BMA13 Strategy Marketing

Strategy & Marketing
Dr Paul Fifield
Visiting Professor
Proprietary & confidential Paul Fifield 2013. not to be used or copied without permission 1
Paul Fifield
Paul advises companies on Market Strategy and has
written widely on the subject.
He has 25 years experience in strategic consulting with
previous clients in: Agri Chemicals, Aviation, Banking,
Brewing, Business Services, Computing and Software,
Construction, Distribution, Domestic Appliances,
Economic Development, Education, Housing, Hotels and
Catering, Insurance, Leisure & Tourism, Online gaming,
Public Sector, Publishing, Retailing,
Telecommunications, Utilities, Web services and others.
He holds a degree in Business Studies as well as an MBA and a PhD in

Marketing Strategy, both from Cranfield University.
Paul teaches on a number of MBA programmes and is currently Visiting
Professor at the University of Southampton and the College des Ingnieurs in
Paris. He is President of the CIM Southern Region and a Fellow of the Royal
Society for the encouragement of Arts, Manufacturers and Commerce (FRSA).
Paul co-founded The GreenField Organisation LLP in 2008
Agenda
DAY 1 STRATEGY
1.1 What is Strategy?
1.2 The critical importance of Customers
1.3 What business?
1.4 What is the Objective?
1.5 What is the Strategy?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
The Approach
2 days of THINKING
Dealing with strategy & marketing
A Puzzle ..has a correct Answer
A Problem ..has more than one Solution
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Strategy Terminology
The OBJECTIVE(S)
The goal or aim to which ALL activities in the organisation are directed
An objective always begins with the word TO
Objectives do NOT change in the short term
The STRATEGY
The ONE route which is both NECESSARY and SUFFICIENT to ACHIEVE
the objective
A strategy always begins with the word BY
Strategy is not changed in the short term
The TACTICS
The short term actions required to implement the strategy
Manoeuvres on the field of battle
Tactics do change in the short term
Filling the strategy gap
The Gap
0 +1 +2 +3 +4 +5 +6 +7
Strategy and Implementation
STRATEGY FORMULATION
ineffective effective
effective Die quickly Thrive

IMPLEMENTATION
STRATEGY
ineffective Die slowly Survive
Planning
1. Strategic:
Three to Five years depending on the nature of the business.
2. Tactical:
One year to 18 months.
3. Programmes:
Rolling quarterly with quarterly and annual milestones and
reporting.
First, agree the Financial Hurdles
Every organisation has one or more financial imperatives that it must
satisfy to remain in business. These are not the same as objectives.
These hurdles just need to be seen, measured and jumped. They
should NOT guide the destiny of the organisation
Our financial hurdles are:
1.
2.
3.
4.
Then, set the business objective
1. What is our Business Objective?
What do we want/need to achieve in this business?

How is it measured?
By when?
How will we know when we have achieved it?
If we achieve it, will it satisfy the Financial Hurdles?
Objectives
What is our Business Objective? OBJECTIVE:
What do we want/need to achieve in Begins with To.

this business?
One is better than many
How is it measured? Must be SMART
By when? Different from Financial

Targets*
How will we know when we have
*Too many organisations
achieved it? confuse purpose with
measures of success RSA
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Business Strategies
What is our Business
Strategy? STRATEGY:
Begins with By.

How do we achieve the agreed
objective? Not short term
What are the alternatives? Not straws in the wind
Can it be done? Not changed every Friday
Not another word for important

Can we do it? tactics >
Must be both NECESSARY and

SUFFICIENT to achieve the objective
The Generic Strategies
Focus
Stuck in
The Middle
Cost Leadership Differentiation
[Source: Porter 1983]
Red Ocean Blue Ocean (Kim & Mauborgne)
Strategy is rarely linear
Sales/Profit/Market share/other objective The

Changing Market
Environment
B Vision/Objective
te gy
Stra
rk et
Ma
A
Today
1 2 3 4 5 6 7 8 .... x
Time
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Henry Ford
It is not the employer

who pays the wages.
Employers only handle
the money. It is the
customer who pays the
wages.
Henry Ford 1863-1947

