Professor Dave Beaty,

Transcription

1 Strategic Marketing Management Professor Dave Beaty, The Power of Brands Executing Strategic Marketing Strategies Targeting Strategic Markets Formulating Strategic Marketing Plans Marketing Strategically in Industrial Markets Strategic Marketing and Customer Value Overview & Strategic Marketing Management

2 Sessions One and Two Overview and Strategic Marketing Management

3 Questions for the Luxor Case 1. Describe the external & internal environment of Luxor, and changes that occurred in the environments, from the start of the case - to the end of the case? 2. Describe the history of George s career from the start of the case - to the end-of the case. 3. Who s to blame for the problems that occurred? George? Luxor? 4. What did the leadership in Luxor do or not do - that could have led to the problems that George encountered? (consider the Sales/Marketing dilemma) 5. What did George do - or not do - that could have led to the problems with his career? (consider the Sales/Marketing dilemma) 6. If you could go back in time, what should Luxor have done to prevent the problems encountered by George? 7. What should George have done? 8. As a member of the board, at the end-of the case, what do you recommend Luxor do with George? Why do you say this?

4 Discussion Questions Define the terms Selling and Strategic Marketing In terms of your definitions, how do you compare and contrast Selling and Marketing? What do you think is the difference between marketing and selling?

5 Selling Defined The tricks and techniques to get people to exchange cash for your product (Source: Harvard Business Review, 2013)

6 STRATEGIC MARKETING DEFINED Creating value for customers and stakeholders while integrating all the functions of an organisation to focus on satisfying customers Stop relying on product sales and start cultivating relationships with the right customers and stakeholders and put them at the centre of your business and organization (Harvard Business review, 2013)

7 THE EVOLUTION OF THE MARKETING CONCEPT The marketing concept has changed over time Production: Focus on manufacturing for the cost of Product not customer needs (Ford Sales: Focus on sales typically short-term not meeting customer needs typically long-term Marketing: Needs to focus on moving from Marketing policies to satisfying customers

8 WHO IS THE FOCUS OF MARKETING? People Those involved in the marketing process, including customers, personnel and other customers present when exchanges took place They are the focal point of all marketing activities

9 What could George s Boss Have Done? Delegation that Empowers

10 MANAGING GEORGE S PERFORMANCE Beaty & Associates, 2009 Setting Performance & Behavior Goals Assessments Feedback Appraisals Coaching Formal & Informal Reviews

11 FORMULA FOR PERFORMANCE METRICS P = K x M x OPP K = Knowledge (Competencies, Skills, Behaviours) M = Motivation (Willingness and Attitude) OPP = Opportunity to Perform (Delegation, Empowerment)

12 DELEGATION THAT EMPOWERS CRITERIA A. Appropriate Person? B. Person has resources? C. Good use of Time? D. Help Person Develop E. Cost of Failure Prepare (Singly & Jointly) Define Task Explain why delegation and why to this person Clarify expectations, procedures, boundaries Set goals, standards, priorities Discuss procedures and ways to handle potential problems Provide support, Monitor, Follow-up, Feedback, Counselling Coaching Review

13 TARGET MARKET Target Market A specific group of customers on whom an organisation focuses its marketing efforts Target Market Appealing to target markets Special K appeals to healthconscious customers

14 THE MARKETING MIX Marketers combine and balance these four elements when determining how to satisfy customers needs for a product: Product Price Place (Distribution) Promotion Sometimes called the 4Ps More recent marketing professionals have suggested expanding the marketing mix to include important variables: People Physical evidence Processes Partnerships The expanded marketing mix 8Ps

15 EXPANDED MARKETING MIX: THE 8Ps The expanded marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market.

16 POTENTIAL FOR CONFLICT Why do you think there could be the potential for conflict between individuals working in Marketing and those working in Sales in an organisation What complaints do sales people have about Marketing people? What complaints do Marketing people have about Sales people? How would you propose to manage these conflicts?

