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PLANNING A B2B MARKETING CHANNEL STRATEGY •  Channel design •  Channel coverage

•  Intensive •  Selective •  Exclusive

•  Channel management decisions •  Selecting suitable channel partners •  Managing and motivating channel partners •  Evaluating channel partners

•  Remember to complete the activities in your guide

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SECTION 6

Integrated Marketing Communication

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INTRODUCTION

•  A basic function of marketing has always been to act as a link between the company and its customers

•  Marketing communication is part of this link between the retail marketer and potential buyers or other marketing channel partners

•  Marketing communication can be described as the voice of marketing, which informs consumers about the existence of a business and its products and services

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THE PROMOTION MIX

•  A company’s total promotion mix (also called its marketing communications mix) consists of:

•  The blend of advertising, public relations, personal selling, sales promotion and direct and digital marketing tools that the company uses to persuasively communicate customer value and build customer relationships

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THE NATURE AND IMPORTANCE OF INTEGRATED MARKETING COMMUNICATIONS •  In the traditional model of mass marketing,

companies designed, produced and promoted standardised market offerings to masses of customers

•  Mass marketing strategies relied on mass-media communications techniques to support these strategies

•  The emergence of modern micro-marketing has confronted marketing managers with several new marketing communications realities

•  There are several factors contributing to the changing face of marketing communications

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THE NATURE AND IMPORTANCE OF INTEGRATED MARKETING COMMUNICATIONS

•  New marketing communications realities •  Consumers are better informed and more

communications empowered •  Marketing strategies are changing •  Profound advances in communications

technology •  Traditional media not dead yet •  Answer the questions in your guide on the

promotional mix elements

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DEVELOPING AN IMC PROGRAMME

•  Step 1: Identify the target audience •  Step 2: Determine the communication

objectives •  Step 3: Design a message •  Step 4: Choose the media through which to

send the message •  Step 5: Select the message source •  Step 6: Collect feedback •  Remember to complete the activity on the

elements of an IMC programme

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SIX BUYER READINESS STAGES

1.  Awareness 2.  Knowledge 3.  Liking 4.  Preference 5.  Conviction 6.  Purchase These stages are important when determining the communication objectives

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AIDA MODEL

•  Attention •  Interest •  Desire •  Action The model is used when designing message for IMC.

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MARKETING COMMUNICATION IN BUSINESS MARKETS •  As we have seen, there are major differences

between business markets and consumer markets •  There are also similarities •  The promotion mix is also used by business

marketers and consumer marketers •  There are differences in emphasis and focus on

specific elements of the promotion mix •  Business marketers prefer using push promotional

strategies; while consumer marketers favour pull promotion strategies

•  Answer the questions in your guide – Microsoft case study

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SECTION 7

Bringing it all Together: Organisational and Marketing Strategy

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INTRODUCTION

Strategy can be defined as the match between what a company can do (organisational strengths and weaknesses) within the universe of what it might do”(environmental opportunities and threats)

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STRATEGIC MANAGEMENT TERMINOLOGY AND CONCEPTS

•  “A strategy is the overall plan guiding a firm. It influences the firm’s business activities and its response to market forces, such as competition and the economy” (Berman and Evans, 2013:40)

•  Closely related to strategy, are the concepts of strategic planning and strategic management

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STRATEGIC MANAGEMENT TERMINOLOGY AND CONCEPTS •  Strategic management can be defined as “the

art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives” (David, 2013:35)

•  Strategic planning can be defined as “the process of proactively aligning the organisation’s resources (internal environment) with threats and opportunities caused in the external environment” (Smit et al, 2011:84)

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THE STRATEGIC MANAGEMENT PROCESS

•  At its most basic level, strategic management is concerned with finding answers to four questions:

•  Where are we now? •  Where do we want to be? •  How do we get there? •  How can we ensure arrival?

