Developing Marketing Capability - Report Example

Developing Marketing Capability Table of Contents Introduction 3 Discussion of Different Project Management Tools 3 Gantt Charts 4 Critical Path Analysis (CPA) 5 5 Program Evaluation and Review Technique (PERT) 5 Risk Analysis Tool 6 Information and Processes Required for Project Management Tools and Effectiveness for Marketers 6 Information and Processes Required for Gantt Chart and Effectiveness for Marketers 6 6 Information and Processes Required For CPA and Effectiveness for Marketers 7 Information and Processes Required For PERT and Effectiveness for Marketers 8 Information and Processes Required For Risk Analysis Tool and Effectiveness for Marketers 9 How Businesses Apply and Use Project Management Tools 10 10 Use of Project Management Tools in British Airways 10 Use of Project Management Tools in Bausch & Lomb 13 Conclusion 15 References 16 Appendices 20 Appendix 1: Gantt Chart 20 Appendix 2: CPA 21 Appendix 3: Risk Probability 22 Introduction Every organisation at certain point of time is required to manage marketing projects in order to accomplish the desired organisational objectives. However, managing marketing projects is quite a difficult task for managers as such projects are related with significant amount of expenses and there is also a high risk of failure in any of the projects undertaken. Inappropriate management of projects can result in the loss of capital and resources for organisations. Besides, poor project management can lead to unnecessary delays in accomplishing the project goals. Project management requires managers to adopt new procedures, take new responsibilities and prioritise the tasks in a timely manner. Thus, appropriate project management tools are useful for organisations for gaining proper control in different activities and for ensuring desired success (Balakrishnan & et. al., 2007). The report deals in understanding different project management tools and their usage in managing marketing projects. The objective of the report is to demonstrate how marketers can use different project management tools in order to develop and plan marketing projects. Discussion of Different Project Management Tools In any marketing project, problems can arrive due to unorganised tasks, weak and incorrect marketing vision, inappropriate reporting and improper responsibilities. In such circumstances, having the precise project management tools is critical for attaining the desired marketing success. In general terms, a project can be defined as a sequence of associated tasks and activities which are concentrated towards gaining a distinct result. A marketing project entails several detailed tasks, having their own particular requirements of time, funds and other resources. Accomplishing these tasks require certain planning and can possibly be achieved by using certain project management tools particularly for designing, developing and planning (Gray, 1998). Thus, project management tools are beneficial for any task having any kind of risks of failure or a propensity of occurrence of any kind of problems. A few of the project management tools for managing marketing projects are described below: Gantt Charts Gantt charts are recognised as a beneficial project management tool which can be used for planning projects. Gantt charts are mainly used for preparing, planning, reporting and communicating project activities and status. For ay marketing project, Gantt chart helps to plan the activities that must be completed. It provides a foundation for scheduling while executing different tasks. Gantt charts allow in better designing and distribution of resources which are vital components for implementing a marketing project. This project management tool assists organisations in exercising a critical path for any project. While a project is on-going, Gantt chart facilitates in observing whether the activities are on schedule or not. Thus, in case of prevalence of any observed gap between the planned outcomes and the actual outcomes, this project management tool aids in identifying the remedial actions necessary to put the project tasks on schedule (Anancy, n.d.). Critical Path Analysis (CPA) Critical Path Analysis (CPA) is the other vital project management tool used for enhancing the capability of marketing projects. Similar to Gantt chart, CPA also assists organisations in planning every project based activity which needs to be finished. It acts as the base for the preparation of timetable and the arrangement of the required resources. Throughout the project, CPA tool permits for checking the accomplishment of the project objectives. The advantage of applying CPA in the phase of project planning is that it helps to establish and experiment with the plan for ensuring its stability. CPA formally recognises activities which must be finished in order to complete the project. It also recognises the activities that can be delayed because of requirement of resources or emergence of additional tasks (Stelth & Roy, 2009). Similar to Gantt chart, the core idea behind CPA is that every activity is linked with the other activity, therefore until previous activities are finished, the later activities cannot be started. Every task must be finalised in a sequential manner. Program Evaluation and Review Technique (PERT) Program Evaluation and Review Technique (PERT) is other crucial project management tool used in developing marketing projects. PERT is a specific technique for recognising associated and co-dependent tasks and events of a project. PERT is applicable for managing large and complex marketing projects where timings and interdependency concerns are crucial to be considered. PERT takes a marginally cynical view of time approximations developed for each project phase (Diegel, 2007). Risk Analysis Tool Apart from Gantt charts, CPA and PERT, marketing project managers also require certain risk management tools in order to assess and manage risks. Every project involves certain types of risks. However, without the assistance of risk management tools, it