Marketing strategy & implementation
INTRODUCTION ............................................................................................................................ 2
NOTHING IS MORE IMPORTANT THAN MARKETING .............................................................................................. 2
CUSTOMER VALUE IS CENTRAL TO STRATEGIC MARKETING.................................................................................... 2
MARKETING ORIENTATION ............................................................................................................................ 2
MARKETING STRATEGY ................................................................................................................. 3
PROBLEM ANALYSIS ..................................................................................................................... 4
STRATEGIC MARKETING PROBLEM .................................................................................................................. 4
OBJECTIVES .............................................................................................................................................. 4
EXTERNAL ANALYSIS ..................................................................................................................... 5
MACRO-LEVEL .......................................................................................................................................... 5
MESO-LEVEL ............................................................................................................................................ 6
INTERNAL ANALYSIS (MICRO-LEVEL ANALYSIS) .............................................................................. 6
RESOURCE-BASED VIEW (RBV) .................................................................................................................... 6
PORTFOLIO ANALYSIS – BCG MATRIX.............................................................................................................. 7
BRAND PORTFOLIO MODEL ........................................................................................................................... 8
SWOT EN CONFRONTATION .......................................................................................................... 8
STRATEGIC CHOICE ...................................................................................................................... 9
PORTER’S GENERIC STRATEGIES (4 OPTIONS) ................................................................................................... 9
TREACY & WIERSEMA’S VALUE DISCIPLINES (3 OPTIONS) .................................................................................... 9
ANSOFF’S GROWTH STRATEGIES (4 OPTIONS)................................................................................................. 10
BLUE OCEAN STRATEGY OF CHAN KIM & MAUBORGNE (ZIE PPT) ........................................................................ 10
CONFRONTATION & SFA (ZIE SLIDES) ........................................................................................................... 11
SEGMENTING – TARGETING – POSITIONING (STP) ..........................................................................11
SEGMENTING .......................................................................................................................................... 11
TARGETING ............................................................................................................................................. 12
POSITIONING .......................................................................................................................................... 13
MARKETING MIX ..........................................................................................................................14
PRODUCT............................................................................................................................................... 14
PRICE.................................................................................................................................................... 14
PLACE ................................................................................................................................................... 15
PROMOTION ........................................................................................................................................... 15
MARKETING IMPLEMENTATION.....................................................................................................16
EVALUATION ................................................................................................................................16
BRAND PYRAMID .........................................................................................................................16
1
,INTRODUCTION
Nothing is more important than marketing
Peter Drucker • “purpose of a business is to create & keep a customer”
• “because of that → business enterprise has 2 – and only 2 – basic functions
➢ Marketing
➢ Innovation
➢ This produces results, all the rest are ‘costs’”
Interstate Bakeries • In 2000 problem
Corporation → Twinkies ➢ High costs and competition from retailers who were cheaper
➢ Change in customer wants/needs → children were getting fat
• Solution from financial pov
➢ cost of transportation to stores → high
➢ Ensuring products would last longer ⟹ truck needed to transport less often
Customer value is central to strategic marketing
Customer value • Difference between entirety of benefits that customers receive in their own
eyes & the costs involved in obtaining those benefits
• = customer perceived benefit – customer perceived cost
McDonalds • Ask kids which product tasted better while it were the same products
• Children choose the products that have a brand
3 brands of peanut butter • 2 brands were fictitious & 1 brand they already knew
• Exact same peanut butter in every jar
• People choose brand they already know as being the best
Marketing • Often minimizing costs but also important to focus on benefits
• Only focus on costs ⟹ customers don’t see difference of your brand to another
Brand commoditization • % of consumers in target market who perceive no/slight difference between the
brands in each category
• Eg. Visa/Mastercard (high), Dunkin’ Donuts/Starbucks (low)
Importance of price vs • Do consumers strive to pay lowest price when buying a product in this category
product features • Eg. bottled water (high)
• Eg. coffee shop (low) → benefits of particular brand are more important than
price
Marketing orientation
Marketing myopia • When you only focus on producing better product without taking into account
what customer actually wants
• Eg. Nokia
Marketing orientation • Helps create value & reduces impact of low prices
rather than selling ➢ customers don't just compare products based on price
orientation • On condition that marketing is sound
➢ Having control over what marketing is
➢ Don’t rely on gut-feelings
Nothing is more important • Brings value to customer, & when sound, brings value to company
than marketing
2
, MARKETING STRATEGY
What is marketing? • Activity, set of institutions & processes for creating, communicating, delivering
& exchanging offerings that have value for customers, clients, partners &
society at large
Marketing strategy • Refers to business’ overall game plan to interact with the market so to reach its
marketing objectives, taking limited means into account
• Implicit of explicit (= written down)
Criteria for good • Clear set of consistent choices
marketing strategy ➢ Choose what you will do & what don’t
➢ Focus on 1 thing & don’t try to do good for everyone
➢ Eg. Colruyt → cheapest products, Bio-Planet → higher quality but more
expensive
• Good fit with environment
➢ Inside-out
➔ First look at what I can do, what my strengths are…
➢ Outside-in
➔ First look at environment → what are needs of customers?
