Lecturer Notes

:

The following lecture programme based on the book might be used. I have made some notes on what
might go into the lectures.

Lecture 1

Marketing Strategy: introduction and overview

Strategic Windows: their nature.

The nature and purpose of strategy and how it is formulated. The nature of marketing strategy and how
this should take account of the interests of various stakeholders when involving such things as,
product/service development and delivery, promotional mix, support services, manufacturing and
production processes, R&D, and material purchasing affect the stakeholders.

Other factors in the business environment that influence marketing strategy: political, economic, socio-
cultural and technological (PEST).

Marketing and competitors: how a firm must be able to position itself competitively in the minds of its
customers so that its products and services stand out very favourably in important respects in
relationship to competitors.

Matching the firm‘s products / services with opportunities and threats in the market place. The limited
periods during which the fit between the key requirements of a market and the particular competencies
of a firm competing in that market are at an optimum. Investment in a product line or a market area
should be timed to coincide with periods during which a strategic window is open. Correspondingly,
withdrawal should be considered where something which was a good fit, is no longer a good fit. Ways
in which a market can evolve and how firms might develop a competitive strategy to take advantage of
Strategic Windows.

Lecture 2

Portfolio Analysis

How organisations create their own environments rather than simply adapt to existing ones. How they
select the strategic windows of opportunities and threats through which they want to look out into the
world and develop and market product and services to meet the needs of what they observe to be
required in the face of environmental turbulence.

How well the fit between an organization‘s products/services meet the needs presented by the windows
of opportunities and threats is a fitting start for exploring the subject of strategic marketing. It
introduces the many factors that impinge on the firm‘s ability to operate in a strategically successful
manner. These factors are both internal and external to the organization and form subjects in their own
right which will be explored in subsequent lectures.

Central to the success or failure of a business is the health of its product (or service) mix. The product
life cycle concept is a useful conceptual framework within which to study how firms can vary their
marketing strategies. At different stages in the product life cycle certain marketing strategies seem to
be more appropriate than others. The life cycle concept also points to the different earning patterns of
products or services at various points in time. It indicates that it is necessary to have a balanced
portfolio of products services in terms of cash generating capabilities in order to ensure steady-sales
and profits at all times. Since products will generate different cash flows and profits over their lives it
means that the firm has to constantly review its product mix, prune its product lines and introduce new
products from time to time in order to maintain long-run profits and stay in business.

Discuss product portfolio models – e.g. the BCG (Boston Consulting Group) matrix and the the
Directional Policy matrix. Point to the use and limitations of such models – e.g. that they are useful
diagnostic tools but more formal and detailed planning mechanisms are required to evolve and evaluate
detailed strategies.


Lecture 3

Analysis of the business

Understanding a business in depth is the goal of self analysis and is based on detailed current
information on sales, profits, costs, organizational structure, management style and other factors.
Approaches include: focus on marketing competencies and the resource-based view of the firm which
are central to any thinking about self analysis from a marketing perspective. Next there is value chain
analysis which examines the elements upon which a competitive advantage can be based. Other useful
frameworks include Kay‘s distinctive capabilities and the Balanced Scorecard. Then there is
shareholder value analysis which provides a financial evaluation of a business. These might be briefly
discussed and illustrated.

One should also mention sales and profitability analysis along with the need to implement more
qualitative measures of analysis which try to ascertain customer perceptions of the organization and its
products or services.

Creativity in business is an important issue and there is a need be aware of problems associated with
negative mind sets and blocks to creativity. Discuss how such problem can be circumvented and
illustrate some of the creative problem solving techniques mentioned in the chapter in the book.

Note: this is a lengthy chapter in the book with many techniques and topics that can be developed
substantially. It may be advisable to have more than one lecture on Analysis of the Business and to
spend more time on the various elements involved.

Lecture 4

Industry Analysis

How understanding the nature of the industry and how it changes is thus crucial to understanding the
process of how strategic-windows can be opened and closed by external forces.

The difference between industries and markets and whereas markets can be looked upon as groups of
customers with similar buying needs, industries are collections of organizations with common products
and technologies. How knowledge of markets and industries helps to identify competition.

Examine how as industries progress through their life cycles, the nature of competition and consumer
demand changes and that this then affects the opening and closure of strategic windows. The strategies
and problems that firms adopt or encounter when operating in different stages of the industry life cycle
or in different types of industrial settings differ. Emphasize that an understanding the stage of the
industry life cycle in which a firm is operating is imperative.

