marketing planning process final

13443734 Marketing Planning Process

SESSION : MARCH 2012

UNIT TITLE : MPP

CANDIDATE REG. NUMBER : 13443734

WORD COUNT : 2963

‘I confirm that in forwarding this assignment for making, I understand and have applied the CIM policies relating to word count, plagiarism and collusion for all tasks. This assignment is a result of my own independent work/ investigation except where otherwise stated. Other sources are acknowledged in the body of the text and/or a bibliography is appended. The work that I have submitted has not previously been accepted in substance for any other award. I further confirm that I have not shared my work with other candidates’

1


Prepared for : Zimbabwe Newspapers

Prepared by : Marketing Manager

Date : January 2012

Subject :Medium – term Marketing planning to address threats in the external environment of Zimbabwe Newspapers

2


TABLE OF CONTENTS

Content Page

1.Executive Summary 4

2.Corporate Mission 5

3.Summary of audit findings 5

4.SWOT Analysis 6

5.Marketing objectives 6 - 7

6.Marketing Strategies 7 - 10

7.Marketing mix decisions 11 - 12

8.Budgets 12

9.Implementation 12

10. Evaluation and Control 13

APPENDICES

1.Appendix 1 : Organizational background2.Appendix 2 : Audit Findings3.Appendix 3 : Gabriel’s credibility Matrix4.Appendix 4 : Implementation / Schedule of activities5.Evaluation Report6.References

3


1.0 EXECUTIVE SUMMARY

Zimbabwe Newspapers (1980) Ltd is the oldest newspaper publisher and commercial printer in Zimbabwe, as well as being easily the largest publisher of newspapers, having dominated the industry for almost 120 years. The company is the proprietor of Zimbabwe’s leading daily newspapers, The Herald and the H-Metro and owns two weekly newspapers operating in tandem with the dailies, The Sunday Mail and Kwayedza. Zimbabwe Newspapers mission is to produce newspapers, print and package products and offer publishing services that add value to our customers, employees and shareholders

Threats exist because of the following changes in the external environment:1. Deregulation of the newspaper industry.2. Political interference3. The growing use of direct mail is at the expense of newspaper revenues.4. Great presence of substitutes such as television news, radio news, internet news and mobile news.5. The growing use of internet as an advertising channel.6. Demographic change.

Due to the above changes in the external environment Zimbabwe Newspapers wishes to reposition itself in the next 3 to 4 years in order to maintain its position as market leader and increase sales of all newspapers by 20% in the next four years and achieve a market share of 52% of its flagship newspaper, The Herald in 3 years. In order to achieve this Zimbabwe Newspapers needs to invest in a number of activities that will make it realize a positive change. The activities will include Ansoff growth strategies such as market penetration, product development, market development and diversification, market positioning strategies as well as improving the 7 Ps of marketing in order to increase sales.

However there are factors that will affect the implementation of the marketing plan such as limited funding and managerial, cultural and organizational issues such as poor and inadequate marketing intelligence, poor internal communication in marketing between functions and lack of skills and training.

RATIONALEAs technology advances, the demand of print media decreases and consumers now opt to read the news online which is much cheaper. The threat of substitutes such as such as television news, radio news and other online news which brings news to the customer much faster, cheaper and in a more visual style than newspapers has also reduced the demand of Zimbabwe Newspapers publications. The growing use of direct mail is at the expense of newspaper revenues. Over the past 5 years, the amount spent on direct mail advertising has grown more than 100 %, compared to just over 40% for newspaper advertising The growing use of internet has gone a step further than television in eroding the advertising income of newspapers by providing a convenient vehicle for classified advertising, particularly in categories such as jobs, vehicles and real estate. Furthermore the liberation of the newspaper industry resulted in stiff competition and market loss. It is against this background that Zimbabwe Newspapers needs a marketing plan to address threats as a result of changes in the external environment.

4


2.0 CORPORATE MISSION STATEMENT

To produce Newspapers, Print and Package Product and offer publishing services that add value to our customers, employees and shareholders.

Core Values Customer Satisfaction Good corporate governance Equal opportunity employer Profitability Quality products and services

3.0 SUMMARY OF AUDIT FINDINGS

3.1 Political factors Unstable political environment Growing political focus and pressure Government of Nation Unity not agreeing in policy making.Economic High unemployment rate Underperforming economy Less disposable income Lack of borrowing facilitiesSocial HIV/AIDS pandemic Growing use of internetTechnological Internet and satellite television Environmental Government and pressure groups raise awareness of environmental preservation.Legal Deregulation of newspaper industry

3.2 Competitive environmentZimbabwe Newspapers main competitors are Alpha Media Holdings and Associated Newspapers of Zimbabwe.1. Competitive intensity: Less competitive as there are few firms holding large market share.2. Barriers of entry: High, requires specialized technology and high minimum efficient scale.3. Bargaining power of suppliers: High, few suppliers of newsprint and ink in Southern Africa.4. Bargaining powers of buyers: weak buyers are fragmented, no buyer has influence over price or

product.5. Threat of substitutes: High because of television news, radio news, mobile news and other

online news.

4.0 SWOT Analysis for Zimbabwe Newspapers

5


Strengths

Strong brands Innovative company Favorable access to distribution networksWeakness

No customer retention policy Poor customer service delivery Newspapers viewed as political biased Insufficient operational resources

Opportunities High potential readers because of high literacy rate in Zimbabwe Stabilized prices because of adoption of foreign currency High potential distributors Technological advances Government support

Threats Competition from deregulation of newspaper industry Change of government Substitutes Growing use of internet advertising Demographic change Growing use of direct mail

4.2 Key issues: Threats Scenario planning (BP Marketing planning December 2010 Study Text, pg98)

Business ImpactLOW HIGH

HIGH

Political instabilitySubstitutesCompetitionTechnological advances

LOW

High unemployment ratePolitical interferenceReduced demand of print media

5.0 OBJECTIVES

Marketing Objectives To increases sales of all newspapers by 20% in the next four years Enhance brand visibility of all newspapers and loyalty through repeat purchases Establish 50 distribution outlets in the neighboring countries in the next 4 years. Achieve advertising sales revenue of $1 billion dollars over 5 years. Achieve market share of 52% for The Herald in 3 years.

Financial Objectives To achieve a breakeven point within the fourth quarter of the year.

6


To increase the profit margin by 1.5 % per quarter for the following four years 10% growth rate for the next five years

6.0 STRATEGY

Ansoff Growth Strategies suggest four ways for organizational growth which are through Market Penetration, Product Development, Market Development and Diversification. In Zimbabwe Newspapers situation, Market penetration and market development would be adopted.

