Strategic gaps:

The difference between what we want and what we have got

Lecture 10

A route-map for market-led strategic change

Value-basedmarketingstrategy

New marketing

meetsold

marketing

Strategicthinking and

thinkingstrategically

Customer valuestrategy andpositioning

The strategic pathway

Strategicmarket choices

and targets

Market sensingand learning

strategy

Strategicrelationshipsand networks

Change strategy

Strategicgaps

Organizationand processes

for change

Implementationprocess and

internalmarketing

Part ICustomer value

imperatives

Part IIDeveloping a value-based

marketing strategy

Part IIIProcesses for managingstrategic transformation

The Customeris always

right-handed

Agenda

• Auditing the strategic pathway• Market(ing) intentions versus market(ing) realities

– strategic gap analysis

Auditing the strategic pathway

“It’s a dirty little secret: Most executivescannot articulate the objective, scope andadvantage of their business in a simplestatement. If they can’t, neither cananyone else.”

Collis and Rukstad, 2008

Auditing the strategic pathway

• Evaluating:– Strategic thinking– Market sensing and learning strategy– Strategic market choices and targets– Customer value strategy and positioning– Strategic relationships and networks– The strategy

Market(ing) intentions versus market(ing) realities

• Systematically identifying the differences (gaps) between what we want and what we have got (or expect to get)

• Explaining those gaps and taking remedial action

Strategic gap analysis

Strategicintent

Strategicreality

Strategicgaps

Comparison

Organization and processes for change: Building the infrastructure to make it

happen

A route-map for market-led strategic change

Value-basedmarketingstrategy

New marketing

meetsold

marketing

Strategicthinking and

thinkingstrategically

Customer valuestrategy andpositioning

The strategic pathway

Strategicmarket choices

and targets

Market sensingand learning

strategy

Strategicrelationshipsand networks

Change strategy

Strategicgaps

Organizationand processes

for change

Implementationprocess and

internalmarketing

Part ICustomer value

imperatives

Part IIDeveloping a value-based

marketing strategy

Part IIIProcesses for managingstrategic transformation

The Customeris always

right-handed

Agenda

• Organizing for marketing• Total integrated marketing• New types of organization• Process-based marketing

Total integrated marketing

• The overwhelming priority of integration• Inter-functional partnership• Routes to totally integrated marketing

– pan-company marketing for real– leadership and vision– communicating out of the silo

Total integrated marketing

– collaborative partnerships inside the company– formal mechanisms for integration– process focus– cross-functional teams– organizational structure– internal marketing– a strategic approach to total integration

Total integrated marketing

Processes that define value

Processes that create value

Processes that deliver value

Accounting& finance

Production& operations

Supplychain Sales

Humanresourcemanagement

Purchasing& supply

Research &development

Customerservice

Partnerorganizations

Alliances

Networks

New types of organization

• The new organization– traditional structures create barriers– organizational design shifts are common– innovation is key force– the knowledge-based worker– managing culture– collaborative working– informal networks– organizational diversity and external relationships

New types of organization

• Organizational agility and flexibility– traditional organizations are too slow and

cumbersome– new emphasis on speed and responsiveness

• Employee motivation– e.g., the Millennials

Process-based marketing

• Managing organizational marketing processes• Structures are moving towards horizontal business

processes

Changing organizational themes

Traditionalverticalorganizationalhierarchy

Horizontalorganizationalstructure

Functionalstructure

Processstructure

Processoverlay

Functionaloverlay

Hybrid structures

Hybrid structures

Process-based marketing

• Hybrid organizational forms are replacing traditional vertical organizations

Process-based organization for marketing

Processes that define valuee.g. knowledge management, CRM

Processes that create valuee.g. new product development,innovation

Processes that deliver valuee.g. logistics, customer service,value chain relationships

Specialist resource groups support processmanagers e.g. functional departments,business units, external collaborators

Processleadership

Resource group leadership

Coordinationmechanismsto linkprocess andresourceleadership

Process-based marketing

• Decision making processes – planning and budgeting– conventional views of planning and budgeting

emphasise techniques and systems

Conventional marketing planning

Corporate goalsCorporate mission

Corporate constraints

Market analysis and choicesMarket segmentation

Competitive comparisonsInternal analysis

SWOT: Strengths, Weaknesses,Opportunties and Threats

Market strategyMarketing programmes

Tactics and actionsEvaluation and control

Implementation strategySales management

Alliance managementInternal marketing

Corporate/strategicplanning

StrategicmarketingPlanning

Marketingplan

Implementation

Process-based marketing

• How managers see planning and budgeting – managers want:

– a good plan

– teams and ownership

– continuous process

– identify real information needs

– build understanding of strategy

– shake company dogma

Process-based marketing

• What managers get from planning:– analysis instead of planning– information search instead of decisions– incrementalism– vested interests– organizational 'mind-set’– resistance to change– no resourcing or implementation– Diminishing effort and interest

Process-based marketing

• Marketing budgeting becomes dominated by:– power– strategic contingencies– control disputes– political influence– bargaining and advocacy– corporate culture

Process-based marketing

• Managing planning and budgeting as process• Multidimensional processes with analytical, behavioural

and organizational dimensions

A multi-dimensional model of marketing planning

Planningprocess

Analyticaldimension

Behaviouraldimension

Organizationaldimension

TechniquesProceduresSystemsPlanning models

Managerial perceptionsParticipationStrategic assumptionsMotivationCommitmentOwnership of output

StructureInformationCultureManagement signals

Process-based marketing

• Actively managing process to shape outcomes involves:– training and development– change agents– participation design– effective planning teams– ownership the top priority