ICHEC Strategic Marketing Past Paper PDF 2024-2025

Strategic Marketing 2024-2025 Olivier Schunck [email protected] 21GE022 – Strategic Marketing - Module 2b 1  https://app.wooclap.com/events/YOURMIND/0 21GE022 – Strategic Marketing - Module 2b 2 Class communications ✓ Class presenta...

Strategic Marketing 2024-2025 Olivier Schunck [email protected] 21GE022 – Strategic Marketing - Module 2b 1  https://app.wooclap.com/events/YOURMIND/0 21GE022 – Strategic Marketing - Module 2b 2 Class communications ✓ Class presentations Before class: uploading a PDF “for note-taking” to Moddle (exercises & solution are blank) After class: uploading and replacing the above PDF by final one (exercises & solution will be visible) ✓ Generative AI – Sidebar: supporting document only 21GE022 – Strategic Marketing - Module 2b 3  Course Outline Marketing’s A brief history of Marketing Brand & Brand identity, trust and 1 6 Journey and where it stands today Purpose purpose-driven marketing Strategic Basics of Marketing Strategy Responsible Marketing in times of crisis: 2 7 Marketing explained, step-by-step Marketing Sustainable and Ethical Customer Customers’ behavior & needs Digital & Marketing strategy in the 3 8 Centricity and distinctive experiences Social Digital Era Research & Customer intelligence driven Emerging AI, Gen AI & emerging tech- 4 9 Insights by data/AI & human insights technology led Marketing Reinvention Market & Competitive advantage to Agile Resilient & agile marketing 5 10 Competition stand out and innovate Marketing operating models 21GE022 – Strategic Marketing - Module 2b 4  Today’s Focus Marketing’s A brief history of Marketing Brand & Brand identity, trust and 1 6 Journey and where it stands today Purpose purpose-driven marketing Strategic Basics of Marketing Strategy Responsible Marketing in times of crisis: 2 7 Marketing explained, step-by-step Marketing Sustainable and Ethical Customer Customers’ behavior & needs Digital & Marketing strategy in the 3 8 Centricity and distinctive experiences Social Digital Era Research & Customer intelligence driven Emerging AI, Gen AI & emerging tech- 4 9 Insights by data/AI & human insights technology led Marketing Reinvention Market & Competitive advantage to Agile Resilient & agile marketing 5 10 Competition stand out and innovate Marketing operating models 21GE022 – Strategic Marketing - Module 2b 5 Strategic Marketing: step-by-step process STEP 3 21GE022 – Strategic Marketing - Module 2b  Strategic Marketing process – Step 3 1. Overall 2. Situation 3. Marketing 4. Integrated 5. Execution Ambition Analysis Strategy Mktg program & Evaluation Set general Identify Make strategic Develop the Put strategy direction opportunities choices components into action Purpose External analysis Strategic options Marketing Mix Pilot Vision/Mission Internal analysis Segment, Target, Capability gaps Implementation Branding Position Plan / Budgets Organization Identify value Goals & Objectives potential Evaluation & Choice Objectives/KPIs Monitor/Evaluate 21GE022 – Strategic Marketing - Module 2b 7  STEP 3 Marketing Strategy The Ansoff Matrix Based on Igor Ansoff’s ‘Strategies for Diversification’, 1957. 21GE022 – Strategic Marketing - Module 2b 8 STEP 3 Marketing Strategy The Ansoff Matrix ❑ The Ansoff Matrix, often called the Product/Market Expansion Grid, is a two-by-two framework used by management teams and the analyst community to help plan and evaluate growth initiatives. In particular, the tool helps stakeholders conceptualize the level of risk associated with different growth strategies. ❑ The Ansoff Matrix is a fundamental framework taught by business schools worldwide. It is a simple and intuitive way to visualize the levers a management team can pull when considering growth opportunities. It features Products and Markets on the two axis. ❑ The concept of markets within the Ansoff framework can mean different things. For example, it could be a jurisdiction or geography (i.e., the North American market); it could also mean customer segments (i.e., target market/demographic). ❑ The Matrix is used to evaluate the relative attractiveness of growth strategies that leverage both existing products and markets vs. new ones, as well as the level of risk associated with each. 21GE022 – Strategic Marketing - Module 2b 9  STEP 3 Marketing Strategy The Ansoff Matrix Market Penetration – The concept of increasing sales of existing products into an existing market Market Development – Focuses on selling existing products into new markets Product Development – Focuses on introducing new products to an existing market Diversification – The concept of entering a new market with altogether new products Based on Igor Ansoff’s ‘Strategies for Diversification’, 1957. 