Digital Strategy Level 6 Day 1 - marketingtommedia.co.uk

Marketing and Digital Strategy

CIM LEVEL 6

Course ContentDay 1

● 10-12: Session 1:○ Introductions○ Housekeeping bits○ Situation Analysis 1

● 12-13: Lunch Break ● 13-15: Session 2

○ Situational Analysis 2● 15-15.15: Break● 15.15-17:Session 3

○ Planning 1● Q&A Recap

Day 2

● 10-12: Session 1:○ Planning 2

● 12-13: Lunch Break ● 13-15: Session 2

○ Implementation & Control 1● 15-15.15: Break● 15.15-17:Session 3

○ Implementation & Control 2● Q&A Recap

Introductions ● Name

● Where are you based?

● Career background

● Marketing experience

● One interesting fact about yourself :)

Housekeeping bits! ● Assignment Workshop - we need to pick a date!

○ 8 October - afternoon or evening○ 9 October - morning○ 23 October

● You can book tutorials with me directly:

○ https://calendly.com/juditsoria (CIM students)

https://calendly.com/juditsoria

Setting the Scene - The Module

● Marketing planning● Digital strategy foundations● Models & frameworks● Situational analysis to inform decision making● Stages of the marketing planning process● Manage resources● Monitoring & measurement

Session 1: Situational Analysis

Learning outcomes:

● 1: Understand how to analyse an organisation’s current and future internal and external environments

1.1 The relationship between market orientation environmental analysis and sustainable competitive advantage

Market Orientation

• Market Orientation is defined as when a company completely understands its markets and the

people who decide whether to buy its products or services.

• A culture which encourages behaviour that creates value for the customer leading to superior

performance for the business” (Narver and Slater, 1990)

Environmental Analysis

• Monitoring and analysis of an organisation’s external environment, allowing the organisation

to spot or anticipate emerging issues. This provides an early warning of changing external

conditions and helps identify market trends and gaps.

Sustainable Competitive Advantage

• Superiority over market rivals that persists long term and is hard for competitors to overcome.

Let’s take it back to basics: The Sales/Marketing Funnel

Let’s take it back to basics: The Sales/Marketing Funnel

1.1.1 Market analysis techniques

● A market analysis is meant to help you review various market and financial factors that affect your business, including evaluating market conditions, assessing market opportunities and threats, identifying changes in customer behaviour and assessing your competition

● There are two principal methods by which businesses can conduct a market analysis. ○ Quantitative analysis○ Qualitative analysis

1.1.1 Digital analysis techniques

● Web analytics tools (e.g. Google Analytics)● Click-through rates● A/B testing● Customer satisfaction surveys● Keyword research tools● Competitive analysis tools● Search engine optimisation (SEO)● Search engine marketing (SEM)● Pay-per-click advertising (PPC)● Content marketing● Social media marketing (SMM)● Email marketing● Nurture marketing (e.g. Eloqua, Marketo, Hubspot, etc.)

1.1.2 All forms of market and other orientation

Developing a market orientation means that the organisation should focus on long-term profits and adopt a strategic rather than a tactical view of the world, with focus on creating customer value.

● Customer orientation – enables the organisation to understand and create value for its customers on a continuous basis.

● Competitor orientation – understanding competitors and their key resources and abilities.

● Inter-functional co-ordination – utilising all the organisation’s assets and capabilities to create customer value.

1.1.3 Culture, leadership and management styles

Transactional“Lets get this job done”

Transformational “Follow me!”

Participative“What do you think?”

Types of leaders:

To move from transactional to transformational a leader needs to develop the following five skills: 1) Perception 2) Communication 3) Conviction 4) Empathy 5) Resilience

1.1.4 Core competencies and the resource-based view

• Resource-based view (RBV): A method of viewing a company and developing strategy, focusing on how factors within the organisation contribute to competitive advantage.

• It argues that competitive advantage can be achieved by accumulating competitive resources.

• Criticism: you also need strong positioning in the market

1.1.4 Core competencies and the resource-based view

Taking the Resource-Based View one step further: VRIO framework

1.1.5 Long-term profit focus and responsible/ethical marketing

Triple Bottom Line

1.1.5 Long-term profit focus and responsible/ethical marketing

● What are some examples of companies or industries who are doing their part, or not, for the environment and society at the moment?

● Any brands that you think excel in terms of ethical values and responsible marketing?

