MARKETING**STRATEGY*&*ORGANISATION

Prof.dr.'Henry'RobbenNyenrode'Business'Universiteit

Building*Sustainable*Business.

Are'you'up'to'the'challenge?

Hi; I’m Henry Robben.

I am a Professor of Marketing at Nyenrode Business Universiteit and I act as a consultant to companies.

With Claudia Hartman I take care of our four sons, read whatever is available, enjoy first-person shooter games, cycle as much as I can, and cheer for Oranje, the Dutch national soccer team.

For a living, I catalyze strategic marketing processes to help individuals and companies realize their ambitions.

I have turned my passion into my job, that is why I’m here with you today. Combining my academic work with practice is a ‘conditio sine qua non’ for me.

+31 6 26 556 572

Henry Robben

henry.robben@gmail.com

henryrobben

henryrobben.com

onhandigeharry

henry_robben

Building Sustainable Business.

The Marketing Concept

The planning and the implementation of

marketing activities in order to optimise the

company’s current and future

competitiveness.Moenaert; Robben & Gouw; 2011:26

Figure'1.1Chapter'Flowchart

Chapter(2:(Understanding+the+BusinessChapter(3:(Understanding+the+Environment+

Chapter(4:(Strategic+Ambition+

Chapter(5:(A+Concept+of+the+FutureChapter(6:(Shaping+the+Future+

Chapter(7:(Commitment+to+Execution+

Chapter(8:(Return+on+Business+

Value'Net;'Abell;'SWOT;'STEP;'CODA;'Customer'Value'Proposition;'

Competitive'Advantages;'Business'Model;'Portfolio'Analysis;'Market'

Intelligence

Corporate'vs'Personal'Ambition;'Mars'exercise;'Newspaper'article;'Objectives'Assessment;'

Sustainability'Analysis

Market'Making,'Market'Hunting,'Market'Farming;'Segmentation,'Targeting,'Positioning;'Business'Model;'Strategic'Option'Analysis

Implementation;'See'N'Start'N'Sustain;'Marketing'Management

Marketing'Balanced'Scorecard;'Ambidexterity

“…(it(is(essential(to(ask(and(answer(the(right(questions.”

Moenaert,'Robben'&'Gouw'2011:28

Chapter(1:(The+Business+Roadmapping+Cycle+

$$$ Resource-Based View

Competitive Advantage &Enabling Business Model

$$ Black Box

Includes the famousMarketing-Mix Toolbox

Vision;(mission;(the(grand(choices

How(and(where(do(we(compete?

How(and(when(do(we(implement? Bridging(decisions

Operational(oriented

Annual(time(horizon

Action(oriented

Short/medium(time(horizon

Limited(risks

Value(oriented

Higher(risks

Effect(proHits

Long(time(horizon

Marketing'&'Strategy.Corporate(

strategy

Marketing

Strategy

Operational

(strategy

Procurement(Strategy

Operational(marketing(strategy

Logistics

(strategy

Human(Resource((strategy

Information(Technology(strategy Financial(strategy

Figure'2.1DeVining'the'Business

Ques%on(1:(Who(do(we(serve?(

Answer:(Define(customer(segments

Ques%on(2:What(do(we(offer?

Answer:(Define(customer(value(proposi%on

Ques%on(3:(How(do(we(do(that?(

Answer:(Define(resource(configura%on

What'Business'Are'We'In?

Implications'of'the'AbellNmodel

• Products'and'services'are'results• Strategic'positioning• The$sum$of$the$decisions$on$these$dimensions

Figure'2.2Media'Spending'in'the'German'Market

(Source'of'data:'GfK)

1999 2001 2003 2005 2007 2008 2009 2010

16%16%17%15%12%10%10%10%

3%3%3%3%3%2%2%2%

9%10%8%8%8%10%11%9%

3%3%3%3%3%3%4%4%

14%13%12%13%13%13%8%6%

14%15%17%18%20%20%24%27%

41%40%40%41%40%42%42%43%

9.499.30 9.65 9.95 9.778.799.379.17 Total&(Billion&€)

Games

Software

Cinema

Video(rental

Video(sell>through

Music(

Books

1999200120032005 2007200820092010

“The”'media'industry

Figure'2.3WayNtoNMarket'Architecture

Company

InMluencers

(Advisers;(Regulatory(Institutions;Media;(etc.)