Introduce the notion of strategic groups.

Illustrate SPACE analysis which summarizes a large number of strategic-issues in a few dimensions. It
relates industry strength to competitive advantage and the financial strength of a firm. The Boston
Consultancy Group competitive advantage matrix may also be introduced and examined. This
recognizes that strategic groups within an industry have different levels of profitability and it helps to
classify the competitive environments that coexist within an industry.

Lecture 5

Market Analysis

Examine the purposes of market analysis to assess its prospects for participants and understand the
dynamics of the market. One needs to identify emerging key success factors, trends, threats and
opportunities and to develop strategic questions that can guide information gathering and analysis.
Measuring the size of the market, identifying the trends and being able to predict how the market is
going to develop in the future are critical factors in understanding the state of strategic windows.

Long-term forecasts are most useful for medium- and long-term strategic planning purposes, whereas
short-term forecasts enable organizations to monitor the effectiveness of earlier long-term forecasts.
Illustrate both methods, including qualitative scenario generating approaches for long term forecasting.

Market size and projected market growth rates are not the only important dimensions of market
analysis. Point to the some of the factors which influence the profitability of a market at its various
stages of development. Understanding the key factors which govern a firm‘s success take us from
simply looking at the profitability of a market to the consideration of cost structures, distribution
systems and related trends and developments.

Lecture 6

Analysing competition

The nature of competition and the factors which influence should be explored along with how firms
identify competitors and how they use product positioning to obtain a competitive advantage. Attention
should be given to how firms define their marketing strategies and analyse the competitive positions of
rivals. Consideration should also be given to the various sources of information available to firms that
enable them to gauge competitors‘ strengths and weaknesses.

Competing successfully depends not only on an ability to identify customer wants and needs but also
upon an ability to be able to satisfy those wants and needs better than competitors are able to do. This
implies that organizations need to look for ways of achieving a differential advantage in the eyes of the
customer. The differential advantage is often achieved through the product or service itself but
sometimes it may be achieved through other elements of the marketing mix.

One might illustrate and discuss Porter‘s five forces model to portray the various factors which
influence competition and how this influence is effected.

Attention should be given to how one identifies competition since this may not always be quite
straightforward. It is important to be able to correctly identify different types of competitors so that
suitable reaction to their marketing strategies and tactics can be put into practice as and when required.

The various bases of competitive advantage might be illustrated and reference is made to Porter‘s
strategic thrust typologies. This might then be followed by a discussion of the various typologies of
competitors that can be identified and the kind of strategy each one employs. Various competitor
typologies should be considered—leader, challenger, follower, nicher—along with their implications
for approach to marketing strategy

Attention should also be given to ways and methods of obtaining information about competitors‘ actual
and planned activities. In particular, attention is given to market signalling actions and their
interpretation. How firms might assess competitors‘ strengths and weaknesses and the sources of
information that should be consulted to make this possible should be examined.


Lecture 7

Analysing the Business Environment

Discuss and illustrate how organizations need to respond and adapt to changing environmental
conditions if they intend to survive and that they can even instigate changes in the environment which
are in their own interests. Both demand an understanding of those factors and forces which bring about
change in the environment. Ideally, an organization should adapt to changes as they occur, even
anticipate them in advance or systematically instigate changes to its own advantage. An inability to do
so can put organizations in positions where their short- and long-term survival is jeopardized.

Point out that it is usual to distinguish between the internal and the external environment. The former
usually comprises the various assets and resources possessed by the organization. That is its workforce,
plant and machinery, know how, financial resources, etc. The latter refers to people, institutions and
developments, etc. which exert an external influence on how the organization performs. Of course,
with the emergence of strategic alliances and networks (to be discussed in a later lecture) such a
definition of boundaries does tend to become more blurred.

Firms need to anticipate the changes that are likely to take place in the marketing environment in the
foreseeable future. However, as noted above, it is not simply a matter of adapting to change.
Organizations can also exercise their own influence on the environment. Among the ways that this
can be achieved is the development and commercialization of new technological ideas. These new
technologies then become part of the business environment and in their turn have an impact upon
what other organizations can do. Give some illustrations.

