SM (BB) Lecture 01 (Introduction + Overview - Extract 1 & 2)

8/17/2019 SM (BB) Lecture 01 (Introduction + Overview - Extract 1 & 2)

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Strategic MarketingLecture 1

The Changing World of Marketing &Strategic Thinking and Strategic Decision-Making

Michael Baird


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Text Reed, P., Jain, S.C., Haley, G.T., Voola, R., Wickham, M.,

Ferrell, O.C. & Hartline, M. !"#$%. Strategic Marketing.Soth Mel'orne, Victoria( Cen)a)e *earnin).

e+ook aaila'le - htt/(00111.cen)a)e'rain.com.a0/ho0i/'n0234"#3"5637$$

Thi/ te8t i/ a com'ination o9 three other te8t 'ook/( Jain, S.C., Haley, G.T., Voola, R. & Wickham, M. !"#!%.

Marketing Planning and Strategy. Soth Mel'orne,Victoria( Cen)a)e *earnin).

Reed, P. !"#$%. Strategic Marketing: Decision Making andPlanning. Soth Mel'orne, Victoria( Cen)a)e *earnin).

Ferrell, O.C. & Hartline, M. !"#7%. Marketing Strategy: Textand Cases. Ma/on, Ohio( Cen)a)e *earnin).

https://www.cengagebrain.com.au/shop/isbn/9780170367455https://www.cengagebrain.com.au/shop/isbn/9780170367455https://www.cengagebrain.com.au/shop/isbn/9780170367455https://www.cengagebrain.com.au/shop/isbn/9780170367455


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The Changing World of Marketing :o or)ani;ation can aoid comin) to )ri/ 1ith the raidly

eolin) 'ehaior o9 con/mer/ and '/ine// c/tomer/. They check rice/ at a key/troke and are increa/in)ly/electie a'ot 1hich 'rand/ /hare their lie/. They 9ormimre//ion/ 9rom eery enconter and o/t 1itherin)online reie1/ < the/e chan)e/ re/ent /i)ni=cantor)ani;ational challen)e/, a/ 1ell a/ oortnitie/. The'i))e/t i/ that all o9 / hae 'ecome marketer/( thecritical moment/ o9 interaction, or toch oint/, 'et1eencomanie/ and c/tomer/ are increa/in)ly /read acro//di>erent art/ o9 the or)ani;ation, /o c/tomer

en)a)ement i/ no1 eeryone?/ re/on/i'ility. Tom French, *ara *a+er)e and Pal Ma)ill

@Fie no re)ret/ moe/ 9or /erior c/tomer en)a)ement?,McAin/ey Barterly, Jly !"#!, . #


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The Evolution of Marketing Thoughtand Practice


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Marketing Thought and Practice- The marketing management school of thought(1950s-late 1980s)

The marketingconcept

•Drcker #2$7%,McAitterick #2$3%, *eitt

#26"%, Aeith #26"%,McCarthy #26"E%, Aotler#263E%

New concepts•Marketin) mi8 7P/#26"E%•Con/mer 'ehaior

The practice of marketing•/ta'li/hment o9 marketin)deartment/•Marketin) re/on/i'le 9oraderti/in), /ale/ and marketre/earch•Marketin) a/ a )eneral

mana)ement re/on/i'ility•


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Marketing Thought and Practice- The marketing management school of thought(1950s-late 1980s)

• Marketin) i/ theer9ormance o9 '/ine//actiitie/ 1hich direct theo1 o9 )ood/ and/erice/ 9rom rodcer tocon/mer or /er in order

to /ati/9y c/tomer/ andaccomli/h thecomany?/ o'ectie/.

.J. McCarthy & W.D. Perrealt,

#26"

Marketin) i/ hmanactiity directed at/ati/9yin) need/ and1ant/ thro)he8chan)e roce//e/.