End>Customer(Segments

Segment(1 Segment(2 Segment(3 Segment(4

Direct(Channels(

(Face>to>Face;(Internet;(etc.)

Indirect(Channels

(Distributors;(Resellers;(OEMS;Convertors;(etc.)

Be'Where'Your'Customer'Is

The'focal'customer:'Who'decides?'Who'pays?'Who'consumes?

An industrial company enables the competitiveness

of its customers

Your Company Your Customer Their Customers

... hence creating profitable sales

for itself

Figure'2.4Perspectives'on'Derived'Demand'in'Business'Markets

... hence leading to more (less)sales of the industrial company's

products and services

More (less) demand by end customers, leads to more (less)

demand by the direct customers...

the'statistical'perspective'on'derived'demand

the'strategic'perspective'on'derived'demand

13

Needs(to(create(value(for

The'Value'Principle

While(creating(value(for

The!Supplier

The$Customer

Needs

Symbolicneeds

Functionalneeds

Experientialneeds

In$the$beginning...

UndesiredSituation'='State'

ofFelt'Deprivation

DesiredSituation'='State'

ofFelt'FulVilment

Need:,to

,live,a,passion

ate,life

hedo

nism

,,pleasure

Need:,peace,and,security

puritanism,,security,orienta8on

Need:,Post:materialism,,quality,orienta8on

Need:,materialism,,price,orienta8on

Dreamers10.7,%

Homebodies20.8,%

SeGled14.4,%

Adventurers12.9,%

Ra8onal:Realists7.5,%

11.7,%Demanding

10.9,%Organics

11.0,%Open:minded

���(%���������&'*!�����"�#'�'�$#

��$(%���$����'���������#����'��&�+��$��&��"�#'�)$%!�)�����

�(�&'�#'��!�����&(%��!��������%�#'���!����'�$#��!��

�����%�#'�'��# �#���*#�"��&�

���%�,&�'���"$#�*�

�$#�&��"�#'�'�$#����"�#'�'�$#�

������ (&'$"�&�'�$#�

Figure'2.7Most'Important'Reason'for'Brand'Choice:'Digital'Compact'Cameras

(Source'of'Data:'GfK'NOP'UK;'December'2010'N'%'refers'to'proportion'of'buyers'mentioning'brand'purchase'reason)

24%

10%

28%23% 24%

24%8% 6%

7%14% 15%

8%8%

8%

4%

3%

4%10%

20% 18%

28%

16%

17%11%

17%

13%

18% 9% 3%18%

16%

31%

7%15%

11%

21%

4%

6%9%

9%

9%

11%

7%

7%8%

8%

10%3%

1%

5% 5%

8%7%

15%

6%10% 7%

8%

2%

2%

3%

7%

5%2%

0%

5%

10%

5%10% 2%

8%

4%4%

12%3%5%

5%

5%4%6%

2% 1%3%4%

4% 5%9%

4% 3%4% 3%10%2%

3%

TOTALCanon Fuji Kodak Nikon Olympus PanasonicSamsung Sony

Attractive)product)designs

Special)features

Top)brand)in)category

Recommended)by)friends)

Recommended)instore)

Tech)advanced)brand

Promotion)or)special)offer

Brand)reputation

Good)reviews

Good)price>performance)ratio

Good)quality)brand

Value)for)money

Low)price

Brand)Experience

Winning'in'a'Market

Competing5in5Changing5Markets

2011)Business(Model©5R.Moenaert5–5H.5Robben5–5P.Gouw

The'core'functional'product'or'service'your'company'offers

The'beliefs,'images,'ideas'or'impressions'the'market'holds'about'your'company'and/or'the'products'you'offer

The'company/customerN'interaction'process,'as'perceived'by'the'customer,'by'means'of'which'your'company'identiVies,'builds'and'maintains'relationships'with'its'customers'and'delivers'its'offering