1.2 Applying a range of online and offline techniques to generate insights

• Political

• Economic

• Social

• Technological

• Environmental

• Legal

• Ethical

• Ecological

Macro Environment

PESTLE/PESTLEE framework

Competitive Advantage

Organisational Capabilities

Strategy Industry Environment

Micro Environment

Macro Environment

Resources

• Changes over which you have no control e.g. Brexit• Effect the whole environment and not just your market

Looking at the closer competitive environment

Micro Environment

Porter’s Five Forces framework

Internal Environment

Analyse your resources

1.2.3 Analysis of current online and offline activity

1.2.4 Skills and challenges with data gathering and analysis

1) Market analysis2) Judgement - determining the value of each factor3) Interpretation4) Research5) Synthesis - being able to draw what matters6) Shared understanding - stakeholders7) Concluding - figuring out the “so what” of the equation

1.2.5 Identification of barriers to achieving competitive advantage

● Complacency.● Inward-looking orientation.● Risk aversion.● Ignorance about the drivers of past success.● Adherence to current standards and routines.● Lack of strategic alignment.● Lack of leadership skills.● A dismissive culture that does not inspire people.● High levels of bureaucracy.● Lack of initiative – employees are not empowered to make

decisions.● Poor vertical communication.● Poor cross-functional collaboration.● Poor teamwork.● Poor knowledge management and sharing of ideas.

1.2.6 Disruptive elements of the digital environment

● 5G● AI● Cookies● IDFA changes● Any others?

1.2.7 Concepts of social connectivity

Session 1 - RECAP

1) List key attributes that determine effective transformational leadership.

2) What are benefits for an organisation adopting CSR?

3) List the criteria that can be used to determine the strength of a core competence as a source of competitive advantage.

4) What is the difference between an organisation’s macro and micro environments?

5) What is the difference between resources and competencies?

Lunch Break: 12.00-13.00

Session 2: Situational Analysis

Learning outcomes:

● 2: Interpret relevant information and insights to recommend and inform strategic decision making

2.1 Undertake an environmental audit

2.2.7 Models of strategic thinking

Four models of strategic thinking have evolved over time:

● Classical○ Basis of strategic management (50s/60s)○ Conceptual & planning approaches

● Environmental○ Focused on transitioning from the past to the future

● Competitive○ Focused on competitive advantage

● Contemporary○ Focused on strategy setting○ Collaboration & understanding○ Continuous learning

2.1.1 & 5 Gather data & Insights from external and internal environments: Scenarios & Forecasting

The Two Axes model (Burt et al, 2006)

Scenario planning example

The two axis model for car manufacturers considering the production of driverless electric vehicles

Scenario planning example

Scenario matrix for the global power industry (Burt et al, 2006)

2.1.2 & 3 Research methods for auditing online and offline marketing environments, for marketing planning & strategy development

Primary Secondary

Internal Records (CRM) Desk research-already published

Syndicated and shared research

Bespoke research e.g. surveys, focus groups

OFFLINE/ONLINEWhat questions do you need

answering?Is the required data qualitative or

quantitative?How would you collect the data?

Primary Secondary

Bespoke research analysis:

• Online focus groups

• Online interviews

• Inline text analysis (SEO)

• Social network analysis

• Online questionnaires

Desk research web sites, industry analysis, digital visits

ONLINEWhat’s your budget?

Primary more expensive

Efficient and accurate tools for collecting information

Central pool of facts and figures

Minimum investment of time and resources

Access to data

2.1.4 Intelligence and scanning of changing market conditions

● Competitor Intelligence○ Websites, PR, reports, recruitment ads, media sources,

customer research groups, mystery shoppings, etc. ● Customer intelligence

○ Trade events, research, reviews, feedback, etc.● Changing External Environment

○ New entrants to the market, scenario planning, industry disruptors, etc.

2.2 Apply internal and external analysis to develop market insights

Identifying resources and capabilities allows us to identify where the gaps might be!

SWOT/TOWS Smart Insights

TOWS Analysis

2.2.2 Macro and micro environmental analysis techniques

We can build further on the Five Forces Framework (extended version):

● Combining/interrelating macro-environmental factors● Considering other systemic inter-dependencies -

industry/company dependent (e.g. can suppliers or buyers actively encourage new entrants or substitutes?)