is difficult for the managers to recognise the risks and prepare for them. The probability chart provides a valuable framework for organisations in order to decide which risks require considerable attention. The risk probability tool is based on the idea that risk has two major dimensions, namely probability of risk and impact of risk. The probability chart can help in ranking the possibility of risks on the basis of these two dimensions. Thus, the use of this technique facilitates managers to obtain a quick view about the priorities that must be considered and then to decide the resources which can assist in managing specific risks (Acorn, n.d.). Information and Processes Required for Project Management Tools and Effectiveness for Marketers Information and Processes Required for Gantt Chart and Effectiveness for Marketers Gantt chart is beneficial for marketing strategies because it is used for scheduling several activities related with a marketing project. In order to develop a Gantt chart, at first, there is a requirement for establishing different functions related with marketing projects. In the second phase, the functions are plotted with time. In the final phase, the different activities are presented through colour bars on the basis of time. Since different tasks are demonstrated by a sequence of dissimilar colours, the managers as well as entire team can easily understand the tasks at a glance. Through the use of Gantt chart, managers can easily identify the major milestones of any marketing project. This milestones demonstrated by Gantt chart help to prepare a progress report and provide a way to perform according to the intended plan. A nicely developed Gantt chart represents the organised activities and therefore assists in getting things done properly (Precision Group (Australia) Pty Ltd., n.d.). However, Gantt chart is unable to cope up with the complexities associated with a project. Gantt chart holds the notion of timings and tasks in accordance with the set timings which might not be valid for every project. Information and Processes Required For CPA and Effectiveness for Marketers CPA is the other vital tool for marketers, which assists managers in better management of marketing project related activities. Similar to Gantt chart, CPA method also facilitates to recognise the most vital tasks of marketing projects. As such, it is useful in creating the scheduled activities and managing the high risk tasks during the project path. CPA represents a marketing project through the use of networks and help marketers to recognise the most effective way to complete the project activities. CPA utilises a chart, containing a series of circles through which marketers can signify specific parts of any marketing activity (Ragsdale, 2010). In order to develop CPA, at first, there is a need for identifying every task that must be accomplished in the marketing project. After the identification, these tasks need to be strategized in the form of circles and arrows. For marketers, this tool is advantageous for completing different project related activities on time. The benefit of applying CPA in the planning of marketing projects is that it ensures the robustness of the projects. It formally recognises the activities that need to be finished on time and also classifies the tasks that can be postponed if organisational resources are transferred. The further advantage of this technique is that it assists in recognising the minimum length required to complete any marketing activity. Thus, through this technique, marketers can easily identify the phase that needs to accelerate in order to complete the project on time. However, CPA tool is not effective in respect of certain complex projects. In certain complex projects, there are several tasks and it is difficult for managers to link them with the use of CPA tool. This tool does not allow managers to schedule the human resources (Brady, 1995). Information and Processes Required For PERT and Effectiveness for Marketers PERT chart is also used by marketing managers in order to manage projects. It is a portion of CPA which concentrates on essential activities of project accomplishment. Marketers often design PERT charts for a particular portion of marketing project activities. The advantage of using PERT tool for marketers is that it illustrates the likely completion time of different activities, events along with the budget associated with them. Marketing managers can make an assessment of the resources that are essential to accomplish different marketing related tasks though the application of PERT chart (Centeno-Gomez & et. al., n.d.). PERT tool enhances the planning and decision making power of marketing managers by the incorporation and demonstration of information from multiple sources. As a result, this tool provides the opportunity to coordinate the marketing activities and hence enhance the communication amid other departments of the organisation. PERT tool classifies the divisions which are responsible and the role of individuals for completing certain tasks. In addition, this project management tool also discloses inter-reliance’s among different marketing tasks and delivers a view about the business strategies that are undertaken. Through the PERT tool, marketer can identify the potentials and uncertainties which are associated with marketing project activities. As a result, it allows marketers to use the most useful potentials and reduces the wastage of organisational resources. A vital limitation of PERT tool is that it completely relies on the capability to forecast the exact time structure for numerous tasks. Thus, complicated marketing projects which involve several activities can make this prediction challenging for marketers. In case of any kind of uncertain events, PERT tool can become inaccurate. In short, PERT tool is unable to deal with the risks which are inherited in the marketing projects (Center for Computer Research in Music and Acoustics, 2002). Information and Processes Required For Risk Analysis Tool and Effectiveness for