American industrialist and pioneer of the
assembly-line production method,
22
Levitt on Customers
Customers just need to get

things done. When people
find themselves needing to
get a job done, they
essentially hire products to
do that job for them
Theodore Levitt (1925-2006), American

economist and professor at Harvard Business
School. Editor of the Harvard Business Review
We know that customers are Selfish
Whats
WIIfm
In
It
For
Me Me Me Me Me Me Me?
Consumer Behaviour models
The Process
Cultural Sociological Economic
Cultural beliefs Social class structure Price

& values Family/group influence Delivery
Lifestyles, etc Life-Cycle Payment terms
Opinion leadership, etc Sales, services, etc
Individual Psychological Factors

Level of knowledge & awareness
Personal (emotional) characteristics
Motivations, Attitudes, etc
Buying Proposition
Product or Service
[Chisnall]
The B2B Decision Making Unit (DMU)
DECISION-MAKER INFLUENCER
USER CUSTOMER BUYER
GATE-KEEPER SPECIFIER FINANCIER
Three Aspects of Customer Value
Constant Environmental Change
Functional
Your
Offer
Emotional Economic
From Commodities to Experiences
Customer Perceived Value increases.
The Experience
(enjoyed in a $2-5
5 star restaurant)
The Service
(brewed in a 50
regular cafe)
The Good
(ground, packaged,
sold) 525
The Commodity
(harvested & traded) 12
Laura Ashley
We don't want to push our

ideas on to customers, we
simply want to make what
they want
Laura Ashley CBE,

(1925 1985),
Welsh designer
29
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
What business?....
1. Are we in?
2. Should we be in?
Product led Company Market led
Motor Cycles Harley Davidson Big Boys Toys
Watches Swatch
Electric Motors B&D
Railroads Amtrak
Electronics Sony
Cars Jaguar
Watches Rolex
Beer A Busch
Cosmetics Revlon
Pubs Bass Taverns
Coffee Shops Starbucks
Leather/Luggage Louis Vuitton
Encyclopedias Britannica
HD and their business definition
x Proprietary & confidential Paul Fifield 2013. not to be used or copied without permission 32
What business?
Product led Company Market led

Motor Cycles Harley Davidson Big Boys Toys
Watches Swatch Fashion Accessories
Electric Motors B&D DIY
Railroads Amtrak Transport
Electronics Sony Entertainment
Cars Jaguar Status
Watches Rolex Jewelry
Beer A Busch Friendship
Cosmetics Revlon Hope
Pubs Bass Taverns Entertainment
Coffee Shops Starbucks The Third Place
Leather/Luggage Louis Vuitton The Art of Traveling
Encyclopedias Britannica Parental guilt
Our Product? Our Company Our Business
What business are we in?
Our business is key to our plans, it:
1 Is defined by the customer

- Would our customers understand our business?
2 Focuses the organisation on needs satisfied
- What needs should we be satisfying?
3 Establishes directions for growth
- Where should we be investing for the future?
4 Establishes boundaries for effort
- What should we do more of/stop doing?
5 Determines real competitors
- Who are we really competing with?
6 Establishes the markets to be served
- What is our core target market?
Case Task
1. What business do you think your company should be in?
2. Who are your target Customers?
What businesses for Sony & Apple?
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Case Task
What objective or vision will you set for your company?
Remember these must be SMART
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Case Task
What strategy will you use for your company to achieve the
objective or vision you have set?
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Nobody can foretell the future
The future is
where you must
invest. Now!
There are NO:

Answers
Solutions
Guarantees
The only
Certainty IS that
this is the world
in which you will
live and work.
Some Global Strategic Issues
Some issues for consideration:-
1. The changing nature of society: technological advance;
demographic shifts; environmental issues; ethnic and religious
issues
2. Political instability: middle east; Africa; Russia; EU
3. The changing climate: real or imagined; who bears the brunt;
rate of change; influencing factors
4. The changing nature of work: new work patterns; decreasing job
security; sectoral shifts; stakeholder demands
5. The changing face of organisations: increasing adaptability;
agility; more participative style; more openness
6. The changing world economy: global recession; changing
balance of power
Dependency Ratios
UK Pensioners :
Working Age
2008, 1:3.23
2033, 1:2.78
Sources, Business
Week & ONS
Political Instability
UK Average Temperature Estimates
Worldwide Rising Sea Levels?
Europe Rising Sea Levels?
A fresh look at the
current Recession
2013
Some research areas covered
Dynamic capability Market research Strategic & scenario
Adaptive advantage Futurology planning
Horizontal organisations Management accountancy Structured creativity
Customer value Organisation development Complexity theory
Economic cycle theory
Buyer behaviour modelling Theory of growth
Benchmarking
Organisational buying Systems theory
behaviour Corporate strategy (incl.
Classical economics
business-model innovation
Value-based marketing Swarm theory
competitive advantage,
Change management Behavioural finance emergent strategy, decision-
Value innovation (blue Theory of the firm making etc.)
ocean) Business development Econometrics
Discontinuity Customer experience Unreason
Action learning management Brand equity
Chaos theory Organisational culture Strategic market theory
Behavioural economics Knowledge management Leadership
Stakeholder management Personal Values
NICE (Mervyn King) has become NASTY
Non Nightmare of
Inflationary Austere and
Continuous STagflationary
Expansion Years
Copyright 2011
Is it just another Recession?
Discontinuity:
A break or gap in a
process that would
normally be
continuous
Despite the protestations of the media.
Kondratiev waves
Kondratiev and Stock Market Cycles since 1789
From Datastream the 6th wave = ???
End of wave 5 - Timeline
Early 2008
Aug 2007 Scale of sub-prime
Sachsen LB problem clear when Fannie May 2010
rescued after Mae & Freddie Mac have Early 2009 Greek Bailout
E17bn lifeline problems OECD composite
leading indicators
Dec 2007 Late 2008 begin to turn up
US enters US & global
recession Government
Interventions
2007
2008
2009
2010
2011
Sep 2007 Mid 2009
Northern Rock First indications from
receives liquidity OECD that situation Late 2010
support from BoE is stabilising Bailout of Irish Banks
Feb 2007 Sep 2008

HSBC writes down sub- Collapse of Lehman
prime bonds by $10nb Bros (Considered the
precipice of crisis
And the dark side..
We are in the economic Winter
Waves appear to be shortening
Case Task
What do you believe will drive the 6th Wave?
Implications
Customer Behaviour?
Customer Value has MIGRATED.
Much has been spoken about:
The Economic Implications of Social &
Political concerns
End of consumerism
Local/Provenance/Authenticity
The Environment Really?
Return of manufacturing
From Global to Local?
From Quantity to Quality?
Make-do-and-mend/Repair-ability
B-I Obsolescence versus Sustain-
ability?
Slow Tech & robustness
Brand shift through the discontinuity
Down: Up:
Exclusive -60% Kindness & Empathy +391%
Arrogant -41% Friendly +148%
Sensuous -30% High Quality +124%
Daring -20% Socially Responsible +63%
Source: Gerzma &

DAntonio Spend
Shift 2010
Implications
Organisation?
Dont see it, too busy.. ( Banksy)
Ignore it ( Banksy)
Wonder what to do about it ( Banksy)
Charles Darwin
It is not the strongest of

the species that survives,
nor the most intelligent, but
the one most responsive to
change
Charles Robert Darwin (18091882)

He wrote: On the Origin of Species,
The Descent of Man,
and Selection in Relation to Sex,
The Expression of the Emotions
in Man and Animals.
Jack Welch
When the rate of

change inside the
company is exceeded
by the rate of change
outside the company,
the end is near
John Francis "Jack" Welch, Jr. (1935-) is an American chemical engineer, business
executive, and author. He was Chairman and CEO of General Electric between 1981
and 2001. During his tenure at GE, the company's value rose 4000% and was the
most valuable company in the world for a time. In 2006 Welch's net worth was
estimated at $720 million.
Implications Strategy?
John Howard
"You can't fatten

the pig on
market day."
1939- ) Australian politician and the

25th Prime Minister of Australia.
72
Edward Abby
Growth for
the sake of
growth is the
ideology of
the cancer Edward Paul Abbey (1927 1989) was an
cell
American author and essayist noted for his
advocacy of environmental issues, criticism
of public land policies, and anarchist
political views.
Henry Mintzberg
Setting oneself on a predetermined

course in unknown waters is the
perfect way to sail straight into an
iceberg.
Professor Henry Mintzberg, OC, OQ,