● Prioritise each of Porter’s five factors in terms of importance of threats and opportunities

● Segmenting within the industry to understand variations (e.g. products with different target markets/price points)

2.2.4 Impact of digital on competitive environment

Digital Shift & Impact

● The entry of new competitors○ Digital businesses require less capital for entry○ Tech giants and/or start-ups○ New digital platform ecosystems

● The threat of substitutes○ Digital substitutes or hybrids (e.g. Uber, Easy Taxi,

Lyft, etc.)○ Switching costs for customers are low

● The bargaining power of buyers○ Information asymmetry○ Customers are savvy & demanding

● The bargaining power of suppliers○ Suppliers can affect supply chains if there are any

concerns regarding regulations, privacy, security and safety

● The rivalry among the existing competitors○ So much more information is available

2.2.3 Analyse customer behaviour with reference to digital behaviours, identities and personas

User & Buyer Personas

2.2.5 Impact of disruption on internal resources

● Businesses are more responsive and data-driven● Investment in digital technologies has changed from being short-term

improvements to part of long-term strategy● Many disruptors:

○ AI○ Cloud,○ IoT○ Cyber-warfare○ Robotics○ Data analytics…

● Expect to see change in:○ Customer experience○ Speed of business○ Predictive Insights○ More collaboration

■ Cross-enterprise■ People & Machine

2.2.6 Analyse internal digital capabilities and limitations

5Ds (or even 7Ds) of Digital (Chaffey & Ellis-Chadwick, 2019)

2.2.6 Analyse internal digital capabilities and limitations“Aiming for Digital Marketing Excellence” 5 point benchmarking tool (Chaffey) 9Smart Insights

2.2.8 Risks and barriers associated with effective marketing planning

Three attitudes/factors that can make marketers and organisations misread their external environment:

● Filtering (or selective perception)● Distorted inference● Bolstering

Other barriers:● Weak or non-existent support from the top● Lack of an implementation plan● Lack of line management support● Overuse of jargon and terminology ● Lack of narrative● Over-analysis and paralysis by analysys● A once-a-year-activity● Lack of integration between strategy and operations planning● Delegating issues

2.2.9 Resources and capabilities analysis: Brand Equity

Brand Directory

Interbrand

2.2.9 Resources and capabilities analysis:

Porter's Value Chain

● Useful strategic management tool.● It works by breaking an organization's activities down into strategically relevant

pieces, so that you can see a fuller picture of the cost drivers and sources of differentiation, and then make changes appropriately.

2.2.10 Marketing Information Systems (MIS or MKIs)

● Marketing Information Systems can be defined as a set structure of procedures and methods for the regular, planned collection, analysis and presentation of information for use in making marketing decisions." (Kotler, at al, 2006)

● Inform Marketing Intelligence

Generic Marketing Information System example

Session 2 - RECAP

What are three new things you have learned in this session?

Coffee/tea Break: 15.00-15.15

Session 3: Planning

Learning outcomes:

● 3: Develop marketing objectives and strategy to deliver organisational objectives

3.1.1 Mission & Vision Statements

3.1.1 Mission & Vision Statements

Visions are aspirations for the future of the organisation, while missions describe its purpose. ● Where are we now? (audit and analysis)● Where do we want to go? (objectives)● How are we going to get there? (strategy & planning)

There are many levels of strategy that feed into each other (Thompson et al, 2013)**Will send you a separate doc with examples!

3.1.2 Corporate Objectives

● Corporate objectives cover the organisation’s overall goals and are often expressed in financial terms (e.g. profits increase, shareholder value, return on capital employed, earnings per share, etc.)

● Marketing objectives need to be S.M.A.R.T: specific, measurable, assignable, realistic and time-bound. Example: The marketing team will increase share of global market for wireless routers from 23% to 26% over the next 12 months.

● The balanced scorecard is a different way to measure outcomes other than just financial (next slide)

3.1.2 Balanced Scorecard (Harvard Business Review)

How do we look to shareholders?

What must we excel at?

How can we continue to improve and create value?

How do customers see us?

3.1.4 Objective setting for acquisition, conversion and retention

● Reducing the cost of marketing, proving ROI, attracting new leads and converting into new customers are key objectives for organisations.

● Acquisition funnels can help us visualise the buyer journey & likelihood of conversion. We can set customer conversion objectives for each stage of the funnel.

Example: Setting marketing goals around conversion rates


● Customer acquisition cost (CAC) is the cost associated with bringing a new customer/client to your business.

● Costs might include marketing costs, events, advertising, etc. ● CAC is often calculated for specific campaigns or periods of time.

● You can improve CAC by:○ Improving website conversion efforts

■ CTAs, device optimisation, SEO, etc. ○ Boost the value of your current customers

■ Upsell, upgrades, increase purchase frequency, referrals, etc. ○ Adjust and optimise your customers acquisition strategy

■ Improve multi channel performance, analyse which channels are performing better than others, etc.


