1. Welcome to all students
MKT 702
Strategic Marketing
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2. West, Ford & Ibrahim: Strategic Marketing 2e
Chapter 1: Overview and Strategy Blueprint
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3. Structure C. WHERE DO WE WANT TO BE? B. WHERE ARE WE NOW?
A. INTRODUCTION
1. Overview and Strategy Blueprint
2. Marketing Strategy: Analysis &
perspectives
B. WHERE ARE WE NOW?
3. Environmental & Internal Analysis:
Market Information & Intelligence
C. WHERE DO WE WANT TO BE?
4. Strategic Marketing Decisions,
Choices & Mistakes
5. Segmentation, Targeting
& Positioning Strategies
6. Branding Strategies
7. Relational & Sustainability
Strategies
E. DID WE GET THERE?
14. Strategy Implementation, Control
& Metrics
D. HOW WILL WE GET THERE?
8. Product Innovation & Development
Strategies
9. Service Marketing Strategies
10. Pricing & Distribution
11. Marketing Communications
12. E-Marketing Strategies
13. Social and Ethical Strategies
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4. All the best in Trimester 2-2014
Learning Objectives
Be able to define marketing strategy.
Understand the essential differences between the main approaches towards marketing strategy.
Review the structure of the book.
Assess the importance of marketing strategy to a business and identify the kinds of things that can go wrong.
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5. Introduction: Definition of Competitive Marketing Strategy
“A market-oriented strategy that establishes a profitable and sustainable market position for the firm against all forces that determine industry competition by continuously creating and developing a competitive advantage from the potential sources that exist in a firm’s value chain.”
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6. Key Elements Market-oriented:
Strategy based upon the needs & wants of the marketplace
Establishes a profitable market position:
End goal of strategy to make a profit in the for-profit sector or to meet alternate metrics (NFP sector)
Establishes a sustainable market position:
Marketing strategy not about one-off transactions. Aim is to find a place in the market
Forces that determine industry competition:
Complex mix of ingredients that create the marketing ‘whirlwind’
Continuously creating & developing CA:
Find a spot where, if need be, the primary challenges can be tackled
Potential sources that exist in a firm’s value chain:
What value any organisation wants to create using its available marketing resources
How is PR put into practice. Four models.
PA&P – (15% of PR activity) – Used by those who have something to promote/ something to sell. Economy with the truth. E.g. Roy Keane book, Max Clifford & the kiss-&-tell stories.
PI – (50%) – May research to ensure information is underst&able & check who received information. Used by government, non-commercial orgs & business. Press, print, reports, guides, videos & exhibitions.
2WA – (20%) – Org does not change, but intends that attitudes of receiver will be. Research identifies current attitudes so that campaign is FORMed to be most effective – feedback helps or target messages in an acceptable way. E.g. Cosmetic manufacturers identified increasing concern for animal welfare & focused campaigns on no/less testing. Retailers identified increasing environmental awareness & focused campaigns on re-cyclable packaging.
2WS – (15%) – True 2 way DIALOGUE. Both parties can be persuaded by the other. Most often used by those who must be seen to be socially responsible. E.g. Police using focus groups to discuss care thefts in the area – they better underst& concerns & community better underst&s what police can/can’t do.
The last two are MORE PROFESSIONAL. 2WS, particularly, is the model proposed by academics & institutional bodies.
Figures from Harrison, 1995.
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Definition
“Marketing strategy is…a market-oriented approach that establishes a profitable market position for an organisation against all forces that determine industry competition by continuously creating and developing a sustainable competitive advantage (SCA) from the potential sources that exist in a firm’s value chain.”
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Dress Down Version!
“Marketing strategy is an approach to enable an organisation to best use it resources to meet the needs of its customers.”
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9. All the best in Trimester 2-2014
Strategy......