17 What is Conflict? A process in which one person believes that another person has either already negatively affected or about to negatively affect something that he or she values. Robbins, 2005

18 In MANAGiNG CONFLICT BETWEEN SALES AND MARKETING: Begin by having members AGREE TOGETHER ON: FACTS: (Check for: Inaccurate, incomplete or different interpretations of information)? GOALS (Check for: Not understood, Not aligned, Metrics S.M.A.R.T) METHODS (Check for: Appropriate or inappropriate communication formal and informal) Conflict/Resistance Increases VALUES and BEHAVIOURS (Check for joint focus on Custormer Values and Behaviours

19 Questions for the Luxor Case 1. Describe the external & internal environment of Luxor, and changes that occurred in the environments, from the start of the case - to the end of the case? 2. Describe the history of George s career from the start of the case - to the end-of the case. 3. Who s to blame for the problems that occurred? George? Luxor? 4. What did the leadership in Luxor do or not do - that could have led to the problems that George encountered? (consider the Sales/Marketing dilemma) 5. What did George do - or not do - that could have led to the problems with his career? (consider the Sales/Marketing dilemma) 6. If you could go back in time, what should Luxor have done to prevent the problems encountered by George? 7. What should George have done? 8. As a member of the board, at the end-of the case, what do you recommend Luxor do with George? Why do you say this?

20 What Should George have done: 10 Tips For Managing Conflict 1. Seek to understand before being understood 2. Focus on the issue not the person 3. Look for a big picture (vision) to connect 4. Look for points of agreement 5. Keep emotions neutral 6. Know what you can and cannot give up 7. Suspend your assumptions (cultural, values or biases, etc.) but explore others 8. Deal face-to-face (Visual and Voice to Voice) 9. Take a deep breath and try to relax. 10. If it gets too hot---take time out (Beaty and Robinson, 2003)

21 Exercise Discuss the marketing of one of the following items by referring to the 4P s and giving examples using the 4P s to describe how you would market the product? 1. Amarula Cream 2. Ushaka Water-World 3. The rope swing at the Moses Mahiba Stadium 4. Suncoast Casino in Durban Brainstorm answers to the following 4P s questions: Describe the product How would you propose to price this product? How would you propose to promote the product How would you propose to make the product widely available for distribution?

22 Questions for the Luxor Case 1. Describe the external & internal environment of Luxor, and changes that occurred in the environments, from the start of the case - to the end of the case? 2. Describe the history of George s career from the start of the case - to the end-of the case. 3. Who s to blame for the problems that occurred? George? Luxor? 4. What did the leadership in Luxor do or not do - that could have led to the problems that George encountered? (consider the Sales/Marketing dilemma) 5. What did George do - or not do - that could have led to the problems with his career? (consider the Sales/Marketing dilemma) 6. If you could go back in time, what should Luxor have done to prevent the problems encountered by George? 7. What should George have done? 8. As a member of the board, at the end-of the case, what do you recommend Luxor do with George? Why do you say this?

23 STRATEGIC MARKETING IS ABOUT RELATIONSHIPS WITH CUSTOMERS Exchange The provision or transfer of goods, services or ideas in return for something of value Stop relying on product sales and start cultivating relationships with the right customers and stakeholders and put them at the centre of your business and organization (Harvard Business review, 2013)

24 MANAGING STRATEGIC CUSTOMER RELATIONSHIPS Relationship marketing Establishing long term mutually satisfying, buyer/seller relationships Customer relationship marketing (CRM) Using information about customers to create marketing strategies that develop and sustain desirable customer relationships What is the 1 question that can help you know how satisfied a customer is with your Product or service? Stop relying on product sales and start cultivating relationships with the right customers and stakeholders and put them at the centre of your business and organization (Harvard Business review, 2013)

25 VIDEO Interview with Jerry Wilson, Senior Coca-Cola Customer satisfaction as one of the major marketing objectives

26 How many of you have ever experienced: a. Rejection or disappointment in a customer service experience? b. A positive customer service experience EXERCISE Individually and silently, think about either a positive or negative customer experience you might have had in the past? Then, describe the experience to members in your group. If you selected a negative experience and could go back in time, what should have happened differently that could have avoided disappointment and the negative experience? If you selected a positive experience, what lessons could you share with members in your group about the factors needed to achieve a positive customer satisfaction? Each group member shares their experiences with the group. What do you learn about Relationships and Marketing from these incidents