Aotler, #263

Prevailing denitions ofmarketing


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Marketing Thought and Practice- Marketing as an integrated organisational process(late 1980s-2000s)

Marketing concepts andpractices

•C/tomer /erice•C/tomer /ati/9actionmea/rement CSM%

•Serice/ marketin)•Relation/hi mana)ement•C/tomer relation/himana)ement CRM%•+rand eIity

•C/tomer li9etime ale C*V%•C/tomer eIity•Marketin) acconta'ility

rganisation!wideconcepts and practices• Total Iality mana)ementTBM%• J/t-in-time JT%

•Strate)ic alliance/ andnet1ork/•Or)ani/ational cltre•Or)ani/ational chan)e•Strate)ic lannin) K

mana)ement•Concet o9 cometitieadanta)e•Concet o9 the ale chain•Cororate /ocial re/on/i'ility•Stakeholder theory

Market orientation


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Marketing Thought and Practice- Marketing as an integrated organisational process(late 1980s-2000s)

The prevailing denition of marketing

Marketin) i/ the roce// o9 lannin) ande8ectin) the concetion, ricin),romotion, and di/tri'tion o9 )ood/,/erice/, and idea/ to create e8chan)e

roce//e/ 1ith tar)et )ro/ that /ati/9yc/tomer and or)ani;ational o'ectie/.

Lmerican Marketin) L//ociation, #247


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The digital era(2000s – current)

From We'-a/-an-in9ormation /orce We' #."%to We'-a/-a articiatory lat9orm We' !."%

L cataly/t 9or di/rtie innoation

Shi9t 9rom c/tomer /ati/9action to enhancin)

the c/tomer e8erience and c/tomeren)a)ement

Reco)nition o9 imortance o9 identi9yin)

c/tomer tochoint/ L /hi9t 9rom de/kto/ to mo'ile deice/ and

clod /tora)e


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The new marketing paradigm – customer value creation, communication and delivery

L call 9or chan)e in marketin) thinkin)( L /hi9t9rom the e8chan)e0marketin) mi8 aradi)m toc/tomer ale creation. Drien 'y(

New

concepts"paradigms•Relation/hi marketin)#24"/E•Serice/ marketin) #24"E•Market orientation #22"/E•Co-creation !"""/E

Tho#ght leaders

For e8amle(•We'/ter #22!•Woodr> #223•Slater #223

The digital revol#tion•We' #." We' !."•C/tomer en)a)ement•C/tomer tochoint/


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AMA’s Definitions of Marketing The transformation in marketing thinking can $e

seen in the %M%&s denitions of marketing '(() and'((*

Marketin) i/ an or)ani/ational 9nction and a /et o9roce//e/ 9or creatin), commnicatin) and delierin) aleto c/tomer/ and 9or mana)in) c/tomer relation/hi/ in1ay/ that 'ene=t the or)ani/ation and it/ /takeholder/. Setem'er !""7

Marketin) i/ the actiity, /et o9 in/tittion/, and roce//e/

9or creatin), commnicatin), delierin), and e8chan)in)o>erin)/ that hae ale 9or c/tomer/, client/, artner/and /ociety at lar)e. Octo'er !""3


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What is Strategic Marketing? (cont’d)

De=nition ! L market-drien roce// o9 /trate)y deeloment

that take/ into accont a con/tantly chan)in)'/ine// enironment and the need to delier/erior c/tomer ale.

Craen/ and Piercy !""5%


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De=nition 5 /in) it/ relatie cororate /tren)th/ to achiee

ma8imm o/itie di>erentiation oer cometitionin meetin) c/tomer need/

Jain and Haley !""2%


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+, -ts a$o#t M%./0T-N1 Ho1 to )o a'ot roidin) s#perior val#e to

yor tar)et market

', -ts a$o#t ST.%T01-0S Deeloin) specialised tools to roactiely

)enerate tar)eted chan)e.