The word ‘Strategy’ was initially introduced and defined in the ancient military dictionaries
It comes from the Greek word ‘strategos’, strictly meaning a general in command of an army; it is formed from ‘stratos’, meaning army and ‘ag’, meaning to lead
Used first time in business literature by William Newman (1951)
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10. The Concept of ‘Strategy’
Generic
a plan of attack for winning
a plan for beating the opposition
Organisational
a plan for achieving organisational goals
a plan for securing a competitive advantage in a given market
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Purpose of Strategy
To set the future direction for the organisation
To state how it is to create value to customers
To identify what product/s and in which markets the firm will invest its resources
To describe how it is to perform better than competition
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It helps…
Define the scope of business
Finding ‘Strategic Fit’ between organisation and its environment
Identifying a Sustainable Competitive Advantage (SCA)
Guiding the allocation of resources
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Thinking First
It can help to see the big picture occasionally throughout the process. It can involve some inspiration & insight, but largely the process is one of painstakingly doing your homework
Cognitively analysing a strategic marketing problem and developing the solution (the strategy) through a carefully thought-out process
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Market Orientation
Sceptical
Self-centred
Customer
Compelled
NOTES:
September 1997
(Day, 1998)
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15. 4 Main Ways of Approaching Marketing Strategy
THINKING FIRST
COMPETITIVE
MARKETING
STRATEGY
SEEING FIRST
DOING FIRST
SIMPLE RULES
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Seeing First
Importance of seeing the overall decision
is sometimes greater than thinking about it
Insight often only comes after a period of
preparation, incubation, illumination &
verification in the cold light of day
The 'eureka' moment
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17. Doing First do something, (2) make sense of it
(3) repeat the successful parts & discard the rest.
Instead of marketing strategy –
the reality is often that ‘doing’ drives
Many companies have successfully diversified their businesses
by a process of figuring out what worked & what did not
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Postmodern view
Tricksterism
Entertainment
Amplification
Secrecy
Exclusivity
Cutlip defines two kinds of PR – CORPORATE (long-term relationship building with a range of publics or short-term h&ling of crises) & MARKETING (strategic-image building in support of & enhancing other marketing activities). However, so many stakeholders with different interests, corporate PR will cover a great many areas. So, extend this further, again to help us underst& what it is PR can do for us…
CORPORATE – IDENTITY, IMAGE & REPUTATION
IDENTITY – Where do we start from? Defining corporate values & corporate image.
FINANCIAL – Gain support of bankers & investors to ensure availability of funds for investment.
POLICY – Teaching organisations gain support from authority to improve st&ards of education.
INTERNAL – Gain support of employees for change projects effecting structure & size of organisation.
SOCIAL – (Corporate Social Responsibility) – gain support of general public for organisation & strategic initiatives – e.g. Terminal 5 at Heathrow
So, we’re starting to think about the organisational goals that can be supported by PR. Let’s consider how we might shape our PR goals…
(Brown, 2003)
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19. Simple Rules
How-to rules keeping managers organised to be able to seize opportunities
Boundary rules help managers to pick the best opportunities
based geography, customers or technology
Priority rules are about allocating resources amongst competing opportunities
Timing rules relate to the rhythm of key strategic processes
Exit rules are about pulling out from past opportunities
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What to Choose?
Thinking First/Market Orienation works best when the issues are clear, the data are reliable, the context is structured, thoughts can be pinned down and discipline can be applied
Seeing First works best when many elements have to be creatively applied, commitment to solutions is key and communications across boundaries are needed (e.g. in NPD)
Doing First or simple rules work best when the situation is novel and confusing, complicated specifications would get in the way and a few simple relationship rules can help move the process forward
The Postmodern orientation needs to be continually borne in mind to provide a check on how, in reality, buyers will interpret the final offering
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21. Framework for a Five Year PESTLIED and Scenario Analysis
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22. Marketing Strategy Blueprint
PHASE 3
How will
we get there?
PHASE 1
Where are
we now?
PHASE 2
Where do we
want to be?
PHASE 4
Did we
get there?
Objectives & Future Directions
Action Plan
Market Scan/
Scenarios
Monitor A U D I T S T R A E G Y T R A N S L I O E V A L U T I O N
Marketing
Mix
Possible
Corrective
Action
Internal Analysis
Segment
Target
Contingency
Strategic
Fit
Position
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23. All the best in Trimester 2-2014
The easyGroup
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24. All the best in Trimester 2-2014
Conclusion
Seeing First or Doing First are approaches to decision-making that normally need a sound understanding of Thinking First to be successful
You need to know the rules before you should break them—you can break all the rules once you know what they are!
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