managing markerting processes - seminar 2
DESCRIPTION
Slides from second seminar in Managing Marketing Processes course in MGM program at SSE.TRANSCRIPT
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
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Marketing planning process
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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
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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
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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
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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)
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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
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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)
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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?
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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
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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
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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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
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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
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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
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