Effective Management MasterClass Strategic Marketing for ... · Defining Marketing Strategy A number of processes designed to analyze, anticipate and create customer needs & preferences.

Strategic Marketing for Top Management & Entrepreneurs

professor colin egan

Moscow, 4th October 2012

Московская школа управления СКОЛКОВО

Effective Management

MasterClass

© colin egan, 2012


Strategic Marketing

MasterClass

Introduction

© colin egan, 2012 | 2

Московская школа управления СКОЛКОВО © colin egan, 2012 | 3

Strategic Marketing for

Profitable Growth: MasterClass Agenda

Something ‘Old’ – Marketing, Brands & Innovation

Something ‘New’ – Behavioural Data & Customer Relationship

Management

Something Measured

– Assessing Marketing Excellence

Over to You! – Leaders, Managers & Entrepreneurs

Royal Philips International

– Philips Marketing Academy

IBM – IBM Marketing University

BP & Castrol – BP Sales & Marketing Academy

YKK – Marketing Excellence Programme

Coca-Cola – Coca-Cola Professor of Marketing,

IEDC – Bled School of Management, Slovenia

Strategic Marketing

Theory & Practice: A Professor’s Journey



Strategic Marketing

MasterClass

Something ‘Old’: Marketing,

Brands & Innovation

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A Tall Order:

Defining Marketing Strategy

A number of processes designed to analyze, anticipate

and create customer needs & preferences. To create a

compelling value proposition to meet these needs &

preferences fully and better than rivals. To capture the

imagination of customers and to secure their loyalty. To

organize all the firm’s assets and resources to maximize

the customer experience and the company’s profitability

along with that of selected business partners.


What is a Brand?


Why Invest in Brands?


Brand Equity!


What’s in a Name?

© colin egan, 2012 | 10 Moscow School of Management SKOLKOVO

Marks & Spencer

Procter & Gamble

Ogilvy & Mather

Saatchi & Saatchi

Schweppes

Cadbury

Hershey

Sainsbury’s

Macy’s

Daimler Benz

Parker

Matshushita

Philips

Peugeot

Gillette

Mars

Honda

Siemens

Bosch

Porsche

Johnson & Johnson

Wrigley’s

Hewlett Packard

Merrill Lynch

Barclays

Morgan Stanley

Disney

Dell

Citroen

Simon & Schuster

Moet et Chandon

Gucci

Cartier

YSL

Ferrari

Harley-Davidson

Goldman Sachs

Louis Vuitton

Heinz

Kellogg’s

J.P. Morgan

Johnny Walker

Reuters

Ericsson

Reuters

Tiffany

L’Oreal

Heineken

Smirnoff

Hennessy

Merck

Jack Daniels

Ralph Lauren

Hagen-Dazz

Forbes

Bloomburg

Brietling

Marriott

Lever Bros Anheuser-Busch

Nordstrom

Sears

Du Pont

Rolls-Royce

Linn

Bose

Bang & Olufsen

Kimberley-Clark

Bayer

Schwab

Renault

McGraw-Hill

Kalashnikov


Marks & Spencer

Procter & Gamble

Ogilvy & Mather

Saatchi & Saatchi

Schweppes

Cadbury

Hershey

Sainsbury’s

Macy’s

Daimler Benz

Parker

Matshushita

Philips

Peugeot

Gillette

Mars

Honda

Siemens

Bosch

Porsche

Johnson & Johnson

Wrigley’s

Hewlett Packard

Merrill Lynch

Barclays

Morgan Stanley

Disney

Dell

Citroen

Simon & Schuster

Moet et Chandon

Gucci

Cartier

YSL

Ferrari

Harley-Davidson

Goldman Sachs

Louis Vuitton

Heinz

Kellogg’s

J.P. Morgan

Johnny Walker

Reuters

Ericsson

Reuters

Tiffany

L’Oreal

Heineken

Smirnoff

Hennessy

Merck

Jack Daniels

Ralph Lauren

Coca-Cola

Citibank

Intel

Microsoft

GE

Snickers

Ariel

Mercedes

Sony

Panasonic

Technics

IBM

Pepsi

GM

BMW

Cisco

American Express

Gap

SAP

Kodak Nike

Oracle

Accenture

Pizza Hut

Apple FKC

Xerox

MTV

DHL

HSBC

AOL Sun

BP

Castrol

Kleenex

Shell

Motorola

Hertz

FedEx

Amazon.Com

Duracell

Yahoo!

