project managment applied to marketing

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“Project Management applied to Marketing” Luiz Fernando da Silva Xavier MBA in Project Management Bachelors’ in Business Management

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“Project Management applied

to Marketing”

Luiz Fernando da Silva Xavier

MBA in Project Management

Bachelors’ in Business Management

Introduction

Topic

This paper discusses the application of the concepts of Project Management in Marketing from planning to execution.

Rationale

Several projects and marketing actions exceed costs and planned deadlines or reach results below the expected by the customer.

Claim

Make use of Project Management methodology to support the creation of marketing plans and use the project control processes to measure the phases of the actions.

Key points

Project Management

• Standardization of procedures;

• Documentation of processes;

• Improving communication and integration;

• Better planning of schedule and responsibilities.

Marketing

• Dynamism;

• Strategy and tactics;

• Customer Relationship.

BASIC CONCEPTS

PROJECT MANAGEMENT

“A project is a temporary endeavour undertaken to create a unique product, service or result”

PMBOK® Guide

Key Characteristics of a Project

2

3

4

5

1 Temporary

Unique

Progressive

Measurable

Changeable

(PMI, 2004)

The importance of projects

Projects are often implemented as a mean of achieving an organization’s strategic plan in a way that operations could not achieve.

Why are Projects initiated?

• Market demand;

• Business need;

• Customer request;

• Technological advance;

• Legal requirement;

• Social need.

(PMI, 2004)

Generic Project Life Cycle

Concept

Planning

Development and demonstration

Production and Deployment

(PMI, 2004)

Project Management Knowledge Areas

Integration

Communications

Procurement

Risks

Human Resource

Quality

CostsTime

Scope

GO

AL

(PMI, 2004)

Project Management Processes

Initiating Closing

Planning

ExecutingControlling

(PMI, 2004)

BASIC CONCEPTSMARKETING MANAGEMENT

“Marketing Management is the Art and Science of choosing target markets and getting, keeping and

growing customers through creating, delivering and communicating superior customer value”

(KOTLER; KELLER, 2006)

“The aim of marketing is to make selling superfluous, to know and understand the customer so well that the product or service fits him and sells itself. (…) All that should be needed then is to make

the product or service available.”

(DRUCKER, 1973)

Marketing Mix

Price

Place

Product

Promotion

(CROCCO, 2010, p. 7)

Project & Marketing - Planning

“Planning in Marketing is a very important process of intense thinking and coordination of people, information,

financial and material resources whose central focus is the true customer satisfaction”.

(AMBRÓSIO, 2007, p. 11),

Project Life Cycle

Concept Planning Development Deployment

Abstract-Concrete Spectrum of Strategic Administration

Dream Planning Plan Action

Abstract Concrete

Creating a Marketing Plan using PMBOK®

Basically, a Marketing Plan should include:

• Situation: historical market data, information about the product and competitors;

• Goals: the targets for the campaign or launch, including market share, sales volume, turnover;

• Strategies: it shows how the Marketing Tools will be used to reach the goals.

Opportunity

Situation

Goals

Strategic Marketing

Customer

Market

Legal Aspects

Positioning

Tactical Marketing

Product

Place

Promotion

Price

Action and Control

Financial Results

Analysis of Balance

Measuring

Controlling

Marketing Plan

(adapted from AMBROSIO, 2007)

The tools from Project Management are more effectively applied to the last phase of the Marketing Plan, “Action and Control”.

Case Study

“Project Ford - A Lift to Solidarity”

National Sanctuary of Aparecida, Brazil

National Sanctuary of Aparecida, Brazil

• The second largest Basilica in the World, receiving about 13 million visitors annually;

• Maintained primarily by donations, managed by Campanha dos Devotos (Campaign of Devotees);

• Infrastructure:

– TV Channel Aparecida (countrywide);

– Radio AM and FM (countrywide);

– 1st ranked religious web portal in Brazil;

– 600,000 magazines sent free of charge to subscribers;

– About 1500 employees.