21GE022 – Strategic Marketing - Module 2b 10 STEP 3 Marketing Strategy The Ansoff Matrix Market Penetration The least risky, in relative terms, is market penetration. When employing a market penetration strategy, management seeks to sell more of its existing products into markets that they’re familiar with and where they have existing relationships. Typical execution strategies include: Increasing marketing efforts or streamlining distribution processes Decreasing prices to attract new customers within the market segment Acquiring a competitor in the same market Example: Consider a consumer-packaged goods business that sells into grocery chains. It may seek greater penetration by amending pricing for a large chain to secure incremental shelf space not just for packaged food products but also for several lines of its pet food products, too. 21GE022 – Strategic Marketing - Module 2b 11 STEP 3 Marketing Strategy The Ansoff Matrix Market development A market development strategy is the next least risky because it does not require significant investment in R&D or product development. Rather, it allows a management team to leverage existing products and take them to a different market. Approaches include: Catering to a different customer segment or target demographic Entering a new domestic market (regional expansion) Entering into a foreign market (international expansion) Example: Lululemon decided to aggressively expand into the Asia Pacific market to sell its already very popular athleisure products. While building an advertising and logistics infrastructure in a foreign market inherently presents risks, it’s made less risky by virtue of the fact that they’re selling a product with a proven roadmap. 21GE022 – Strategic Marketing - Module 2b 12 STEP 3 Marketing Strategy The Ansoff Matrix Product development A business that firmly has the ears of a particular market or target audience may look to expand its share of wallet from that customer base. Think of it as a play on brand loyalty, which may be achieved in a variety of ways, including: Investing in R&D to develop an altogether new product(s). Acquiring the rights to produce and sell another firm’s product(s). Creating a new offering by branding a white-label product that’s produced by a 3rd party. Example: A beauty brand that produces and sells hair care products that are popular among women aged 28-35. To capitalize on the brand’s popularity and loyalty with this demographic, they invest heavily in the production of a new line of hair care products, hoping that the existing target market will adopt it. 21GE022 – Strategic Marketing - Module 2b 13 STEP 3 Marketing Strategy The Ansoff Matrix Diversification In relative terms, a diversification strategy is generally the highest risk endeavor; after all, both product development and market development are required. While it is the highest risk strategy, it can reap huge rewards – either by achieving altogether new revenue opportunities or by reducing a firm’s reliance on a single product/market fit (for whatever reason). There are generally two types of diversification strategies that a management team might consider: Related Diversification – Where there are potential synergies that can be realized between the existing business and the new product/market. Unrelated Diversification – Where it’s unlikely that any real synergies will be realized between the existing business and the new product/market 21GE022 – Strategic Marketing - Module 2b 14 Source: XXXXXXXXXXXXXXXXXXXXX 21GE022 – Strategic Marketing - Module 2b 15 STEP 3 Marketing Strategy The Ansoff Matrix – Example: Apple 21GE022 – Strategic Marketing - Module 2b 16  Video Source: XXXXXXXXXXXXXXXXXXXXX 21GE022 – Strategic Marketing - Module 2b 17 TASK – Create an Ansoff Matrix for Spadel’s key products Discuss in groups and use any online source for researching 21GE022 – Strategic Marketing - Module 2b 18 TASK – Create an Ansoff Matrix for Spadel’s key products 21GE022 – Strategic Marketing - Module 2b 19  Core products … and accessories Mostly B2B product Source: Internet search 21GE022 – Strategic Marketing - Module 2b 20  Recent ventures B2B product Venture was discontinued Source: Internet search 21GE022 – Strategic Marketing - Module 2b 21 TASK – Create an Ansoff Matrix for Spadel’s key products 21GE022 – Strategic Marketing - Module 2b 22 Source: XXXXXXXXXXXXXXXXXXXXX 21GE022 – Strategic Marketing - Module 2b 23 STEP 3 Marketing Strategy The Ansoff Matrix – Example: Coca-Cola 21GE022 – Strategic Marketing - Module 2b 24 STEP 3 Marketing Strategy The Ansoff Matrix – Example: Coca-Cola 21GE022 – Strategic Marketing - Module 2b 25 STEP 3 Marketing Strategy BCG Growth Share matrix How Does the Growth Share Matrix Work? The growth share matrix was built on the logic that market leadership results in sustainable superior returns. Ultimately, the market leader obtains a self- reinforcing cost advantage that competitors find difficult to replicate. These high growth rates then signal which markets have the most growth potential. The matrix reveals two factors that companies should consider when deciding where to invest—company competitiveness, and market attractiveness— with relative market share and market growth rate as the underlying drivers of these factors. 21GE022 – Strategic Marketing - Module 2b 26  STEP 3 Marketing Strategy BCG Growth Share Matrix Source: www.bcg.com/about/overview/our-history/growth-share-matrix 21GE022 – Strategic Marketing - Module 2b 27  STEP 3 Marketing Strategy BCG Growth Share Matrix Optimum Cash Flows Low Growth, High Share. Companies should milk these “cash cows” for cash to reinvest. High Growth, High Share. Companies should significantly invest in these “stars” as they have high future potential. High Growth, Low Share. Companies should invest in or discard these “question marks,” depending on their chances of becoming stars. Low Share, Low Growth. Companies should liquidate, divest, or reposition these “pets.” Source: www.bcg.com/about/overview/our-history/growth-share-matrix 21GE022 – Strategic Marketing - Module 2b 28  STEP 3 Marketing Strategy BCG Growth Share Matrix Success sequence Source: www.bcg.com/about/overview/our-history/growth-share-matrix 21GE022 – Strategic Marketing - Module 2b 29  STEP 3 Marketing Strategy BCG Growth Share Matrix Disaster sequence Source: www.bcg.com/about/overview/our-history/growth-share-matrix 21GE022 – Strategic Marketing - Module 2b 30  STEP 3 Marketing Strategy BCG Growth Share matrix - Revisited Is it still relevant in today’s fast changing environment? Source: https://www.bcg.com/publications/2014/growth-share-matrix-bcg-classics-revisited 21GE022 – Strategic Marketing - Module 2b 31  STEP 3 Marketing Strategy BCG Growth Share matrix - Revisited What do these shifts mean for the original portfolio concept? Comparing 2008-2012 with 1988-1992 In 75% of industries companies move faster through quadrants Observation 1 Average time spent in a quadrant Observation 2 halved, from about 4 to 2 years Companies Market share circulated Average time any business unit of large is no longer a through the US conglomerates spent in a quadrant direct matrix was less than two years in 2012. predictor of quadrants sustained faster Only few industry exceptions performance Source: https://www.bcg.com/publications/2014/growth-share-matrix-bcg-classics-revisited 21GE022 – Strategic Marketing - Module 2b 32 21GE022 – Strategic Marketing - Module 2b 33  STEP 3 Marketing Strategy BCG Growth Share matrix - Revisited Increasing change to adjust how they apply the matrix ! To get the most out of the matrix for successful experimentation in the today’s faster changing business environment, companies need to focus on four practical imperatives: ► Accelerate. It is critical to evaluate the portfolio frequently. ► Balance exploration and exploitation. This requires having an adequate number of question marks while simultaneously maximizing the benefits of both cows and pets. ✓ Increase the number of question marks ✓ Test question marks quickly and economically ✓ Milk cows efficiently ✓ Keep pets on a short leash ► Select rigorously. Companies must carefully select investments as well as divestments leveraging a wide range of data sources and developing predictive analytics. ► Measure and manage portfolio economics of experimentation. Understanding the experimentation level required to maintain growth is important for long-term sustainability: ✓ Manage the rate of experimentation ✓ Drive new product and business success ✓ Maintain a portfolio balance Source: https://www.bcg.com/publications/2014/growth-share-matrix-bcg-classics-revisited 21GE022 – Strategic Marketing - Module 2b 34  STEP 3 Marketing Strategy BCG Growth Share matrix - Revisited Increasing change to adjust how they apply the matrix ! Increasing change certainly requires companies to adjust how they apply the matrix. Nevertheless, it does not undercut the power of the original concept. What Bruce Henderson, from BCG, wrote years ago still holds today, perhaps even more so than ever: “The need for a portfolio of businesses becomes obvious. Every company needs products in which to invest cash. Every company needs products that generate cash. And every product should eventually be a cash generator; otherwise it is worthless. Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on its growth opportunities.” Source: https://www.bcg.com/publications/2014/growth-share-matrix-bcg-classics-revisited 21GE022 – Strategic Marketing - Module 2b 35  STEP 3 Marketing Strategy Creating new markets - Beyond ‘just’ new products & services Science- and/or technology-based innovation as well as new REINVENTION ways to create/deliver/capture value enable disruptive and New Using transformative innovation to create transformational strategies. entirely new markets They often create entirely new markets. Incremental Customers & Markets ADJACENT It’s about using innovation to… Extending existing business to related create new business models new business areas develop a platform plays reinvent the value-cost ratio CORE Enhancing existing create an entire new industry Existing portfolio for existing customers New, different frameworks capture this evolution such as Existing Incremental New “Blue Ocean strategy” and “Business Model Generation” Products & Services (cf. upcoming dedicated module). 21GE022 – Strategic Marketing - Module 2b 36  STEP 3 Marketing Strategy Mass versus Target marketing Example: Henry Ford & Model Mass-produce/mass- “People can buy the Mass- distribute product or the car in any colour Marketing service to attract all as long as it is black” potential customers “STP” approach Identify the different “You can’t be Target groups to propositions all things to marketing for selected target all people” S T P MARKET MARKET PRODUCT markets SEGMENTATION Identify bases for TARGETING Develop measures POSITIONING Develop positioning segmentation to evaluate for each target Develop profile potential and segment by segments with commercial Develop the important attractiveness of marketing mix characteristics each segments for each selected of each market Select one or more segment segment target segments Source: Based on Kotler’s “Principles of Marketing” 21GE022 – Strategic Marketing - Module 2b 37  Video 21GE022 – Strategic Marketing - Module 2b 38  STEP 3 Marketing Strategy STP – Segmentation, Targeting & Positioning Define & Target Your Audience Few companies can meet the needs and wants of the entire market. S T P You want to split the market into a segment that aligns best with your MARKET MARKET PRODUCT SEGMENTATION TARGETING POSITIONING strengths and opportunities. Your goal is to identify customers. Identify bases for Develop measures Develop positioning segmentation to evaluate for each target Develop profile potential and segment You can select your target market by by segments with commercial Develop the important attractiveness of marketing mix choosing all kinds of characteristics, characteristics each segments for each selected behaviours, and demographics. The of each market Select one or more segment segment target segments important thing is to make sure the audience is clearly defined and large enough to support your product/service. Source: Based on Kotler’s “Principles of Marketing” 21GE022 – Strategic Marketing - Module 2b 39  STEP 3 Marketing Strategy Segment the market Market segmentation… …is a way of aggregating prospective buyers into groups with common characteristics who might require different product & service propositions and marketing actions Dimensions used for B2C/consumer markets are generally: Geographic segmentation: “where” Demographic segmentation: “who” Behavioral segmentation: “how” Psychographic segmentation: “why” Source: Copyright Rice University, OpenStax under CC BY 4.0 license 21GE022 – Strategic Marketing - Module 2b 40 STEP 3 TASK – What segment dimension may be relevant in B2C? Discuss in groups and think about how you would research them? 21GE022 – Strategic Marketing - Module 2b 41  STEP 3 Marketing Strategy Segment the market Market segmentation… …is a way of aggregating prospective buyers into groups with common characteristics who might require different product & service propositions