2, %nd its a$o#t P3%NN-N1 Makin) deci/ion/ today a'ot 'ein) e>ectie

and /cce//9l tomorrow.



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Strategic thinking , , , is a$o#tsynthesis, -t involves int#itionand creativity,

4enry Mint5$erg

H. Mint;'er), @The 9all and ri/e o9/trate)ic lannin)?, Harard +/ine//Reie1, JanaryKFe'rary #227, . #"4.


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6ltimately Strategic Marketingis all a$o#t $eing smarter than

yo#r competition

7and learning how to do this8


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Strategy Planning

Strate)y lannin) i/ a roce// that em'race/t1o /earate, 't related, actiitie/(

strategy formation K decidin) 1hat to do

planning K decidin) ho1 to do it

That i/, lannin) i/ all a'ot ro)rammin)/trate)ie/ and then ela'oratin) andoerationali/in) their con/eIence/

Strate)y i/ the /tartin) oint o9 lannin).Plannin) hel/ to tran/late intended/trate)ie/ into reali/ed /trate)ie/


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Marketing Decision Making

Marketin) /trate)ie/ may 'e deeloed a/(

a art o9 a 'roader 'a/ed 9ormal /trate)iclannin) roce//

a art o9 a 'roader 'a/ed /et o9 /trate)ydeli'eration/ made ot/ide o9 9ormal /trate)ylannin) roce//e/

a 9ormal /trate)ic marketin) lannin) roce// marketin) /trate)y recommendation/ made

ot/ide o9 9ormal roce//e/


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What does Strategic Marketing involve?

Collectin) in9ormation Primary, /econdary a'ot 5C/ a/ 1ell a/ PST*enironment

Lnaly/in) in9ormation Dee nder/tandin)

denti9yin) oortnitie/ and i//e/ /in) analytical model/ and tool/

Llyin) creatiity De/ira'le, Di>erentiated and De9en/i'le


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Llyin) lannin) /kill/ and in9ormational int/

L//e//in) ind/try and cometitie trend/

Llyin) 9ore/i)ht and creatiity

Proectin) market niche/ and market /hareo//i'ilitie/

/in) analytical model/ and tool/ to ealate The internal and e8ternal /itation

Llternatie otential /trate)ie/ to achiee de/iredmarket o/itionin)

What does Strategic Marketing involve?


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Characteristics of Strategic Marketing

mha/i/ on lon)-term imlication/ 0 N'i) ictre

Cometin) 9or cororate re/orce/ to achieecororate o'ectie/ 'y the oeration/ o9 aarticlar '/ine// nit

Varyin) role/ 9or di>erent rodct/ and market/ K:OT all tryin) to make 'cket/ o9 money orma8imi/e /ale/

S/taina'le cometitie adanta)e


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Marketing’s role in the organisation

Strategic Marketing is foc#sed at theS96 levelOr)ani/ational *eel Formal :ame Foc/

Cororatee.). BL:TLS

Cororate Marketin) Cororate i//e/•Why are 1e here

•What do 1e 1ant•Ho1 do 1e do thi/

Strate)ic +/ine//nite.). n-i)htcaterin)%

Strate)ic Marketin) n/rin) on)oin)oerall /cce// o9 anS+ in meetin) the)oal/ o9 thecororation

Prodct0markete.). conomy cla//meal/, Fir/t cla//meal/%

Marketin)Mana)ement

Formlate marketin)ro)ram/ 9or /eci=crodct/


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Focus of Strategic Marketing

+, Corporate 3evel Mana)ement o9 the entire /ectrm o9 '/ine//e/ Re/orce allocation, acIi/ition/, mer)er/

', Strategic 9#siness 6nit 3evel oc#s on 2Cs: c#stomer; competition;

corporation Where to comete Ho1 to comete When to comete

2, #nctional 7individ#al prod#ct8 level Marketin) mana)ement Seci=c de/i)n o9 rodct, ad camai)n etc< # K year lan


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The Strategic Business Unit (SBU)

De=nition( L nit comri/in) one or more rodct/ hain) acommon market 'a/e 1ho mana)er ha/ comletere/on/i'ility 9or inte)ratin) all 9nction/ into a/trate)y a)ain/t an identi=a'le cometitor.

