Strategic marketing
Tony Proctor
1
Factors impacting on marketing
strategy
Exhibit 1.1 Selected stakeholders Interests for
an NHS organization
Stakeholder
Interests
Staff
·
·
·
·
Provision of quality health care
Self development and promotion prospects
Job Satisfaction
Work in a safe and good quality environment
Current
·
·
·
·
·
Receive excellent care and attention
Enhance health prospects and life expectancy
Advice on how best to recover from treatment and avoid future health problems
Access to information
Support from medical staff
Patients
Unions
·
Responsibility to members to ensure fair working practices, safe environment
·
Support and advise members in all areas of employment rights, i.e. Equal Opportunities, Discrimination,
Racial Incidents
·
Recruitment of new members
Government
·
·
·
Quality Standards
Legal requirements/Health and Safety/Equal Opps/Pay and Conditions
Financial Management, ensure resources being used and managed effectively
Press
·
·
·
Praise and publicity for high achievement
Adverse publicity – making the facts known
Challenging use of finances
Prospective Patients
·
·
·
·
Excellent treatment in a caring and pleasant environment
Access to information
Choices
Achievement of a full recovery after treatment
Exhibit 1.2 Stakeholders for a pharmaceutical company
Stakeholders
Interests
General public
Safe, reliable, tested drugs
Legal/ courts
Tested drugs which do not result in serious side effects
for the users.
Government
Reasonably priced drugs which have been shown to be
effective in use.
Media
Stories showing either the benefits of drugs or very
harmful side-effects of drugs which have not been
properly tested.
Scientific Community
Details of development and testing of new drugs.
Shareholders
Return on investment and shareholder value created.
Suppliers
Steady and secure demand for the products and services it
supplies.
Financial institutions
A sound developing and following sound marketing and
corporate strategies which will produce guaranteed
returns from lending and investment.
Rank and file employees
Secure and interesting employment with good future
prospects.
Competitors
New developments that lead to competitive advantage.
Consumers
Safe and effective treatments.
Management
Control and influence over what happens in the firm.
Porter’s wheel of competitive strategy
2
Product life cycle
BCG Matrix
Product life cycle portfolio
matrix
GE/McKinsey Matrix
Directional Policy Matrix
ADL Matrix
Industry life
cycle stage
Competitive
Position
Embryonic
Growth
Mature
Aging
Dominant
Hold position and
seek to maximize
share
Hold position and
share
Hold position and
expand with
industry
Hold position
Strong
Attempt to
improve position
and maximize
share
Attempt to
improve position
and be selective in
attempts to
improve share
Hold position and
expand with
industry
Hold position or
harvest
Favourable
Selective attempts
to improve
position
Attempt to
improve position
and be selective in
attempts to
improve share
Find niche and
attempt to guard
it.
Harvest or phased out
withdrawal
Tenable
Selectively push
for position
Find niche and
attempt to guard it
Find niche and
hang on or phased
out withdrawal
Phased out
withdrawal or
abandon
Weak
Improve or get out
Turnaround or
abandon
Turn around or
phased out
withdrawal
Abandon
3
Balanced Scorecard
Figure 3.1 The balanced scorecard
EXHIBIT 3.5 FORD MODEL ‘T’—THE MINDSET OF HENRY
FORD
Henry Ford’s model ‘T’ remained unchanged for years while General
Motors (Chevrolet) was making changes often using new technology.
Henry Ford said: ‘We’ll give the customer any colour he wants as long
as it is black.’ It was an arrogant statement by an arrogant man who had
been on top so long he thought nothing could dislodge him from the
number one position.
In the late 1920s Ford nearly went out of business as a result of this
myopic approach. General Motors (Chevrolet) took over as number one
in the US and Ford did not catch up until the late 1980s.
Blocks to Individual Creativity
Strategic blocks: ‘one right answer approaches’, inflexibility in thinking. These
affect the approach taken to solve problems. They include the tendency to rely
heavily on past experience or particular techniques without challenging their
appropriateness; focusing on a narrow range of options for either problem
definition or problem solving; and adapting an overly serious approach to problems
which prevents the emergence of a playful, imaginative and humorous climate.
·
Value blocks: ‘over-generalized rigidity influenced by personal values’.
These occur when personal beliefs and values restrict the range of ideas
contemplated. Values co-exist and failure to reconcile them contributes to
difficult personal and organizational dilemmas.
·
Perceptual blocks: ‘over-narrow focus of attention and interest’. These arise
from a lack of sensory awareness at a physical level and therefore contribute to a
lack of awareness of implications of situations.
·
Self-image blocks: ‘poor effectiveness through fear of failure, timidity in
expressing ideas, etc.’. These reduce effectiveness in advancing ideas assertively.
They arise from a lack of self confidence in the value of one’s own ideas.
Individuals may be reluctant to seek help and talk about personal feelings.This
barrier seems to be the greatest impediment to the successful implementation of
new ideas.
·
EXHIBIT 3.6 BLOCKS TO CREATIVITY IN ORGANIZATIONS
People and organizations tend to fall into a variety of traps when
trying to become more innovative.
1 Identifying the wrong problem
2 Judging ideas too quickly
3 Stopping with the first good idea
4 Failing to get the support of key personnel in the organization
5 Failing to challenge assumptions
4
Industry life cycle
Revitalising markets
Strategies for declining/ stagnant
industries
Space analysis
Competitive Advantage Matrix
5
Market Analysis
6
Forces of competition
7
The marketing environment
Booms and slumps and the
economy
Technological change
Cross impact matrix
The TOWS matrix
The TOWS matrix
8
Complex buying decision
Factors influencing consumer
behaviour
Roles in the purchase decision
making process
Family Life Cycle Stages
Stages in the marketing research
process
9
Sources of competitive advantage
10
Requirements of a market
segment
Profiles
Perceptual map
Perceptual map
11
Types of sales promotion
12
Ansoff matrix
International Market Entry Methods
• Indirect export
•
•
•
•
•
Direct export:
A domestic-based export department or division
An overseas sales branch or subsidiary
Travelling export sales representatives
Foreign-based distributors or agents
• Licensing
• Joint ventures
• Direct Investment
EXHIBIT 12.2 WHAT IS A NEW PRODUCT?
New to the world products: inventions—in-line skates,
Polaroid camera, etc.
New category entries: P&G’s first shampoo, Ford’s first
Mini
Additions to product lines: Tide liquid detergent Product
improvements: current products made better
Repositionings: Arm & Hammer’s baking soda
repositioned several times as drain
deodorant, refrigerator deodorant, etc
.
Reasons for product failure
• products lack useful/meaningful uniqueness
• planning is poor during the introduction phase
• the introduction is badly timed, e.g. before the market is ready for
the product
• key important points are sometimes overlooked in the enthusiasm to
go ahead
• poor marketing and failure after launch
• the top management in the organization does not provide adequate
support for the product
• company politics, e.g. between various brand managers
• unforeseen high product costs.
New product development phases
New product development
EXHIBIT 12.9 CONCEPT TESTING
Uniqueness of the concept
Believability of the concept
Importance of the problem being addressed
Extent to which the concept is interesting
Extent to which it is realistic, practical, useful
Extent to which it solves a problem or meets a need
How much they like the concept
How likely they would be to buy the product
Their reactions to the proposed price
What problems they see in using the product
Entry strategies
Integrative growth strategies
Egan’s extension of Ansoff
13
Reasons for customer defection
Good customer relations pathway
ORMSBY MOTORS
14
Classical Gap Analysis
Marketing and Corporate Strategies