people were interviewed. The organisations ranged from small and medium sized to much larger [and well known] enterprises – all would be classified as successful. During the conversations it became apparent that perceptions of the business-marketing planning process varied greatly. Overwhelmingly, there was agreement as to the importance of business planning; however, in some instances, the business-marketing planning process, the crafting of the marketing plan, and the role of marketing action plans was not fully understood, or, the process was not fully understood.

Reflecting on these conversations I concluded that organisations that document and implement a business-marketing planning process have a clearer vision of organisational objectives.

With this gap in marketing knowledge recognised, it seemed prudent to outline in the e-book, in a step by step process, how marketing practitioners undertake the business-marketing planning process The steps in this process can be remembered by the acronym CADDIE – collect and analyse, design and develop, implement and evaluate. 

Keep in mind, the business-marketing planning process is a component of the business planning process; therefore the marketing plan needs to be congruent with the business plan and the discipline plans – the business-finance, business-operational, business-information plans.

Therefore, the chief marketing officer [and the marketing team] will craft the marketing plan and the marketing action plans to achieve the objectives outlined in the business plan. Furthermore, the business-marketing planning process will vary according to the customer, organisation, market, and products [COMP factors].

for more information please refer to themarketingconcept [e-book]