and marketing actions Dimensions used for B2B markets are generally including 5 dimensions. Source: Copyright Rice University, OpenStax under CC BY 4.0 license 21GE022 – Strategic Marketing - Module 2b 42 STEP 3 TASK – What segment dimension may be relevant in B2B? Discuss in groups and think about how you would research them? 21GE022 – Strategic Marketing - Module 2b 43  STEP 3 Marketing Strategy Segment the market To be effective, market segmentation needs to be… Substantial: The segments should be large enough to be profitable and worth targeting. A segment must have enough potential customers to justify tailored marketing efforts. Measurable: The segments must be quantifiable in terms of size, purchasing power, and characteristics. This allows marketers to understand their potential and track performance. Accessible: The segments must be reachable and serviceable through marketing and distribution channels. If a segment can't be easily accessed it’s less valuable. Actionable: The company must be able to develop effective strategies and marketing programs to attract and serve the segment. This means having the resources and capabilities to act on the segmentation insights. Source: Based on Kotler’s “Principles of Marketing” 21GE022 – Strategic Marketing - Module 2b 44 STEP 3 Marketing Strategy Segment the market Driven by technology market segmentation has been evolving, becoming more granular… 1950s 1960s 1970s 1980s 1990s 2000s 2010s 2020s Future Mass marketing Segmented markets Macro-segments Micro markets Micro-segments “Segment of One” Hyper-segementation Digital Data analytics AI/GenAI Database marketing marketing marketing marketing 21GE022 – Strategic Marketing - Module 2b 45  STEP 3 Marketing Strategy Segment the market An example: Segment of one / Hyper-Segmentation Travel sector Source: McKinsey,”The promise of travel in the age of AI”, 2023 21GE022 – Strategic Marketing - Module 2b 46  STEP 3 Marketing Strategy Target the market Once segments have been identified the company need to… …identify/evaluate the potential of segments …and decide on its coverage strategy Differentiated / Segmented Marketing: Market attractiveness Target many segments wth separated approaches Concentrated / Niche Marketing: target a large share of one/few smaller market segment or niche Relative competitive position/strengths Source: Based on Kotler’s “Principles of Marketing” 21GE022 – Strategic Marketing - Module 2b 47  Video 21GE022 – Strategic Marketing - Module 2b 48 STEP 3 Marketing Strategy Target the market Targeting the right stakeholder 21GE022 – Strategic Marketing - Module 2b 49 STEP 3 Marketing Strategy Positioning in the market Defining the right positioning A common tool used to visualize the position is the Perceptual Map (cf. below). Its dimensions vary The positioning describes the brand, product, depending on you differentiation focus. service for the selected target market/segment. It defines how the customer’s needs are met and should clarify the customer value proposition and its main competitive differentiators. Example: 21GE022 – Strategic Marketing - Module 2b 50  Video 21GE022 – Strategic Marketing - Module 2b 51 STEP 3 Marketing Strategy Evaluation and choice Identification of high-level financial potential & impacts and required capabilities In parallel to the segment, target, positioning approach the company needs to assess whether the choices made in terms of target segment(s) are financially viable. What is the value potential of the target segments? How is it forecasted to grow? What is the targeted segment customer margin? What will be the impact on the profitability? What new capability investments needed?... At this stage, it is about creating a first high-level financial impact analysis (business case with key hypothesis) to support the evaluation and choice of the STP approach. Throughout the remaining process this analysis will need to be refined, initial hypothesis be validated and a more detailed marketing budget established. 21GE022 – Strategic Marketing - Module 2b 52 STEP 3 Marketing Strategy Bringing it all to life Developing “personas” is a powerful way to describe the segment and how the value proposition fits needs, behaviors and expectations. Besides marketers it can also be used with other employees and even with the customers themselves. 