activity: understanding the market

Stephen Fanning

This activity is designed to

1. Consolidate an understanding of the philosophy and theory of marketing
2. Reveal how applying the language and concepts of marketing enables graduates to communicate at a more professional level.
3.  Highlight that market research can be as needed or an everyday activity – this introduces the source of everyday research through software for marketing practitioners [SfMP].
4. Highlight the importance of marketing metrics in achieving the objectives of marketing action plans.

Scenario: After completing his University studies, Justin went to work for a large national organisation. This B2B organisation had a number of departments and a departmental manager ran each department. To a great extent, the personality of the departmental manager dictated the way each department was run.

6 months ago Justin transferred to a new department within the same organisation.

In his first department Justin’s departmental manager was known for his outgoing, gregarious personality and long lunches.  Relationships with customers and customer loyalty were thought to be strong – although how strong no one really knew. Sales meetings were generally informal, information was generally anecdotal and the meetings were disorganised. Justin had quickly observed that not only was he much younger than his colleagues, but, he was also the only one with a business degree. Justin was often teased, “It’s not what you know it’s who you know” “We’ve been to the university of hard knocks,” they would tease. At first, he wondered why he had bothered studying at all.

Over time, he noticed that he was required to prepare reports and presentations for his departmental manager, who was quick to adopt some of Justin’s business language – as if it was his own. Justin was in two minds about this; on one hand, he was happy to help his departmental manager, however, he also resented the fact that his departmental manager was reluctant to share the praise. About this time, Justin became aware that another manager was watching him. After one conference presentation, the general manager complimented him on the work he put into the department’s presentation. The general manager noted the surprised look on Justin’s face and laughingly remarked, “Your boss may not know how to right click and check the properties and author – but I do.” Justin blushed, he had deliberately entered the properties field on the document, secretly, he was elated his hard work was finally being recognised.

A few months later, Justin was encouraged by the same general manager to apply for an internal promotion in another department. It was at the first sales meeting that Justin noted the difference between the two departments. Staff members were expected to prepare for sales meetings in the new department. They were expected to have the buying activity of each of their customers recorded and tracked against previous years; any exceptions were to be detailed, external sales representatives were expected to report on current stock holdings for each customer, and to forecast coming sales. This departmental manager displayed his displeasure if orders could not be fulfilled within 24 hours. Unlike his previous manager who would blame the factory, his new manager believed that forecasting the right stock levels was his department’s responsibility. “Look at your business card” he reminded one of Justins colleagues. “it says – account manager – that translates into English as manage your accounts.”

Justin knew that his new departmental manager had an MBA and a penchant for everyday market research. When Justin mentioned that he had produced the PowerPoint slides for his former boss, the new departmental manager seemed unimpressed “I think we can put you to better use in this department…I don’t need you to make me look good…remember, in this department you are judged on how well you contribute to the financial, strategic, and communication objectives…stay focused on your objectives…be efficient with your time… but, thanks for the offer.” Coincidently, Justin was appointed a mentor a few days later. His mentor was three years his senior, he was currently studying his MBA part time. He advised Justin to stay focused on the marketing metrics that were discussed during the meetings and complete all his market reporting tasks on time “At first it seems tedious but in time you will see the sense… we have the highest margins of any department and we enjoy better salaries and better bonuses.”

He offered Justin a list of the frequent marketing metrics that are often asked during meetings.

Quickly, Justin could see the truth in his mentor’s advice. Being prepared for the sales meetings meant that he was also prepared to answer the questions his customers asked about market trends and was able to recommend stocking levels for each customer. He no longer needed the hard sell techniques that characterised his old department. Justin felt that for the first time he was managing his accounts and providing a valuable facilitating and supporting service. Importantly his customers were beginning to trust and rely on his advice.

From time to time, Justin had a sandwich with a friend from his former department; it came as no surprise that in the current competitive environment, his old department was finding things tough and the department manager was under pressure. Perhaps relationships were not as strong as they were stated to be. As a consequence, his old department manager had become a bit of a grouch; he would yell, “Go out and sell more” and “Why can’t I get some decent salespeople?” However, discounting was now the only obvious tactic and there appeared to be very little strategic or tactical direction. Justin knew then that he had made a good career move. He fantasised that one-day he may end up running his old department; his first task would be to communicate the advantages of a marketing philosophy, then focus on the 3 marketing objectives [F.S.C.] and introduced the measurement and management of marketing metrics.

At one particular sales meeting his new departmental manager mentioned Porter’s five factors for market attractiveness and this resulted in a robust conversation from the whole team. At other meetings, they spent time on analysing and segmenting the market. On another occasion, they were asked to classify customers by profitability and to design and develop action plans to turnaround unprofitable customers. Accounts that could not be turned around were terminated; his manager warned, “the more business we do with unprofitable accounts the more we lose and the more profit is eroded – the smaller our bonus”

During another meeting, it was felt that internal and external secondary data [see SfMP] provided little insight into a particular problem and Justin was asked to liaise with their market research company and report back to the departmental manager with his findings. Clearly there was more than one business degree in this team.

One day the general manager rings Justin. “Justin, you have marketing qualifications – I need your help to nurture a culture of measuring and managing to achieve objectives”.

Task

Your topic is “How marketing metrics can be employed to measure and manage the 9 key objectives of marketing practitioners ”

He added “10 minutes – make it clear, concise and make sure it is uploaded to our company YouTube channel so everyone may benefit.”