Strategic Marketing for Top Management & Entrepreneurs
professor colin egan
Moscow, 4th October 2012
Московская школа управления СКОЛКОВО
Effective Management
MasterClass
© colin egan, 2012
Московская школа управления СКОЛКОВО
Strategic Marketing
MasterClass
Introduction
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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
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Московская школа управления СКОЛКОВО
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.
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What is a Brand?
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Why Invest in Brands?
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Brand Equity!
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What’s in a Name?
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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
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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
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Recognition & Familiarity
Buying Efficiency
Identification Buying Effectiveness
Risk Avoidance
Easier Choice
Assurance
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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
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‘Made in Russia’
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‘Made in Russia’
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‘Made in Russia’
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From Thai Truck to F1:
Endeavour & Energy…
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… and a little luck!
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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
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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
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Московская школа управления СКОЛКОВО
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
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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
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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
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Московская школа управления СКОЛКОВО
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
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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
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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
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Московская школа управления СКОЛКОВО
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?
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Building a Marketing Culture
Strategy
Style (Leadership)
Staff Skills (Competencies)
Structure
Systems
Shared Values
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Desired Direction
Resultant Force
1
Leadership & Shared Values:
The Vector Metaphor
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Desired Direction
Resultant Force
Desired Direction
Resultant Force
1
2
Leadership & Shared Values:
The Vector Metaphor
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