Considerable control can be exercised over its internal environment by a firm, but a firm cannot exert
control in the same way or to the same extent over the external environment. It can only attempt to
influence it. There are various ways of influencing events in the external environment. These may
include activities such as lobbying among legislative groups. The latter is what organizations often do
when trying to influence the formulation of European Community directives which can have an impact
on such things as product design safety standards, etc.

Lecture 8

Analysing the customer in the market place

In studying buyer behaviour, a distinction should be made between complex decision-making situations
and those in which little consideration is given to the purchase being made. Where a product is
relatively expensive and possibly technologically complex, prospective purchasers often go through a
complex search and evaluation process prior to making a purchase.

Various models of consumer behaviour have been developed over the years. The models reflect the
different buying situations in which consumers find themselves. Examples of these are shown in the
text and can be accessed on the Powerpoint slides. Factors influencing consumer behaviour must be
considered as well as similar factors influencing the buying decisions in business to business
transactions. The chapter provides an overview of the principle behavioural factors influencing
customer‘s in the purchasing and these might be explored or summarized in the lecture.

Firms undertake marketing research to help identify why people buy or do not buy products and
services. It also provides information for making marketing mix decisions (pricing, product,
distribution and promotion). Research can be undertaken both in-house and by specialist marketing
research companies. Research can be tailor-made to a client‘s requirements or bought ‗off the peg‘ if a
suitable omnibus research report is available.

The research process involves: problem definition, consulting company records and published data
sources, deciding whether field work is required and if so what is the best research method, specifying
the location and size/ type of sample, collecting the data, analyzing the data, evaluating the results and
setting down recommendations for action.

Various methods are used in marketing research including surveys, experiments and observational
methods. Since virtually all research involves working with sample data, a key aspect of research
concerns how the sample is taken from the population. Quota sampling and simple random sampling
methods are widely used in practice.

Note: The chapter contains topics that have been extensively written about and might readily be split
into two lectures. One lecture might look at Customer Behaviour while the other looks ay Market
Research.

Lecture 9

Sustainable competitive strategy and generic strategies

In order to keep the strategic window open it is necessary to maintaining a sustainable competitive
advantage. In consequence, one should note that competitive advantage should be market led.

One should explore and examine the nature of core competencies and interpret their importance as the
basis of gaining a sustainable competitive advantage in the market place. Along with these core
competencies are a number of generic strategies that an organization can seek to follow or implement.
Each of these generic strategies should be examined in turn. That is low-cost, focus and pre-emptive
strategies and differentiation strategies. The latter leads on then to the consideration of product and
service quality, customer focus and relevant issues relating to brand management.

Lecture 10

Segmenting, targeting and positioning

Discuss how the market that the organization sees through the strategic window is a very complex
entity and provide some illustrative examples. In evolving strategies to take advantage of the
opportunities that exist within it, the organization has to divide it into manageable chunks at which it
can direct its relevant resources and capabilities. Give some illustrations of how firms seek to do this.

Discuss how segmentation, targeting and positioning pay dividends to organisations by accepting that
there are different demands in the market place and that a product or service needs to be tailored-in
specifically to meet these differing demands if it is to stand the best chance of success.

Note that the first step in the process of achieving this is to research the market to and identify how it
might best be segmented into buying groups that are significantly different from one another in terms
of their buying behaviour and product or service requirements. Give an illustration.

Explain that having analysed the market along appropriate lines so that there are identified segments to
the market, the next step is to decide which represent financially viable propositions as far as the
organization is concerned. Some may be too small or others too competitive. It is the task of targeting
to define those that promise the kind of returns on investment that will help the organization achieve its
objectives.

Lastly there is the question of how to place or position oneself in the minds of the users in the targeted
segments so that the product or service the organization has to offer stands out from those of
competitors. Competitive positioning is the last of the three steps. Give some examples of positioning
strategies.

Lecture 11

Marketing Mix Strategy

Explain how the organization has to communicate with the customer through the strategic window.
This can be achieved in a variety of ways ranging from spoken and written communications
(advertising, selling, etc.) to more symbolic forms of communication (the image conveyed in the
quality of the product, its price and the type of distribution outlet chosen). This is the function of the
marketing mix. The point is that the elements of the marketing mix should not be seen as individual
entities, but as a set of interrelated entities which have to be set in conjunction with one another and in
the context of the strategic window presented.

