Marketing Strategy

MARKETING STRATEGY SESSION 12 DR. BRENT SMITH

SESSION 12 AGENDA

• Review • K. Nuttavuthisit: If You Can’t Beat Them, Let The Join • Marketing Channel + Contactual Efficiency

• Customer Journey Maps • Health Insurance

• Q&A Session • Data Gathering

• Videos • BBC: How packages arrive in the Himalayas (Link: https://tinyurl.com/yaqz2pax) • PBS: Secrets of Selfridge’s (PBS/Netflix)

• Marketing Strategy • Ch 9: Marketing Implementation + Control

Session 12 2

COMPANY / CONSUMER CO-CREATION K. NUTTAVUTHISIT

• Company strategy → Consumer behaviors • Complement → Creation for self • Communality → Creation for others • Choice → Participation for self • Cause → Participation for others

• New lesson • Brand management

• Managers < Shepherds • Shepherd → Solutions

Session 12 3

Question: Which companies have encouraged your creation or participation behavior using one or more of these C’s?

BASIC MARKETING CHANNEL

• RE: 4th P Marketers should appreciate the value of contactual efficiency, since product (content) relies significantly upon customer access (re: SIVA).

4

M W

R C

M W

R

C

C

C

C

R

C

C

C

C

R

C

C

C

C

Basic marketing channel

M=>W vs. M=>Cs more efficient in

reaching customers

M=>W vs. M=>Cs more efficient in

reaching customers

Session 12

CUSTOMER JOURNEY MAPS

• Health Insurance Source: Heart of the Customer https://heartofthecustomer.com/wp-content/uploads/2013/03/Customer-Journey-Map.png

Session 12 5

CUSTOMER JOURNEY MAPS

Session 12 6

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CUSTOMER JOURNEY MAPS

• These maps can help organizations address significant questions, such as: • Why are we losing customers? • Must we increase / Can we reduce support costs while improving customer

engagement?

• Where are we under- / over-investing in the customer’s experience? • How can we improve preferences for our brand(s) by improving aspects of the

customer experience?

Session 12 7

CH 9 MARKETING IMPLEMENTATION + CONTROL

Session 12 8

HYPOTHETICAL MARKETING MIX IMPLEMENTATION SCHEDULE

Hypothetical Implementation Program/Schedule

Session 12 9

MARKETING IMPLEMENTATION…

• Executing marketing strategy by creating and performing specific actions that ensure achievement of marketing objectives.

• Examples of implementation failure are many, such as: • Retail: SKUs out-of-stock; long/slow checkout lines; undersized self-checkouts • Salespersons: Over-eagerness; aggressiveness • E-commerce: lack of desktop/mobile shopping options; browser-specific features • Employees: lack of attentiveness, responsiveness; worker safety and well-being

• Note: Intended marketing strategy ≠ Realized marketing strategy

Session 12 10

MARKETING IMPLEMENTATION…

Linkages between planning and implementation

• Interdependency • Implementation depends on strategy. • Strategy depends on implementation. • Note: Feedback loops can be helpful but often are not included.

• Evolution • Dynamic environmental factors compel evolutions of planning and implementation. • There is no single, correct way to implement a strategy.

• Separation • Planning is often done at the top of the organizational hierarchy. • Implementation occurs near and at the frontline of the firm.

Session 12 11

MARKETING IMPLEMENTATION…

Separation of planning and implementation

Session 12 12

CRITICAL MIDDLE

MARKETING IMPLEMENTATION…

Internal marketing process

Session 12 13

MARKETING IMPLEMENTATION…

Approaches to Marketing Implementation

1. Implementation by Command • (+): Makes decision making easier; reduces uncertainty • (-): May not consider feasibility; can divide firm and weaken employee motivation

2. Implementation Through Change • (+): Considers how strategy will be implemented, and impact P↔I relationship. • (-): Can yield clinging to power mentality, thus requiring persuasive leader(s)

Session 12 14

re: - Sun Tzu’s / Smith’s Five Things - Jeff Bezos’ customer obsession

MARKETING IMPLEMENTATION…

Approaches to Marketing Implementation

3. Implementation Through Consensus • (+): Incorporates multiple viewpoints, thus facilitating (initial) implementation • (-): Slows the strategy/implementation process; potential for groupthink

4. Implementation as Organizational Culture • (+): Reduces planner v. implementer barrier, thus fostering employee buy-in • (-): Requires broader inclusion and training, thus risking time and financial costs

Session 12 15

re: - Sun Tzu’s / Smith’s Five Things - Jeff Bezos’ customer obsession

MARKETING IMPLEMENTATION…

Formal Marketing Controls

• Input Controls (Foundation before implementation) • Recruiting, selecting, and training employees • Resource allocation decisions

• Process Controls (Alignment during implementation) • Commitment to the strategy • System for evaluating and compensating employees

• Output Controls (Assessment after implementation) • Performance standards • Marketing audits

Session 12 16

MARKETING IMPLEMENTATION…

Informal Marketing Controls

• Employee Self-Control (personal expectations) • Job satisfaction • Organizational commitment

• Social Control (small group control) • Shared values • Social and behavioral norms in work groups

• Cultural Control (organizational norms) • Organizational culture • Organizational stories, rituals, and legends • Cultural change

Session 12 17

re: - Sun Tzu’s / Smith’s Five Things - Maslow’s Hierarchy of Needs

DATA GATHERING AND VISUALIZATION

Data Gathering

• Mergent Intellect: Access to millions of private and public U.S and international businesses, industry news, facts and figures, industry ratios, executive contact information, and consumer demographics. Includes First Research and Key Business Ratios (KBR).

• Red Books: Advertising data and other details for U.S. and international companies which spend more than $200,000 annually on advertising, including their brands, advertising agencies, and expenditures.

Session 12 18

DATA GATHERING AND VISUALIZATION

Tableau

• Question: How can a boxplot help us understand the pattern of customer sales by segment?

Session 12 19

Interpreting box plot output: § Lower / Left whisker = lowest value § Upper / Right whisker = highest value § Median = middle point, with ½ values above; ½ values below § Lower hinge (bottom quartile) = ¼ values below; ¾ values above § Upper hinge (top quartile) = ¼ values above; ¾ values below § Hinge spread = ½ values (between lower and upper hinges)

DATA GATHERING AND VISUALIZATION

Session 12 20