27 RELATIONSHIP WITH STAKEHOLDERS Constituents who have a stake, or claim, in some aspect of an organisation s products, operations, markets, industry and outcomes - and who could potentially either help or hurt you from achieving your results or goals. Staff and management Shareholders Vendors and suppliers Regulatory bodies and agencies Industry ombudsmen and associations How you structure your relationships with these constituents will be crucial for your long-term growth

28 Group Assignment: Stakeholder Mapping You are the Marketing Director for an NGO or Trade Union. 1. Do a Stakeholder map! 2. You want to establish a close relationship with each stakeholder group. Describe what you believe each stakeholder would value (and need from you) should they wish to form a relationship with you and your NGO/Trade Union. 3. Describe how you would initiate and build a relationship to each different stakeholder group?

29 STRATEGIC MARKETING ENVIRONMENT The six types of forces that surround the customer and affect the marketing mix Economic forces Political forces Legal and regulatory forces Technological forces Sociocultural forces Competitive forces Unlike the marketing-mix variables, an organisation has no control over these forces

30 EXPANDED MARKETING MIX: THE 8Ps

31 Discussion Question Discuss how 1 of the 6 forces in the (macro) strategic marketing environment (that you don t control) would impact on your marketing strategy for 1 of the following products: Cigarettes Alcohol Diesel cars Another example?

32 VALUE-DRIVEN STRATEGIC MARKETING Value A customer s subjective assessment of benefits relative to costs in determining the worth of a product Value = Customer Benefits Customer Costs

33 STRATETIC MARKET ORIENTATION An organisation-wide commitment to researching and responding to customer needs Involves generation of market intelligence in relation to current and future customer needs, competitors and collaborators Involves inter-functional coordination of market intelligence across business functions Requires an organisation to be more responsive to such market intelligence

34 IMPLEMENTING THE STRATETIC MARKETING CONCEPT Establish an information system to discover customers real needs 8P S Use the information to create satisfying new products that meet customer needs 8P S Establish a way to coordinate all activities have a true customer focus! 8P S Consider the cultural values that guide this marketing concept implementation 8P S

35 Implementing the Strategic Marketing Concept: Beach Tourism has Stiff Competition 1. Read the article Beach Tourism has stiff Competition 2. Refer to the Marketing Mix (8P s) to analyze what problems the author 3. of the article is highlighting? Give examples from the article to support your conclusions 4. Which of the 8P s are addressed and not addressed in the article, but should also be taken into account in Marketing Beach Tourism? Explain your answers.

36 EXPANDED MARKETING MIX: THE 8Ps

37 Strategic Marketing Globally Questions Discuss the following questions in your group and arrive at answers for your presentation to the class: 1. What does is mean to market products globally? 2. Are there benefits to marketing products globally if so, list as many as you can? 3. What are the constraints to marketing products globally? 4. How would you propose to manage these constraints? 5. What are some of the strategies foreign firms use to market their products in South Africa

38 WHY MARKETING IS IMPORTANT IN OUR GLOBAL ECONOMY Is Important to Business and the Economy Fuels the Global Economy Enhances Consumer Awareness Connects People through Technology Is Used by Non-Profits Promotes Welfare of Consumers and Society Consumes large proportion of buyers dollars Marketing Creates Career Prospects

39 INTERNATIONAL MARKETING Significant investment of time and money Significant RISK Must have world-class product (quality) or price or distribution (place) or promotion attributes, and other marketing-mix elements Must have competent leadership and cross-cultural marketing competence and maturity of personnel to execute global product, market and product penetration* * This factor is the most critical factor (HBR, 2017)

40 International Culture and Strategic Marketing Cultural and Behavioral Differences To Consider Time orientation: The manner in which tasks are approached relative to time Business hours, business days Gift giving Socializing Gender roles Status concern and materialism

41 VIDEO Latest in green marketing: clothes-closet advertising Environmentally friendly advertising as a creative medium