Strategic Marketing 472 Introduction PDF

STRATEGIC MARKETING 472 1 WHAT IS STRATEGY? 2 Functional areas in an organization 3 4 Strategic analysis process 5 6 WHAT IS MARKETING’S ROLE IN THE STRATEGIC PROCESS?...

STRATEGIC MARKETING 472 1 WHAT IS STRATEGY? 2 Functional areas in an organization 3 4 Strategic analysis process 5 6 WHAT IS MARKETING’S ROLE IN THE STRATEGIC PROCESS? 7 Marketing’s role Business intelligence - Closest to customers, competitors, market shifts etc. Driver of corporate growth - Usually called upon to implement tactical elements of a strategy Differentiate & creator of sustainable competitive advantage (SCA) - Lead in building & maintaining customer & brand equity Curator of customer experience & relationship manager Guardian of the corporate reputation – Social responsibility & ethical compass 8 Group discussion Select an organization What is their mission? Their vision? How has mission & vision impacted their business strategy? How has/might mission & vision affected their marketing mix? 9 10 WHERE ARE YOU GOING TO COMPETE? OR NOT? 11 Ansoff Matrix 12 HOW ARE YOU GOING TO COMPETE? 13 How are you going to compete? Customer value proposition & value leadership Assets & competencies Functional area strategies & programs 14 Value proposition Benefits to customer – functional, emotional, social, self-expressive What is promise to the customer? Is it meaningful? Can it be delivered? Must be sustainable over time Attributes/features never replace benefits 15 Assets & competencies Strategic assets – critical resources which enable a co. to develop a SCA (financial, human, physical, legal, relationships, brand, knowledge) Competencies – unique knowledge or process, what the org. excels at, what is strategically important to org. Consider how strong your assets & competencies are relative to your competition 16 Characteristics of sustainable competitive advantages (SCA) Can be converted into sources of value for customers Are rare Difficult to copy/Not easily imitated Good substitutes for resource don’t exist Can be leveraged for advantage 17 Functional area strategies & programs How can other functional areas be leveraged to assist with achieving strategic goals Weak links can break the value chain Importance of external partnerships in delivering the value proposition 18 Criteria to select business strategies Is the ROI attractive? Is there a sustainable competitive advantage (SCA)? Survivability – over the long term? Feasibility – does the org. have the appropriate resources? Does the strategy fit with an org.’s larger/other strategy? Synergy? Common pitfalls in developing business strategy 19 Strategy only works if offering has value Perceived benefits Perceived costs Perceived risks Customer’s perception of value is dynamic & changes as they become more experienced & as competitors reshape the landscape 20  CURRENT MARKETING CHALLENGES & OPPORTUNITIES 21  Power shift to customers Constant change Competition - Massive Increasing customer increase in product selection expectations & cost-cutting Declining customer Audience and media satisfaction and brand loyalty fragmentation Change in customer attitudes Changing value propositions toward business and marketing activities Shift in demand patterns Increasing price sensitivity Privacy, security, and ethical concerns Unclear legal jurisdiction 22 Commoditization Consequence of mature industries where slowing innovation, extensive product assortment, excess supply, and frugal consumers force margins to the floor 23 Discussion question Increasing customer power is a continuous challenge to marketers in today’s economy Have you experienced this shift in power, either as a customer or a business person, and in what ways have you experienced it? Is this shift in power uniform across industries and markets? 24 Forces feeding the changes Political instability Digital & other technologies (AI) Trends in the way people choose to live Attitudes toward how companies behave & utilize human & natural resources Development of new economic superpowers Demographic shifts 25  CHANGE OR DIE Some firms drive change, others adapt, others die. 26 Group discussion Select an organization that has: Driven change Adapted to change Died What did the organization do/not do that led to its current state? 27