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MGMT 441: Marketing Strategy > Class Slides 2, 3, and 4 (Covered in Quiz 1) > Flashcards

Class Slides 2, 3, and 4 (Covered in Quiz 1) Flashcards

1
Q

Marketing involves the Value Creation for .

A 
• Customers
• Shareholders/Investors
• Employees
• Other stakeholders (supply chain 
partners, competitors, ...)
• Society, environment,
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2
Q

Selling symbols (inspired by Sidney J, Levy)

A

The consumer is not as functionally oriented as he used to be —if he ever really was. People buy
things not only for what they can do, but also for what they mean. The things people buy are seen
to have personal and social meanings in addition to their functions.

A symbol is appropriate (and the product will be used and enjoyed) when it joins with, meshes
with, adds to, or reinforces the way the consumer thinks about themselves. Symbols of social
participation are among the most dramatic factors in marketing.

Sellers of goods are engaged, whether willfully or not, in selling symbols, as well as practical
merchandise. If the manufacturer understands that they are selling symbols as well as goods, they
can view the product more completely. They can understand not only how the object
satisfies certain practical needs but also how it fits meaningfully into today’s culture.
–Sidney J. Levy, 1959

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3
Q

THE “FIRST PRINCIPLES”

OF MARKETING STRATEGY

A
  1. All customers differ.
  2. All customers change.
  3. All competitors react.
  4. All resources are limited
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4
Q

Marketing strategy has

evolved to incorporate:

A
  1. Decisions and actions,
  2. Differential advantages
    over competitors,
  3. Sustainable advantages,
  4. A goal to enhance firm
    performance, and
  5. Customer perspective
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5
Q

AIDA Model

A

Attention
Interest
Desire
Action

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6
Q

Marketing Capabilities

Resource-based View versus Dynamic Capabilities

A

Next two slides

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7
Q

Resource-based View (RBV)

A

Resources form the
basis of unique value-creating strategies and their
related activity systems that address specific
markets and customers in distinctive ways, and so
lead to competitive advantage.

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8
Q

Dynamic Capabilities:

A

The firm’s processes that
use resources-specifically the processes to
integrate, reconfigure, gain and release
resources—to match and even create market
change.

Dynamic capabilities thus are the
organizational and strategic routines by which
firms achieve new resource configurations as
markets emerge, collide, split, evolve, and die

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9
Q

1 . All Customers Differ

A

Managing customer heterogeneity - different (functional) needs and wants, different geographic,
behavioural, socio-economic, and cultural characteristics, different taste and preferences, different self-identity/self-image, different responses to marketing activities, different life experience,
different social affiliations, worldviews, satisfaction levels, etc.

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10
Q

The paradox of choicse

A

The more options one has to select from the more dissatisfaction they may feel once selected

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11
Q

3 All competitors react

A

“The art of war teaches us to rely not on the
likelihood of the enemy not coming, but on our
own readiness to receive him, not on the chance
of his not attacking, but rather on the fact that
we have made our position unassailable

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12
Q

Competitive advantage

Sources: brands, offerings, relationships

A

Examples:
• High skilled workforce (or salesforce)
• Gaining exclusive access to proprietary technologies
• Recognition of brand image
• Offering unique products or services
• Gaining exclusive access to new technologies
• Cost leadership strategy

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13
Q

4 All resources are limited

A 
Resources:
Financial assets (e.g., cash resources, access to financial markets)

Human resources (e.g., the skills and knowledge of individual employees)

Physical (e.g., plant, equipment, land and material assets)

Legal (e.g., trademarks, licences, patented technologies, and intellectual property)

Organizational capital (e.g., competences, controls, policies, culture)

Informational (e.g., knowledge from consumer and competitive intelligence),

Relational (e.g., relationships with suppliers and customers)

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14
Q

Sources of Resource Tradeoffs

A
  1. Limited resource slack
  2. Changes in customers’ needs
  3. Changes in product lifecycle
  4. Changes in market landscape
  5. Changes in marketing effectiveness
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15
Q
  1. Limited resource slack
A

Firms’ available marketing resources must be shared and allocated
across many different organizational demands, leading to a need for optimization

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16
Q
  1. Changes in customers’ needs
A

the size and attractiveness of market segments changes over

time, leading the firm to reconsider its resource commitment to each segment.

