Session 3 Formulating and Executing Value Based Strategic Marketing Plans And Strategies

What is meant by the term “Value Based Strategic Marketing” A PLAN of action for identifying and analyzing: A target market and Developing a marketing mix to meet the needs of that market. What are the characteristics of an effective Value Based Marketing strategy Reflects overall direction of organisation Coordinated with firm’s functional areas Contributes to achievement of marketing objectives and organisational goals Value Based Marketing begins with (1) Environmental Scanning and (2) Environmental Analysis

Value Based Marketing begins with: (1) ENVIRONMENTAL SCANNING The process of collecting information about forces in the marketing environment Conducted through observation of secondary resources such as: Business, trade, government data Internet resources Marketing research

(2) ENVIRONMENTAL ANALYSIS The process of assessing and interpreting the information gathered through environmental scanning about competitive forces and forces in the marketing environment. It involves Evaluation for accuracy Resolving inconsistencies Assigning significance to the findings

VIDEO Renault Inside – Competitors Analysis Centre (Report) Renault’s competitor analysis Renault Inside – Competitors Analysis Centre (Report) Location: http://www.youtube.com/watch?v=YUc-c2kjYgI Concept: Renault’s competitor analysis. Clip Description: This Renault video shows how Renault analyses automobiles released by the competition in its Competitors Analysis Centre by describing the stages behind it, activity which is common by all car makers. Key outcome/points to consider: This video will provide students with an example of how companies in the automakers industry analyses the competition and can generate further discussions of the importance of this analysis.

It’s the process of establishing: What is a Value Based Planning Process in the Context of Strategic Marketing? It’s the process of establishing: A Mission Formulating Corporate strategies, Marketing objectives, Marketing strategies and a Marketing plan

Corporate Mission Statement Mission statement answers two questions Who are our customers and/or stakeholders? What are our core competencies? How can we create our own corporate identity Unique symbols and logos Personalities: (Examples: Richard Branson, Warren Buffet, Raymond Ackerman)

Do you see the arrow between the "E" and "x" (in      I had never noticed it before. 

Understanding the Strategic Planning Process Figure 2.1 – Components of strategic planning (Pride 2e, p53)

SWOT analysis EXTERNAL INTERNAL Threats Strengths Weaknesses  Opportunities Threats INTERNAL Strengths Weaknesses < insert Figure 2.2 from Pride2e, p. 58> Figure 2.2 The four-cell SWOT matrix (Pride 2e, p. 56)

What is a Value Based Strategic Marketing Plan? A written document that specifies the activities to be performed to implement and control an organisation’s Value Based Marketing activities A living document, adapted as needed to the changing business environment

COMPONENTS OF A VALUE BASED STRATEGIC MARKETING PLAN < insert Table 2.2, Pride 2e, p. 67>

Formulating Value Based Marketing Strategy

Diagnosing Organisational Change And Transformation? Change organisational culture TRANSFORM Get an organ- isational fit --(lots of break-downs here) Achieve success Fine- Tune Go into excess Most Businesses Start with a Strategic Concept Products/ service Challenge the whole underlying business model (all 7’s) Retain org. culture Search for Improved tools and techniques CHANGE PASCALE, 1995

McKINSEY 7-S FRAMEWORK STRUCTURE SYSTEMS STRATEGY SHARED VALUES/ORG. CULTURE STYLE SKILLS STAFF

McKinsey 7-S Structure: The organisation chart and job descriptions Systems: Procedures for getting things done Style: Way management behaves and how management shows what it considers important Staff: The people, their strengths and weaknesses Shared Values: The values that determine the culture of the organisation Skills: Those capabilities possessed by an organisation as a whole Strategy: A coherent set of actions aimed at gaining sustainable competitive advantage over competitors

2. Was he successful in his approach? Shaping Spaarbeleg Did Johann apply a “Change” or “Transformational” approach to the Spaarbeleg unit? 2. Was he successful in his approach? 3. Refer to the McKinsey 7’s Model and select examples from the case to illustrate each element in the model Johann used for Spaarbeleg?