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THE STRATEGIC MANAGEMENT PROCESS

•  The strategic management process involves three phases:

•  Strategy formulation — strategies are developed

•  Strategy implementation — strategies are put into action

•  Strategy evaluation — strategies are measured to determine their success

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THE STRATEGIC MANAGEMENT PROCESS

•  Strategy formulation •  Vision •  Mission •  Strategic objectives •  Environmental analysis •  Situational analysis •  Craft a strategy to achieve the objectives

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THE STRATEGIC MANAGEMENT PROCESS

•  Strategy implementation •  In this phase, the (overall) strategic plan is

implemented •  The organisation's structure, systems and

culture might have to change so that they align to the new organisational strategy

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THE STRATEGIC MANAGEMENT PROCESS

•  Strategy evaluation •  The third and final phase of strategic

management actually consists of two phases •  Control phase •  Feedback phase

•  Refer to the research activity in your guide (business situational analy

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FROM CORPORATE STRATEGY TO MARKETING STRATEGY

•  The third and final step in phase 1 of the strategic management process (figure 15) involves crafting an overall, detailed strategy at the corporate level of a retail firm

•  We will now discuss how to design a competitive marketing strategy aligned with the company’s overall (corporate) strategy

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FROM CORPORATE STRATEGY TO MARKETING STRATEGY •  Identifying and analysing competitors

•  Whom are we competing against •  Assessing competitors •  Selecting which competitors to attack and which

to avoid •  Competitive strategies

•  Approaches to marketing strategies •  Basic competitive strategies

•  Overall cost leadership •  Differentiation •  Focus

•  Competitive positions

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PURPOSE AND CONTENT OF A MARKETING PLAN

•  Through strategic planning, the company decides what it wants to do with each business unit

•  Marketing planning (in turn) involves choosing marketing strategies that will help the company attain its overall strategic objectives

•  A detailed marketing plan would eventually be developed for each business, product, or brand

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MAJOR ELEMENTS OF A MARKETING PLAN

•  A marketing plan involves the design and implementation of activities related to the marketing objectives of the company as part of its overall strategic objectives

•  It becomes the guide (or roadmap) for all marketing activities, covering all the sections discussed in this module and more

•  As a written document, the marketing plan contains several strategic elements that cut across departments and functions, also involving a range of cross-functional personnel in a company

• 

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MAJOR ELEMENTS OF A MARKETING PLAN

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MAJOR ELEMENTS OF A MARKETING PLAN

•  Marketing objectives •  SMART

•  Target market and positioning strategy •  Marketing mix

•  Product •  Price •  Promotion •  Place

•  Implementation, evaluation and control •  The focus of control •  The retail audit as a control tool •  Characteristics of an effective control system

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MARKETING ETHICS AND SUSTAINABILITY

•  Sustainability and responsibility •  Ethics, sustainability and responsibility are closely

related concepts •  As society’s ethical awareness grows, the

commitment by corporates to be good citizens of the country (and the world) has also grown

•  The marketing concept, as a business philosophy, means that businesses are part of the society in which they operate and are therefore responsible to that society

•  They have a social responsibility to act in good faith and according to the law

•  For ethically responsible marketers displaying social responsibility is a fundamental way of doing business

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MARKETING ETHICS AND SUSTAINABILITY

•  Corporate social responsibility refers to the responsibility of a company to ensure that it:

•  Produces only products that are safe for human consumption

•  Manages itself responsibly, to the benefit of its employees and society

•  Contributes to the sustainable utilisation of the natural environment

•  Contributes to the up liftment and development of disadvantaged people

•  Manages itself according to the moral, ethical, and legal frameworks and rules of society

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MARKETING ETHICS AND SUSTAINABILITY

•  Not all marketers follow the marketing concept. In fact, some companies use questionable marketing practices that serve their own interests

•  The need to balance short-term needs with long-term interests

•  Did you remember to complete all the activities in this unit?

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Thank you