Ansoff Product – Market Growth Matrix

PRODUCTS

Existing Products New Products

MARKETPENETRATION

PRODUCTDEVELOPMENT

MARKETDEVELOPMENT

DIVERSFICATION

Market Penetration involves selling more of existing products in existing market. Zimbabwe Newspapers can penetrate markets by gaining competitors customers this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors, improving the product quality or level of service and attracting non-readers of Zimbabwe newspaper publications or convincing current customers to read more of the company’s newspapers, with the use of marketing communications tools. Market penetration seeks to achieve four main objectives:

1. Maintain or increase the market share of current products.2. Secure dominance of growth market.3. Restructure a mature market by driving out competitors.4. Increase usage by existing customers.

Market Development is a growth strategy where Zimbabwe Newspapers seeks to sell its existing products into new markets. Ways of approaching this strategy are new geographical market; newspapers would be sold in neighboring countries like South Africa and Zambia, new distribution channels and different pricing policies to attract different customers or create new market segments.

Competitive advantage“Competitive advantage is the process of identifying a fundamental and sustainable basis from which o compete. Marketing strategy aims to deliver this advange in the market place”Donnelly, R, and Harrison,G. (2009,p16). According to Porter (1985), there are 3 generic strategies of competitive advantage and these are:Cost LeadershipDifferentiation

7


Focus

In face of growing competition from Alpha Media Holdings and Associated Newspapers of Zimbabwe, Zimbabwe Newspapers will adopt the cost leadership strategy which aims to pursue an overall cost leardship position and achieve and maintain a low cost structure.

The basic drivers of cost leadership, according to Drummond and Ensor (1999) are : Economies of scale- the single biggest influence on cost Linkages and relationships- being able to link activities together and form long-lasting customer

relationships, inclusive of customer retention programmes Infrastructure- factors such as location, availability of skills and government support.

The organization can pursue economies of scale by acquiring digitalized printing machines that are fast and efficient and produce less spoiled papers thus reducing newsprint wasted. It can also source for cheaper newsprint and ink, minimize research and Development expenditure and keep a firm control of overheads. The organization can establish strong relationships with its customers through customer retention programmes and Customer Relationship Management. Zimbabwe Newspapers can utilize the existing infrastructure and availability of skills and utilize government support.

Market Positioning Strategies

Zimbabwe Newspapers can position itself as a market leader, because as a former monopoly it is extremely dominant and high profile in the newspaper industry and target marketplace. The group possess 56 % market share, and the flagship newspaper has a daily readership of over one million. However positioning the group as a market leader leaves it vulnerable for competitor attacks. Typical competitor attacks include market expansion, aggressive and offensive attacks to regain lost market or even defensive attacks, trying to protect existing market share from a market contender.

Segmentation

Kotler defines segmentation as the act of dividing the market into specific groups of customers/buyers who share common needs and who might require separate products and / or marketing mixes. Hooley, Saunders and Piercy in Marketing Strategy and Competitive Positioning define market segmentation as “identifying the most productive bases for dividing a market, identifying the customers in different segments and development segment description”.

Segmenting customers and prospective customers allows Zimbabwe Newspapers to better understand them. Segmenting allows the group to prioritize resources. A segmented audience allows for more knowledgeable circulation, advertising, and product development decisions.

AGE CHARACTERISTICS19 - 24 Find television new and entertainment less biased and more interesting than that of the

newspaper, but use the newspaper as an advertising source.25 - 34 Use the newspaper as a source of consumer education and daily living information.

35 - 44 Place greater value on advertising content of the newspaper and less critical of its news coverage.

45 - 65 Less critical of newspaper coverage and less interested in consumer information but rather more interested in local, national and church stories

8


Targeting strategies

Targeting is the decision about which market segment(s) a business decides to prioritize for its sales and marketing efforts.(Dibb, Simpkin, Pride and Ferrell, Marketing Concepts and Strategies, 4th European edition) . Targeting is the process of that involves evaluating the attractiveness of a range of potential market segments that have been identified in terms of being commercially viable. (CIM COURSEBOOK Marketing Operations 2001. Karen Beamish, pg 63)

There are three market-coverage strategies: undifferentiated marketing, differentiated marketing and concentrated marketing. When choosing the suitable strategy Zimbabwe Newspapers must take into consideration: economies of scale, customer needs, wants and expectations, competitive rivalry, brand strength and market share and company capability. Zimbabwe Newspapers will concentrate its efforts on one market but have different versions of each product. This is known as differentiated marketing. Currently the group has four newspapers serving the market, H-Metro is an gossip and entertainment tabloid currently targeting the 19 – 24 age group, The Herald is targeted at the 25 – 34 and 35 – 44 age groups and Kwayedza is for those that are 45 – 65 years. The group can add a weekly business digest for corporate and national leaders and also a classifieds weekly tabloid target the 35 – 44 years segment.

By offering product and market variations , we hope for higher sales and a stronger position within each market segment and that a stronger position in several segments will strengthen consumers’ overall identification of the group with the product category. Differentiated marketing typically creates more total sales than undifferentiated marketing but it also increases the costs of doing business.

PositioningAccording to Kotler (2008, pg 157), “positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of trget consumers.”

To enhance successful positioning of the newspapers, Zimbabwe Newspapers will maintain clarity, consistency, credibility and competitive, the keys to successful positioning as per diagram below Jobber (2010)

Source: Jobber, D. (2010)

Perception is a vital component of positioning strategies, the key tool to support this process is a perceptual map. When looking at perceptual maps, there are four perceptions to be considered:

High price and high quality High quality and low price Low price and low quality High price and low quality

9

Clarity

SuccessfulPositioning

Competiveness

ConsistencyCredibility


Figure 3.5 Perceptual positioning mapAs shown in the diagram above, newspapers printed by Zimbabwe Newspapers are of a very high standard. The news content of each publication is well researched and verified, there is wide coverage of the newspapers and subscription copies are delivered in a timely manner and in the proper condition.

Zimbabwe Newspapers realizes that successful positioning is increasingly about ongoing relationships with target customers. Morgan & Hunt (1994) defined relationship marketing as “all marketing activities directed towards establishing, developing and maintain successful relational exchanges”. The group seeks to build long term relationships with clients with potential of providing a profitable relationship for the business.

7.0 MARKETING MIX DECISIONS

7.1 ProductsIn order to achieve its objectives, Zimbabwe has identified two main products which it will need offer in the market. The products are as follows:Business Digest

High QualityLow Quality

ZimbabweNewspapers

Alpha MediaHoldings

Associated Newspapers

10

High Price

Low Price


A weekly business digest will cater business owners, employees, national leaders and other individual or groups that are interested in the economic growth of the nation. The Business digest will be released every Monday, it will cover changes in the macro environment of business in Zimbabwe and coverage of business in every sector in the economy: mining, tourism, banking, retail, transport and insurance.