Positioning products in people‘s minds and making them attractive to market segments requires careful
formulation of the marketing mix. Getting the right blend of the product, promotion price and
distribution is essential to put the carefully carried out analysis into operation. The aim is to portray an
image for the product or service that will match with how one wants the product to be visualized in
people‘s minds, i.e. its positioning. Image is not only reflected in the promotional messages which are
directed towards the market target but also in the pricing strategy, the mode of distribution and, of
course, in the appearance of the product or service itself.

Topics that can be covered relate to the product as a complex entity, stressing the quality dimensions;
product mix policy; distribution; pricing; and people, processes and physical evidence. Finally, there
are strategic considerations to be taken into account with respect to marketing communications. This is
a very complex area since there are several promotional methods and each requires detailed
consideration of matters relating to qualitative marketing communications as well as, in the case of
advertising, choice of media.

Note: the material in this chapter might be divided into several lectures depending on the depth
lecturers want to take study of the individual elements of the marketing mix.

Lecture 12

Growth Strategies: product market expansion

The lecture might examine the strategic alternatives that are available. Essentially this involves the
various strategies outlined in the well known Ansoff matrix (market penetration, product-market
expansion and diversification) along with vertical integration strategies. The lecture might explore the
rationale behind these strategies.

The importance of new product development can be explored in detail and causes for failure in
exploiting new product opportunities examined. Ways of screening out winners and losers in terms of
new product opportunities should be considered. Leading on from new product development,
diversification should be highlighted as an important strategy in the search for new strategic windows.
An alternative strategy of vertical integration might also be explored.

Entry into export markets constitutes a specific example of market expansion as exemplified in the
Ansoff Grid. As such it might be mentioned specifically in this context.

Lecture 13

Facilitating the implementation of strategies

In the last decade of the 20th century, changes in the environment put a greater emphasis on
collaboration and partnership between organizations as a means of enabling all to benefit from the
independent strategies which they were pursuing. Marketing partnerships, strategic alliances and
networks became fashionable ways of achieving this end.

Through strategic collaboration the organization can gain access to markets and even products and
services that it would otherwise find difficult to acquire. Internal development of such products and
services might not be feasible alternatives given the organization‘s capabilities alone. However, it is
often on the delivery of product and services and the use of the 7ps of the marketing mix that strategic
collaboration can be beneficial. The organization‘s own resources alone for this purpose may be
inadequate and the implementation of strategy is thus aided by collaboration with other organizations
which are able to offer suitable expertise.

Such inter-organizational arrangements have fostered the need for relationship marketing. The
emergence of networks of collaborating organizations linked by various forms of alliance has become a
dominant form of strategic development in many different industries. Service quality and internal
marketing have both come to the fore in terms of importance as a result of the focus on relationship
marketing.

Ways and means of assessing level of service quality have been developed and a whole new emphasis
on internal marketing of the customer focus ideology has sprung into being. In order to get staff to
implement the company focus strategy, management itself is now seen as needing to treat its
employees as internal customers to whom messages and other forms of two-way communication have
to be directed and received. The lecture might introduce some of the current thinking both on service
quality measurement and on internal marketing.

However, collaboration alone is not sufficient. It is through good customer relationship management
and an internal marketing philosophy and approach that the alliance or network heightens the
probability of successfully implementing strategic marketing decisions. Good customer relationship
management ensures a receptive audience for new product and service ideas. Good internal marketing
helps to ensure that the entire network or alliance will be customer orientated which in turn will help to
guarantee the best chance of implementing strategy successfully.


Lecture 14

In order to get the best out of opportunities presented by strategic windows it requires a systematic
approach to planning and implementing marketing strategies. The lecture might examine the putting
together of the marketing plan.

Plans and strategies do not implement themselves and there are often problems in implementing
strategies. There is often resistance to change and new ideas.

The lecture might consider the various sources of resistance to implementing strategies and look at the
role of communication in overcoming this resistance. Getting people to accept the need for new
strategies through good communication is a key element in the process of effecting change. Various
communication models and methods which are relevant should be highlighted.


Questions at the end of the chapters

By and large these can be answered by referring to the text so no further comment is necessary.


Case Studies

Lecturers often prefer to set their own questions on case studies. Here I restrict myself to making some
general observations on the case studies which may be useful in answering many questions that may be
posed and related to the case studies.