Marketers Risk analysis tools also help marketers to manage the marketing projects effectively by avoiding any type of uncertainties that may hamper the marketing project. In order to use the risk management tools, marketers are required to categorise every possible risk that can be faced by the marketing project. Subsequently, the probability of every risk is identified and rated. Then, the effect of those risks on marketing project activities is projected. Finally, required responses are generated against observed risks on the basis of their rank measured by the marketers. Thus, risk analysis tool is considered as a vital instrument for developing strategies and for creating a reaction plan. The advantage of risk management tools for marketers is that it can minimise the impact and possibility of identified risks. Through this tool, marketers can observe and manage risks in such a way which minimises the occurrence of uncertain events or reduces the effects of uncertain events on the completion of different activities. However, there are certain limitations of using risk management tools for marketers. For instance, the use of risk management tools necessitates additional time in order to accomplish the project related activities. Furthermore, risk management tool can also enhance the cost of marketing projects since it necessitates certain adjustments in the organisational resources (Williams, 2004). How Businesses Apply and Use Project Management Tools In present times, almost every activity performed by a business entity can be regarded as a project on the basis of varying levels of importance to the organisation. Project management is a complex task for managers as it involves numerous responsibilities (Wideman, 1990). Providentially for businesses, there are several project management tools available in order to assist with the accomplishment of tasks and responsibilities. A manager must select the project management tools which can best suit to his/her management style. No single tool can address all project management requirements. In this context, it can be stated that Gantt chart, CPA, PERT and Risk analysis tools are four most commonly used project management tools which can be used in businesses (Geraldi & Lechter, 2008). To cite, the application of project management tools in business entities two real life example has been provided: Use of Project Management Tools in British Airways British Airways is one of the biggest global aviation organisations. The mission of the organisation is to provide quality services to the travellers. The mission of British Airways provides a direction to the organisation to develop pertinent and relevant marketing strategies. The organisation needs to adapt with the changing requirements of customers and also to stay focussed towards the primary objectives. British Airways aims to become one of the dominant premium aviation organisations internationally (British Airways, 2010). The most vital challenge of British Airway to accomplish its mission and objectives is the aspect of intense competition with other rivals such as Ryanair, Virgin Atlantic and EasyJet among others that provide inexpensive flight experiences to their customers. Thus, in order to maintain its position as a premium-class airline, British Airways has developed marketing plans for new product development. The objective of the marketing project was to enable the premium customers to enjoy high level of services and facilities (British Airways, 2010). Project Planning Planning plays a vital part in any marketing project as it directs to arrange and to organise the schedule and budget in order to make the project successful. The phases of the marketing project of British Airways include the identification of resources and the creation of work structure (Vector Management Limited, 1999). In this context, it can be stated that resources of any organisation can be of two types, which are assets and capabilities. Assets can again be classified into two types which comprise tangible assets and intangible assets. Tangible assets are financial resources, human resources, marketing resources and physical resources among others. On the other hand, intangible assets are organisational creditworthiness, procedures, brand reputation and abilities among others. With respect to capabilities, it is divided into three parts which are strategic capabilities, functional capabilities and operational capabilities (Hooley & et. al., 2004). However, in this project, British Airways utilised three resources which are human resources, financial resources and strategic capabilities. Human resources imbibed within the project comprise every stakeholder, namely customers, project team members, supporting employees, suppliers and investors. Furthermore, since the project requires improvement in services, technical experts are also included as human resources. Successively, the financial resources of the project include funds which are required for several marketing activities such as advertisement and analysis. The strategic capabilities of the project comprise task improvement and customer care. Estimation of Time for the Project In any project, the time estimation is a vital factor. Therefore, the presented Gantt chart (See Appendix 1) demonstrates how the timing activities occur over a period of time. The project schedule allows the project management team of the British Airways to effectively administer the marketing activities in an efficient way from beginning to the end. The Gantt chart of British Airways comprises every element of the marketing project. Therefore, it helps the team to recognise the tasks necessary to complete the project on time. The CPA tool also allows the organisation to wisely develop a critical path through which the project would progress. CPA of the Project From the above discussion, it has been observed that CPA is an effective method of analysing project activities. CPA is useful for the project of British Airways as it helps to compute the activities through which the project can be