Classifieds tabloid This newspaper is set to serve the whole market as people from all age groups and occupation are interested in the classifieds as it advertises a range of products and services from tuition, nursery schools, property, building materials, clothing, plumbing services and vehicles on sale.

7.2 PlaceZimbabwe Newspapers practices intensive distribution resulting in wide coverage of its publications. The different channels of distribution are: Vendors. The group has employed over 250 vendors in the capital city, Harare. They collect the

newspapers from the dispatch office on a dairy basis Agents. Newspapers are delivered to retails shops, service stations and book store nation wide, in

totals there are 156 agents. They sell the newspapers on commission of 10% the cover price. They offer convenience for our readers as they are located close to them.

Home deliveries. When customers subscribe to any of our newspapers they are delivered to their homes or offices in a timely manner and in the proper condition by deliverymen that are employed by Zimbabwe Newspapers.

Online. All newspapers can be viewed online.

7.3 PriceZimbabwe Newspapers is an established print media house that enjoys economies of scales as a result the cover prize of its newspapers is below their competitors. By charging a price below the competitors, it will capture the competitor’s customers because the newspaper market is price sensitive.

7.4 PromotionPromotion is the way a company communicates what it does and what it can offer to its customer (www.cim.uk/marketingresources, Marketing and the 7Ps, pg 5). Zimbabwe Newspaper is going to use the following promotional tools to reach its target market:

1. Direct MarketingAn interactive system of marketing which uses one or more advertising media to effect a measurable response at any location .Source: Institute of Direct MarketingThrough direct mail and approaching companies and individual to subscribe to the newspapers

2. Public relations“A planned and sustained effort to establish an maintain goodwill and mutual understanding between an organization and its target publics”(CIM COURSEBOOK Marketing Operations 2001. Karen Beamish, pg 124)It aims to disseminate information to the public and to create and maintain the corporate and brand image through press releases and exhibitions.

3. Advertising“advertising is a form of non-formal communication that is transmitted through mass media such as television, radio, newspapers, magazines, direct mail, public transport vehicles, outdoor displays and the internet” ”(CIM COURSEBOOK Marketing Operations 2001. Karen Beamish, pg 101)

It group puts in-house adverts in its newspapers and uses billboards and also displays on public transport vehicles.

4. Sales Promotions“A range of tactical marketing techniques designed within a strategic marketing framework to add value to a product or service in order to achieve specific sales and marketing objectives”(CIM COURSEBOOK Marketing Operations 2001. Karen Beamish, pg 101)

11

http://www.cim.uk/marketingresources


sales promotion aim to increase trial and adoption of new and existing products, increase brand and product awareness and to attract customers to switch brands and products from competing organizations. This can be achieved by employing the following techniques: Discounts for subscriptions Buy one and get one free i.e subscribe for a month a get a whole week of free newspaper deliveries. Point of sales displays Customer loyalty bonus schemes Prize draws

7.5 PeopleOver the past few years Zimbabwe Newspapers as gained bad reputation of poor customer service and high staff turnover. Considering the marketing objectives it wants to achieve it is necessary for staff to undergo Customer Care training to be held annually to ensure exceptional service delivery and high professionalism from staff members. Jobber (2010) states that “Understanding internal marketing will be key in the success of the organization. Internal marketing is training and communicating with internal staff.”

7.6 ProcessThe process of the organization is that journalists present stories that are authentic and written in an unbiased and professional manner. The printers are to print the newspaper on time and with good quality, from there the circulation department is to ensure that the newspaper get wide coverage and that it is delivered on time and in the proper condition.

7.7 Physical EvidenceZimbabwe Newspapers must clearly brand its offices, with the logo well placed and visible at all branches and head office as well as on the delivery trucks. All offices are to be neat and of a formal setting. All staff to wear well branded uniforms and be smart. This plays a major role in establishing the quality perception of service and institution as sited by Donnelly, R. and Harrison, G. (2009).

8.0 BUDGETSInvestment budgetary will be used for the next 4 years. Top-Down budgetary approach has been adopted to give management a bigger picture of the project. Below is the proposed budget.

MARCH 2012 TO MARCH 2016 BUDGET IN US DOLLARSTASK YEAR 1 YEAR 2 YEAR 3 YEAR 4 TOTALAdvertising and hiring 300,000 250,000 200,000 150,000 900,000Public relations 80,000 70,000 60,000 50,000 260,000Publicity 50,000 40,000 30,000 30,000 150,000Distribution 200,000 100,000 80,000 80,000 460,000Customer Service Expenses 90,000 60,000 50,000 50,000 250,000Sales promotions 80,000 80,000 70,000 60,000 290,000Marketing Contigency 150,000 120,000 100,000 100,000 470,000TOTAL 950,000 720,000 590,000 520,000 2,780,000

9.0 IMPLEMENTATION- SCHEDULE OF ACTIVITIESMarketing tactics have been broken down into implementable tasks for four years. Refer to appendix 4

10.0 EVALUATION AND CONTROLThe table below show approaches of how to measure this marketing plan

Feedback Information Standards Control ActionsSales Figures Will be measured against budget Stimulate demandCirculation Number of copies per week Stimulate circulation

12


Cost/ Profit Cost/profit ratios Reduce ExpenditureCorporate image Attitudes change Improve internal and external

relations

How marketing activities will be measured and controlled.

ACTIVITY CRITICAL SUCCESS FACTORSales Promotions Number of new subscribersAdvertising Attitude ratings, awareness levels, cost levelsPublic Relations Goodwill, mutual understanding, awarenessPricing Demand and sales levelsDistribution Number of distribution outlets and coverage of newspapersPeople High morale, high staff retention, innovationProcess Efficiency and effectivenessPhysical Evidence Staff uniforms, buildings, colour and logo and attractive website

Source: BP CIM Professional Diploma . Marketing Planning December 2010, Study text pg 199

APPENDIX 1

ORGANIZATIONAL BACKGROUND

13


Newspaper Publication:The Newspaper Division is made up of 3 branches namely Harare, Bulawayo and Mutare. The company publishes 4 newspapers

The Herald: 1891 The VisionTo be the leading Newspaper, publishing, printing and packaging company in Zimbabwe and beyond.

MissionTo Produce Newspapers, Print and Package Products and offer publishing services that add value to our customers, employees and shareholders.

