Jemma - mark200

Instructor Information

• Name: Dr Mark Kilgour

• Room: MSB4.19

• Phone Extension: 9268

• Email: mark.kilgour@waikato.ac.nz

Learning Objectives

1. Define the Strategy and Objectives

2. Illustrate the difference between Corporate and Marketing Level Strategy

3. Understand core marketing concepts:

   • Needs

   • Wants

   • Values

   • Interrelationships

4. Define Brand and Brand Positioning Strategy

5. Discuss the Concepts of the main Business Orientations

6. Discuss Economies of Scale

7. Discuss the BASIC Strategy Concept

8. Develop a Marketing Mindset

Marketing Strategy Insights

Quote: "Every Battle is Won Before it's Ever Fought" - Sun Tzu

• Strategic thought begins with objectives.

Strategy Definition and Importance

• Strategy: An integrated long-term plan involving focus and sacrifice to achieve core long-term objectives.

• Key Concept: Start at the end with corporate long-term objectives.

Phases of Marketing Planning

1. Business-Customerizing Phase

• Tasks:

  • Build a marketing-led company culture

  • Develop a customer-driven mission statement

2. Analyzing Phase

• Tasks:

  • Conduct marketing research

  • Analyze and chart SWOT profiles

3. Strategizing Phase

• Tasks:

  • Set marketing objectives for each brand

  • Formulate positioning strategy for each brand

4. Implementation Phase

• Tasks:

  • Assemble the 4Ps mix for each brand

  • Organize the marketing effort

5. Control Phase

• Tasks:

  • Design a marketing information system

  • Prepare a performance tracker

Corporate vs Marketing Strategy

• Corporate Strategy: Integrated long-term plan to achieve company-wide objectives.

• Marketing Strategy: Integrated long-term plan to achieve long-term brand objectives.

Objectives vs. Strategy

• Objectives: Long-term aims or goals.

• Strategy: Long-term plan (series of integrated activities) to achieve these objectives.

Integration of Objectives and Strategy

• Levels:

  • Corporate Objectives

  • Brand/Marketing Objectives

  • Campaign/Integrated Marketing Communication (IMC)

Corporate Objectives

• Components include:

  • Mission Statement

  • Corporate Reputation

  • Sales Objectives

  • ROI Objectives

  • Profitability Objectives

Porter’s Five Forces Framework

• Entry Barriers: Factors like economies of scale that reduce the threat of new entrants.

• Bargaining Power of Buyers: Buyers with high power can drive prices down, reducing profitability.

• Bargaining Power of Suppliers: Powerful suppliers can increase prices, affecting profitability.

• Industry Rivalry: High competition leads to price wars or increased costs.

• Threat of Substitutes: Availability of substitutes can reduce profits if customers switch.

Division Objectives

• Components include:

  • Growth Objectives

  • Ansoff Objectives

  • Product Life Cycle (PLC) Objectives

  • Porter’s Generic Strategies

Ansoff’s Growth Matrix

• Strategies for Growth:

  • Market Penetration

  • Market Development

  • Product Development

  • Diversification

Brand Positioning Objectives

• Objectives include:

  • Brand Market Share

  • Sales Growth

  • Profitability

  • Brand Attitude

  • Customer Satisfaction

  • Brand Awareness

Porter’s Generic Strategies for Branding

• Two sources of sustainable competitive advantage:

  1. Cost Leadership

  2. Differentiation

• Focus on scope: Narrow or Broad

• Strategic options:

  1. Cost Leadership

  2. Differentiation

  3. Focus

Positioning Strategy

• Process of creating a unique image in the minds of target customers:

  • Answer "Why should the target market purchase my product?"

  • Establish Competitive Advantage by differentiating from competitors.

Marketing Philosophy

• Marketing is focused on understanding and capturing customer value.

Core Marketing Concepts

Needs, Wants, and Values

• Need: Unsatisfied state to resolve.

• Want: Specific preference for satisfying a need.

• Value: What is important or valuable to the customer.

• Interrelationship: Recognizing needs and values helps design an appropriate mix of benefits.

Customer Needs and Wants

• Types of Needs:

  • Functional, Emotional, Life-Changing, Social Impact

• Basic Needs: Food, shelter, warmth, safety.

• Psychological Needs: Security, belonging, self-esteem.

Business Orientations

• Production Orientation: Focus on increasing volume, decreasing costs.

• Selling Orientation: Leverage persuasive selling techniques.

• Product Orientation: Focus on high-quality products.

• Marketing Orientation: Centered on customer needs & wants.

• Societal Marketing Orientation: Incorporates sustainability and societal values.

Marketing Myopia

• Defined by Theodore Levitt:

• Companies forget their role from the customer perspective.

Importance of Marketing Concept

• Shift from product orientation to customer orientation.

Marketing Decisions: The 4Ps

• Product: What the company offers.

• Price: Cost to the customer.

• Promotion: Communication of value.

• Place: How the product reaches the customer.

Creating Value through Marketing Process

1. Understand customer needs (Research)

2. Develop an offering (Marketing mix)

3. Communicate the value proposition

4. Deliver the value proposition

5. Monitor changes influencing customer needs

Recommended Textbook

• Hooley, G., Nicouland, B., Rudd, J.M., & Lee, N. (2020). Marketing Strategy and Competitive Positioning, 7th Edition, Pearson.

Assessment Overview

• Mini Quizzes: 20%

• Discussion Exercises: 15%

• Major Test: 15%

• Group Case Analysis Progress Report: 9%

• Group Case Final Report: 23%

• Tutorial Preparation & Participation: 18%

• Weekly Assignments and Participation

Team Development Stages

1. Forming

2. Storming

3. Norming

4. Performing

5. Adjourning

Class Representative Role

• Acts as liaison between students and teaching staff.

• Enhances CV by demonstrating leadership and community contribution.