Welcome to Strategic Marketing
UN211988
Semester 2, 2017
[Link]@[Link]
Office – Rm 208.
[Link]
Perth College is a registered Scottish charity, number SC021209.
Week 1
Reading
Marketing Management, Kotler et al, 2009
Chapter 1 - An Introduction to Marketing
So, what’s it all about…?
• Its about analysing and understanding your business & marketing
environment:
– Industries: why are they structured they way they are and how are they
defined? (“5 Competitive Forces that Shape Strategy”, M. Porter.)
– Markets: attractiveness? Segment - Target - Positioning
– Customers: what value is your company providing that your competitors
are not offering?
– Value: what is value?
• Source and evaluate information effectively
• Identify and provide solutions for marketing issues and problems
• Communicate your solutions effectively
• Understand the pillars of strategic thought as a springboard for your
own creativity
• Collaborate with others
• Recognise and adapt to changing environments
» How to Get Your Employees to Think Strategically
How do we apply the tools…?
Marketing Plan: Analysis, Planning, Implementation & Control
Assessments
• Marketing Critique: 1500 words. 35% Due xxxxx 5pm
• Marketing Plan: 3500 words. 65% Due xxxxx 5pm
So, what is strategy…?
“The essence of strategy is choosing to perform activities
differently than rivals do…”
Michael Porter. “What is Strategy”
Strategic Development
Schools of Thought.
Michael Porter & Henry Mintzberg
Porter Vs. Mintzberg
Strategic Development
Schools of Thought.
INSEAD’s Blue Ocean Strategy
Blue Ocean Strategy
What is marketing strategy about? - Activity
• Making choices to be successful
– What for/where to compete (which target market/segments)
– How to compete (better products, better price, better brand etc.)
vs.
Kotler et al, 2009 Chapter 1 –
p33
Marketing Mix – 4/7 Ps
[Link]
What is a Product?
• A product is:
– Everything that is perceived by the consumer.
– A good, a service, or an idea received in an exchange
– It can be tangible (a good) or intangible (a service or
an idea) or a combination of both.
– It can include functional, social, and psychological
utilities or benefits.
• Why buyers purchase a product
– To get the benefits and satisfaction that they think the
product will provide.
– Symbols and cues provided by marketing help
consumers make judgments about products.
3 Levels of a Product
• Core benefit
represent what the
buyer is really buying
• Actual product
represents the design,
brand name, and
packaging that delivers
the core benefit to the
customer.
• Augmented product
represents additional
services or benefits of
the actual product.
3 Levels of a Product - Activity
Outline the 3 levels
of your company’s
products?
Core Benefit
Actual Product
Augmented Product
B2C Products
B2B Products
• Industrial goods & consumables
• Installations - ‘speciality’ goods of industrial
markets - plant and machinery
• Accessories - maintenance and office
equipment
• Raw materials
• Components
• Business services e.g. consultants,
accountants
New Products - Radical vs Incremental Innovation
- Higher order or breakthrough
innovations
- Dramatically changes social or
business practices
- Creates new markets
Leads to rapid growth
Incremental/Sustaining Radical/Disruptive
- Lower or first order
innovations
- “Repairing” the old
Keeps large companies
competitive in a short term
- Danger of getting caught
unaware by newcomers
Types of New Products (goods and services)
• New-to-the-world (radically really-new)
products (10% of new products):
– Inventions that create a whole new market. e.g.
iPad, Polaroid camera, Sony Walkman, Palm
Pilot, iPod, Rollerblade skates
• RIP Palm
• New-to-the-firm products (20%):
– Products that take a firm into a category new to it
e.g. Snickers ice cream, Virgin Money, Canon
laser printer, AA home insurance, Black and
Decker home appliances
Booze, Allen & Hamilton
Types of New Products (goods and services)
• Additions to existing product lines (26%):
– Line extensions and flankers that flesh out the
product line in current markets e.g. Tide Liquid,
Nescafe Café Viet, Apple’s iMac, HP LaserJet
7P.
• Improvements and revisions to existing
products (26%):
– Current products made better. e.g. P&G’s
continuing improvements to detergents;
packaging changes that improve use etc
Booze, Allen & Hamilton
Types of New Products (goods and services)
• Repositionings (7%):
– Products that are retargeted for a new
use or application.
– Also includes retargeting to new users
or new target markets
– e.g. Aspirin repositioned as a
safeguard against heart attacks,
Fisherman’s Friend repositioned from
medicinal to confectionery
• Cost reductions (11% but increasing):
– New products that provide the
customer similar performance but at a
lower cost. May be more of a “new
product” in terms of design or
production
Booze, Allen & Hamilton
Product Life Cycle
4 stages of the PLC
4 stages of the PLC
4 stages of the PLC
4 stages of the PLC
The Boston Matrix (Portfolio Analysis)
Ansoff’s Matrix (Product/Market Matrix)
Week 2
Reading
Strategic Marketing Management
Richard M.S. Wilson And Colin Gilligan, (2004).; Taylor &
Francis Ltd
Chapter 2 - Carrying out a Marketing audit
Marketing Management
Kotler, P, (2009)
Chapter 5 - The changing marketing environment and
information management
Chapter 9 - Dealing with the competition