Core Values

Customer Satisfaction Good corporate governance Equal opportunity employer Profitability Quality products and services

Newspaper DivisionHarare Branch: The Herald, The Sunday Mail, Kwayedza and H-Metro

The Sunday Mail: 1935Kwayedza: 1986

H-Metro: 2009

The CompanyZimbabwe Newspapers (1980) Ltd is the oldest newspaper publisher and commercial printer in Zimbabwe, as well as being easily the largest publisher of newspapers, having dominated the industry for over 120 years. The company is the proprietor of Zimbabwe’s leading daily newspapers, The Herald and the H-Metro and owns two weekly newspapers operating in tandem with the dailies, The Sunday Mail and Kwayedza.

Besides being the biggest newspaper publisher in the country, Zimbabwe Newspapers is the only publisher and printer operating as a public company, having been floated on March 8 1927 then as the Rhodesian Printing and Publishing Company Limited. It changed its name in 1980 when Zimbabwe became independent. The 1927 launch incidentally makes it one of the oldest listings still on the Zimbabwe Stock Exchange. For more than 80 years any reader has had the opportunity to buy and trade in the shares of “their newspaper”, and many have taken that opportunity, the company encouraging hundreds of smaller investors to join the big institutional investors in taking a stake in the equity. Only in the very worst of times has the dividend been deferred. Zimbabwe Newspapers has the newspaper offices in Harare, Bulawayo and Mutare and commercial printing works in Harare and Bulawayo. Gweru hosts a newspaper bureau and commercial office, while journalists are stationed in Chinhoyi, Masvingo, and Beitbridge.

The Distribution: Harare, Mutare, The Sunday Distribution: Harare, Mutare, Bulawayo,

14


Herald: Bulawayo, Gweru, Masvingo.Target Audience: Mass Market.Readership: Mostly 22-60 year olds.Content Mix: News, Features, arts, sports and Business.

Mail Gweru, Masvingo.Target Audience: Mass marketReadership: Mostly 22-60 year olds, High density residential areas.Content Mix: news, features, arts, sports.

H-Metro Distribution: Harare, Mutare, Bulawayo, Gweru, MasvingoTarget Audience: Mass market.Readership: Mostly 22-40 yearolds.Content mix: News, features, arts, sports and business.

Kwayedza Distribution: Harare, Mashonaland RegionTarget audience: Lower endReadership: Mostly 15-50 year olds.Content Mix: News features, arts, sports and Business.Language: ShonaDistribution: Harare, Mutare, Bulawayo, Gweru, Masvingo.Target Audience: Mass Market

APPENDIX 2

MARKET AUDIT FOR ZIMBABWE NEWSPAPERS“The market audit is a systematic and periodic examination of a company’s environment, objectives, strategies and activities to determine problem areas and opportunities.” Kotler, et al (2008). A marketing audit appended below was undertaken to assess the current business environment.

15


EXTERNAL AUDIT2. PESTEL analysisPESTEL analysis is useful for assessing the external environmental influences on a business’ performanceIssue Impact on BusinessPolitical

Growing political focus and pressure on the newspaper industry.

Unstable political environment for over 11 years. A Government of National Unity not agreeing in

policy making.

Increase pressure on editorial policy to be changed to meet politician’s demands.

Affected the economic landscape bringing about incoherent decision making and policies.

Long term strategic planning is affected due to political instability.

Economic Unemployment rate is estimated at 95% . Under-performing economy with a very low

growth in the industry. No borrowing capacity Reduced household and business spending.

Reluctance of consumers to spend on newspapers.

Lack of capital to increase operational capacity.

Social The HIV/AIDS pandemic has greatly affected the

nation leaving many households with extended families to look after.

Increased use of internet and social networks. The impact of intense media attention has brought

a more revolution in the social aspect and creates a society which is more enlightened and which appreciates the industry.

Reduces productivity and skills base. Reduced the demand of print media

Technological Trend shift to technology within younger

generation Reduced the demand of print media

Environmental The government and pressure groups within the

country have taken campaigns to raise awareness of the need to preserve the environment. This has seen the adaption of tree planting days, banning of materials that are not biodegradable.

As part of promoting awareness on the need to create an environmentally friendly planet Zimbabwe Newspaper has reduced waste when printing and sells unsold newspapers to National waste collectors.

LegalThe newspaper industry was deregulated 2010

Deregulation of the newspaper industry increased competition thus reducing Zimpapers market share.

COMPETITOR ANALYSISZimbabwe Newspapers main competitors are Alpha Media Holding and Associated Newspapers of Zimbabwe. Table 1.1 show the competitors, their products,objectives, strategies, strengths and weakness.

ALPHA MEDIA HOLDINGS ASSOCIATED NEWSPAPERS PRODUCTS Newsday (Daily)

Standard (Weekly) Independent (Weekly)

Daily News (Daily) Daily Sunday ( Weekly) Financial Gazette ( Weekly)

OBJECTIVES Offer candid, well balanced news at an affordable price.

To be a market leader

16


STRATEGIES Penetration pricing Intensive distribution Advertising using billboards and point of sales display.

Mid price level to compete with mid level branded newspapers Intensive distribution Promoted online using pop up adverts

STRENGTHS Well trained and motivated Staff. Customer loyalty

Strong brand Professional journalism work ethics

WEAKENESS Ineffective distribution system Poor customer service

COMPETITIVE ENVIRONMENTDibb, Simpkin, Pride and Ferrell in Marketing – 4th European edition page 56 define competition as those companies marketing products that are similar to, can be substituted for, a given business’s products in the same geographic area.Donnelly, R. and Harrison, G. (2009) states that an organization should understand it competitive stance and be clear what the organization means to the customer. An organization then needs to select the strategic approach which allows it to maximize its strengths recognizing the competition. For us to have a comprehensive understanding of the forces influencing industry and competitive advantage in the newspaper industry there is need for use to use Michael Porter’s five forces.

1. Competitive Intensity ( Rivalry Among Sellers)The newspaper industry was once monopolized by Zimbabwe Newspapers for over 80 years. Associated Newspapers of Zimbabwe entered the market in 2005, then followed by Alpha Media Holdings in 2009. With only a few firms holding a large market share, the competitive landscape is less competitive. All companies have the capacity to expand operations in order to met demand effectively. High exit barriers cause firms to remain in the industry and compete even when the venture is not profitable. There is low switching costs, a customers can freely switch from one publication to the other. Because of the nature of the product which is highly perishable causes a producer to unload at the same time, the competition for customer intensifies.2. Barriers of Entry (potential new entrants)Barriers of Entry in the newspaper industry in Zimbabwe arise from several sorces.

1. The government restricts competition through the granting of monopolies as in the case of Zimbabwe newspapers which was a monopoly for over 80 years and through regulation of news.

