BA (Hons) Business, Management & Communications Managing Marketing Activities Week 8

Objectives for today Management and implementation of marketing strategies Learners will be able to: –Distinguish between corporate and marketing strategy –Describe the influences on marketing strategy

A crossroads

Strategic Management “Excellent” analysis and therefore strategic management does not involve viewing through one model or framework but using many to draw out multiple issues, challenges, criteria and concepts 1.Strategic analysis; (PESTLE, Porter’s 5 Forces, SWOT,BCG Matrix for example) 2.Strategic choice; (Porter’s Generic Strategies, Ansoff’s product-market strategies, Blue Ocean Thinking, Bowman’s Strategic Clock, GE Matrix for example) Let’s re-cap some of these strategies that we have not already touched on in this module

Porter’s Generic Strategies

Blue Ocean Thinking (Strategy) To create uncontested market space (a blue ocean) and therefore make the competition irrelevant Created by W. Chan Kim and Renée Mauborgne strategy/an/R0410D-PDF-ENGhttps://hbr.org/product/blue-ocean- strategy/an/R0410D-PDF-ENG

Bowman’s Strategy Clock

GE-McKinsey Matrix Size of Market Market Share

Strategic Hierarchy [Johnson & Scholes (2014) p191]

Differing roles of corporate and marketing strategy Corporate Strategy Allocation of resources across the whole organisation Agreeing the portfolio of activities for the whole organisation Specifying the organisation's mission Defining and promoting organisational objectives Marketing Strategy Identifying, monitoring and beating competitors Selecting markets and segments to help maximise profits Determining the marketing mix Allocating marketing budget to achieve objectives Management and implementation of Marketing strategies and marketing plans (B&P Chpt 20 & 21)

What influences marketing strategy? [B&P, p941] Organisational objectives and resources Competitor strategies and resources Organisation's attitude to change and risk Structure of the market and opportunities These are influences that an organisations marketing team are unlikely to be able to change

Organisational objectives and resources Resources – assets you have or can call upon Competences – the way those assets are used Physical Resources – machines, buildings, raw materials, patents, data bases. Competence is measured by the efficiency and flexibility of how we use these resources Financial Resources – balance sheet, cash flow and source of funds. Competence is how we manage cash, debtors, creditors etc Human Resources – our people, partners, suppliers & customers. Competence is how people gain skills, build relationships & innovate

Task: How does Oxford Bus Company measure up to these Resource tests? In teams, research and discuss the task in relation to: Physical resources – fleet, design, etc. Financial resources – cash flow, profit, value Human resources – staff, managers, skills, suppliers, innovation Please report back to the rest of the group 10 Minutes End

What influences marketing strategy? [B&P, p941] Organisational objectives and resources Competitor strategies and resources Organisation's attitude to change and risk Structure of the market and opportunities These are influences that an organisations marketing team are unlikely to be able to change

Competitor strategies and resources Michael Porter’s Five Forces (1990) Porter, M.E. (1990) How competitive forces shape strategy, Harvard Business Review, 57(2) pp

Over to you….. Conduct a competitor analysis as outlined by Porter for the Oxford Bus Company You may not have all of the information but try to complete all sections at a high level Present to the whole group 10 minutes End

What influences marketing strategy? [B&P, p941] Organisational objectives and resources Competitor strategies and resources Organisation's attitude to change and risk Structure of the market and opportunities These are influences that an organisations marketing team are unlikely to be able to change

“Culture eats strategy for Breakfast” Mark Fields, President of Ford Motor Company, 2006

Organisational Culture

First Movers v Late Movers [ J&S (2011) p307] Advantages exist where an organisation is better off than its competitors as a result of being first to market with a new product, process or service This can lead to a brand reputation for new product development and innovation However late movers can also benefit by “free-riding”. The costs of imitation are said to be only 65% of innovation.

Oxford Bus Company Debate in your groups and then feed back to everyone: –Do they have a culture that is positive to change? –What is their attitude to risk? –Are they first or late movers? 10 Minutes End

What influences marketing strategy? [B&P, p941] Organisational objectives and resources Competitor strategies and resources Organisation's attitude to change and risk Structure of the market and opportunities These are influences that an organisations marketing team are unlikely to be able to change

How do we measure/analyse the structure of the market and opportunities? SWOT PESTLE STEEPLE BCG Matrix

Task … In teams discuss which one of these “forces” appears to be the most significant to Oxford Bus Company 1.Strategic capability (resources, competences) 2.Activity of competitors 3.Attitude to risk and change 4.Environmental factors – PESTLE/SWOT etc How or will this force shape your marketing plans? 10 Minutes End

Bringing it all together; considerations for our Marketing Strategy Organisational objectives and resources – corporate mission/vision Competitor strategies and resources – keeping ahead of the competition Organisation's attitude to change and risk – what is the culture? Can we change? Do we want to be first? Structure of the market and opportunities – what are our market options/opportunities? Selecting markets and segments to help maximise profits - STP Determining the marketing mix - how do we mix the P’s to create our goal? Allocating marketing budget to achieve objectives – how much money do we need?

Putting it all together

Strategic Business Units (SBUs) Generic Strategies Cost Leadership Differentiation Focus Hybrid Strategies Interactive Strategies Hypercompetitive Strategy (J&S p 209) Co-Operation/collaboration Game Theory

How does strategy feed into assignment 1? Marketing Strategy Marketing Planning

Re-cap and next session Next Week – we will be going through Marketing Planning in detail to aid assignment 1 Management and implementation of marketing strategies Learners will be able to: –Distinguish between corporate and marketing strategy –Describe the influences on marketing strategy