Strategic marketing

Tony Proctor

Factors impacting on marketing

strategy

Exhibit 1.1 Selected stakeholders Interests for

an NHS organization
Stakeholder

Interests

Staff

Provision of quality health care

Self development and promotion prospects
Job Satisfaction
Work in a safe and good quality environment

Current

Receive excellent care and attention

Enhance health prospects and life expectancy
Advice on how best to recover from treatment and avoid future health problems
Access to information
Support from medical staff

Patients
Unions

Responsibility to members to ensure fair working practices, safe environment

Support and advise members in all areas of employment rights, i.e. Equal Opportunities, Discrimination,
Racial Incidents

Recruitment of new members

Government

Quality Standards
Legal requirements/Health and Safety/Equal Opps/Pay and Conditions
Financial Management, ensure resources being used and managed effectively

Press

Praise and publicity for high achievement

Adverse publicity making the facts known
Challenging use of finances

Prospective Patients

Excellent treatment in a caring and pleasant environment

Access to information
Choices
Achievement of a full recovery after treatment

Exhibit 1.2 Stakeholders for a pharmaceutical company

Stakeholders

Interests

General public

Safe, reliable, tested drugs

Legal/ courts

Tested drugs which do not result in serious side effects for

the users.

Government

Reasonably priced drugs which have been shown to be

effective in use.

Media

Stories showing either the benefits of drugs or very

harmful side-effects of drugs which have not been
properly tested.

Scientific Community

Details of development and testing of new drugs.

Shareholders

Return on investment and shareholder value created.

Suppliers

Steady and secure demand for the products and services it

supplies.

Financial institutions

A sound developing and following sound marketing and

corporate strategies which will produce guaranteed returns
from lending and investment.

Rank and file employees

Secure and interesting employment with good future

prospects.

Competitors

New developments that lead to competitive advantage.

Consumers

Safe and effective treatments.

Management

Control and influence over what happens in the firm.

Porters wheel of competitive strategy

Product life cycle

BCG Matrix

Product life cycle portfolio

matrix

GE/McKinsey Matrix

Directional Policy Matrix

ADL Matrix
Industry life
cycle stage
Competitive
Position

Embryonic

Growth

Mature

Aging

Dominant

Hold position and

seek to maximize
share

Hold position and

share

Hold position and

expand with
industry

Hold position

Strong

Attempt to
improve position
and maximize
share

Attempt to
improve position
and be selective in
attempts to
improve share

Hold position and

expand with
industry

Hold position or
harvest

Favourable

Selective attempts
to improve
position

Attempt to
improve position
and be selective in
attempts to
improve share

Find niche and

attempt to guard it.

Harvest or phased out

withdrawal

Tenable

Selectively push
for position

Find niche and

attempt to guard it

Find niche and

hang on or phased
out withdrawal

Phased out
withdrawal or
abandon

Weak

Improve or get out

Turnaround or
abandon

Turn around or
phased out
withdrawal

Abandon

Balanced Scorecard
Figure 3.1 The balanced scorecard

EXHIBIT 3.5 FORD MODEL TTHE MINDSET OF HENRY

FORD
Henry Fords model T remained unchanged for years while General
Motors (Chevrolet) was making changes often using new technology.
Henry Ford said: Well give the customer any colour he wants as long
as it is black. It was an arrogant statement by an arrogant man who had
been on top so long he thought nothing could dislodge him from the
number one position.
In the late 1920s Ford nearly went out of business as a result of this
myopic approach. General Motors (Chevrolet) took over as number one
in the US and Ford did not catch up until the late 1980s.

Blocks to Individual Creativity

Strategic blocks: one right answer approaches, inflexibility in thinking. These
affect the approach taken to solve problems. They include the tendency to rely
heavily on past experience or particular techniques without challenging their
appropriateness; focusing on a narrow range of options for either problem
definition or problem solving; and adapting an overly serious approach to problems
which prevents the emergence of a playful, imaginative and humorous climate.

Value blocks: over-generalized rigidity influenced by personal

values. These occur when personal beliefs and values restrict the
range of ideas contemplated. Values co-exist and failure to
reconcile them contributes to difficult personal and organizational
dilemmas.

Perceptual blocks: over-narrow focus of attention and interest. These arise

from a lack of sensory awareness at a physical level and therefore contribute to a
lack of awareness of implications of situations.

Self-image blocks: poor effectiveness through fear of failure, timidity in

expressing ideas, etc.. These reduce effectiveness in advancing ideas assertively.
They arise from a lack of self confidence in the value of ones own ideas.
Individuals may be reluctant to seek help and talk about personal feelings.This
barrier seems to be the greatest impediment to the successful implementation of
new ideas.

EXHIBIT 3.6 BLOCKS TO CREATIVITY IN ORGANIZATIONS

People and organizations tend to fall into a variety of traps when
trying to become more innovative.
1 Identifying the wrong problem
2 Judging ideas too quickly
3 Stopping with the first good idea
4 Failing to get the support of key personnel in the organization
5 Failing to challenge assumptions

Industry life cycle

Revitalising markets

Strategies for declining/ stagnant

industries

Space analysis

Competitive Advantage Matrix

Market Analysis

Forces of competition

The marketing environment

Booms and slumps and the

economy

Technological change

Cross impact matrix

The TOWS matrix

The TOWS matrix

Complex buying decision

Factors influencing consumer

behaviour

Roles in the purchase decision

making process

Family Life Cycle Stages

Stages in the marketing research

process

Sources of competitive advantage

10

Requirements of a market
segment

Profiles

Perceptual map

Perceptual map

11

Types of sales promotion

12

Ansoff matrix

International Market Entry Methods

Indirect export

Direct export:
A domestic-based export department or division
An overseas sales branch or subsidiary
Travelling export sales representatives
Foreign-based distributors or agents

Licensing
Joint ventures
Direct Investment

EXHIBIT 12.2 WHAT IS A NEW PRODUCT?

New to the world products: inventionsin-line
skates, Polaroid camera, etc.
New category entries: P&Gs first shampoo, Fords
first Mini
Additions to product lines: Tide liquid detergent
Product improvements: current products made
better Repositionings: Arm & Hammers baking
soda repositioned several times as drain
deodorant, refrigerator deodorant, etc
.

Reasons for product failure

products lack useful/meaningful uniqueness
planning is poor during the introduction phase
the introduction is badly timed, e.g. before the market is
ready for the product
key important points are sometimes overlooked in the
enthusiasm to go ahead
poor marketing and failure after launch
the top management in the organization does not provide
adequate support for the product
company politics, e.g. between various brand managers
unforeseen high product costs.

New product development phases

New product development

EXHIBIT 12.9 CONCEPT TESTING

Uniqueness of the concept
Believability of the concept
Importance of the problem being addressed
Extent to which the concept is interesting
Extent to which it is realistic, practical, useful
Extent to which it solves a problem or meets a need
How much they like the concept
How likely they would be to buy the product
Their reactions to the proposed price
What problems they see in using the product

Entry strategies

Integrative growth strategies

Egans extension of Ansoff

13

Reasons for customer defection

Good customer relations pathway

ORMSBY MOTORS

14

Classical Gap Analysis

Marketing and Corporate Strategies