2. Ideas and knowledge that provide competitive advantages are treated as private property, preventing competitors from using the knowledge.

3. The newspaper industry requires highly specialized technology and equipment that potential entrants are reluctant to commit to acquiring specialized assets that cannot be sold or converted into other uses if venture fails.

4. high Minimum efficient Scale (MES) deter entry of small, start-up business.

3. Bargaining power of suppliersSuppliers of newsprint are powerful as they are few in Southern Africa and can exert an influence in the newspaper industry such as selling newsprint and ink at high price to capture some of the industry’s profits.4. Bargaining power of buyersWeak because buyers are fragmented, no buyer has any particular influence on product or price.5. Threat of substitutesThere is high threat of substitutes in the newspaper industry as the target audience is offered a variety of news mediums of getting informed. They can be informed of national, international and sports news through television, radio stations s well as reading other online publication for less.

THE MARKET ENVIRONMENTAL AUDITTotal market size growth and trends: Zimbabwe Newspapers currently holds the largest share of the newspaper marketing in Zimbabwe. The Herald, which is the flagship newspaper of the group has an average daily circulation of 50 000 copies and a readership of over one million. According to ZAMPS results released in December 2011, The Herald has 46% market share. It is a strong brand, evidenced by the papers winning The SuperBrand award in Print media for the past 10 years. The latest edition by the is H-metro, which is a daily

17


gossip and entertainment tabloid, is the fastest growing newspaper in the market, it has gained a market share of 25% in 2 years and an average weekly circulation of 15 000 copies. The Sunday Mail is also the top selling weekly newspaper with a market share of 40% and an average weekly circulation of 100 000 copies. Lastly there is Kwayedza a weekly newspaper written in the native language Shona, has the lowest market of 6% and an average weekly circulation of 5 000 copies.

Value ChainPrimary activities are directly related to production, sales, marketing, delivery and service.

Activity CommentInbound logistics Newsprint and ink warehousing and stock controlOperations Printing of newspapers, allocation of newspapers and reporters writing stories.Outbound logistics Distribution the newspapers to customers through home delivery, street vendors or

retailersMarketing and sales

The group informs customers about discounts and subscriptions by putting an advert in the in newspapers and attending business exhibition

Service Zimbabwe Newspaper has worked hard to develop a service that meets customer needsThrough producing different publications that meet the needs of different segments.

Support activities provide purchased inputs, human resources, technology and infrastructural functions to support primary activities.

Activity CommentProcurement Purchase of newsprint, ink, machine spare parts of printing machineTechnologydevelopment

Computerized dispatch point and warehousingContinuous availability and reliability are essential for its website which generates 52 Million readers.

Human resourcemanagement

Recruitment of mature staff, customer care training and awarding journalists for Outstanding performance.

FirmInfrastructure

Finance, planning, quality control and senior management

Mc Kinsey’s 7s It is important to look at the micro environment to clearly understand the issues relating specifically to Zimbabwe Nesspapers. This can be achieved by analyzing McKinsey’s 7s framework (Peter and Waterman, 1982).StrategyZimbabwe Newspapers marketing strategy to is to maintain its position a market leader an trend setter in the newspaper industry. Leadership style is autocratic as directors make all decisions, issues instructions which must be obeyed without questions.Shared ValueThe group is market driven. It is passionate about satisfying the market with different products for each segment, professional journalism, total coverage of the newspaper across the country and newspaper to be available to its customers on time.SkillsThe group boosts of its skilled works force, which possess skills in journalism, printing, customer care, technical, marketing, auditing, accounting, secretarial, production, advertising and managerial skills.Systems For all departments, there are procedure manuals that are put in place to ensure the smooth flow of processes which are used to meet customer needs. The Group prepares annual, long term and strategic plans. Most of the annual plan objectives are reached. Structure

18


Zimbabwe Newspapers is a functional organization, appendix 2 typically defined each of its business function.StyleManagement style at Zimbabwe Newspapers is autocratic although some mangers encourage dialogue with staff members. The decision making process is lengthy and sometimes wears employees out.StaffThe Group employees 1399 employees that qualified with requisite skills and experience, also motivated.

MARKETING ACTIVITIES AUDIT

The 7ps of marketing activities has been audited as below:ProductProduct variety: Zimbabwe newspapers has a variety of publications serving the market. There is The Herald, a daily newspaper, Sunday Mail is a weekly family newspaper, H-metro is a daily lifestyle and entertainment tabloid and Kwayedza a weekly tabloid written in the native language, Shona.Product coverage: Zimbabwe Newspapers uses intensive distribution, resulting in wide coverage of its publications across the country.Product quality: the quality of newsprint used and the general appearance of the newspaper is good from both the customers and stakeholders view.Product demand: the demand of Zimbabwe Newspapers products has reduced due to increasing competition and the reduced of use of print media across the country.Branding: the flagship newspaper, The Herald has been winning the SuperBrand award in print media for the past 5 years.Product life stage: As a result of technological advances, the growing use of internet and less disposable income consumers now prefer to read the newspaper online. This as reduced the demand of print media, thereby reducing circulation figures and adjusting output to match demand. Furthermore the growth of online news and other substitutes for news such as radio news, television news and mobile news as also affect the newspaper industry. Consequently we can discern that the industry is in its maturity stage.PriceCompetitive pricing, priced to compete with other newspapers in the market. All newspaper in Zimbabwe are pegged at $1 per copy.Place (distribution)Intensive distribution, channels include street vendors, retailers, service stations, bookshops and through home delivery after customers have subscribed the newspapers.PromotionThe group advertises through billboards and placing adverts in its publication. It religiously exhibits its products at expos and the annual trade fairs. Each newspaper run a competition for an example the Sunday Mail has the Baby of the year competitionProcess Zimbabwe Newspapers does not have a culture of service, the group’s overall process is slow for example a when buying a back dated issue, the client is tossed from one office to another.Physical evidenceDelivery trucks display company logo however the staff does have a uniform and the building itself is not decorated with company colours.

SWOT analysis“ the strengths and weakness in the SWOT analysis do not list all features of a company, but only those relating to critical success factors “Kotler et al, (2008, p 138). The table below analyses the strengths and weaknesses, opportunities and strength of Zimbabwe Newspapers.

19


Strengths The flagship newspaper The Herald is a strong brand, this is evidenced the it winning superbrand in print media for the past 5 years. It is seen as an innovative company this is

Shown by its different publications. Favorable access to distribution networks, resulting in wide coverage.

Weakness Has no customer retention policy Poor customer service delivery. The group’s newspapers are viewed byReaders as political biased. Lack of operational resources such as Up to date computer, digitalized printing Machines.

