Strategic Marketing Management Session 2

agenda  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 end- result 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

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 census- taking 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 audit- cannon 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 revolves around the following strategic dimensions ;  Awareness Top of Mind Awareness Spontaneous Brand Awareness Aided brand Awareness Ad Awareness Total Brand Awareness  Usage Brand Ever Used Brand Used Most Often Alternate Brand Frequency of use Previous brand Length of usage  Disposition / Commitment Category Involvement Brand Attraction Brand Satisfaction Usage Future Intention  Imagery International Brand Good Quality Attractive packaging Good Value for Money Good Taste A brand for people like me Brand Personality etc.  Promotion Evaluation TV Print Radio Internet Company Representative 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