I’m currently in the Middle East running marketing planning in-company workshops and thought I’d share my favourite marketing planning tool – the Directional Policy Matrix (DPM). This is an excellent Professor Malcolm McDonald adaption of the GE/McKinsey matrix. There’s a picture here of one we started to create earlier this week.
Why do I think this diagram is the core of marketing planning? Well the two axes are essentially “Where’s the best business?” (Market Attractiveness) and “What’s our chances of winning it?” (Business Strengths). Just what we need to know before making our final strategic choices, offer development, and priorities for the coming period
To be able to even plot these two axes the marketer needs to have a good understanding of the customers and competitors (Business Strengths model) and even more for the other axis he or she needs to understand just what makes good business for us (Market Attractiveness model) and our current strategies (to inform a weighting).
Once we can plot these with defendable information inputs we then have a one page summary diagram of our investment options to achieve marketing objectives. And once we challenge the positioning of each plot and future potential, the outputs from the diagram will be chosen strategies based on a deep understanding of the business environment and our best options for the coming planning period and maybe beyond.
If you need a good strategic investment appraisal tool to help you choose between alternative possibilities I can’t think of a better tool to do the job than a DPM. It will give you an excellent basis for the development of effective marketing strategies. Check out Malcolm McDonald’s book on marketing plans published by Butterworth Heinemann for a clear outline of how to construct a DPM. See http://www.amazon.co.uk/Marketing-Plans-How-Prepare-Them/dp/0470669977/ref=pd_sim_b_1