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17
Q
  1. Changes in product lifecycle
A

the firm’s offering portfolio features products that move
through early, growth, maturity, and decline stages, leading the firm to reallocate resources
over time.

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18
Q
  1. Changes in market landscape
A

the entry and exit of competitors and competitive responses

lead the firm to allocate resources to different priorities as the landscape changes.

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19
Q
  1. Changes in marketing effectiveness
A

changes in the environment and customer preferences
alter the effectiveness of marketing activities, leading the firm to reassess its commitment of
resources to each activity.

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20
Q

New Frontiers of Research in Marketing Strategy (Sheth, 2021)

A
  1. Creating value for customers
  2. Brand value
  3. Discipline of selling
  4. Science of pricing
  5. Reverse marketing (demand-driven marketing)
  6. Role of marketing in society
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21
Q

New frontier of research in consumer behaviour

A
  1. Focus on user experience
  2. Mindful consumption
  3. Shared consumption
  4. Cross-cultural consumption
  5. Low-income consumer
  6. Consumption of free goods
  7. Digital first
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22
Q

Two key challenges in low-income markets:

A
  1. changing consumers’ behavior, and
  2. changing the way products are made and
    delivered
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23
Q

New frontiers of research in Marketing analytic

A
  1. Text mining
  2. Emoji analytics
  3. Video analytics
  4. Imaging research
  5. Fuzzy logic
  6. Forensic research
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24
Q

The promise of marketing strategy in Era I (1900-1920)

“Founding the Field”

A

Market distribution

Marketing methods

25
Q

Market distribution

A

(channels of distribution, evolution of the middleman, risk-sharing, logistics, financing the operations, selling the goods, advertising, etc.)

26
Q

Marketing methods

A

marketing the manufactured goods, marketing

“techniques” (i.e., how to influence sales, how to advertise the products)

27
Q

The neglect of marketing strategy in Era II (1920-1950)

“Formalizing the Field”

A

The commodity
Institutional approach
Functional approach

28
Q

The commodity

A

(agricultural, products of forest and mine, manufactured products)

29
Q

Institutional approach

A

role of wholesalers and retailers in marketing systems

30
Q

Functional approach

A

exchange (i.e., buying and selling), physical supply (i.e., transportation and storage), and auxiliary functions (i.e., finance, risk bearing, market information, and
standardisation and grading).

31
Q

The prominence of marketing strategy in Era III (1950-1980)

Formation of “New mainstream”

A

GE’s “marketing concept”
• Customer-needs oriented
• Integrated marketing effort (advertising, logistics, sales, inventory management, etc.)
• Increased profits (or sales performance)

Levitt’s (1960) “Marketing myopia” and Borden’s “Marketing mix”
• Firms should define themselves as being in the business of satisfying certain customer needs -
customer-creating and customer-satisfying organism

• 12 elements of Borden’s marketing mix: product, planning, pricing, branding, channels of
distribution, personal selling, advertising, promotion, packaging, display, servicing, physical
handling, and fact finding and analysis (cf. Hunt, 2018, p. 23)

Alderson’s (1957) “competition for differential advantage”

32
Q

Conceptualizing marketing strategy in Era III

A

Slide beyond this

33
Q

A market strategy consists of two parts:

A

The definition of market targets

The “composition of a marketing mix”

34
Q

The definition of market targets

A

selecting the types of customers whose patronage will

sought; and

35
Q

The “composition of a marketing mix”

A

picking a combination of sales promotion devices

that will be employed

36
Q

Marketing strategy becomes a “Fragment” in Era IV (1980-Present)

“Fragmentation of the mainstream”

A

Market orientation strategy –the organization wide generation of market intelligence pertaining
to current and future customer needs, dissemination of the intelligence across departments, and
organization wide responsiveness to it

Theories of marketing strategy
• Marketing orientation
• Market segmentation
• Relationship marketing
• Brand equity
37
Q