● It costs 6 to 7 times more to acquire a new customer than it does to keep a new one (Reichheld et al 2000)

● Increasing customer retention rates by 5% increases profits by between 25% and 95%

● Retention objectives:○ % of customers who continues to

consumer your products over time

○ Reduce level of churn○ Improve customer lifetime value

(estimated net profit that a customer will provide over their lifetime as a paying customer)

3.1.5 Objectives to increase adoption and implementation of new technologies

● The purpose of introducing new technologies to a business is to improve performance

● Before doing so, you need to assess how well it will fit and serve your company.

● Introduce the technology, select “technology champions”

● Take into consideration stakeholder concerns

● Provide training & support

● Nip resistance in the bud by a creating a counter-culture (Difussion Innovation Model to help set adoption objectives - Rogers, 1962)

3.2.1 Frameworks and tools for developing strategies

From a strategy perspective, we should focus on where the organisation should operate and complete and how it will compete (what makes it different from its rivals), as well as who the company will work with (e.g. alliances, networks, partners, etc.)

Let’s look at a few frameworks to help us define what strategy will suit best our overall objectives.


Framework to define strategy type based on products & markets: Ansoff’s Matrix


Framework to define strategy type based on resources & capabilities: Porter’s Generic Strategies (adapted from 1980)

Can help marketers make choices about how they will compete:● By being the lowest-cost supplier● Differentiation● Focusing on single market/niche/segmentation


Some companies have combined low price or low cost with a differentiated customer value proposition - also referred to as Extended Generic Strategies and reflected in Bowman’s Strategy Clock (1996).

The model investigates how a product might be positioned to give it maximum competitive advantage.

8 possible competitive strategies (not all are positive!)

https://fourweekmba.com/what-is-a-business-model/


Differentiation can come in many forms and shapes - revising your company’s marketing mix could be part of it! Let’s revise the 7 Ps.

7Ps framework: The marketing mix enables a company to review and define the key issues that affect marketing of its products and services.

3.2 Additional strategic considerations

Segmentation: splitting a market into different groups of customers with similar needs, selecting targets to focus on and positioning the organisation’s offer to appeal to their specific needs.

Types of segmentation:● Geographic

○ Country, region, or country● Demographic

○ Age, gender, income, education, family life-cycle stage, etc. ● Geodemographic

○ Combination of the above● Psychographic

○ Lifestyles or personalities● Behavioural

○ Attitudes, actions, purchases, etc.○ More on next slide


Behavioural segmentation divides customers into groups based on the way to respond to, use or know of a product.

These could be:

● Occasions - When a product is consumed or purchased. For example, breakfast cereals

● Usage - Some markets can be segmented into light, medium and heavy user groups

● Loyalty - Loyal consumers - those who buy one brand all or most of the time● Benefits Sought - An important form of behavioural segmentation. Benefit

segmentation requires marketers to understand and find the main benefits customers look for in a product. An excellent example is the toothpaste market where research has found four main "benefit segments" – economic, medicinal, cosmetic and taste.


Persona Element What this means Data source

Demographics

Age, gender, income, education,ethnicity, marital status, household (or business) size, geographical location, occupation

Mintel, WARC, Statista, government data, sales data, in-house metrics and shopping statistics

Psychographics

Personality and emotionally basedbehaviour linked to buying habits, purchase choices, attitudes, beliefs, lifestyle, hobbies, holidays, values

Mintel, WARC, Statista, government data showing hobbies and interests

Webographics

Internet usage, social media usage,websites visited, browsers used, devices and systems used, time of day and duration online, action on site (downloads, comments, likes) other media used

Online data sources such as Statistica,Pew Internet, Google Analytics or offsite analytics, interviews and observation sessions with existing and potential users, user testing sessions


B2B/industry segmentation:

● Industry Type● Benefit Sort (by the purchaser)● Purchase Potential (Size)● Company Demographics (When, Where, who)● Purchasing control (Policy, eg centralised v localised)● Situational Factors, size and frequency of order● Operating variables, how are the products used?● Personal Characteristics, even in industrial markets (buyer persona)


Targeting: Once you have identified your segments, you will need to prioritise them and decide on who you will target them and how.

Positioning: You need to decide what it is for your company and if it will require tweaking depending on the segment. Look at perceptual maps!

Session 3 - RECAP

1) What does SMART stand for in relation to objectives?2) Which is the highest-risk option in Ansoff’s matrix?3) How does a persona differ from a market segment?4) What are the differences between user personas and buyer

personas?

See you tomorrow!

Documents

Digital Strategy Level 6 Day 1 - marketingtommedia.co.uk