Transcript 2. culture-focused research

Strategic Marketing
Management
Session 2
agenda
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Recap basic
Strategic marketing
Marketing audit
SWOT analysis
Case Study: KFC & Mc Donalds
LET US RECAP BASICS
MISSION
 A mission is a very big, long-term endresult or achievement.
 There may be objectives, goals, strategies,
executions and tactics all used to achieve
the mission, but the mission is the biggest
and most important thing to be
accomplished.
 Example: To make the candyland company
largest seller of premium candy-Eclairs
Interesting mission
 PEPSI - "Beat Coke"
 HONDA - "We will crush, squash, and
slaughter Yamaha"
 NIKE - "Crush Reebok“
 3M "To solve unsolved problems
innovatively"
 Wal-Mart "To give ordinary folk the chance
to buy the same thing as rich people."
 Walt Disney "To make people happy."
Objective
 Objectives and goals are also whats,
not hows, but they are smaller than a
mission. There can be a number of
objectives and goals to be achieved in
order to achieve a mission, but there
is usually only one mission.
 Example;
Achieve 10% share of market leadership
in the premium candy segment.
Strategy
 strategy is the process by which
individuals and organisations make
choices about scarce resources so as
to satisfy wants over time in an
environment of uncertainty.
 Strategy is how to achieve an
objective, goal (or even a mission).
Strategy
 Example: Convince consumers that
Eclairs candy is the best premium
candy by associating with high-end
people;
 Delight consumers
Tactics
 Tactics are devices or actions taken to
achieve a larger purpose. They are
also a what, not a how, but they are
on a smaller scale than an execution.
 Example: Sample Eclairs candy in
high-end department stores
- Put XYZ candy on the pillows of
beds in high-end hotel
Purpose of Strategy?
 What is the ultimate goal of strategy for a
firm?
Maximize shareholder value
“Monopoly” power
Bigger can be better
Profits – above average
Success – but what is success?
 Staying in business/survival
 Does strategy imply or require exploitation of
other?
 Tactics
 Defend
 How do we position ourselves to achieve
sustainable above average profits in the long
run
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Marketing?
Any volunteers!
Marketing:
Marketing is the management process for
identifying, anticipating, and satisfying
customer requirements
profitably.”
Strategic perspective of Marketing
 In recent times it’s a:
process whereby the resources of the
whole organization are utilized to satisfy
the needs of selected customer
groups in order to achieve the
objectives of both parties.
Components of Strategic Marketing
Therefore,
Strategic marketing is concerned with all parts
of organization; it is more than a set of tools,
it is an orientation which pervades the
thinking of the organization as a whole.
Strategic marketing effectiveness
 Marketing’s role in strategic planning
for the organization means identifying
the OPTIMAL long-term positions that
will ensure customer satisfaction and
support.
How to determine optimal
positions?
Optimal position can be determined by
fundamental changes in:
 Demographics
 Economic
 Social
 Political factors
Thus the initiatives are guided by research of
aforementioned factors than by survey of
consumer attitudes, the hallmark of the
market-driven organization
How Companies Try to Understand Consumers
Two general types of research that companies use to understand
new markets
1.
product-focused research: asks consumers through
surveys, focus groups, interviews, home visits and usability
tests, about existing or prototypical products and services.
2.
culture-focused research: uses measures like censustaking and demographic data, to look at general
patterns of daily life like value systems, social
structures, and relationships among friends and
relatives.
Marketing Audit and SWOT
analysis
Marketing Auditing and SWOT analysis
 The process of marketing auditing is for many organizations
is still a relatively new and underutilized activity. This is
despite a substantial and growing body of evidence which
suggests that organization’s performance in the market-place
is influenced significantly and directly by the strategist’s
perceptions of three factors:
1. The organizations current market position
2. The nature of environmental opportunities and
threats
3. The organizations ability to cope with environmental
demands
MARKETING AUDIT
A marketing audit is a comprehensive, systematic,
independent and periodic examination of a
company’s or business units-marketing environment,
objectives, strategies and activities with a view to
determining problem areas and opportunities and
recommending a plan of action to improve the
company’s performance.
MARKETING AUDIT
These definitions highlight the three major elements,
Potentials & benefits of the marketing audit:
 The analysis of external environment and internal
situation
 The evaluation of past performance and present
activities
 The identification of future opportunities and threats
Five stages of marketing auditcannon
1. Define the market (SOP, growth rate, PLC stage
etc)
2. Determine the performance differentials (own vs
industry)
3. Determine the differences in competitive
programmes (Market n Product development)
4. Profile strategies of competitors
5. Determine the strategic planning structure
Marketing Audit-example
Research on Brand Health Indicators
This research
dimensions;
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Top of Mind Awareness
Spontaneous Brand Awareness
Aided brand Awareness
Ad Awareness
Total Brand Awareness
the
following
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Brand Ever Used
Brand Used Most Often
Alternate Brand
Frequency of use
Previous brand
Length of usage
Disposition / Commitment
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Category Involvement
Brand Attraction
Brand Satisfaction
Usage Future Intention
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strategic
Imagery
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Usage
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around
Awareness
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revolves
International Brand
Good Quality
Attractive packaging
Good Value for Money
Good Taste
A brand for people like m
Brand Personality
etc.
Promotion Evaluation
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TV
Print
Radio
Internet
Company Representativ
POS Promotion Material
Brand Activation
The role of SWOT analysis
Faced with a constantly changing environment, each
business unit needs to track trends and
developments. Each trend and development can then
be categorized as an opportunity or a threat, and an
assessment made of the feasibility and action needed
if the organization is either to capitalize upon the
opportunity or minimize the impact of the threat.
Ending with a lighter note…..
IMAGINE….. AN IMAGE SHOWING A
COMPLETE OPPOSITE MEANING