FRSC (born in Montreal, 1939) is an
internationally renowned academic
and author on business and
management.
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Case Task
What is your target market for the future

Where will you be investing the future of your organisation?
DAY 2
Agenda
DAY 1 STRATEGY
1.3 What business?
DAY 2 MARKETING
2.1 Product
2.2 Price
2.3 Place
2.4 Promotion
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
What is Marketing?
"Marketing is a social and managerial process by which individuals and
groups obtain what they need and want through creating, offering and
exchanging products of value with others Philip Kotler
The process of planning and executing the conception, pricing,

promotion, and distribution of ideas, goods, and services to create
exchanges to satisfy individual and organizational objectives AMA
The act or process of buying and selling in a market. The commercial

functions involved in transferring goods from producer to consumer.
Answers.com
The point of Marketing is to make Selling unnecessary Drucker
Marketing is the management process responsible for identifying,

anticipating and satisfying customer requirements profitably.
CIM(UK)
Marketing
Marketings contribution to business success in manufacturing,
provision of services, distribution or retailing activities lies in its
commitment to detailed analysis of future opportunities to meet
customer needs and a wholly professional approach to selling to
well-defined market segments, those products and services that
deliver the sought after benefits.
Achieving revenue budgets and sales
forecasts are a function of how good our
intelligence services are, how well suited
our strategies are and how well we are led
Malcolm MacDonald
Fifields Preface to REAL Marketing
What is the point of Marketing?
To be able to charge the highest
possible price for your product or service
How do you do that? Seek out and add Customer Value By:
1. Being easy to choose
Differentiation
The better you do 2. Treat customers as individuals
these, in a constantly Segmentation
changing environment, 3. Giving them a REAL reason to come
the higher your prices Branding
will go 4. Ensure the organisation delivers
Alignment
Market Share
Sales Share
Profit Share
Other
Shareholder Stakeholders Personal values of
Value requirements key implementers
Long Term Leadership

Financial Vision
Objective Mission
Customer and
Strengths and Resource/ Environment Opportunities
market orientation
Weaknesses Performance Audit Audit And Threats
External
Competitive Competitor Focus Industry Structural
opportunities analysis analysis opportunities
The Business
Objective
Sustainable
Competitive Competitive
Strategy The Business Advantage
Strategy
The Marketing
SCORPIO Objective
Industry
(Marketing Strategy)
Organisation or
Positioning
Structure & Market
Culture & Branding
The
Customer Customer
Segmentation
& Targeting Retention
Offerings
Finance H. Resource Product IT Operations

Objective/Strategy Objective/Strategy Policy Objective/Strategy Objective/Strategy
Place
(distribution) Price Promotion
Policy Policy Policy
Fifield 2007
(Feedback & Control) The Marketing Plans,
Programmes & Implementation
(Feedback & Control)
The Customer
The Marketing mix (Neil Borden)
Branding Promotions Servicing Physical
Handling
Product Pricing
Planning
THE
TARGET
MARKET
Packaging Advertising
Fact finding Personal

& Distribution Display
channels Selling
Analysis
The Marketing mix (4Ps)
Product Price
THE
TARGET
MARKET
Place Promotion
People
Product Price
THE
TARGET
MARKET
Place Promotion
Physical
Process
Evidence
People
Product Price
THE
Personal
Privacy TARGET Interests
MARKET
Place Promotion
Personal Physical
(Social Process Public
Networks)
Evidence Commentary
The Marketing mix (4Cs)
Customer Cost
Needs & Wants (to the user)
THE
TARGET
MARKET
Convenience Communication
Product Price
THE
TARGET
MARKET
Place Promotion
Position
The Marketing mix (make-your-ownPs)
P
Product Price
THE
TARGET
MARKET
Place Promotion
P P
Product Price
Quality Sizes List price Discounts
Features Services Allowances Rates
Options Returns Credit Changes
Style Warranties Communications
Brand Packaging Opportunity Cost
Differentiation
THE
Payment period
TARGET
Place MARKET Promotion
Channels Coverage Message Media
Locations Inventory Above/Below-the-line
Transport Partners Advertising Direct
Routes-to-market Publicity PR
Supply Chain Personal Selling WOM
Intermediaries Promotion Internet
Case Task
What is your target market for the future