10 Truths about marketing after the pandemic (Balis, 2021)

A
  1. Old truth: marketing begins with knowing your customer.
    New truth: marketing begins with knowing your customer segment.
  2. Old Truth: You are competing with your competitors.
    New Truth: You are competing with the last best experience your customer had.
  3. Old truth: customers hope you have what they want.
    New truth: customers expect you to have exactly what they want (in both B2C and B2B context)
  4. Old truth: Courting customers is just like dating.
    New truth: Courting customers is just like online dating.
  5. Old truth: Customers must sit at the heart of your marketing strategy.
    New truth: Customers must sit at the heart of your customer journey.
  6. Old truth: Relationships matter.
    New truth: Relationships are everything.
  7. Old truth: Agility is a technology process.
    New truth: Agility is a modern marketing approach.
  8. Old truth: Your brand should stand behind great products.
    New truth: Your brand should stand behind great values.
  9. Old truth: You need the right tech stack to drive modern marketing success.
    New truth: You need the right balance of factors (including your tech stack) to drive modern
    marketing success.
  10. Old truth: Marketing is important for growth.
    New truth: Marketing is at the center of the growth agenda for the full C-suite.
38
Q

Three strategies to ensure companies deliver best experience to their customers:

A

a. Make brand scores a key KPI for the full customer-facing organization.

b. Build the right data and technology foundation to support important use cases throughout
the customer journey.

c. Align individual and collective goals across the customer journey so any disconnects between
functional silos like marketing, sales, and customer service are invisible to your end consumer.

39
Q

Recommendation: for truth #3

A

Build some degree of machine learning and/or artificial intelligence into the marketing mix as
data enables companies to create more relevant experiences across one or more dimensions of
the four Cs:

40
Q

The four Cs:

A
  • Content (that can be provided in experiences like emails or mobile apps);
  • Commerce (such as physical retail, e-commerce, or a hybrid experience);

• Community (such as convening B2B buyers at a virtual trade show or hosting a webinar on
home repair for consumers); and

• Convenience (like offering consumers coupons or benefits from a loyalty program)

41
Q

Recommendation: for truth #4

A

Bring the customer relationship management (CRM) team closer to the media teams to see
the full continuum and realize efficiencies:

▪ Customer data that a company owns (with the consumer’s consent, of course) is the
driving force for initiatives like coupons, personalization, or email marketing.

▪ Marketers are getting way better at engineering the online “dates” that they want to go
on, learning the new ways they need to harness the power of their own data, and
developing new strategies to partner with publishers.

42
Q

Strategic recommendations: for truth #5

A

•We must remember that marketing is often just the beginning of a relationship with the customer.

• It is important to look thoughtfully at the operating model and consider the processes,
technologies, talent, data models, and KPIs to find the right ways to align objectively around the
customers’ needs —then drive change accordingly

43
Q

Truth #6 facts / additional information

A

Trust and integrity are fundamental to driving market momentum.

Trust is foundational to the value exchange between a company and a consumer.

• companies rely increasingly on personal data that they obtain with consent from consumers,
• companies must comply with the regulations on consumer privacy,
• companies must ensure that data is secure,
• companies also have the opportunity to consider building more loyalty and differentiation by
designing more transparent interfaces for privacy controls.

44
Q

Strategic recommendations: for truth #7

A
  • Continuous consumer listening and demand sensing;

* Ensure faster decision cycles and more flexibility across key areas like creative, budgeting, and media

45
Q

Information / additional facts about truth #8

A

• The EY Future Consumer Index found that up to 61% of consumers, depending on the category,
became willing to consider a white label product, let alone switch name brands.

• Growing consumer awareness and activism precipitated during the social unrest of 2020 make
brands very focused on the values they express.

Key themes from EY research show that while quality, convenience, and price still very much
matter to consumer choice, factors like sustainability, trust, ethical sourcing, and social
responsibility are increasingly important to how consumers select their products and services.

46
Q

Information / additional facts about truth #9

A

Company’s technology architecture must be matched with sufficient scale in data: the right use
cases to drive results, and the right approach to human enablement.

