managing markerting processes - seminar 2

Seminar 2

Managing Marketing Processes----Aligning Strategy and the Marketing Planning Process

Robin TeiglandMaster of General ManagementStockholm School of Economics

October 8, 2014

Seminar 2 Overview

Aligning Strategy and Marketing Planning Process

Guest Speaker, Vanessa Meyer, Loadimpact.com

2

Marketing Plan Teams

3

GROUPS PREFERENCES

1. Team CGB2C SME Service - Crown Innovative Parking

Team 2. B2C SME Service

4. Fika 4 FiveB2C SME Product

5. 6 LlamasB2C MNC Product - Uniqlo

Team 6B2C MNC Service - Uber

What is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

1-4

Marketing planning process

5

1. Summary of Current Situation - Provides a description of the business; product/service analysis. The situational analysis encompasses internal and external factors, e.g., the company’s mission, strategy, offerings, and financial status; the economic and political climate; demand trends, and competitors. Discuss PESTEL, five forces, SWOT.

Wood, 2008

Exercise

8 volunteers are needed

6

7

What matters for success?

Companies most successful in creating long-termshareholder value are typically those that:

a) Have a vision and mission—They give precedence to purpose and goals other than profitability and shareholder return

b) Have strong, consistent, ethical values

Examples: • “Visionary”, e.g., Disney, HP, IBM, Merck, P&G, Shell, Wal-Mart• Boeing

• Focus pre-1996: “to build great planes,” • Weak financial controls—yet high profitability

• Focus 1997-2003 : “creating shareholder value”• Outcome: loss of market leadership, declining profitability

Grant 2008

Some core concepts in strategy

Mission Purpose: Why we exist

Values What we believe in and how we behave

Vision What we want to be

8Collis & Rukstad, 2008

Walt Disney

Purpose/Mission To make people happy

Values No cynicism Nurturing and promulgation of “wholesome

American values” Creativity, dreams, and imagination Fanatical attention to consistency and detail Preservation and control of the Disney magic

9Collis & Rukstad 2008

The Strategy Hierarchy

10

Where should we compete?

How should we compete?

What is business strategy? Strategy

An integrated and coordinated set of commitments and actions designed to gain a competitive advantage

Competitive advantage When two or more firms compete

within the same market, one firm possesses a competitive advantage over its rivals when it earns (or has the potential to earn) a persistently higher rate of profit

13Hitt, Ireland & Hoskisson 2006

1. Long-term goal (objective)

1. Scope of the firm (customer or offering, geographic location, vertical integration

1. Competitive advantage

Components of business strategy

Collis & Rukstad 200814

Strategy ≠ Business Model

Business model (Magretta, 2002) Describes, as a system, how the pieces of a

business fit together. Does not factor in one critical dimension of

performance: competition Reflection of a realized strategy

15

Every organization has a business model . [it] makes some choices, which have consequences. [But] not every organization has a strategy - a

plan of action for different contingencies that may arise. (Casadesus et al. 2010)

17

Generic strategies

Scope(Customer/

variety)

Type of competitive advantage

Broad

Narrow

Differentiation Low cost

Differentiation Cost leadership

Differentiation-based focus

Cost-based focus

Porter 1998

18

Generic strategies in auto industry

Scope(Customer/

variety)

Type of competitive advantage

Broad

Narrow

Differentiation Low cost

Mercedes(Differentiation)

Nissan(Cost leadership)

BMW(Differentiation-

based focus)

Lada(Cost-based

Focus)

19

Making choices

Strategy is about choosing what NOT to do: Which customers not to serve What products or services not to offer Which activities not to perform

Strategy is about NOT being all things to all people

Porter

Avoid being stuck in the middle

Market share

Return oninvestment

High

HighLow

Low

Differentiation Cost leadership

Porter 20

Group Assignment for Today

Questions for discussion (2 minutes)

Why is an organization’s mission statement important from a marketing planning perspective?

Should a marketing plan be considered an internal document only and not for public disclosure?

21

Characteristics of Core Competencies

A source of competitive advantage Applications in a wide variety of markets Difficult to imitate

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

2-32

Core Competencies -Tree Diagram

Core Product 1 Core Product 2

Business1

Business2

1 2 3 4 5 6

Business3

Business4

7 8 9 10 11 12

End Products

Competence1

Competence1

Competence2

Competence2

Competence3

Competence3

Competence4

Competence4

Core Product 3

End Products

Prahalad & Hamel 1990Prahalad & Hamel 1990http://www.youtube.com/watch?http://www.youtube.com/watch?v=Ar_r2kE9Ej4&NR=1v=Ar_r2kE9Ej4&NR=1 33

Holistic Marketing

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

1-35

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

2-35

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

2-36

What is Holistic Marketing?

Holistic marketing integrates the value exploration, value creation, and

value delivery activities with the purpose of building long-term, mutually

satisfying relationships and co-prosperity among key stakeholders.

Questions to Address in Holistic Marketing

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

2-37

Value Exploration: What value opportunities are available?

Value Creation: How can we create new value offerings

efficiently?

Value Delivery: How can we deliver the new offerings efficiently?

Phases of Value Creation and Delivery

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall

2-38

Choosing the value (STP)

Providing the value (price, place, product)

Communicating the value (promotion)

Seminar 2 Overview

Aligning Strategy and Marketing Planning Process

Guest Speaker, Vanessa Meyer, Loadimpact.com

39

Group Assignment for Today Apply your knowledge (6 minutes) Do some research on the mission statement and strategy of

Load Impact (loadimpact.com) and look at some of the company’s recent marketing activities.

What do you think that the company’s mission statement and strategy say about the customer focus, value creation, market scope, guiding values, and core competencies of this company?

How do specific marketing actions appear related to the stated mission and business model? E.g., what are the targeted segments and how are they targeted? Do you think this reflects the customer focus in the mission statement?

What changes would you suggest to the mission statement in order to make it more effective as a guide for the marketing planning process or an inspiration for managers and employees? 40

Seminar 3 Overview

Marketing Research Processes: Analyzing the Market

Guest Speaker, Wei Wei, Springfellow

41