Where will you be investing the future of your organisation?
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Product Price
Differentiation
THE
Payment period
TARGET
Products and/or markets?
Product features Customer
needs/wants
Product sales Customer
satisfactions
Technical The Customer
excellence expectations
Great
Product service Customer service
Debate: Emotional
Rational solutions
solutions Customer and/or
Product segment
profitability profitability
PUSH PULL
Strategy Strategy
Levitt on the product
A product is
what a product
does
Theodore Levitt (1925-2006), American

economist and professor at Harvard Business
School. Editor of the Harvard Business Review
What-it-is (features) or What-it-does? (benefits)
Are you selling a 6mm drill Or a 6mm hole?
A Telephone? Or Identity?
A service is..
Government Private Non-Profit Business &

Professional
Legal Art & Music Groups Airlines

Educational Leisure Facilities Banking
Health Charities Insurance
Military Churches Hotels
Employment Foundations Management
Credit Colleges, etc consultants
Communications Solicitors
Transportation Architects
Information Advertising Agencies
services, etc Market Research, etc
The Service Product
A service is any activity or benefit that one party can offer
to another that is essentially intangible and does not result
in the ownership of anything. Its production may or may
not be tied to a physical product
[Kotler]
Characteristics of services:
1 Intangibility
2 Inseparability
3 Heterogeneity
4 Perishability
5 Ownership
The Augmented Product Concept
The Support Emotional Benefits
Services
component
Additional Benefits
Tangible
The Core Benefits or
component Knowhow
eg. functions
eg. design
The Packaging
component
eg. Service, trust,
prestige
The Product/Service Life Cycle
Introduction Growth Maturity Decline
Supply;
Push to Pull!
Cant make Growing
enough availability No new buyers
Little formal Growing Repeat purchase
infrastructure Competition Can get boring
Failing demand
Higher costs Best marketing?
Falling profits or
Demand: Customer focus debts
Demand: Growing Market Segmentation
Fewer
Innovators awareness (S) critical customers
Early adopters Reducing Prices Consolidation
Death, or
Higher Price Early majority Fewer BIG players
Rejuvenation
Higher Risk Emerging More NICHE players Possible re-
Little awareness standard design Can last a looong time positioning
New
Consolidation
The Chasm
Case Task
What Product/Service does your strategy require?
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Product Price
Differentiation
THE
Payment period
TARGET
An important word about Price
In any developed market, In an undeveloped market,

90% of customers would a proportion of customers
prefer to buy on non- will prefer to pay premium
price reasons and pay price for additional value
some level of premium
price for perceived A proportion appears to
additional value want the cheapest but
have latent needs that
have not yet been
identified and exploited
10% will always buy the
cheapest because they Still, 10% will always buy
dont care about the the cheapest
category
108
Approaches to Pricing
1. Cost Plus pricing Cost informs the price
2. Market pricing Customers inform price

Cost informs the profit available
Why is this important????????????
PRICE IS THE ONLY SOURCE

OF REVENUE IN THE
MARKETING MIX!
Why industrial (B2B) companies lose customers
80
68%
Percentage of lost customers
60
40
20 9 14
1 3 5
Death Relocation Develop Lower Product Company
New Price Dissatisfaction Indifference
Relationships
Understanding Profit Drivers
Profit
Revenues Cost
=
Sales Volume Variable Cost Fixed Cost
Price 100 30 million
(Units)
1 million
Variable cost Sales Volume
per unit = 60 1 million
What is the profit impact if each of

the 4 levers improves by 10%?
Understanding Profit Drivers (2)
An increase in price has a greater impact on profit than an increase in
volume or decrease in costs.
10% improve Profit Driver Profit Profit

in: Old New Old New % Change
Variable cost 60 54 10 16 60%
per item
Sales Volume 1m 1.1m 10 14 40%
Fixed costs 30m 27m 10 13 30%
Price 100 110 10 20 100%
Role of price
What clients of Engineering, Procurement & Construction (EPC) want
(2006)
1 Employees are knowledgeable & experienced in our industry

2 Provide quality engineering appropriate to our needs
3 Meeting schedule commitments
4 Meeting cost expectations & commitments
5 Deliver value for the money
6 Providing schedules that meet our needs
7 Provide quality fabrication and construction that meets our needs
8 Being able to perform the work wherever we need it done
9 Pricing for services & technologies
10 Having local employees with knowledge of local customs/regulations
The race to the bottom
Marketing should NOT be about:
Selling as much as possible