Marketing strategy plan? • An internal company document that outlines marketplace situation &
describes the marketing strategies that will support the achievement of
business & organizational goals over a specified period (usually 1 – 5 years)
• Separate plans can be created for different brands/markets/new products… ⟹
1 company can have different plans
• Should be living document
➢ If goals are achieved after 1 year → set new goals
Marketing planning
process
•
Analysis
•
Strategy
•
3
INTRODUCTION ............................................................................................................................ 2
NOTHING IS MORE IMPORTANT THAN MARKETING .............................................................................................. 2
CUSTOMER VALUE IS CENTRAL TO STRATEGIC MARKETING.................................................................................... 2
MARKETING ORIENTATION ............................................................................................................................ 2
MARKETING STRATEGY ................................................................................................................. 3
PROBLEM ANALYSIS ..................................................................................................................... 4
STRATEGIC MARKETING PROBLEM .................................................................................................................. 4
OBJECTIVES .............................................................................................................................................. 4
EXTERNAL ANALYSIS ..................................................................................................................... 5
MACRO-LEVEL .......................................................................................................................................... 5
MESO-LEVEL ............................................................................................................................................ 6
INTERNAL ANALYSIS (MICRO-LEVEL ANALYSIS) .............................................................................. 6
RESOURCE-BASED VIEW (RBV) .................................................................................................................... 6
PORTFOLIO ANALYSIS – BCG MATRIX.............................................................................................................. 7
BRAND PORTFOLIO MODEL ........................................................................................................................... 8
SWOT EN CONFRONTATION .......................................................................................................... 8
STRATEGIC CHOICE ...................................................................................................................... 9
PORTER’S GENERIC STRATEGIES (4 OPTIONS) ................................................................................................... 9
TREACY & WIERSEMA’S VALUE DISCIPLINES (3 OPTIONS) .................................................................................... 9
ANSOFF’S GROWTH STRATEGIES (4 OPTIONS)................................................................................................. 10
BLUE OCEAN STRATEGY OF CHAN KIM & MAUBORGNE (ZIE PPT) ........................................................................ 10
CONFRONTATION & SFA (ZIE SLIDES) ........................................................................................................... 11
SEGMENTING – TARGETING – POSITIONING (STP) ..........................................................................11
SEGMENTING .......................................................................................................................................... 11
TARGETING ............................................................................................................................................. 12
POSITIONING .......................................................................................................................................... 13
MARKETING MIX ..........................................................................................................................14
PRODUCT............................................................................................................................................... 14
PRICE.................................................................................................................................................... 14
PLACE ................................................................................................................................................... 15
PROMOTION ........................................................................................................................................... 15
MARKETING IMPLEMENTATION.....................................................................................................16
EVALUATION ................................................................................................................................16
BRAND PYRAMID .........................................................................................................................16
1
,INTRODUCTION
Nothing is more important than marketing
Peter Drucker • “purpose of a business is to create & keep a customer”
• “because of that → business enterprise has 2 – and only 2 – basic functions
➢ Marketing
➢ Innovation
➢ This produces results, all the rest are ‘costs’”
Interstate Bakeries • In 2000 problem
Corporation → Twinkies ➢ High costs and competition from retailers who were cheaper
➢ Change in customer wants/needs → children were getting fat
• Solution from financial pov
➢ cost of transportation to stores → high
➢ Ensuring products would last longer ⟹ truck needed to transport less often
Customer value is central to strategic marketing
Customer value • Difference between entirety of benefits that customers receive in their own
eyes & the costs involved in obtaining those benefits
• = customer perceived benefit – customer perceived cost
McDonalds • Ask kids which product tasted better while it were the same products
• Children choose the products that have a brand
3 brands of peanut butter • 2 brands were fictitious & 1 brand they already knew
• Exact same peanut butter in every jar
• People choose brand they already know as being the best
Marketing • Often minimizing costs but also important to focus on benefits
• Only focus on costs ⟹ customers don’t see difference of your brand to another
Brand commoditization • % of consumers in target market who perceive no/slight difference between the
brands in each category
• Eg. Visa/Mastercard (high), Dunkin’ Donuts/Starbucks (low)
Importance of price vs • Do consumers strive to pay lowest price when buying a product in this category
product features • Eg. bottled water (high)
• Eg. coffee shop (low) → benefits of particular brand are more important than
price
Marketing orientation
Marketing myopia • When you only focus on producing better product without taking into account
what customer actually wants
• Eg. Nokia
Marketing orientation • Helps create value & reduces impact of low prices
rather than selling ➢ customers don't just compare products based on price
orientation • On condition that marketing is sound
➢ Having control over what marketing is
➢ Don’t rely on gut-feelings
Nothing is more important • Brings value to customer, & when sound, brings value to company
than marketing
2
, MARKETING STRATEGY
What is marketing? • Activity, set of institutions & processes for creating, communicating, delivering
& exchanging offerings that have value for customers, clients, partners &
society at large
Marketing strategy • Refers to business’ overall game plan to interact with the market so to reach its
marketing objectives, taking limited means into account
• Implicit of explicit (= written down)
Criteria for good • Clear set of consistent choices
marketing strategy ➢ Choose what you will do & what don’t
➢ Focus on 1 thing & don’t try to do good for everyone
➢ Eg. Colruyt → cheapest products, Bio-Planet → higher quality but more
expensive
• Good fit with environment
➢ Inside-out
➔ First look at what I can do, what my strengths are…
➢ Outside-in
➔ First look at environment → what are needs of customers?
Marketing strategy plan? • An internal company document that outlines marketplace situation &
describes the marketing strategies that will support the achievement of
business & organizational goals over a specified period (usually 1 – 5 years)
• Separate plans can be created for different brands/markets/new products… ⟹
1 company can have different plans
• Should be living document
➢ If goals are achieved after 1 year → set new goals
Marketing planning
process
•
Analysis
•
Strategy
•
3
