1. Strategic Marketing 1. Imperatives for Market-Driven Strategy
2. Markets and Competitive Space
3. Strategic Market Segmentation
4. Strategic Customer Relationship Management
5. Capabilities for Learning about Customers and Markets
6. Market Targeting and Strategic Positioning
7. Strategic Relationships
8. Innovation and New Product Strategy
9. Strategic Brand Management
10. Value Chain Strategy
11. Pricing Strategy
12. Promotion, Advertising and Sales Promotion Strategies
13. Sales Force, Internet, and Direct Marketing Strategies
14. Designing Market-Driven Organizations
15. Marketing Strategy Implementation And Control

2. Capabilities for Learning About Customers and
Chapter 5
Capabilities for Learning About Customers and
Markets
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Capabilities for learning about customers and markets
Market-driven strategy, market sensing and learning processes
Marketing information and knowledge resources
Marketing intelligence and knowledge management
Ethical issues in collecting and using information

4. Learning capabilities at P&G
Competitive strength from superior customer knowledge
To deliver a customer experience, less formal research, more one-to-one communication
Consumer Village
Online virtual reality Cave
Watch people clean baths
Understand what it is like to live on $50/month
Social networking sites

5. Market Sensing and Learning Processes
Market sensing processes
Learning organization
Learning and competitive advantage
Learning about markets
Barriers to market learning processes

6. Market sensing at Tesco International
Retailer entry to U.S. grocery market, not with existing format
Discovering what U.S. consumers want:
Senior managers live with U.S. families
Probe lifestyles of families
Prototype store
Developing a new retail format and targeting the “grocery gap”

7. Market sensing processes
Open-minded inquiry processes
Analyzing competitors’ actions
Listening to front-line employees
Searching for latent customer needs
Scanning the peripherary of the market
Encouraging experimentation

8. Marketing information and knowledge resources
Scanning processes
Specific marketing research studies
Internal and external marketing information resources
Relationships with external marketing research providers

9. Screening A New Research Supplier
1. Client ® Would you recommend this supplier?
2. Supplier ® Do you have sufficient funds for this project?
3. What parts of the project will be subcontracted, and how do you manage subcontractors?
4. May I see your interviewer’s manual and data entry manual?
5. How do you train and supervise interviewers?

10. Screening A New Research Supplier
6. What percentage of interviews are validated?
7. May I see a typical questionnaire?
8. Who draws your samples?
9. What percentage of your data entry is verified?
10. Managers - What do you think about this supplier?
Source: Seymour Sudman and Edward Blair,
Marketing Research, A Problem-Solving Approach, Irwin/McGraw-Hill, 1998, 67.

11. A Framework for Market Sensing
Probability of the Event Occurring
High
Medium
Low 7
Field of
Utopia 6
Dreams
Effect of the Event on the Company 5
Things to 4
Watch 3
Future 2
Danger
Risks 1 *
1=Disaster, 2=Very bad, 3=Bad, 4=Neutral, 5=Good, 6=Very good, 7=Ideal

12. Learning About Markets
Objective
Inquiry
Keeping and
Gaining Access
to Prior
Learning
Synergistic
Information
Distribution
Mutually
Informed
Interpretations
Source: George S. Day, Journal of Marketing, October 1994.

13. Barriers to market learning
Managers reject new insights/information
Rigid organizational structures and inflexible information systems
Politics favour the status quo
Overwhelming pressure of existing business operations
Tendency to “active inertia”

14. Best Buy’s customer knowledge strategy
Strategy treats customers as individual, develops solutions for needs and engages employees to serve them
New ideas from listening more closely to customers and employees
Knowledge shared with manufacturers and product developers
Core innovation competency is gathering and synthesizing customer intelligence

15. Customers and design at Xerox
“Customer-led innovation” - “dreaming with the customer”
Not just building prototype and getting feedback
Focus groups as first step in commercial printer design
Changing designs in response to customer insights
Investment in understanding what customers think about the “bright ideas”

16. Marketing research project
Defining the problem
Understanding the limitations of the research
Quality of the research
Costs
Evaluating and selecting suppliers
Research methods

17. Existing marketing information resources
In-company resources
Open source resources
Research agency resources

18. Creating new marketing information
Observation and ethnographic studies
Marriott - rethink hotel experience for “road warriors”
GE - developing plastic fibers position
Intel - use of computers by children in China
Research surveys
Internet-based research

19. Problem definition to guide marketing research studies
Project and Scope
Describe the topic
for the study and
the background.
Research
Objectives
Set specific goals for
the study - why is it
being undertaken?
Identify the specific
pieces of information
required and the
questions that need
to be asked to obtain
that information
Research
Questions
Planned
Outcomes
When completed how
should the results be
presented for management
use?

20. Impact of the Internet on Marketing Costs and Availability
Online Surveys
Fast
Inexpensive
Limitations in population coverage
Resistance to excessive Web communications
Customer feedback and peer-to-peer Web communications
Monitoring customer Web behavior

21. Marketing and management information systems
Marketing information systems
Management information systems
Marketing decision support systems

22. Marketing Decision-Support System Components
Database
Display
Analysis
Capabilities
Models

23. Marketing intelligence and knowledge management
Role of the chief knowledge officer
Leveraging customer knowledge

24. Ethical issues in collecting and using information
Invasion of customer privacy
Information and ethics
Information collection
Research subjects
Information sharing

25. Magnetic resonance imaging (MRI) Pictures response of brain to stimuli
Neuromarketing
Magnetic resonance imaging (MRI)
Pictures response of brain to stimuli
Probing consumer preferences is controversial
Invasive
Privacy issues
Information sharing
Insurance companies
Employers
Law enforcement