Strategy and Marketing

Managing Organisational Performance

FINM074
Team Updates
Range of skills?
What does each member
bring to the team?

Purpose: Mastering the

fundamentals i.e. putting
theory into action.
This is just an introduction
to Strategy as you are also
taking the Strategy &
Decision Making module
Strategy

What is your understanding

of strategy?

Where did strategy originate

from?

Why is it needed in business?

Definition
Of Strategy

• https://www.youtube.com/watch?v=Fjo1TPe5isw
• https://www.youtube.com/watch?v=eOFqekOF9ZI
Industry Analysis

Porter’s 5 Forces – Industry Attractiveness

a framework to analyse the level of competition within an industry and business strategy development
Porter, M. E. (1985), Competitive Advantage, The Free Press, New York
Introduction to Marketing
Definition

“Marketing is the management process

responsible for identifying, anticipating
and satisfying customer requirements
profitably.”
CIM (2009)
https://youtu.be/i1xz5Kv-7VY
Segmentation
The subdividing of a market into distinct and homogeneous group of customers
• Common needs and preferences
• Age
• Gender
• Social class
• Occupation
• Nationality
• Level of income
• Geographical area
• Buyer behaviour
• Lifestyle - upwardly mobile, traditional, security and status, hedonistic
• New market opportunities benefits
• Specialisation benefit
• Budget benefits
• Domination of particular segments
 Targeting Concentrated
Looking at the
SimVenture simulation
– use the market Differentiated
research feature to
look at the
characteristics of
different companies'
Undifferentiated
products and see how
they have used this for
their market targeting
Positioning
Positioning Statement:

To target market, x is a
brand of frame of reference
that benefit because of
positive attributes.

To environmentally-
conscious drivers, Toyota is
a brand of modern vehicle
that reduces carbon
emissions because of
innovative new
technologies.
 Let’s review how the market has
been segmented, targeted and Using S-T-P
positioned in the bicycle industry
on the SimVenture simulation
Activity
1. In your Teams review the
market research
information on the
SimVenture simulation
2. Discuss the S-T-P strategy
for one of the competitors
3. What are the pros and
cons
4. 10 minutes each to
present
Planning For Marketing 1/2
Elements Description
Marketing Plan Summarise the key components of your marketing plan. Think of it as a quick reference
Summary tool that you can refer to at any time to keep your goals on track.

Background Analysis The opportunities and challenges that your business has encountered along the way -
helps you to define your business's capabilities and opportunities within the market.
Also play key role in helping you to meet your customers’ needs
Marketing Objectives Specifics about what your marketing plan to accomplish. May be financial - with a goal
to increase sales, or marketing focused to build awareness of your product or service.
The most effective (and accountable) way to define your marketing objectives is to
follow the ‘SMART’ acronym (Specific, Measurable, Achievable, Realistic and Timely)
Marketing Strategy An effective marketing strategy will help you to define the overall direction for your
marketing program. It will also detail how you are going to bring your products and
services to market in ways that will satisfy your customers.
Marketing Mix The elements that make up your marketing strategy are often referred to as the
marketing mix, and should include the 8 P’s of marketing - product (or service), pricing,
position, promotion, people, process, physical environment and productivity.
Planning For Marketing 2/2
Elements Description
Actions Plans and Strategies and marketing goals are theoretical objectives. It’s your action plans and
Budgets budgets that will bring them to life. Action plans and budgets are key tools for
implementation. To ensure that they are successful they should be detailed, definitive
and revisited regularly.
Organisational Organisational implications are often overlooked when business owners tackle a
implications marketing plan. For example, if your goal is to increase your customer base by 15% and
therefore your staff by 10% - will you be able to house them in your current offices?
Could you outsource some tasks? It’s important to consider and document these
decisions in your plan.

Contingencies All business plans should remain flexible and adjustable as you are often working with
assumptions. The more planning you do, the better you will become at predicting.

Evaluation and To ensure ongoing improvement it’s critical to test and measure the results of marketing
monitoring strategies activities. Whatever method or technology - formal methods of evaluation and
monitoring will help you to understand the effectiveness of your marketing and return
on investment.
Supporting Use this section of the marketing plan to reference and attach documents supporting the
documentation claims or assumptions made within the marketing plan.
Marketing Strategy
The big picture of providing a profitable product or service to a customer in a competitive market.