accomplished. CPA also helps in making constant observation of the schedule, allowing the management to keep a track on the critical activities of the project. On the basis of CPA (see Appendix 2), it can be suggested that the creation of business case is critical for the project as any delay in this area can result in delays in the product launch. Use of Project Management Tools in Bausch & Lomb The effective application of project management tools in businesses can also be observed through another real life example of a company, namely Bausch & Lomb. Bausch & Lomb is a pharmaceutical company which deals in eye healthcare products. It provides customers with several products such as contact lenses, vision accessories and surgical products among others. The company seeks to provide quality products to the customers and also desires to be known as one of the reputed organisations in healthcare segment. In order to attract the customers to purchase the products of Bausch & Lomb, the company requires developing innovative products which can enhance the sales (Bausch & Lomb Incorporated, 2013). In this context, the major resources which are used in the new product development project plan of Bausch & Lomb are human resources comprising major stakeholders such as final users, suppliers, employees, team members and product developers among others, financial resources, physical resources and functional capabilities. The finance department of Bausch & Lomb provided assistance in order to utilise various resources effectively. The physical resources that were used in the new product development were organisational equipment and infrastructure. On the other hand, functional capabilities of the project include innovation, market sensing, resource utilisation and operational effectiveness (Jugdev & et. al., 2007). Design and Development of Project Every new project starts with idea generation. In this context, Bausch & Lomb has generated the thought of developing new products through the assistance of its sales team and allied marketing capabilities. After idea generation, there is a need for assessment of different types of risks that are inherent in the new product development project. In project setting, there is always a risk or probability of uncertain occurrences which can result in the project failure. Apart from considering the tasks and functions, about new product development project, it is also essential for considering the risks which can create a gap between anticipated results and actual results (Ozer, n.d.). Risk Analysis of the Project Risk analysis tool helps Bausch & Lomb to identify different types of risks that can hamper the project activities. During risk identification, the possible sources of risks are classified. The risk analysis tool facilitates Bausch & Lomb to develop a structure which assists in ensuring that a systematic procedure is followed in order to recognise risks. Once the risks are identified, they are ranked on the basis of their level of consequence on the marketing project (Jerrard & et. al., 2008). Appendix 3 will depict the Risk Probability of new product development project of Bausch & Lomb. Therefore, it can be observed that risk analysis tool helps the marketers as well as management team to understand the priority of different types of risks which permit to understand the relative significance of each risk. As a result, this project management tool assists Bausch & Lomb to develop strategies and plans which can help to control and manage the impact of risks in marketing projects. Conclusion Project management tools such as Gantt chart, CPA and PERT among others are valuable instruments for marketers which allow effective management of projects. These tools have their own advantages as well as disadvantages and support in marketing activities in their own way. Success of every project is characterised by a sound management of different activities. Through these project management tools, marketers can better manage the project scope, budget, time and risks. As a result, all tasks can be performed within time with fewer interruptions. Every marketing project differs from the other project with respect to size and consequences on business. In this context, it can be stated that the project management tools can help to manage the uncertainties of a project and help to keep a track on the critical tasks that need to be accomplished. Thus, different project management tools facilitate in design, development and planning of marketing projects in an effective manner. References Acorn, No Date. Tools and Techniques of Project Management. Chapter 7. [Online] Available at: http://www.acornlive.com/demos/pdf/E2_EM_Chapter_7.pdf [Accessed March 23, 2013]. Anancy, No Date. Evaluation Tools. Smart Toolkit for Evaluating Information Projects, Products and Services. [Online] Available at: http://www.anancy.net/documents/file_en/STK_Part_3.pdf [Accessed March 23, 2013]. Balakrishnan, N. & et. al., 2007. Managerial Decision Modelling With Spreadsheets. Pearson Education India. Brady, T., 1995. 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Projects’ Analysis through CPM (Critical Path Method). School of Doctoral Studies (European Union) Journal, pp. 10-51. Vector Management Limited, 1999. Baggage Handling Project Management Manual. British Airways PLC. [Online] Available at: http://www.microart.co.uk/Samples/babaghan.pdf [Accessed March 23, 2013]. Wideman, R. M., 1990. Total Project Management of Complex Projects Improving Performance with Modern Techniques. Acres International Limited. Williams, L., 2004. Risk Management. Realsearch. [Online] Available at: http://agile.csc.ncsu.edu/SEMaterials/RiskManagement.pdf [Accessed March 23, 2013]. Appendices Appendix 1: Gantt Chart Appendix 2: CPA Appendix 3: Risk Probability High Project Management Risk Planning, Controlling Estimating Technical Risk Complexity Reliability Probability of Occurrence Organisational Risk Resources, Funding External Risk Supplier, Competition End User Risk Commitment Quality Low IMPACT OF RISK HIGH Read More