Chapter 1

Mirela Fashions
1. The organization is constantly trying to identify and explore opportunities in order to survive
and be profitable.
2. Yes. Its manager focuses on the market and tries to identify opportunities which the
organization can explore and face market threats.
3. Yes. The owner knows that the organization cannot compete successfully with the high
demand for imported fashion brands and hence, it decided instead to focus on satisfying the
needs of those customers that want made-to-measure garments i.e. wedding dresses, evening
gowns, and any made-to measure clothing item.
4. Increase of imports of both reputable fashion brands and wedding dresses. Increase of
competition may lead to a decrease in the prices of imported goods and hence there may no
longer be a demand for made-to-measure clothes. Perhaps the organization should consider
expanding its operations in new markets.
5. Customers: good quality products, affordable prices (the organization should explore ways to
keep costs to a minimum in order to be able to be more competitive).
Employees: job security (the organization can perhaps expand its operations to new markets –
demographic and geographic – in order to increase its customer base).
Local community: Offer employment to local people.

King Olaf’s Hall

The major issue here is what should be done to increase the revenue stream from activities that are
acceptable to the stakeholders. Many suggestions may be considered but essentially the building is of
historical and cultural interest and the main desire of most of the stakeholders might be to use the Hall
for purposes that fit with this image. Wrestling, boxing and pop music events are not the order of the
day but exhibitions of paintings, sculptures and chamber music would fit better with the cultural image.
The Law Courts are of historical and educational interest and might be marketed as such to visitors.

A major problem, however, is how does the Hall make sufficient money from these kinds of activities
to make itself self-financing? The market for such activities as those listed above may be comparatively
small and may not be capable of generating the desired income stream.

Given the proximity to the museums, art galleries and library there may be opportunities for synergy in
developing joint strategies with the latter establishments.

Chapter 2

Acme (A) & Acme (B)

Use here can be made of the spreadsheets illustrating the BCG and DPM matrices. (see BCG Chapter
2, DPM Chapter 2 & DPM Example Chapter 2).

Chapter 3

Barrington Breweries

The problems of the company are to be found in the last paragraph. These problems need to be
addressed. Tied estate creates difficulties for the company and it may well be worth the company‘s
while disposing of some of its tied assets and ploughing the monies generated into new profitable
ventures. Stakeholders in the company need to be persuaded that change is necessary … particularly
shareholders. Shareholders are interested in the long term future of the company and if they can be
persuaded that the current strategy is likely to prove less than productive in the future they will be
happy to give their backing to new ventures. Some new ideas are required and these need to be
explained to stakeholders before a change in attitude may come about.

The spreadsheets Organisational Health Chapter 3, Scorecard Chapter 3, & Chapter 3 Stakeholder
Benefits may be adapted for use in this case.

Avila Batteries

The idea here is to get student‘s to review the block to creative thinking in an organisation mentioned.
The founder obviously had his own approach to business and his own ideas about what he wanted the
firm to be and where he wanted it to go. This could have created a mindset for the whole organisation.
The new supremo may have his own ideas and certainly needs to change the direction of the firm given
its current performance. If he hasn‘t any definite ideas then just observing what competitors are doing
may give him ideas. Alternatively, talking to distributors will obviously be helpful.
Keeping the business under the control of the family as has been done in the past has resulted in the
firm missing opportunities. A willingness to share the control of the enterprise and bring in new blood
can be beneficial but sometimes such decisions are made too late in the day. Of course, such a strategy
can have risks, too.
There many aspects to the car and automotive industry that company could think of moving into from
its base as a battery manufacturer. Products could be made under license or alternatively imported.
Home manufactured finished products of other manufacturers might be marketed along side the
batteries.


Chapter 4

Stelco

A change in company structure with a holding firm and several different firms specialising in
producing products for certain different markets might be a possible strategy to pursue. Certainly
aiming to be a fully integrated business operation is not the order of the day. By fragmenting into
separate operating companies more flexibility can be introduced and the firms would be more open to
new possibilities in terms of developing products and serving markets.

ABC Ltd

The spreadsheet SPACE ANALYSIS Chapter 4 can be used as a template for constructing a SPACE
analysis for the firm in the case study. Note that some degree of subjective estimating is required and
also that not all the categories in the spreadsheet can be fully assessed.

Majestic Tobacco Company

The firm should consider diversifying its product market scope for long term profitability since the
medium and long term prospects for tobacco products is very uncertain.