The'Vinancial'and'nonNVinancial'costs'your'customers'make'in'order'to'own'or'consume'your'products/services'

Customers’'Outlook'on'Differentiating'Advantages'(CODA)

PriceCustomer Process

Image

Offering

Porter, 2001; Greenwald & Kahn, 2005; Moenaert, Robben & Gouw 2011

Competitive Advantage

Strength that, in a given segment, influences the customer decision process in favor of the company

A$customer$is$someone$who$has$not$yet$found$a$better$

alternative

Nirmalya!Kumar

We$should$give$the$customer$a$reason$to$BUY$and$to$STAY.

Competitive'advantages'do(not'happen'overnight.

You'have'to'design'them'into'your'products'and'services.'

The!Business!Challenge

"Every+organization+has+a+business+model,also+the+less+successful+ones"

in:+'Marketing+Strategy+&+Organisation",+Moenaert,+Robben+&+Gouw

NCustomer Process

Price ImageProduct/service

0

1

2

3

4

5

>5

OfferingImageCustomer Process

Price

Which reason(s) do you give to your customers to choose for your company?

Which reason(s) come into play in what phase?And

why?

Offering

Image

Customer Process

Price

Pre-Transaction

Implementation& Service

Purchase &Delivery

Marketing

Sales

Marketing / Account

Management / After Sales

The!Differentiation!Arena:!Customer!Value!Proposition.

Needs

Symbolicneeds

Functionalneeds

Experientialneeds

EnvironmentalSafety

Styling &Design

Functionalperformance Compatibility User

convenience Serviceability Pre-transactionprocesses

Transactionprocesses

Switchingcost

Productimage

CorporateReputation

Reliability &Consistency

Acquisitioncost

Disposalcost

Operatingcost

Professionalism

Post-transactionprocesses

Marketpresence

Empathy

User community

Bundling &Complementarities

Offering

Price Image

CustomerProcess

BeneVits Offered

Brandimage

Figure'2.9The'Differentiation'Arena

A business model is a graphical and empirical

representation of the customer value

proposition.

Figure 2.10Business Model of the El Bulli restaurant (Spain)

The Best Restaurant

in the World

Really, Really, Really Exclusive

A genuine journey

UnparallelledDining

Experience

Voted&Best&

Restaurant&in&the&

World&

Recogni4on&&&

admira4on&by&peers

Pioneer&in&Molecular&

Gastronomy

Discussed&on&

Internet,&press&and&

magazines

Open&during&half&a&

year&only&(‘Freedom&

for&Crea4vity’)

Ferran&Adrià:

visionary,&passionate&

entrepreneur&with&a

strong&network

Loca4on:

traveling&to&Barcelona

Innova4ve&Meal

The&&Service

Visi4ng&the&

kitchen

(Mysterious)

Reserva4on&process

50&guests&pers&night

8000&guests&per&year

2&000&000&requests

The&Tour

The

Terrace

Loca4on:

driving&through&Costa&

Brava

Quan4ty&of&staff

&#&60

Qual4ty&of&staff

‘unbelievably&a[en4ve’

El&Taller&

(infrastructure,&

processes,&

gatekeeping)

New&recipes,&

techniques&and&

equipment

Culture&of&

Innova4on

Process

Focus

Bragging&by&customers

(co^crea4on&of&

the&myth)

Ingredients&&&

procurement

Efficient& Customized

Convenience24/7

CompetitivePrices

Image :The proactive;

trustworthyPhonebank

Awareness(45 %)

Presscampaigns

Qualityawards

Word-of-mouth

recommendations

Successfultrack record

CustomerSatisfaction

(delight)

Leeds Workforce(empathy; language)

StaffRecruitment &

Training

Teams

Rotation

Employeesatisfaction

Cross-Selling

LimitedStaff

ACD : AutomaticCall Distribution

MidlandTechnologyBase (ATM)

HealthyCustomerBase (50 %

Acceptance)

Leedslocation

BRs handle 85%of inquiries

Hotdesking

Centralizedoffice

MINDICT Supervisors