Building market share at any
cost
Chasing any sales revenue
available
Cutting the price to stay in the
race
Unless you want to kill the

company!
Case Task
What Pricing Approach does your strategy require?
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Product Price
Differentiation
THE
Payment period
TARGET
The distribution channel is ...
"The route along which a product and its title (ie the rights of
ownership) flow from production to consumption"
Channel Configurations
Originating manufacturer/Service provider
Agent
OEM
Direct Prime
Contractor
OEM Wholesaler Sub

Direct Contractor
Mail
Post
Phone
Online Distributor VAR Retailer Specialist
F2F
End Buyer/User
Why use intermediaries?
Specialisation
Division of labour
Provide assortment by gathering supplies together from
number of manufacturers - honest broking
Breaking bulk so as to meet scale of need of customers - and
buying in bulk on behalf of customers
Reduce contactual costs
Geographical proximity and local knowledge
Adding value (eg customisation, service, installation)
Theoretically cash received quicker up the chain
Running interference - for their customers and their
suppliers
Reducing contactual costs or channel geometry
4 Manufacturers contact
4 retailers directly 4 Manufacturers distribute
through a wholesaler
M M M M M M M M
R R R R
No. of contacts = 4 x 4 = 16 R R R R
No. of contacts = 4 + 4 = 8
Increasing Retailer concentration
M M M M
M M M M
R R R
R R R R
R R R R
R R R R
R R R R
Battle for control
"Let's say I have a new product. Sainsbury and Tesco have

over 50% of the London market: London is so important
that, if they won't accept my product, it simply isn't worth
launching."
- Major Food Manufacturer
"I account for 25% of your business. You account for less that
5% of mine. Let's talk terms."
- Retail Buyer to Major Household Products Manufacturer
Who owns the customer owns the margins
Producer
Push Pull
(sales) (marketing)
Communication Intermediary Information
Consumer/
End User
= Margin
Brand Franchise!
Your choice
Originating manufacturer/Service provider
Agent
OEM
Direct Prime
Contractor
OEM Wholesaler Sub

Direct Contractor
Mail
Post
Phone
Online Distributor VAR Retailer Specialist
F2F
End Buyer/User
Case Task
What Place/Distribution/Route to market solutions does

your strategy require?
Agenda
DAY 1 STRATEGY
1.3 What business?
1.6 The Future..
DAY 2 MARKETING
2.1 Target Market
2.2 Product
2.3 Price
2.4 Place
2.5 Promotion
Product Price
Differentiation
THE
Payment period
TARGET
Which half ?
"I know that half my

advertising budget
is wasted, but Im
not sure which half."
William Hesketh Lever, 1st Viscount

Leverhulme (1851 1925) was an
English Industrialist, philanthropist and
colonialist. He established a soap
manufacturing company called Lever
Brothers (now part of Unilever) with his
brother James
Value or Volume?
2006 data (UK):
Number of messages seen per day = +/-3500
= 4/minute in a waking day
EyeContact glasses:
90 minute London shopping trip
250 messages recorded
100 brands
70 formats
Prompted recall = 130
Customer interested
Unprompted recall = 1
The Future of Advertising?
A recent paper titled "The
Future of Advertising is Now"
by Christopher Vollmer et al,
attempts to solve Lord
Leverhulmes dilemma, at
least for the automobile
industry.
Clearly, his lordships
assessment remains
remarkably accurate, as this
chart from the paper shows.
Promotion can affect.
1.Attention
2.Interest
3.Desire
4.Action
Promotional objectives
, o n
Promotion may be used to achieve the following:
t i o n
the service organisation
o t
1. To build awareness and interest in the service or product and
m o a n n
o c
2. To differentiate the product/service offer and the organisation
P r
from competitors
n ,
o w
3. To communicate and portray the benefits of the
ti s
products/services available
l
4. To build and maintain the overall image and reputation of the
se l
providing organisation
5. To persuade customers to buy or use the product/service

Promotion by objectives
1 Promotional objectives
2 The target audience
3 The message
4 The media: advertising
sales promotion
publicity
personal selling
public relations
5 Budgets
6 Testing and Control
The promotional mix
Newspapers and Magazines The Line separates the