Human enablement involves understanding how data and technologies will be used across the
organization, making sure that people have the right skills to employ it effectively and that the
right measurement approach is in place to motivate innovation and success.

47
Q

Information / additional facts about truth #10

A

During the pandemic, marketing has been elevated within the C-suite as a driver of digital
transformation, a key leader of the customer journey, and the voice of the consumer.

Covid-19 has created a leadership culture of immediate collaboration focused on the urgent need
for resilience. Marketing now has the opportunity to seize an ongoing central role in that dialogue,
thereby driving the organization’s broader growth and innovation agenda.

48
Q

Strategies - Identifying the “right’ customers

A

• Conduct market research (conduct survey, data analytics, STP, cluster analysis, SWOT, perceptual
maps, demand motivation survey, etc.)

• Recognize customer heterogeneity (“all customers are differ” and “all customers change”)
➢ Dimensions: locations, age, gender, race, religion, marital status, income, taste, social status,
personality, occupation, education, cultural interests, life experiences, lifestyle, functional
needs, self image and identity, purchase intention, motivation, industry

Strategic Decisions:
• Mass versus niche versus one-to-one marketing approach
• Identify the “niche” market and understand the needs/wants
• Define customer persona (and anti-persona)
• Market segmentation strategies (demographic, psychographic, behavioural, and geographic) –[and
multi-dimensional strategy]
• Company’s overall strategy (i.e., local, national, or international)

49
Q

Strategies Creating the “right” offerings

A

• “Right products/service” available at the right time.
• Match goods/services/experiences with customers’self-identity/needs & wants, use intention/time/frequency, brand stickiness, user
experience
• Adapt to the technological change and the market trends.
• Understanding your customers (voice of customer)! (Maslow’s needs model –self-actualization, physiological needs, respect needs,
etc.)
• (Symbolic) value creation

Some strategic recommendations:
• Conduct product testing, customer satisfaction survey, in-store search behaviours (RFID), cost-benefit analysis
• Create reliable products and offerings.
• Create different product lines to serve different market segments.
• Adjust offerings based on customer reviews/data analytics.
• Identify gain creators and pain relievers (Strategzer Canvas)
• Leverage company’s competitive advantage
• Create long-term demand in order to maintain long-term customer relationships
• Employ personalized advertising, geo-targeting techniques
• Implement sales promotion, buy-one-get-one-free, discount, etc.
• (New) product design/development strategy (Example):
• Bright colours for young customers and colourful palette for babies

50
Q

Key marketing strategy challenges identifies by CMOS

A

See Table 1

Four types of Strategy

51
Q

Common theories applied in marketing strategy research

A
  1. Institutional theory
  2. Resource-based view (RBV)
  3. Agency theory
  4. Organizational theory
  5. Contingency theory
  6. Performance feedback theory
  7. Configuration theory
  8. Organizational learning theory
  9. Structure-Conduct-Performance theory
52
Q

A marketing strategy research agenda

1) Formulation-Content:

A

Marketing strategy goals, the role of the CMO/marketing function, and longer- versus shorter-term
emphasis in marketing strategy

53
Q

A marketing strategy research agenda

2) Formulation-process

A

Planning participation, planning process design, and planning enablers/inhibitors

54
Q

A marketing strategy research agenda

3) Implementation-content

A

Marketing organization, integrated marketing programs, and marketing tactic enactment

55
Q

A marketing strategy research agenda

4) Implementation-process

A

Marketing strategy adaptation, strategy realization processes, and marketing organization design

56
Q

Research in marketing strategy

1) Theoretical contribution

A

• New knowledge, advancing existing knowledge/theory, rejecting existing knowledge/theory

57
Q

Research in marketing strategy

2) Managerial / practical implications

A
  • Relevance to managerial practices

* Relevance to policy-makers and other stakeholders

58
Q

Research in marketing strategy

3) Methodological implications

A
  • Testing hypothesis (main effects, moderating effects, mediating effects)
  • Mixed methods
  • Creative methods

MGMT 441: Marketing Strategy (5 decks)

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