You start with research:

Market segmentation
Market targeting
Differentiation
Positioning

The goal is to take research arising from your intended strategy to inform the components of your
marketing mix.
Further Points
• Marketers study their target audience (e.g., young children, teens, adults, parents, females) and build their tactics around
these audiences.
• Marketing theory revolves around the belief that their audience must have these products, organisations or companies
supply this need, and customers benefit from this need.
• Marketers depend on two outcomes: meeting the needs of returning customers and the acquisition of new customers.
• Marketers draw from psychology, sociology, and economics to build their campaigns for promoting products.
• Marketers pay attention to the Marketing Mix aka The 4Ps, including:
• Product: What aspects of the product fits the consumer’s needs and wants? Does it have a warranty, a guarantee,
and support (technical or customer service)? What language is used to describe the product, and how is language
used?
• Pricing: Marketers set prices based upon what consumers are willing to pay. They consider such things as discounts
and including other items. (For example, does the mp3 player come with an armband?)
• Promotion: This involves the methods used for promotion and publicity of a product, brand, or company, such as
billboards, magazines, television, radio, and online.
• Placement: This involves the steps taken to get the product to the consumer (online and/or retail stores) and which
geographic area will be most successful for the product. (For example, John Deere farm equipment may do better in
the Midwest than in New York City.)
The Marketing Mix
The set of marketing tools/tactics that a firm uses to pursue marketing
objectives in the target market.

When marketing their products firms need to create a successful mix of:

the right product

sold at the right price
in the right place
using the most suitable promotion.
The Marketing Mix - Product
“a product is anything that can be offered to a market for attention, acquisition,
use, or consumption that might satisfy a want or need.” (Kotler)

• Quality, Features, Options, Style, Brand name. Packaging, Sizes, Warranties

The Marketing Mix - Price
The price is the amount of money charged for a product or service.

• Rent, Fees, Fare, Rate, Toll, Interest, List price, Discounts, Allowances, Payment Period, Credit
terms
• Pricing strategy
• Skimming: riding down the demand curve (DFS, iPhone)
• Penetration: low entry price, elastic demand (Ryanair)
• Prestige: throughout the product life (Rolex)
• Discriminatory: use consumer preference to distinguish different classes (NUS)
Price Skimming
• Segments the market – early adopters, test, feedback, create further
demand
• High ROI
• Maintain brand image
• Only when product is inelastic? Base expected price for product –
oligopolies
• Attracts competitors and potentially created elasticity
• Fine line before annoying early adopters
•  you need to know your market
The Marketing Mix - Place
The place or “distribution” is how a business gets products to customers.

• Channels, Coverage, Locations, Inventory, Transport

• Channels: a network, usually legally and economically separate, enabling
goods and services to flow to market.
The Marketing Mix - Promotion
Promotion is the business of communicating with customers.

• Advertising, Public relations and sponsorship, Sales promotion, Personal selling, Direct Marketing
• Above the line: broadcast to large audiences e.g. TV advert. Although targeted it can be seen by
anyone.
• Below the line: targeted incentives to purchase e.g. email campaign. It is aimed directly at the
target audience.
• "Integrated Communication Approach" or "through the line"
Services Marketing 1/2
The need for the 7 Ps: In 1 minute write down as many as you can
Product: pure services are intangible, brand has a major influence.
Price: an indicator of quality, can control demand, a key segmentation
variable.
Place: location is more critical as production and consumption often
happens simultaneously.
Promotion: intangible elements difficult to communicate, often
personal selling, WOM critical to success.
Services Marketing 1/2
People
• Quality: service quality inseparable from quality of the service provider.
• Standards: training and professional standing.
• Minimising variation: monitoring and control of performance.
Physical evidence
• Tangible: buildings, layout, and furnishings where services are delivered.
• Intangible: customers associate intangible quality of service with the tangibles such as
appearance.
Process
• Procedures, mechanisms, and flow of activities by which a service is acquired.
• Affects delivery time.
The 8 Ps of Marketing
Productivity and Quality (Performance)
• Is your offering a good deal for the customer?
• How do you pass productivity on to your customers?
• How well features deliver benefits.

“improving productivity is a requisite in cost management; but quality, as defined by

the customer, is essential for a service to differentiate itself from other providers.”
Lovelock, C. and Wirtz, J. 2007. Services Marketing: People, Technology, Strategy. 6th Edition.

The original Four Ps of marketing - important components of product marketing.

Additional Ps have evolved for marketing services.
Team Activity
1. Think of the bicycle business and
2. Start to analyse their offering from
what you can discern of their 4/7/8 Ps

Product
Price
Place
Promotion
People
Physical
Process
Performance