Opportunity

High literacy rate in Zimbabwe creates high potential readers for its newspapers. Adoption of the foreign currency in Zimbabwe

has stabilized the cover price of our publications.

The opening of new supermarkets and shops in Zimbabwe creates potential distributors for our publication. Technological advances such as new Oracle based systems around the world enables to work effectively and efficient resulting in less duplication of work and meeting dead lines. Government support

.

Threats

Liberation of the newspaper industry resulted in stiff competition and market loss.

A change of government in the upcoming presidential elections will reduce some of the benefits the group was enjoying such as government funding and other strategic relationship it was exploiting

Great presence of substitutes such as television news, radio news, internet news and mobile news which bring news to the consumer much faster and in a more visual style than newspapers.

The growing use of internet has gone a step further than television in eroding the advertising income of newspapers by providing a convenient vehicle for classified advertising, particularly in categories such as jobs, vehicles and real estate.

The growing use of direct mail is at the expense of newspaper revenues. Over the past 5 years, the amount spent on direct mail advertising has grown more than 100 %, compared to just over 40% for newspaper advertising.

Demographic change, the number of news readers has grown noticeably in the age of 18 to 24 however fewer of them pay. In the next few decades old-school readers will be replaced by technology driven news consumers and print media will decline in demand.

ZIMBABWE NEWSPAPERS STAKEHOLDER NETWORK AUDITMendlows Stakeholder Analysis ModelThe following are key stakeholders of Zimbabwe Newspapers:

MENDOW’s STAKEHOLDER MATIX

Power

20


H L

Government

A

CustomersEmployeesSuppliersB

Pressure Groups

C

SMEs Suppliers

D

RATIONALEAs technology advances, the demand of print media decreases and consumers now opt to read the news online which is much cheaper. The threat of substitutes such as such as television news, radio news and other online news which brings news to the customer much faster, cheaper and in a more visual style than newspapers has also reduced the demand of Zimbabwe Newspapers publications. The growing use of direct mail is at the expense of newspaper revenues. Over the past 5 years, the amount spent on direct mail advertising has grown more than 100 %, compared to just over 40% for newspaper advertising The growing use of internet has gone a step further than television in eroding the advertising income of newspapers by providing a convenient vehicle for classified advertising, particularly in categories such as jobs, vehicles and real estate. Furthermore the liberation of the newspaper industry resulted in stiff competition and market loss. It is against this background that Zimbabwe Newspapers needs a marketing plan to address threats as a result of changes in the external environment.

.

Appendix 4

SCHEDULE OF ACTIVITIES

Key PerformanceArea

Activities Time Responsibility Actions

Financial Achieve breakeven point

December 2011

General Manager

Aggressive marketing of all newspapers

21

Inte

rest

H

L


Increase profit margin by 1.5 per quarter

10% growth rate for the next four years

2012– 2016

2012 - 2016

General Manager

General Manager

Advertising Street billboardsDisplay adverts in the newspapersFlyersDirect mail

Ongoing Advertising Manager

Informing customers about sales promotions and persuading them to buy our newspapers

Public Relations

disseminate information to the public and to create and maintain the corporate and brand

Ongoing Public RelationsOfficer

Press releasesExhibitions

Sales promotions

increase sales newspapers, increase brand and product awareness and to attract customers to switch brands and products from competing organizations.

Ongoing Group Marketing Director

Discounts for subscriptionsCompetitionsPoint of sales displays Customer loyalty bonus schemesPrize draws

Internal Staff

Retention of key staff

Training

Ongoing Human Resources

Competitive remuneration levels and benefitsIdentify training needs and put in place a training calendar.

Distribution Establish 50 distribution outlets in neighboring countries

Ongoing Circulation Manager

Identify retail outlets in South Africa, Zambia and Botswana to sell our newspapers

Corporate image

Increase corporate visibility

2012- 2013 General Manager

Brand delivery truck with logos and staff uniforms

Customer Market positioning Ongoing Marketing and Public Relations

Engage in social responsibility activities that help enhance image of the Group

Process Effective internal communication systems

Ongoing Marketing and Public Relations

Enhancement of an internal communications policy.

TASK THREE : EVALUATION REPORT

To : Senior Management

From : Marketing Manager

22


Date : 03 February 2012

Subject : Evaluation Report

Contents:1. Introduction2. The benefits of marketing planning to Zimbabwe Newspapers in responding to changes in

the external environment.3. The role of marketing audit as part of the marketing planning process4. Problems of information gathering and analysis encountered in undertaking the audit5. Explanation and justification of an appropriate competitive strategy developed 6. Issues encountered in implementing the marketing plan and operational proposals for

addressing them7. Conclusion

1. Introduction

Zimbabwe Newspapers (1980) Ltd is the oldest newspaper publisher and commercial printer in Zimbabwe, as well as being easily the largest publisher of newspapers, having dominated the industry for almost 120 years. The company is the proprietor of Zimbabwe’s leading daily newspapers, The Herald, The Chronicle and the H-Metro and owns two Sunday newspapers operating in tandem with the dailies, The Sunday Mail and The Sunday News. The largest Provincial newspaper in Zimbabwe, The Manica Post, a weekly, anchors the Mutare branch. In recent decades Zimbabwe newspapers launched two newspapers in the two main indigenous languages, Kwayedza, a Shona weekly in Harare, and Umthunywa, an Ndebele weekly in Bulawayo.

Zimbabwe Newspapers has the newspaper offices in Harare, Bulawayo and Mutare and commercial printing works in Harare and Bulawayo. Gweru hosts a newspaper bureau and commercial office, while journalists are stationed in Chinhoyi, Masvingo, and Beitbridge.

2. The benefits of marketing planning to Zimbabwe Newspapers in responding to changes in the external environment.

Dibb and Simkin (2008) defines marketing planning as a systematic process involving assessing marketing opportunities and capabilities, determining marketing objectives, agreeing target market and brand positioning strategies, seeking competitive advantage, creating marketing programmes, allocating resources and developing a plan for implementation and control.

23


Doyle (1994, cited by Drummond, et al, 2008 p.247) says that planning can help companies deploy their resources to meet strategic ‘windows of opportunity’ which are major changes in the market such as: new technology; new market segments, new channels of distribution, market redefinition where the nature of demand changes; legislative changes and sudden unexpected economic and political change. Marketing planning can benefit Zimbabwe Newspapers in responding to changes in the external environment; political, economic, social, technological, legal and environmental.

