Session 1
Strategic Marketing Introduction & Scope
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Market-Driven Strategy
Market-driven Strategy
Market-Driven Strategy Becoming Market Oriented Distinctive Capabilities Creating Value for Customers Becoming Market Driven Challenges of a New Era for Strategic Marketing
Market-driven Strategy
Starting
point for business strategy: market and customers have: clear understanding of markets, customers, and competitors.
Must
Characteristics of a Market-Driven Strategy
Becoming MarketOrientation
Achieving Superior Performance
Determining Distinctive Capabilities
Customer Value/ Capabilities Match
Why Pursue a MarketDriven Strategy?
Strong supporting logic Achievements of companies displaying market-driven characteristics are impressive Example: Zara Boutique (Spain) Cross Functional Feature
Becoming Market Oriented
Customer is the focal point of the organization Commitment to continuous creation of superior customer value Superior skills in understanding and satisfying customers Requires involvement and support of the entire workforce Monitor rapidly changing customer needs and wants
Determine the impact of changes on customer satisfaction Increase the rate of product innovation Pursue strategies to create competitive advantage
Characteristics of Market Orientation
Customer Focus What are the customers value requirements? Competitor Intelligence Importance of understanding the competition as well as the customer Cross-Functional Coordination Remove the walls between business functions Performance Consequences Market orientation leads to superior organizational performances
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Becoming a MarketOriented Organization
Information Acquisition
Cross-Functional Analysis of Information
Shared Diagnosis and Coordinated Action
Delivery of Superior Customer Value
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Distinctive Capabilities
Capabilities are complex bundles of skills and accumulated knowledge, exercised through organizational processes, that enable firms to coordinate activities and make use of their assets. Example: Southwest Airline
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Capabilities
Desirable Capabilities
Applicable to Multiple Competition Situations
Superior to the Competition
Difficult to Duplicate
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Types of Capabilities
Outside-In Processes
Spanning Processes
Inside-Out Processes
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Organizations Process
EXTERNAL EMPHASIS Outside-In Processes Spanning Processes
Market sensing Customer linking Channel bonding Technology monitoring Customer order fulfillment Pricing Purchasing Financial management Cost control Technology development Integrated logistics Manufacturing/ transformation processes Human resources management Environment health and safety
INTERNAL EMPHASIS
Inside-Out Processes
Customer service delivery
New product/service development Strategy development
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Matching Customer Value and Distinctive Capabilities
Value Requirements
Distinctive Capabilities
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Creating Value For Customers
Customer Value:
Value for buyers consists of the benefits less the costs resulting from the purchase of products.
Superior value: positive net benefits
Creating Value:
Customer value is the outcome of a process that begins with a business strategy anchored in a deep understanding of customer needs.
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Creating Value for Customers
Customer Value
Benefits
Costs
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Value Composition
Product Services
Employees
Benefits
Image
Value (gain/loss)
Monetary costs Time
Psychic and physic costs
Costs (sacrifices)
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Becoming Market Driven
Market Sensing Capabilities
MARKET-DRIVEN STRATEGIES
Customer Linking Capabilities
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Market Driven Initiatives
Market Sensing Capabilities Effective processes for learning about markets Sensing: Collected information needs to be shared across functions and interpreted to determine proper actions. Customer Linking Capabilities Create and maintain close customer relationships
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Aligning Structure and Processes
Potential change of organizational design Improve existing processes Process redesign Cross-functional coordination and involvement Primary targets for reengineering: Sales and marketing, customer relations, order fulfillment, and distribution
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Challenges Of A New Era For Strategic Marketing
Strategic marketing faces unprecedented challenges and opportunities:
Turbulent markets Intense competition Disruptive innovations Escalating customer demands
Escalating Globalization
Technology Diversity & Uncertainty (Example: eBay)
Ethical Behavior and Social Responsiveness of Organizations
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Corporate, Business and Marketing Strategy
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Corporate, Business And Marketing Strategy
Corporate strategy Business and marketing strategy Marketing strategy process Internet strategy Preparing the marketing plan
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Corporate, Business And Marketing Strategy
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Corporate Strategy
Deciding the Scope and Purpose of the Business
Business Objectives
Actions and Resources for Achieving Objectives
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Characteristics Of Successful Strategy
Unique competitive position for the company. Activities tailored to strategy. Clear trade-offs and choices vis--vis competitors. Competitive advantage arises from fit across activities. Sustainability comes from the activity system not the parts. Operational effectiveness a given.
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Organizational Change
Vertical Disaggregation
Internal Redesign
New Organizational Forms
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Corporate Strategy Components
Managements long-term vision for the corporation Objectives Assets, skills, and capabilities Businesses in which the corporation competes Structure, systems, and processes Creation of value (competitive edge)
Business And Marketing Strategy
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Developing the strategic plan for each business Business and marketing strategy relationships Strategic marketing:
Developing a vision about the markets of interest to the organization, select market target strategies, setting objectives, and developing, implementing and managing the marketing program positioning strategies designed to meet the value requirements of customers in each market target
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Marketing Strategy Process
Situation Analysis
Implementing and Managing Marketing Strategy
Designing Marketing Strategy
Marketing Program Development
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Marketing Strategy Process
Strategic situation analysis Market vision, structure and analysis Segmenting markets Continuous learning about markets
Example: Google Case
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Situation Analysis
Market Vision, Structure, and Analysis
Continuous Learning About Markets
Segmenting Markets
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Market-driven Strategies
Designing MarketDriven Strategies
Market Targeting Relationship and Strategic Strategies Positioning
Planning for New Products
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Positioning Strategy Development
Product strategy
Positioning strategy Promotion strategy Market target Distribution strategy
Price strategy
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Implementing And Managing Market-driven Strategy Designing Effective
Market-Driven Organizations
Implementing and Managing Market-Driven Strategy
Strategy Implementation and Control
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Marketing Plan Outline
I.
Strategic Situation Summary
Market-Targets and Objectives Positioning Statements Market Mix Strategy for Each Market Target Forecasting & Budgeting Contingency Planning
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International Planning Process