Trade and Professional Press mass media from the
Television and Radio more targeted
Cinema
----------------------------------------------------------
Exhibitions
Direct Mail
Public Relations
Point of Sale
Digital/Internet In services, personal
Packaging selling may be
indistinguishable from
Sales Promotion service delivery
Indirect Personal Selling
Company Image
The Service Product
Pricing
Word of Mouth
The fundamental proposition
1 2
Who is the one person What is the one thing
you want to talk to? you want to say to
them?
The
4
Questions
4 3
How do you want them Why should they
to feel as a result? believe you?
Case Task
What Promotional policy does your strategy require?
FINAL Case Task
From 0 to 10
How confident would you be of investing your entire pension
over the next 40 years in the outcome of your plans?
Reading List
1. Principles of Marketing: European Edition- Kotler, Saunders & Armstrong,
FT Prentice Hall 2004
2. Mercator : Thorie et pratique du marketing, Lendrevie, Levy & Lindon
2006
3. Marketing Strategy 3rd Edition - P Fifield, Elsevier 2007
4. Marketing Strategy Masterclass P Fifield, Elsevier 2008
5. Collected Essays in Marketing Strategy P Fifield, Fifield, 2006
6. The Marketing Imagination - T Levitt, Free Press, 1998
7. Market-led Strategic Change N Piercy, Butterworth Heinemann, 2010
8. Marketing Briefs S Dibb & L Simkin, Butterworth Heinemann 2004
9. Marketing Plans M MacDonald, Butterworth Heinemann 2002
10. Marketing Management and Strategy P Doyle, FT Prentice Hall, 2006
11. Marketing Research: An Applied Approach D Birks & N Malhotra, FT
Prentice Hall 2005
12. Essentials of Marketing Research - T Proctor, FT Prentice Hall, 2003
13. International Marketing V Terpstra, South Western College Pub, 2001
14. Marketing across cultures - JC Usenier & J Lee, FT Prentice Hall 2005

BMA13 Strategy Marketing

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BMA13 Strategy Marketing

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Strategy & Marketing

He holds a degree in Business Studies as well as an MBA and a PhD in

A Puzzle ..has a correct Answer

A Problem ..has more than one Solution

effective Die quickly Thrive

ineffective Die slowly Survive

Our financial hurdles are:

1. What is our Business Objective?

What do we want/need to achieve in this business?

What is our Business Objective? OBJECTIVE:

What do we want/need to achieve in Begins with To.

How is it measured? Must be SMART

By when? Different from Financial

Begins with By.

What are the alternatives? Not straws in the wind

Can it be done? Not changed every Friday

Not another word for important

Must be both NECESSARY and

Cost Leadership Differentiation

[Source: Porter 1983]

Sales/Profit/Market share/other objective The

It is not the employer

Henry Ford 1863-1947

Customers just need to get

Theodore Levitt (1925-2006), American

Cultural beliefs Social class structure Price

Individual Psychological Factors

USER CUSTOMER BUYER

GATE-KEEPER SPECIFIER FINANCIER

Constant Environmental Change

Customer Perceived Value increases.

We don't want to push our

Laura Ashley CBE,

Product led Company Market led

1 Is defined by the customer

1. What business do you think your company should be in?

2. Who are your target Customers?

There are NO:

Feb 2007 Sep 2008

What do you believe will drive the 6th Wave?

Source: Gerzma &

It is not the strongest of

Charles Robert Darwin (18091882)

When the rate of

"You can't fatten

1939- ) Australian politician and the

Setting oneself on a predetermined

Professor Henry Mintzberg, OC, OQ,

What is your target market for the future

The process of planning and executing the conception, pricing,

The act or process of buying and selling in a market. The commercial

The point of Marketing is to make Selling unnecessary Drucker

Marketing is the management process responsible for identifying,

Long Term Leadership

Finance H. Resource Product IT Operations

Fact finding Personal

What is your target market for the future

Theodore Levitt (1925-2006), American

Are you selling a 6mm drill Or a 6mm hole?

Government Private Non-Profit Business &

Legal Art & Music Groups Airlines

Introduction Growth Maturity Decline

What Product/Service does your strategy require?

In any developed market, In an undeveloped market,