Marketing planning enables Zimbabwe Newspapers to assess the environment and the market in which it operates in, as a result of environment scanning. For an example a change in technology and lifestyle of people which resulted in the growing use of internet and mobile phones, enable the organization to respond by offering mobile news. It also enables the organization to understand competition and to be better equipped to identify where there are opportunities in the market place. Once competition is understood and having identified our strengths and weakness, our products and services are packaged in a way that is different and more appealing to customers.

A marketing plan helps to keep Zimbabwe Newspapers prepared for unexpected changes in the economic and political environment of Zimbabwe. For an example the formation a Government of National Unity in 2008. A marketing plan that caters for such political changes for our newspapers builds reader’s confidence by reporting news that is not baised to one political party.

It provides a basis for monitoring and controlling the activities with regard to the change in external environment. For an example a change in the economic environment such as the dollarization of the Zimbabwean economy in 2009. Zimbabwe Newspapers was able to change the currency of the cover price from the Zimbabwe dollar to the United States dollar. This ensures that all activities are carried out effectively by the company in responding to the change in the environment.

Marketing planning provide a clear sense of direction for the marketing management and employees in response to the change in the external environment by enabling them to act appropriately in response to change in the environment. Without a clear marketing plan, employees may be clear about each other’s role.

Marketing Planning ensures that everyone in the objectives through proper communication by setting clear objectives and targets in response to an environmental change, everyone in the company works towards the same goals. Without proper marketing planning employees will not be clear about the company’s goals and targets. More over effective Marketing planning ensures proper communication to make certain that every employee is clear about the plan. All these are positive factors are considered beneficial in responding to a change in the environment.

3. Role of market audit as part of the marketing planning process

Kotler, et al. 2008 defines the marketing audit as a systematic and periodic examination of a company’s environment, objectives, strategies and activities to determine problem areas and opportunities. Mc Donald (2007) recommends conducting a marketing audit once a year at an appropriate point in the planning cycle. Mc Donald states that an audit is a way of defining problems, and hopefully preventing them from happening.

24


The role of marketing audit as part of the marketing planning process is that the audit provides the marketers with a in depth view of the marketing activities that are going on in the newspaper industry. It brings out a complete picture of the entire operations in concern. While revealing the various draws backs the audit process also leads to efficiency. This process can also be used to lay down an improved marketing plan.

Marketing audit assists marketing executives, top management and investors to ensure that they are proposing suitable growth strategies in the marketing plan. Marketing audit is a careful examination and evaluation of marketing practices and results. It offers a baseline for performance measurements and framework for effective planning to maximize positive external perception and demand generation.

An audit helps the company determine the value of a sale and a sales lead. Customer’s needs and wants are moving targets, and marketing programs require testing and retesting to find the most profitable formula. A marketing audit is the way to achieve success by providing an interim report card to help the Zimbabwe Newspapers and staff tap into inherent resource.

The marketing audit involves diagnostic steps covering the organization’s marketing environment, internal marketing system, and specific marketing activities. The diagnosis provides an important insight into the improvement of marketing planning thereby improving marketing efficiency and effectiveness.

4. Problems of information gathering and analysis encountered in undertaking marketing audit

When conducting a marketing audit information gathered can be primary or secondary data or even both. The marketing audit is normally conducted by an inside or outside party who has sufficient independence from the marketing department to attain top management’s confidence and the needed objectivity.

However there are problem that are encountered when gathering information. In the case of secondary data information gathered may be outdated or the kind of information sort after may not be accessible to the company or may not be available. Accuracy of data collected from various sources such as internet, market reports, via researches is not known.

Since there is vast information available, filtering and obtaining relevant data is a challenge. The information collectors should be aware of this and collect only the relevant data for Zimbabwe Newspapers. Information gathered may not meet the requirements of the problem, to avoid this problem the units of measurements should be the same and the concepts used must be same and currency of the data should not be outdated.

Another problem of information gathering is that sometime obtaining certain type of data may be very costly for the organization and there is limited technology to gather information efficiently.

Problems of information analysis are as follows. The data may be presented in different forms which make it difficult to analyze Zimbabwe Newspapers may not have employees with necessary expertise required to

analyze the collect data.

25


Sufficient statistical analysis packages may not be available in the organization. Data may lack consistency since it is from different sources it will not arrive at the

same result or conclusion. The cost of analyzing the data may be too high in some instances, especially when the

company hire an outside party to analyze the data Different sources of data define and classify terms differently.

5. Explanation and justification of an appropriate competitive strategy developed

After undertaking a competitor analysis, a competitor profile is developed, identifying likely competitive attacks and understanding various forces that define the shape of newspaper market, through the analysis of Porter’s Five Forces. Michel Porter has defined a Competitive Advantage Grid based upon three generic strategies, that enables Zimbabwe Newspapers to closely identify the various options open to them. Typically they would include: Differentiation, Focus and Cost Leadership.

The diagram below outlines the generic strategies.

Uniqueness perceived Low cost position

Differentiation Overall cost leadership

Focused Differentiation Focused Cost leadership

Michael Porter suggested competitive strategy is primarily about creating and sustaining a profitable position in the marketplace. Zimbabwe Newspapers need to identify the competitive scope available to it, considering the approach to targeting and segmenting the market, ensuring that the organization is operating in a closely-defined market.Zimbabwe newspapers must adopt Cost Leadership. The organization will be looking to achieve economies of scale, cost reduction policies, zero defects, minimum expenditure on research and development and very closely defined cost-effective marketing strategies.

Drivers of cost leadership identified by Michael Porter are: Economies of scale – volume can drive efficiency and enhance purchasing leverage Linkages and relationships- just-in-time manufacturing systems can reduce

stockholding costs and enhance product quality. Forge relationships with other industry specialists and partners to share development

and distribution costs. Infrastructure, location, availability of skills and government support can also all

affect the cost base.

26


Segmentation

Kotler defines segmentation as The act of dividing the marketing into specific groups of consumers/buyers who share common needs and who might require separate products and /or marketing mixes. Hooley, Saunders and Piercy in Marketing Strategy and Competitive Positioning defines Market Segmentation as Identifying the most productive bases for dividing a marketing, identifying the customers in different segments and development segment description.

Segmentation is mainly done based on the income/occupation/ social status of customers. The following segments can be identified:

Social grades Social status Characteristics of occupationA Upper middle class High managerial/ professionalB Middle class Intermediate managerial/ administrative professionalC1 Lower middle class Supervisory/clerical/junior

managerial/administrative/professionalC2 Skilled working class Skilled manual labourD Working class Semi-skilled and unskilled manual labourE Lowest level of

subsitenceWidows, casual workers, state pensioners

Segmenting is also carried out on the basis of customer behavior or style. The following segments are identified under that classification;

Business people – These are people that read the newspapers on a daily basis and are mostly interest in the business news and global markets.

