Strategic Marketing Management Professor Dave Beaty, Docbeaty@2btassociates.com The Power of Brands Executing Strategic Marketing Strategies Marketing Strategically in B2B Industrial Markets Targeting Strategic Markets Strategic Marketing and Customer Value Formulating Strategic Marketing Plans Overview & Strategic Marketing Management

Overview of Strategic Marketing Sessions One and Two Overview of Strategic Marketing

Questions for the Luxor Case Describe the external & internal environment of Luxor, and changes that occurred in the environments, from the start of the case - to the end of the case? Describe the history of George’s career from the start of the case - to the end-of the case. Who’s to blame for the problems that occurred? George? Luxor? What did the leadership in Luxor do – or not do - that could have led to the problems that George encountered? (consider the Sales/Marketing dilemma) What did George do - or not do - that could have led to the problems with his career? (consider the Sales/Marketing dilemma) As a member of the board, at the end-of the case, what do you recommend Luxor do with George? Why do you say this?

Why do Managers Resist Change and Transformation? Out-of-Touch and Disconnected Threat to Status, Position and Power Structures Inability to Manage Conflict

Discussion Questions Define the terms “Selling” and “Strategic Marketing” In terms of your definitions, how do you compare and contrast “Selling” and ”Marketing”? What do you think is the difference between ‘Marketing’ and ‘Selling’?

Selling Defined The tricks and techniques to get people to exchange cash for your product (Source: Harvard Business Review, 2013)

STRATEGIC MARKETING DEFINED Creating value for “Customers” and “Stakeholders” while integrating ALL the functions of an organisation to focus on satisfying customers Stop relying on product sales – and start cultivating relationships with the right customers and stakeholders and put them at the centre of your business and organization (Harvard Business review, 2013)

POTENTIAL FOR CONFLICT Why do you think there could be the potential for conflict between individuals working in Marketing and those working in Sales in an organisation What complaints do sales people have about Marketing people? What complaints do Marketing people have about Sales people? How would you propose to manage these conflicts? (Mountain Challenge)

THE EVOLUTION OF THE MARKETING CONCEPT The marketing concept has changed over time Production: Focus on manufacturing for the cost of Product – not customer needs (Ford) Sales: Focus on “sales” typically short-term relations – not meeting all of customer needs and adding Value which is typically a long-term relationship Marketing: Needs to focus on moving from Marketing policies to satisfying customers/ stakeholders

WHO IS THE FOCUS OF MARKETING? People Those involved in the marketing process, including customers, personnel and stakeholders who are present when exchanges took place They are the focal point of all marketing activities

Target Market TARGET MARKET A specific group of customers/stakeholders on whom an organisation focuses its marketing efforts Target Market Target Market Appealing to target markets Special K appeals to health-conscious customers

THE MARKETING MIX (Customer) Marketers combine and balance these four elements when determining how to satisfy customers’ stakeholders’ needs for a product: Product Price Place (Distribution) Promotion More recent marketing professionals have suggested expanding the marketing mix to include important variables: People Physical evidence Processes Partnerships The ‘expanded marketing mix’ 8Ps Sometimes called the 4Ps

EXPANDED MARKETING MIX: THE 8Ps The expanded marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market.

STRATEGIC MARKETING (THE ENVIRONMENT) The six types of external forces that surround the customer and affect the marketing mix Economic forces Political forces Legal and regulatory forces Technological forces Sociocultural forces Competitive forces Unlike the marketing-mix variables, an organisation has no control over these forces bg

Discussion Question Discuss how 1 of the 6 forces in the strategic marketing environment (that you don’t control) would impact on your marketing strategy for 1 of the following products: Cigarettes Alcohol Diesel cars Another example?

Questions for the Luxor Case Describe the external & internal environment of Luxor, and changes that occurred in the environments, from the start of the case - to the end of the case? Describe the history of George’s career from the start of the case - to the end-of the case. Who’s to blame for the problems that occurred? George? Luxor? What did the leadership in Luxor do – or not do - that could have led to the problems that George encountered? (consider the Sales/Marketing dilemma) What did George do - or not do - that could have led to the problems with his career? (consider the Sales/Marketing dilemma) As a member of the board, at the end-of the case, what do you recommend Luxor do with George? Why do you say this?

Questions for the Luxor Case Describe the external & internal environment of Luxor, and changes that occurred in the environments, from the start of the case - to the end of the case? Describe the history of George’s career from the start of the case - to the end-of the case. Who’s to blame for the problems that occurred? George? Luxor? What did the leadership in Luxor do – or not do - that could have led to the problems that George encountered? (consider the Sales/Marketing dilemma) What did George do - or not do - that could have led to the problems with his career? (consider the Sales/Marketing dilemma) As a member of the board, at the end-of the case, what do you recommend Luxor do with George? Why do you say this?

How many of you have ever experienced: a How many of you have ever experienced: a. Rejection or disappointment in a customer service experience? b. A positive customer service experience EXERCISE Individually and silently, think about either a positive or negative customer experience you might have had in the past? Then, describe the experience to members in your group. If you selected a negative experience and could go back in time, what should have happened differently that could have avoided disappointment and the negative experience? If you selected a positive experience, what lessons could you share with members in your group about the factors needed to achieve a positive customer satisfaction? Each group member shares their experiences with the group. What do you learn about “Relationships” and “Marketing” from these incidents

RELATIONSHIP WITH STAKEHOLDERS Constituents who have a ‘stake’, or claim, in some aspect of an organisation’s products, operations, markets, services, industry and outcomes - and who could potentially either help or hurt you from achieving your results or goals. Staff and management (Internal) Government NGO’s Municipalities Provinces Trade Unions Shareholders Vendors and suppliers Regulatory bodies and agencies Industry ombudsmen and associations How you structure your relationships with these constituents will be crucial for your long-term growth

Group Assignment: Stakeholder Mapping You are the Marketing Director for an NGO or Trade Union. Do a Stakeholder map! You want to establish a close relationship with each stakeholder group. Describe what you believe each stakeholder would value (and need from you) should they wish to form a relationship with you and your NGO/Trade Union. Describe how you would initiate and build a relationship to each different stakeholder group?