2. Identify some ways that marketers can be better strategists and use strategy to achieve better outcomes.

Support with examples and references. (15%)

In the big picture of the Strategic Marketing Framework ( Figure 1), we have picked out key areas that can help a marketers achieve greater results in their marketing strategy. The key areas that we will address are segmentation, market orientation, competitive advantage and providing customer value.

Figure 1 shows the various stages involved in a strategic marketing process labelled as the Strategic Marketing Framework.

Segmentation Marketing strategies can be improved by understanding who we are targeting, what their needs are and how we satisfy those needs in the most cost effective and efficient manner (Quinn, 2009, Pg 255). The formula - segmentation, targeting, positioning (STP) - is the essence of strategic marketing." (Kotler, 1994, p. 93). Market segmentation is an adaptive strategy. It consists of the partition of the market with the purpose of selecting one or more market segments which the organization can target through the development of specific

marketing mixes that adapt to particular market needs. The process of market segmentation also consist of having competitive advantages relative to competitors in the segment, reducing the cost of adaptation in order to gain a niche. This application of market segmentation serves the purpose of developing competitive scope, which can have a "powerful effect on competitive advantage because it shapes the configuration of the value chain." (Porter, 1985, p. 53). Apples strategy of dominating the mobile and computer market by offering superior products to the mass segments showed their understanding of the segments needs and reacted to it with superior products to satisfy those needs and gain competitive advantage.

According to Porter, the fact that segments differ widely in structural attractiveness and their requirements for competitive advantage brings about two crucial strategic questions: the determination of (a) where in an industry to compete and (b) in which segments would focus strategies be sustainable by building barriers between segments (Porter, 1985, p. 231). Through market segmentation the firm can provide higher value to customers by developing a market mix that addresses the specific needs and concerns of the selected segment.

Market Orientation Market orientation is a vital ingredient in determining an organisations success. An organisation can be market oriented only if it completely understands its market and must go beyond research and promotional functions to permeate every organisational function (Leone, 2011, Pg 17). The concept puts the customers needs at the centre of the organisation. In terms of Curtin University for example, the marketing concept starts with the student's and parents needs as the central function of purpose. The opportunity to meet University objectives will occur through the efforts to determine student and parent satisfaction.

Key Features in Market Orientation There are several key characteristics of a market oriented organisation (Wrenn, 1997). If we were to take Curtin as an example:

Customer focus Research (Drysdale, L. and Gurr, D. 1998 Pg 49) indicates most lecturers and

administrators reject the term customer preferring to use the terms parents, students or families. The essential feature of a customer focused characteristic is the demonstration of understanding and commitment that results in enhanced value to the clients (Bates, Whittington 2009, Pg 291). The behaviours of a customer-centred approach include:

researching customer needs; focusing on student (customer) satisfaction; committing to students; providing services of value; concentrating on needs; measuring and reporting satisfaction; and augmenting existing services.

Competitor orientation Most university communities believe that competition amongst universities is unhealthy and counterproductive. However, competition, from the viewpoint of the customer, is whatever will directly or indirectly satisfy a need. To understand the market, the university must recognise that there is competition and that it is advantageous to benchmark the university against other quantity programs and facilities that are offered and evaluate the offerings (Drysdale, L. and Gurr, D. 1998 Pg 49). Key behaviours are open discussion of competitors; evaluating competitor behaviour; assessing competitor strategies; and examining opportunities for improvement.

Inter-functional Coordination The total commitment of all members and the integration of marketing activities to provide value to the customer is key in this area. Typical behaviours include: departments and teams working together to meet student needs; departments and teams sharing market information; teams and departments integrating strategies; all sections working together to offer value to students; and teams willing to share resources (Drysdale, L. and Gurr, D. 1998 Pg 50) .

Long-term Focus Many universities regard a three year cycle as long term, claiming that the environment is too uncertain to plan beyond this time frame. Despite this, research indicates that organisations should develop strategic plans that go well beyond a three year cycle. Behaviours associated with this aspect include: adopting a long term focus in matters of growth/survival; attempting to service all customers (students, parents, agencies, suppliers

etc) in the long run; aiming for effective organisational performance in the marketplace; identifying and implementing new value added services; and identifying and overcoming deficiencies in school services (Drysdale, L. and Gurr, D. 1998 Pg 50) .

Market Intelligence System Most universities carry out parent surveys and obtain feedback from informal observation and discussion, but they seldom have a systemic and integrated approach to data gathering, analysis, storage and retrieval of market information. Market oriented organisation have intimate knowledge of their customer needs from a number of perspectives which are continuously communicated and discussed by organisational members. Key behaviours include systemic methods of organising and retrieving of current information; an intelligence network who collect and share information with everyone in the organisation; a systematic research approach to gather new market information through qualitative and quantitative methods; and a process for analysing information for decision making purposes.

Competitive Advantage According to Porter (1980, 1985) and Porter and Millar (1985), a firm develops its business strategies in order to obtain better competitive advantage (i.e., increase profits) over its competitors. It does this by responding to five primary forces: (1) the threat of new entrants, (2) rivalry among existing firms within an industry, (3) the threat of substitute products/services, (4) the bargaining power of suppliers, and (5) the bargaining power of buyers.

A company evaluates these five competitive forces in a given industry, then develops the market at those points where the forces are weak (Porter 1979). For example, if a company is focusing on cost leadership company, it may choose powerful buyers and sell them only products not vulnerable from substitutes. The company positions itself so it is not vulnerable to competitive forces while maximising its unique advantage.

A company can also achieve competitive advantage by altering the competitive forces. For example, firms establish barriers to deter new entrants from coming into an industry by cultivating unique or capital-intensive resources that new firms cannot easily

duplicate. Firms also increase bargaining power over their customers and suppliers by increasing their customers' switching costs and decreasing their own costs for switching suppliers. The five competitive forces model provides a solid base for developing business strategies that generate strategic opportunities (Wang, Lin, Chu 2011, Pg 100) .

Customer Value Customer value is created when the perceptions of benefits received from a transaction exceed the costs of ownership. The same idea can be expressed as a ratio:

Customer value =

Perceptions of benefits Total cost of ownership

The concept of customer value is of equal importance in consumer marketing as it is in business-to-business environments. 2 April 1993 was termed Black Friday on Wall Street, New York because of the fall of major share prices of most branded goods companies. The trigger for this collapse had been the decision by Philip Morris to cut the price of its Marlboro cigarettes by 20 per cent or 40 cents a pack in order to counter competition from low price own-label products. The reason suggested by commentators for the fall in the share price of branded goods companies was that the Marlboro episode signalled the beginning of a revolt by customers who were starting to question the worth of paying significantly more for branded products which were no longer seen as delivering a commensurate amount of added value (The Economist, 1994a).

In seeking to deliver significantly superior customer value the marketer must clearly define, communicate and deliver a value proposition which is recognized by the target market as a better proposition than that presented by competitors (Schmitt, et al. 2011, Pg 50). It should also be recognized that in most markets there will be different value segments but that to be successful in any one of them the customer value ratio must be seen to be superior to competitive offers.

The sources of superior customer value are many but Treacy and Wiersema (1993) identify three value disciplines which can provide competitive advantage: operational

excellence, product leadership and customer intimacy. The matching of superior customer value will be a pull factor in buyer behaviour and a necessary tool in success.

These are some of the ways in which marketers may utilize strategies better in enhancing positive outcomes.

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