21GE022 – Strategic Marketing - Module 2b 53 STEP 3 TASK – How is Spadel positioning ZYLA Discuss in groups and use any online source for researching 21GE022 – Strategic Marketing - Module 2b 54 STEP 3 TASK – How is Spadel positioning ZYLA Spadel is expanding its product range and entering the energy drinks market. This market has been booming for a number of years and has great potential for growth, particularly in the natural and less sweetened energy drinks segment. It's in this segment that Spadel wants to make its name with Zyla, a brand with a fun, quirky feel ('Zyla' is derived from 'Lazy'), aimed at 25–35-year olds just starting out in their working lives, as well as certain young parents. Zyla drinks will be available in three types of energy: Boost, Vitality and Focus. Zyla is perfectly in line with the Spadel Group's values and DNA, as it is a natural, low-calorie energy drink that meets new consumer expectations. 21GE022 – Strategic Marketing - Module 2b 55 Strategic Marketing: step-by-step process STEP 4 21GE022 – Strategic Marketing - Module 2b  Strategic Marketing process – Step 4 1. Overall 2. Situation 3. Marketing 4. Integrated 5. Execution Ambition Analysis Strategy Mktg program & Evaluation Set general Identify Make strategic Develop the Put strategy direction opportunities choices components into action Purpose External analysis Strategic options Marketing Mix Pilot Vision/Mission Internal analysis Segment, Target, Capability gaps Implementation Branding Position Plan / Budgets Organization Identify value Goals & Objectives potential Evaluation & Choice Objectives/KPIs Monitor/Evaluate 21GE022 – Strategic Marketing - Module 2b 57 STEP 4 Marketing Mix Model From the 4 P’s of Kotler to the 7 P’s The 4Ps of the marketing Over the last 25 years or so, concept has been widely times have changed and many used since the 1960s. It Price Place new methods of marketing have has helped businesses been introduced, competition transform their marketing has grown fiercer, consumers' strategies with the help of needs and expectations have the right marketing mix. changed, and we’ve become Promotion much savvier about the buyer’s Product Strategy journey. The model was used when you are planning a new product launch, evaluating an existing This necessitated the creation of product, or trying to optimize new marketing principles that are the sales of an existing changing the way marketing product. Physical strategies are formed. So 4 Ps People evidence turned into the 7 Ps. Processes 21GE022 – Strategic Marketing - Module 2b 58 STEP 4 Marketing Mix Model From the 4 P’s of Kotler to the 7 P’s Example components of the 7Ps 21GE022 – Strategic Marketing - Module 2b 59 STEP 4 TASK - How would you define ZYLA’s “Place & Promotion” Discuss in groups and fill your answers into wooclap 21GE022 – Strategic Marketing - Module 2b 60 STEP 4 TASK – Selected evidence for ZYLA’s “Place & Promotion” 21GE022 – Strategic Marketing - Module 2b 61 STEP 4 TASK – Selected evidence for ZYLA’s “Place & Promotion” 21GE022 – Strategic Marketing - Module 2b 62  STEP 4 TASK – Selected evidence for ZYLA’s “Place & Promotion” In comparison… 21GE022 – Strategic Marketing - Module 2b 63 STEP 4 Marketing Mix Model …and then to the infinite P’s The underlying logic remains the same. Think broadly, and trust yourself & your peers to identify the relevant factors to consider in your analysis, the best “P” list is yours. The marketing mix method remains the same, no matter how many additional “P” steps you choose. Examples: Personalization - By gaining insights on who Peer-to-Peer marketing is an effective way to gain the trust Predictive modelling includes the algorithms that are your customers are and where their preferences of your customers. If you can develop a good relationship applied to solve marketing problems and to determine lie, you can increase marketing relevancy with an opinion leader, he or she will then advocate for your the next marketing moves required. It is based upon through Personalization. This means that by product and deliver proof of your credibility. Which will then the demographic characteristics and past purchase collecting user data through surveys, studies, or associate the credibility of the person to your product. behaviour of customers. Predictive modelling will help list segments you can create more effective Attempting this angle comes with certainty and promises you decide which goods to produce, how much to marketing that the purchase will pay off. And so it is definitely worth it. produce, and where to distribute them. 21GE022 – Strategic Marketing - Module 2b 64 STEP 4 Marketing Mix Model Is the