Marketing Due Diligence: Reconnecting Strategy to Share Price

Front Cover......Page 1
Marketing Due Diligence: Reconnecting Strategy to Share Price......Page 4
Copyright Page......Page 5
Contents......Page 6
Foreword......Page 10
A note for busy people: how to get the best out of this book......Page 12
List of figures......Page 14
List of tables......Page 18
Part 1 What is Marketing Due Diligence?......Page 20
Fast track......Page 22
Why many CEOs despair of marketing......Page 23
Market maturity......Page 25
Globalization......Page 26
Customer power......Page 27
Impact on business from lack of customer focus......Page 28
From tactics to strategy......Page 35
The pivotal importance of marketing to business leaders......Page 37
Marketing's role in value creation......Page 38
What should marketing be doing?......Page 39
Three distinct levels for measuring marketing effectiveness......Page 42
Fast track......Page 46
What is marketing?......Page 47
What is the connection between marketing and shareholder value?......Page 48
What is the Marketing Due Diligence diagnostic process?......Page 50
Explicating the strategy......Page 51
Assessing the risks......Page 53
What is the Marketing Due Diligence therapeutic process?......Page 61
Implications of the Marketing Due Diligence process......Page 64
Fast track......Page 66
The linkage to shareholder value......Page 67
The risk and return relationship......Page 68
A focus on absolute returns rather than risk......Page 71
Using probability estimates to adjust for risk......Page 73
Alignment with capital markets......Page 77
Adjusting marketing planning outcomes......Page 78
Placing the adjusted financial return into context......Page 79
Allowing for ‘capital at risk’......Page 81
Highlighting deficiencies and key risks......Page 82
Implications for users......Page 83
Part 2 The Marketing Due Diligence Diagnostic Process......Page 86
Fast track......Page 88
Short-term success......Page 89
Strategy and tactics......Page 90
The strategic marketing plan......Page 91
The meaning of ‘product’ and ‘market’......Page 92
Combining product and market......Page 96
Product/market growth or decline......Page 97
Product and market combined......Page 103
Market risk assessment......Page 105
Conclusion......Page 113
Fast track......Page 116
What do we mean by share risk?......Page 117
Assessing target market risk......Page 119
Assessing proposition risk......Page 121
Assessing SWOT risk......Page 124
Assessing uniqueness risk......Page 126
Assessing future risk......Page 128
Assessing other sources of share risk......Page 130
Step 1: Explicate the marketing strategy......Page 133
Step 3: Aggregate the sub-components into an overall assessment of share risk......Page 134
Step 5: Moderate the growth component of the strategy to allow for risk......Page 137
The outcomes of share risk assessment......Page 138
Fast track......Page 142
Introduction......Page 143
Profit pool risk......Page 145
Profit sources risk......Page 150
Competitor impact risk......Page 154
Internal gross margin risk......Page 157
Other costs risks......Page 158
What do weak marketing strategies look like?......Page 162
Part 3 The Marketing Due Diligence Therapeutic Process......Page 164
Fast track......Page 166
Introduction......Page 167
Market mapping......Page 168
Leverage points......Page 173
Market segmentation......Page 176
Some final thoughts......Page 189
Fast track......Page 190
Starting from where we are......Page 191
Understanding and managing product category and market existence risk......Page 192
Understanding and managing sales volume, forecast and pricing risks......Page 197
Reducing target market risk......Page 199
Reducing proposition risk......Page 202
Reducing SWOT alignment risk......Page 203
Reducing uniqueness risk......Page 204
Reducing future risk......Page 206
Other components of share risk......Page 207
Reducing profit pool risk......Page 210
Reducing profit source risk......Page 212
Reducing competitor impact risk......Page 213
Reducing internal gross margin risk......Page 214
Reducing other costs risk......Page 215
Summary and conclusions......Page 216
Fast track......Page 218
Allowing for risk......Page 219
Risk equals volatility......Page 220
Controllable versus uncontrollable volatility......Page 221
Using real option analysis......Page 225
Real option example......Page 229
Summary......Page 232
Why Chief Executive Officers must demand a revolutionary new approach from their Chief Marketing Officers......Page 234
A process of Marketing Due Diligence......Page 235
The implications of implementing Marketing Due Diligence......Page 237
Assessing market risk......Page 238
Assessing share risk......Page 239
Assessing profit risk......Page 240
The key role of market definition and segmentation......Page 241
Creating strategies that create shareholder value......Page 242
Managing high-risk marketing strategies......Page 243
Afterword: what to do now......Page 246
References and further reading......Page 248
C......Page 250
E......Page 251
I......Page 252
M......Page 253
P......Page 254
R......Page 255
S......Page 256
W......Page 257