Politicians – people that are mainly interested in political news and current affairs of the nation.

Students – these are mainly teenagers and university student that read the Saturday Herald because it has an educational supplement.

Subscribers – these people are frequent readers of the newspapers and they pay in advance

Government institutes and hospitals – these include ministries and civil servants, school that read the newspaper daily

Market segmentation is essential for the successful implementation of the competitive strategy because it can lengthen the product life cycle increased sales and profits, achieve strategic marketing planning, manage effective resource allocation and capture some of competitors’ share of the market.

Targeting

Dibb, Simpkin, Pride and Ferrell in Marketing Concepts and Strategies, 4th European edition define targeting as The decision about which market segment(s)a business decides to prioritize for its sales and marketing efforts.When selecting the appropriate target market strategy Zimbabwe Newspapers must take into consideration the following:

27


Company capability Economies of scale – production and marketing Customer needs, wants and expectations Product market – size and structure Competitive rivalry Brand strength and market share

Through market research Zimbabwe Newspapers must use target marketing , having a product that meet the need of each segment within the market with a specific product. Zimbabwe Newspapers flagship newspaper The Herald seeks to the market by offering a variety of news content.

The Sport news – for the sportsmen, football clubs, sponsors and those generally interested in sports

Lifestyle – for fashion followers, holiday makers, shoppers and supermodels, housewifes Entertainment – musicians , music promoters, sponsors, night club owners and the people

interested in leisure Political and Current affairs - politicians, government officials and the general population

at large Business – working class, business owners, government officials and university studies The Classified – job seekers, property moguls, and anyone seeking to sell or buy

anything. Cool lifestyle – for teenagers

Positioning

Kotler defines positioning as the act of designing an offer so that it occupies a distinct and valued place in the minds of target customers. Positioning refers to how Zimbabwe Newspapers present its newspapers to the marketplace.

Ries and Trout (1998) suggests that there are three positioning alternatives available: Distintive attributes- identify the distinctive attributes of the product and service as a

source of credible positioning. Fill the gaps in unfilled positions- where there is a positional gap in the perceptional map,

this may present a business opportunity for exploit. Repositioning- changes in consumer behaviour may mean that the product life cycle

could be maturing or going into decline, therefore the necessity to reposition the products to attract a different market might be required.

6. Issues encountered when implementing the marketing plan over 4 years and operational proposals for resolving them.

Many organizations encounter issues when implementing their marketing plans. Nigel Pearcy suggests that: the real strategic problem in marketing is not strategy; it is the implementation and change. When implementing the marketing plan to increase sales and readership of its publications over 4 years, Zimbabwe Newspapers will face barriers as the organization is not marketing oriented, the existing culture may not be amenable to the marketing plans. To

28


overcome this problem the organization will need to be marketing oriented, the marketing concept in the words of Kotler et al. (1996): Holds that achieving organizational goals depends on the determining the needs and wants of target marketd and delivering the desired satisfactions more effectively and more efficiently than competitors do. In order to achieve this Zimbabwe Newspapers must create customer focus throughout the organization, build customer relationships and loyalty, target customer precisely and define the nature of the organizations key abilities.

Zimbabwe Newspapers is subject to internal politics and line managers fight each other’s proposals in order to gain resources and status. The internal information that the marketing planning process depends on is controlled by heads of departments which are reluctant to cooperate. To eradicate this problem strong and committed leadership must be cultivated, leaders must demonstrate commitment at the highest level to the proposed strategy and plans. They need to be eefective communicators, motivators and facilitators.

If the purpose and the nature of marketing concept is not introduced with care by communicating and providing training it will not gain management support. Hostility, lack of skill or lack of information among line managers marketing planning will fail. According to Dibb and Simkin (2000), the major causes of inadequate planning stem from a combination of managerial, cultural and organizational issues, outline in the table below.

Dibb and Simkin observed barriers of implementation of marketing planning Poor grasp of the marketing concept Little or no market analyses undertaken Strategy determined in isolation of analyses or formulation of tactical

programmes Blinkered view of the external environment Poor and inadequate marketing intelligence Little internal sharing of marketing intelligence Inadequate understanding and support from senior management Poor internal communications in marketing between functions Planning activity fades out Planning and personal overtaken by events Lack of confidence or conviction Little opportunity for lateral thinking

Source : Dibb,S and Simkin, L. (2000)

Internal Marketing plays a pivotal role in ensuring that the above barriers of implementation of marketing planning observed by Dibb and Simkin. Internal marketing is defined by Dibb, Simkin, Pribe and Ferrell in Marketing Concepts and Strategies as the application of marketing internally within the company, with programmes of communication and guidance targeted at internal audiences to develop responsiveness and a unified sense of purpose among employees. Nigel Piercy in His book Market Led Strategic Change, suggests that: Marketplace success is frequently largely dependent on employees who are far removed from the excitement of creating marketing strategies. In order for Zimbabwe Newspapers to achieved internal synergy and employee co-operation it must create awareness of corporate aims, objectives and overall mission, determine the expectations of the internal customer and communicate to internal customers.

29


Most business rarely gives much budget concern to marketing activities and this culminates to inefficiencies on the part of undertaking marketing activities. Zimbabwe Newspaper has downsized and strives for increased efficiencies, it is resource-starved. It lack financial resources stated in the budget. A comprehensive budget for Zimbabwe Newspapers is required to take into account all relevant requisite within the marketing plan. This mainly includes investing in staff training, undertaking the marketing audit and promotional activities.

Employees lack of knowledge and skills in sales and distribution may affect implementation of the plan. Continuous training of staff in customer service delivery and distribution of newspapers knowledge will overcome this barrier.

When a marketing plan has too much data, it mainly leads to incoherence and have a demotivating effect on employees. Effective summaries and simple points will lead to better understanding of the required marketing plan.

Lack of consistency of the marketing planning review may be a potential barrier to effective implementation of the plan. Regular and more appropriate scheduled reviews of the marketing plan should be undertaken with corrective action taken were necessary.

(2 974 words)

References

CIM COURSE BOOK, Marketing operations,2001, Karen Beamish

CIM Professional Diploma in Marketing Study Text , December 2010

Marketing Concepts and Strategies, Dibb, Simkin, Pribe and Ferrell

Market Led Strategic Change, Nigel Piercy

Marketing Concepts and Strategies, 4th European edition, Dibb, Simpkin, Pride and Ferrell

30


(www.cim.uk/marketingresources, Marketing and the 7Ps, pg 5).

Marketing Strategy and Competitive Positioning,

Dibb, Simpkin, Pride and Ferrell

31

http://www.cim.uk/marketingresources

marketing planning process final

Documents