Marketing Mix Model still relevant today? “The truth is, the modern world of marketing can’t be reflected solely through concepts as simple as marketing mix modelling.” “Today, marketing playbooks are driven by constant measurement and analysis, allowing to get a snapshot of exactly how campaigns are performing on a day-by-day, or even hour-by- hour, basis. With these answers available almost instantly, marketers are expected to shift their strategy in tune with consumer reactions. Unfortunately, the 4Ps cannot handle this rigorous, time-sensitive assessment. Therefore, the 4Ps are at a significant risk to being relegated to the halls of marketing history.” “The concept of 4Ps has been criticised as being a production-oriented definition of marketing, and not a customer-oriented.” “In effect they say marketing isn’t just the job of the marketing department, you can have the best communications in the world but if your price or product is wrong, it’s not going to work. Too often I see marketing teams that are asked to take something rubbish to market with a good advert. That’s why the 4Ps are so relevant now, because they remind us that marketing is so much more than just advertising.” 21GE022 – Strategic Marketing - Module 2b 65 STEP 4 Marketing Mix Model Is the Marketing Mix Model still relevant today? ► The first ones, the conservatives, consider that the 4P’s are still a valid framework, which just needs to be upgraded to meet the current market specificities. This can be done by adding or removing single elements within the marketing mix. ► On the other hand, the revisionists believe modifications in the market are so disruptive that companies need a completely new approach to reach out to their customers. An interesting fact, however, is that most of the revisionist-models are essentially based on the current 4P framework, or are some variation of it. ► It can still be considered as a strong backbone to any marketing strategy, adding all needed additional P’s. And Obviously there are plenty of other models, all evolving along the way. ► Adopting a customer-centric and experiential view point might be the first step in evolving even further the marketing mix. 21GE022 – Strategic Marketing - Module 2b 66 STEP 4 Marketing Strategy Capability gaps & Actions High The action priority matrix is a productivity tool often used that helps marketing departments (and businesses) prioritize certain actions and objectives over others. High value creation High impact / These quadrants are plotted against the effort required to complete an action – based on a detailed capability gap analysis - and the impact (expected benefit) that each action brings once completed based on segmenting, targeting & positioning assumptions. This matrix helps the different actions that are Low part of the marketing plan in function of their Low Capability gap / High potential impact and the effort required. Effort to implement 21GE022 – Strategic Marketing - Module 2b 67 STEP 4 Marketing Strategy Capability gaps & Actions High The action priority matrix is a productivity tool often used that helps marketing departments (and businesses) prioritize certain actions and QUICK WINS BIG BETS prioritize plan wisely objectives over others. High value creation High impact / These quadrants are plotted against the effort required to complete an action – based on a detailed capability gap analysis - and the impact (expected benefit) that each action INCREMENTAL brings once completed based on segmenting, REALLY WORTH? link to others Re-evaluate or targeting & positioning assumptions. avoid This matrix helps the different actions that are Low part of the marketing plan in function of their Low Capability gap / High potential impact and the effort required. Effort to implement 21GE022 – Strategic Marketing - Module 2b 68 STEP 4 Marketing Strategy Marketing Plan & Budgets 21GE022 – Strategic Marketing - Module 2b 69 STEP 4 Marketing Strategy Marketing Plan & Budgets 21GE022 – Strategic Marketing - Module 2b 70 STEP 4 Marketing Strategy Marketing Plan & Budgets SMART goals 21GE022 – Strategic Marketing - Module 2b 71 STEP 4 Marketing Strategy Marketing Plan & Budgets Identify and Set a Marketing Budget Your budget will outline all the expected costs for implementing your marketing plan, including advertising, online content, branding, public relations, staffing costs, and more. Depending on the size of your budget, you may have to make some tough choices about which goals and tactics are