strategic marketing management · strategic marketing management. professor dave beaty,...

Overview & Strategic Marketing Management

The Power of Brands

Formulating StrategicMarketing Plans

Strategic Marketing and Customer Value

Executing Strategic Marketing Strategies

Strategic Marketing ManagementProfessor Dave Beaty,

Docbeaty@2btassociates.com

Targeting StrategicMarkets

Marketing Strategically in B2B Industrial Markets

Sessions One and TwoOverview and Strategic Marketing

Management(Chapter 1 - Text)

Questions for the Luxor Case1. 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?

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’?

Selling Defined

The tricks and techniques to get people to exchange cash for your product

(Source: Harvard Business Review, 2013)

5 Proven Ways to Succeed in SalesTed Talk: Carmine Gallo

Questions

1. Select someone you know and with whom you would like to “influence” so they come around to your way of thinking. Describe this person to your group.

2. From what you learned in the Ted talk, identify 1 or 2 tips and techniques indicated by the speaker that you would feel comfortable using to influence this person.

3. Describe how you would go about using your technique in making your connection with this person (i.e. the setting, time and place,

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)

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/stakeholders

WHO IS THE FOCUS OF MARKETING?

People

• Those involved in the marketing process, including customers, personnel and stakeholders who are present when exchanges took place

• They are the focal point of all marketing activities

TARGET MARKET

Target Market Appealing to target markets Special K appeals to health-

conscious customers

• A specific group of customers/stakeholders on whom an organisation focuses its marketing efforts

Target Market

More recent marketing professionals have suggested expanding the marketing mix to include important variables:• People

• Physical evidence

• Processes

• Partnerships

The ‘expanded marketing mix’ 8Ps

Marketers combine and balance these four elements when determining how to satisfy customers’ stakeholders’ needs for a product:

• Product• Price• Place (Distribution)• Promotion

THE MARKETING MIX

Sometimes called the 4Ps

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.

Questions for the Luxor Case1. 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?

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?

Questions for the Luxor Case1. 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?

How many of you have ever experienced:

a. Rejection or disappointment in a customer service experience?

b. A positive customer service experienceEXERCISE

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

RELATIONSHIP WITH STAKEHOLDERS

• Constituents who have a ‘stake’, or claim, in some aspect of an organisation’s products, operations, markets, services, industry and outcomes - and who could potentially either help or hurt you from achieving your results or goals.

• Staff and management (Internal)• Government• NGO’s• Municipalities• Provinces• Trade Unions 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

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 relationshipwith 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 relationshipto each different stakeholder group?

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

Discussion Question

•Discuss how 1 of the 6 forces in the 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?