10 Questions

By Bonaque, Borja | Financial Management (UK), September 2011 | Go to article overview

10 Questions


Bonaque, Borja, Financial Management (UK)


... boards are asking their marketing colleagues - and the answers they should be giving

Directors no longer tolerate sloppy, unprofessional marketing departments that fail to justify the often-substantial sums of money they spend. The following are ten crucial questions that board members are increasingly demanding answers to. Not all of them will be relevant to all markets, but marketers must be able to answer the relevant ones

[ILLUSTRATION OMITTED]

Professor Malcolm McDonald is emeritus professor at Cranfield University School of Management and one of the UK's leading authorities on marketing.

1 Do we know and understand our key markets?

* We define our markets in terms of needs satisfied, not the products we sell.

* We map our markets showing product/service flows, volumes/values in total, our shares, and draw critical conclusions for our company.

* We know what the key decision points are. In particular, we understand the "20/80 rule" (that 80 per cent of your profit comes from 20 per cent of your products), as this is where segmentation is done.

2 Do we address real segments in our markets?

* We conduct proper needs-based segmentation rather than relying on a priori nonsense such as socioeconomics (not all "A"s behave the same); demographics (not all 18 to 24-year-old women behave the same); geodemographics (not everyone in the same street behaves the same); and so on.

* We also understand the needs of members of each segment.

3 Do we know what our sources of differentiation are in each of the principal segments in our key target markets?

* We regularly check on the buying motives of segments and compare how well our company performs against our main competitors.

* We act on the strengths and weaknesses that we identify. We ensure that our strengths create value for us and the customer and that they are difficult to copy. We work hard at tackling the weaknesses that are meaningful to the customer.

* We regularly monitor the opportunities and threats by segment to take advantage of the opportunities and to nullify the threats.

4 Do we all agree where we should target our limited resources?

* We prioritise specific segments in each market, having classified them all according to relative potential for growth in profits in each segment over the next three years and according to our company's relative competitive position.

5 Are our objectives for revenue growth and market share realistic?

* For attractive markets (in other words, those in which there is potential growth in sales and profits in the next three years), our objectives are to improve net present value, while investing in growing/retaining our competitive position.

* For attractive markets in which we have few strengths, having chosen the better ones, our objectives are to improve our competitive position by investing in them.

* For unattractive markets in which we have few strengths, our objectives are to maximise net-free cash flows. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

10 Questions
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.