Exxon

Caterpillar

Wall St. Journal Burger King

Mobil

Hagen-Dazz

Forbes

Bloomburg

Fortune

Swatch Brietling

Marriott

Holiday Inn

Business Week

Volkswagen

Wal*Mart

e-bay

Vodaphone

Lever Bros Anheuser-Busch

Budweiser

Nordstrom

Sears

Du Pont

Orange

Diagio

Rolls-Royce

Linn

Bose

Bang & Olufsen

Kimberley-Clark

AT&T

SingTel

BT

Bayer

Fuji

Schwab

Renault

McGraw-Hill

What’s in a Name? Kalashnikov

Create & Maintain Image

Enable Segmentation & Positioning

Give an Identity to Products

Build Loyalty, Share &

Profitability

Underpin Strategic Defence

(Buy Time)

Transcend Technologies

Intellectual Property

Sustainable Differential Advantage

Drive Offensive Marketing

(Stretch/Extend)

The Benefits of

Brands for Suppliers


Recognition & Familiarity

Buying Efficiency

Identification Buying Effectiveness

Risk Avoidance

Easier Choice

Assurance


The Benefits of

Brands for Customers

The Benefits of Brands for

Channel Partners

Raises Stockturn & Margins

Buying Efficiency

Enhances their Stores

Buying Effectiveness

Builds Store Traffic

Reinforces their

Positioning

Strategy & Profits


‘Made in Russia’




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From Thai Truck to F1:

Endeavour & Energy…


… and a little luck!


Inputs Outputs

Value Creators

R&D Services

Engineering Etc.

Realised Value

(+ve image)

Brand Process Intangible Marketing

Asset Management

Reputation Distribution

Service People

Know-how Patents

Partnerships Loyalty

Creation

Feedback

What’s in a Name?

The Brand Management Process

Objective

Customer Focus


Innovation Strategies

Respond to Changing Needs

& Preferences

Strategic Windows

Stakeholder Image

Enhancement

Off-set Disruptive

Technologies

Spread Risk

Market Complementary

Products

Copy Rivals!

Beat Rivals (First & Fast)

Build a Balanced Portfolio

Leverage Core Competence

Maximise Shareholder

Value



Strategic Marketing

MasterClass

Something ‘New’: Behavioural Data

& CRM

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‘Hot Topics’ in Marketing

& Buyer Behaviour…

• Customer Intimacy: Deep & long customer relationships

• Viral Marketing: Spread the word…

• Guerrilla Marketing : The art of surprise!

• Ambush Marketing: Capture the moment…

• The Network Effect: Needs must…

• Suggestive Marketing: People who bought this…

• Marketing 3.0: Company values touch customers’ hearts & minds

• Social Networks: Friends…

• Social Media: Social interaction and co-creation of value


Key Customer Relationship

Management [CRM] Technologies

Data Warehouse

Data Mining

Customer Service

Sales Force Automation (SFA)

Field Force Automation (FFA)

IT Infrastructure

Enterprise Resource Planning (ERP)

Supplier Relationship Management (SRM)

Partner Relationship Management (PRM)

Intranets / Extranets

© colin egan, 2012 | 24 Московская школа управления СКОЛКОВО

Key CRM Initiatives

Cross-selling and Up-selling

Customer Retention

Behaviour Prediction

Customer Profitability Profiling

Customer Value Modelling

Channel Optimisation

Personalisation

Etc.

Beware! Privacy Issues



Strategic Marketing

MasterClass

Something Measured

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Evaluating a Marketing Strategy

Validity: Reliability of information and assumptions

Distinctive: Differentiated from competition, industry breakout

Suitability: Given corporate strategy, objectives, etc.

Feasibility: Given resources/competences

Acceptability: Given company culture, ethics and values

Consistency: Are the marketing elements balanced?

Vulnerability: Given risks and contingency plans

Flexibility: Can we adapt fast enough?

Rewardability: Payoff versus risk


Assessing

Marketing Strategy Investments

Discounted Net Present Value (NPV)

Required Internal Rate of Return (IRR)

Payback Period

Etc.

Risk Assessment

Opportunity Cost Analysis

Market Dynamics (Zero-Sum?)

Diminishing Returns Analysis

Assessing the Cost of Failure

Consider the Risk of NOT Making the Investment


And Finally, the Evidence…

Explaining Marketing Performance

Understanding buyer

behaviour

A Marketing

Culture

Market environment

sensitivity

Striving for

competitive advantage

A long term

perspective

Asset-based marketing

management

Innovation

Balanced portfolio

Marketing Excellence



Strategic Marketing

MasterClass

Over to You!

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Flair Commitment ‘Personality’

Drive

Process Professionalism

Method

Hi-Touch Hi-Tech

What Makes Great Leaders, Managers

& Entrepreneurs?


Building a Marketing Culture

Strategy

Style (Leadership)

Staff Skills (Competencies)

Structure

Systems

Shared Values


Desired Direction

Resultant Force

1

Leadership & Shared Values:

The Vector Metaphor


Desired Direction

Resultant Force

Desired Direction

Resultant Force

1

2

Leadership & Shared Values:

The Vector Metaphor


Effective Management MasterClass Strategic Marketing for ... · Defining Marketing Strategy A number of processes designed to analyze, anticipate and create customer needs & preferences.

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