8amle( BL:TLS /tarted ot a/ an Ot'ack airline/ericin) Been/land and :orthern Territory. 8anded into a national and then an international airline. 8anded into other area/ 1here they 'elieed they cold oerate

/cce//9lly.


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Why break up a company into SBUs? Maor ro'lem/ ari/e 1hen tryin) to treat di/tinct '/ine//e/

in the /ame 1ay.

What i/ reIired 9or /cce// in one '/ine// i/ ery di>erentto 1hat i/ reIired 9or /cce// in another '/ine//.

+/ine//e/ need to e8and into ne1 area/ to kee )ro1in).

Di>erent critical /cce// 9actor/, di>erent /trate)ie/ reIired9or /cce//, /o need to 'e treated di>erently.

nrea/ona'le to e8ect any one er/on to hae thi/ in-deth

kno1led)e, and to kee to date in all area/ K yet thi/ i/1hat i/ reIired nle// yo /lit a '/ine// into S+/.

+y 9oc//in) on one area, yo can do it 1ell. Try and do toomch, and yo don?t end doin) anythin) 1ell.


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How do we identify SBUs?

9reaking an organisation down intoits S96s

#. niIe '/ine// mi//ion K 1hy it e8i/t/ i/di>erent to other S+/

!. Clearly de=na'le /et o9 cometitor/5. S+ Mana)er ha/ atonomy 0 athority oer

re/orce/ in other area/

7. Comete/ 1ith other S+/ 1ithin the

or)ani/ation 9or re/orce/ 'a/ed on theirre/ectie a'ilitie/ to achiee thecororation?/ o'ectie/


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Summary: Strategic Marketing differs fromMarketing Management

5C?/ not 7P?/

Time9rame - lon)er term

Ceteris Paribus all thin)/ 'ein) eIal or held

con/tant% a//mtion a'andoned

Or)ani/ational 'ehaior 0 inte)ration i/ the key

Creatiity and ori)inality :OT e8erience 0 control

Proactie and 9or1ard-9oc//ed

Workin) on the '/ine// :OT in the '/ine//


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Overview of the Unit Strate)ic Marketin) i/ all a'ot lookin) ot 9rom the comany at

it/ enironment L comany /hold ma8imi/e the eek * ! ++8 foc#ses on how to get fromwhere it is now to where it wants to $e A what strategiesto #se and iss#es to $e aware of to generate this change,


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Unit Assessment Structure

To develop an eBective Strategic Marketing Plan; yo# m#st:

+8 9e a$le to search for and locate the necessary information7i,e, cond#ct secondary research8

'8 $tain this information and comm#nicate it to others

28 %nalyse this information and present it so that others canalso see the key patterns and exceptions within theinformation A what the information act#ally means for theclient,

)8 9ased on this come #p with the key changes 7i,e,strategies8 that yo#r client m#st make to $e s#ccessf#l inthe f#t#re,

Task Value % Date Due (BENTLEY Campus)Unit Learning Outcome(s)

AssesseCase Study Analysis(Individual)

20 5:00pm Friday, 1 May 2015 3, 5

Stratei! Mar"etin #lan($r%up)

30 5:00pm Friday, 15 May 2015 2, &, 5

Stratei! Mar"etin #lan#resentati%n (Individual)

10 'itin ut%rial 1, &, 5

Final *+aminati%n(Individual) &0 *+aminati%n #eri%d 1, 3, 5


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Other matters

*ectre note/ on +lack'oard

nit Otline on +lack'oard

Good Luck!


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The End

Documents

SM (BB) Lecture 01 (Introduction + Overview - Extract 1 & 2)