the top priorities. Or you may have to adjust your tactics until you reach a budget that’s affordable. By creating the budget, you can finalize and stick to your plan. 21GE022 – Strategic Marketing - Module 2b 72 STEP 4 Marketing Strategy Marketing Plan & Budgets “It's shocking that less than 40% of the finance people think that marketers can make sound commercial decisions, leaving the remaining 60% on the negative side. But this is reciprocal. Less than one-third of marketers feel that finance people understand marketing and they are making decisions based on knowledge. As a result, neither marketing guys know what the finance people do, nor the finance guys think that marketing people really don't know how to make proper decisions and hold themselves accountable amongst others” 21GE022 – Strategic Marketing - Module 2b 73  Video 21GE022 – Strategic Marketing - Module 2b 74 Strategic Marketing: step-by-step process STEP 5 21GE022 – Strategic Marketing - Module 2b  Strategic Marketing process – STEP 5 1. Overall 2. Situation 3. Marketing 4. Integrated 5. Execution Ambition Analysis Strategy Mktg program & Evaluation Set general Identify Make strategic Develop the Put strategy direction opportunities choices components into action Purpose External analysis Strategic options Marketing Mix Pilot Vision/Mission Internal analysis Segment, Target, Capability gaps Implementation Branding Position Plan / Budgets Organization Identify value Goals & Objectives potential Evaluation & Choice Objectives/KPIs Monitor/Evaluate 21GE022 – Strategic Marketing - Module 2b 76 STEP 5 Execution & Evaluation Launch the plan When? How? Who? Where? How much? Target Metrics? Rythm? 21GE022 – Strategic Marketing - Module 2b 77 STEP 5 Execution & Evaluation Monitor results & Evaluate Sales? CMO/Marketing dashboards Customer Satisfaction? Conversion? Market share? Competitor Reaction?... 21GE022 – Strategic Marketing - Module 2b 78 STEP 5 Execute, Evaluate & Evolve Continuously improve and adapt A dynamic plan 21GE022 – Strategic Marketing - Module 2b 79  Video Source: XXXXXXXXXXXXXXXXXXXXX 21GE022 – Strategic Marketing - Module 2b 80  P&G Beauty: evolution of portfolio (2010s) Mass Beauty Mass Beauty Prestige Beauty (diversified) (many distinct brands) 21GE022 – Strategic Marketing - Module 2b 81  https://app.wooclap.com/events/YOURMIND/0 21GE022 – Strategic Marketing - Module 2b 82 Strategic Marketing: In summary 21GE022 – Strategic Marketing - Module 2b  What does Strategic Marketing mean? Strategic Marketing is an approach by which a firm effectively Creating differentiates itself from it's competitors by capitalizing on its Value strengths - both current and potential - to provide consistently better value to customers than its competitors. Strategic Marketing defines the company's mission, Making chooses a target market and positioning, determines the choices growth strategy, ensures a balanced product portfolio, and, if necessary, develops new products*. Source: “Marketing stratégique et opérationnel”, Jean-Jacques Lambin 21GEO22 – Strategic Marketing - Module 2b 84  Strategic Marketing process – In Summary 1. Overall 2. Situation 3. Marketing 4. Integrated 5. Execution Ambition Analysis Strategy Mktg program & Evaluation Set general Identify Make strategic Develop the Put strategy direction opportunities choices components into action Purpose External analysis Strategic options Marketing Mix Pilot Vision/Mission Internal analysis Segment, Target, Capability gaps Implementation Branding Position Plan / Budgets Organization Identify value Goals & Objectives potential Evaluation & Choice Objectives/KPIs Monitor/Evaluate 21GE022 – Strategic Marketing - Module 2b 85  Thank You! Do you have questions or would like to share your feedback? [email protected] 21GE022 – Strategic Marketing - Module 2b Links to videos in this presentation Diversification strategy (0:00 > 5:42) https://www.youtube.com/watch?v=ZDExLnS9IC0 BCG Matrix – Revisited (2:17) https://www.youtube.com/watch?v=b43ETNYFoNU Mass vs. Targeted, Mark Ritson vs. Byron Sharp (Part 1: 0:22-2:27, Part 2: 2:27-6:26) https://www.youtube.com/watch?v=Rr4J3WfGsvA LEGO – We are a team ad https://www.youtube.com/watch?app=desktop&v=rwQqkX3qZak&list=TLGGh0n-SrvIsRMyOTA5MjAyNA&t=4s Positioning & Authenticity – Seth Godin (9:20 – 13:48) https://www.youtube.com/watch?v=FlurK3LeTpg Portfolio evolution example - A.G. Lafley (7:40 > 10:12) https://www.youtube.com/watch?v=FlurK3LeTpg 21GE022 – Strategic Marketing - Module 2b 87