• 1/3 of the revenue invested in Social Projects.

“Project Ford - A Lift to Solidarity”

• Raffle Tickets could be

purchased by the visitors of the

Sanctuary;

• All money raise to be donated

to the Municipal Hospital of the

city;

• Prize was a Ford Coupe 1934,

donated by a devotee;

Project FORD – National Sanctuary

3 weeks of Closing

Final reports Delivery of the prize Final donation

7 months of Execution

Promoting ControllingMotivating sales

team

2 months Planning

Responsibilities / departments

Price of the tickets Place and team

Involved areas

Director of Marketing / Projects

Planning

Control

Campaign Devotees Department

Operational Support

Logistics

Finance Department

Conference Accounting

Infrastructure Department

Transport Department

Shopping Centre Department

Legal Department

Project Phases

Planning

• Choosing benefited entity

• Sales strategy

• Building the stand

• Creating procedures

• Hiring team

• Creating promotional material

• Producing tickets

• Training

Execution

• Selling the tickets

• Monitoring of sales

• Adequacy of the procedures

• Buy new batches of tickets

• Scheduled maintenance of the vehicle

• Draw Prize

Closing

• Delivery of the money raised

• Delivery of the prize to the winner of the raffle

• Transfer of the vehicle to the winner

• Bureaucratic procedures

• Financial reports for accounting

• Official closing of the project

Project Control

$-

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

$35,000.00

$40,000.00

June July August September October November December

Sales Evolution

Projected Real

Project Ford – Final Results

• About 170.000 tickets sold

• $ 325.127,00 donated to the Municipal Hospital of the city of Aparecida

• Incorporated into the annual projects of the institution

Final Considerations – The benefits of applying Project Management to Marketing

• Increase the chances of success by avoiding the most common mistakes –lessons learned;

• It improves results working with the best practices;

• Clarity, objectivity, control and security for customers;

• Clear roles and responsibilities for the departments involved in the project;

• Ability to predict risks and prepare alternatives;

• Clear definition of the phases of the project.

References

AMBRÓSIO, V. Plano de Marketing: passo a passo. São Paulo: Pearson Prentice Hall, 2007.

CROCCO, L. et al. Fundamentos de Marketing: conceitos básicos. São Paulo: Saraiva, 2010.

FRANCK, F. D. Gerenciamento do tempo do projeto aplicado a arranjo físico em uma empresa de usinagem de médio porte. Minas Gerais: 2007.

KOONTZ, H.; O’DONNEL, C. Os Princípios de Administração: Uma Análise das Funções Administrativas. São Paulo, Pioneira, 1980.

KOTLER, P. Administração de Marketing: a edição do novo milênio. São Paulo: Prentice Hall, 2000.

KOTLER, P.; KELLER, K. L. Marketing Management. New Jersey: Pearson and Prentice Hall, 2006.

PRIETO, C. Igreja Católica mostra lado empresarial de Aparecida. Jornal Valor Econômico, Aparecida, 15 de Junho de 2010, Caderno Valor, p. B6.

PROJECT MANAGENT INSTITUTE - PMI. Um guia do Conjunto de Conhecimentos em Gerenciamento de Projetos: guia PMBOK Terceira Edição. Four Campus Boulevard, 2004.

VARGAS, R. V.. Gerenciamento de Projetos: estabelecendo diferenciais competitivos. Rio de Janeiro: Brasport, 2000.

VEJA ONLINE. Filas marcam lançamento do Iphone 4S em oito países. Disponível em: http://veja.abril.com.br/noticia/vida-digital/filas-e-histeria-mancarm-lancamento-do-iphone-4s-em-8-paises. Acesso em: 23 de novembro de 2011.

“Who fail to plan, plan to fail, albeit unintentionally”

Flávio Cândido, University Cândido Mendes