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 Industrial Markets

Sessions One and TwoOverview and Strategic Marketing

Management

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)

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

WHO IS THE FOCUS OF MARKETING?

People

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

• They are the focal point of all marketing activities

What could George’s Boss Have Done?

Delegation that Empowers

MANAGING GEORGE’S PERFORMANCEBeaty & Associates, 2009

Setting Performance & Behavior Goals

Feedback

Coaching

Formal & Informal Reviews

Appraisals

Assessments

FORMULA FORPERFORMANCE METRICS

P = K x M x OPP

K = Knowledge (Competencies, Skills, Behaviours)

M = Motivation (Willingness and Attitude)

OPP = Opportunity to Perform (Delegation, Empowerment)

DELEGATION THAT EMPOWERS

A. Appropriate Person?B. Person has resources?C. Good use of Time?D. Help Person DevelopE. Cost of Failure

Prepare(Singly & Jointly)

Define TaskExplain why delegation and why to this personClarify expectations, procedures, boundariesSet goals, standards, prioritiesDiscuss procedures and ways to handle potential problems

Provide support, Monitor, Follow-up, Feedback, Counselling Coaching

Review

CRITERIA

TARGET MARKET

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

conscious customers

• A specific group of customers 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’ 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.

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?

A process in which one person believes that another person

has either already negatively affected – or about to negatively

affect – something that he or she values.Robbins, 2005

What is Conflict?

In MANAGiNG CONFLICT BETWEEN SALES AND MARKETING:Begin by having members AGREE TOGETHER ON:

FACTS:(Check for: Inaccurate, incomplete or different interpretations of

information)?

GOALS(Check for: Not understood, Not aligned, Metrics – S.M.A.R.T)

METHODS(Check for: Appropriate or inappropriate communication –formal

and informal)

VALUES and BEHAVIOURS(Check for joint focus on Custormer Values and Behaviours

Conflict/R

esistance Increases

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?

1. Seek to understand before being understood2. Focus on the issue—not the person3. Look for a “big picture” (vision) to connect4. Look for points of agreement5. Keep emotions neutral6. Know what you can and cannot give up7. Suspend your assumptions (cultural, values or biases, etc.) but

explore others8. Deal face-to-face (Visual and Voice to Voice)9. Take a deep breath and try to relax.10. If it gets too hot---take time out

(Beaty and Robinson, 2003)

What Should George have done:10 Tips For Managing Conflict

Exercise

Discuss the marketing of one of the following items by referring to the 4P’s and giving examples using the 4P’s to describe how

you would market the product?1. Amarula Cream

2. Ushaka Water-World

3. The rope swing at the Moses Mahiba Stadium

4. Suncoast Casino in Durban

• Brainstorm answers to the following 4P’s questions:• Describe the product• How would you propose to price this product?• How would you propose to promote the product• How would you propose to make the product widely available for

distribution?

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?

STRATEGIC MARKETING IS ABOUT RELATIONSHIPS WITH CUSTOMERS

• The provision or transfer of goods, services or ideas in return for something of value

Exchange

Stop relying on product sales – and start cultivating relationships with the rightcustomers and stakeholders and put them at the centre of your business

and organization (Harvard Business review, 2013)

MANAGING STRATEGIC CUSTOMER RELATIONSHIPS

• Relationship marketing• Establishing long term mutually satisfying, buyer/seller relationships

• Customer relationship marketing (CRM)• Using information about customers to create marketing strategies that

develop and sustain desirable customer relationships • What is the 1 question that can help you know how satisfied a customer

is with your Product or service?

Stop relying on product sales – and start cultivating relationships with the rightcustomers and stakeholders and put them at the centre of your business

and organization (Harvard Business review, 2013)

VIDEO

Interview with Jerry Wilson, Senior VP @ Coca-ColaCustomer satisfaction as one of the major marketing objectives

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, industry and outcomes - and who could potentially either help or hurt you from achieving your results or goals.

• Staff and management• 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

EXPANDED MARKETING MIX: THE 8Ps

Discussion Question

•Discuss how 1 of the 6 forces in the (macro) 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?

VALUE-DRIVEN STRATEGIC MARKETING

• A customer’s subjective assessment of benefits relative to costs in determining the worth of a product

Value

Customer Benefits

Customer CostsValue = –

STRATETIC MARKET ORIENTATION

An organisation-wide commitment to researching and responding to customer needs

• Involves generation of market intelligence in relation to current and future customer needs, competitors and collaborators

• Involves inter-functional coordination of market intelligence across business functions

• Requires an organisation to be more responsive to such market intelligence

IMPLEMENTING THE STRATETICMARKETING CONCEPT

Establish a way to coordinate all activities –have a true customer focus! 8P’S

Consider the cultural values that guide this marketing concept implementation 8P’S

Establish an information system to discover customers’ real needs – 8P’S

Use the information to create satisfying new products that meet customer needs 8P’S

Implementing the Strategic Marketing Concept: “Beach Tourism has Stiff Competition”

1. Read the article “Beach Tourism has stiff Competition”

2. Refer to the “Marketing Mix” (8P’s) to analyze what problems the author 3. of the article is highlighting? Give examples from the article to support

your conclusions

4. Which of the 8P’s are addressed and not addressed in the article, but should also be taken into account in “Marketing Beach Tourism”? Explain your answers.

EXPANDED MARKETING MIX: THE 8Ps

Strategic Marketing Globally QuestionsDiscuss the following questions in your group and arrive at answers for your presentation to the class:

1. What does is mean to market products globally?2. Are there benefits to marketing products

globally – if so, list as many as you can?3. What are the constraints to marketing products

globally?4. How would you propose to manage these

constraints?5. What are some of the strategies foreign firms

use to market their products in South Africa

WHY MARKETING IS IMPORTANT IN OUR GLOBAL ECONOMY

Marketing

Consumes large

proportion ofbuyers’ dollars

Is Used by Non-Profits

Is Important to Business

and theEconomy

Fuels the Global Economy

EnhancesConsumer Awareness Connects

People through

Technology

Promotes Welfare

of Consumers and Society

CreatesCareer

Prospects

INTERNATIONAL MARKETING

• Significant investment of time and money• Significant RISK• Must have world-class product (quality) or price or distribution (place) or promotion attributes, and other marketing-mix elements

• Must have competent leadership and cross-cultural marketing competence and maturity of personnel to execute global product, market and product penetration*

* This factor is the most critical factor (HBR, 2017)

International Culture and Strategic MarketingCultural and Behavioral Differences To Consider

• Time orientation: The manner in which tasks are approached relative to time

• Business hours, business days

• Gift giving

• Socializing

• Gender roles

• Status concern and materialism

VIDEO

Latest in green marketing: clothes-closet advertisingEnvironmentally friendly advertising as a creative medium