Chapter 5

Cometex

Door to door selling of products is less popular than it used to be years ago in developed countries. The
advent of large supermarkets and the fact that fewer people are at home in the day has eroded the door
to door selling approach. Nevertheless, its very decline in popularity has made it an innovative way of
gaining distribution for products. Catalogue selling and Internet selling are now a popular way of
selling items that the door to door approach could have favoured in the past. Nevertheless, certain
products and services are still sold door to door.

There may be more scope for door to door selling in the developing world though cultural factors may
influence its acceptability. In many developing countries good access to the Internet is available and
traders have a wide variety of means to engage with customers.

In developing countries market information on market sizes may be sparse. One cannot assume that the
same kind of data can be acquired from secondary information sources as one can in the more
developed countries. Sample surveys and informed opinion are more the order of the day in some
cases.

Ecoprods

People are becoming more aware of the need to use green products but awareness alone will not
guarantee that they will use or buy such products. Not only may the relative cost of such products be a
factor but there may be many other factors, too.

Finding out how many people might buy the product in this case would have to be assessed by a
sample survey of motorists. Even then it would be a matter of estimating what proportion of those
motorists who would say they would buy the product would actually do so. With a new product the
proportion would vary from one product to another.

Forecasting Demand for part-time university MBA places

The data is suitable for analysis using multiple regression analysis in the way indicated in the text of
the chapter. See Forecasting Car sales Chapter 5 spreadsheet.




Chapter 6

Laiki

The Porter‘s model of competition helps the organization identify five important factors relating to the
profitability of the organization: rivalry among competitors, bargaining power of customers, bargaining
power of suppliers, threat of new entrants, and the threat of substitute products or services. Clearly the
bank needs to identify its competitors and the degree of rivalry among them. The model will enable the
organization to assess the degree of rivalry in the market.

Information regarding: sales, market share, profit margin, return on investment, cash-flow, new
investments is required.

The degree of competition needs to be assessed by using data from the following sources: public (for
example articles and newspaper reports); trade and professional sources (for example distributors, the
trade press and even customers); government and investors.

Cyproswim

An intimate knowledge of the market and what competitors are doing seems essential. Such
information would be gained by personal experience of the executives of the firms operating in the
swimming pool market and would be gained from interaction with clients, distributors and competitors‘
staff. All the companies do of course produce brochures illustrating and describing their swimming
pools so that it is easy to match product quality with list prices. Inspection of installed swimming pools
and a knowledge of the prices charged may provide ideas on what competitors are really giving
customers in terms of value for their money.

An interesting question to ask is whether a swimming pool in the setting is a ―designer product‖? Can
customers have a hand in designing their own swimming pools and what is available in the way of say
computer software to enable them to see the end result of their dream pool before it is ever produced
and installed?


The Porter‘s five forces model will enable the organisation to understand the competition in the
industry. The model will enable the management team to decide what direction to follow in terms of
its competitive strategy. The organization should also identify the five levels of competition in order to
be able to develop an effective competitive strategy.

Cartech

Many unusual products that are produced may just seem to be gimmicks. As such they may have very
short life cycles and prove to be unprofitable ventures as far as their owners are concerned. Audible
signalling devices, however, do provide a useful functions and probably even more so when they
actually imitate the voice and convey useful information to people. Attachments to a reversing vehicle,
for example, which warn people that the vehicle is approaching and whether it intends to move to the
left , right or keep on coming in the same direction would be a case in point. Whether or not product
applications of this type are perceived by buyers to be any more useful than those which simply emit
sounds seems to be the issue here. Perhaps a market survey may help throw some light on the matter.
What certainly would be useful would be situations where it is necessary to issue definite instructions
or give out very specific information.

Evaluating competitive forces

See Case Study Forces of Competition Chapter 6 spreadsheet

Chapter 7

Union Assurance Company

The spreadsheet Cross Impact Chapter 7 might be modified and developed to assess the impact of the
PEST and other factors here. The case also presents an opportunity to construct a TOWS matrix. This
might be coupled with the brainstorming of further ideas with respect to threats, opportunities,
weaknesses and strengths identified in the four cells of the matrix.

The Foldaway Company

Tony‘s experience to date relates to items for the home. He could consider applications for the office,
workshop or any other place of work where economy of space is an issue. Shortage of space for living
and work is the main issue here.


Chapter 8

Choosing a holiday – part of a focus group discussion

People have different interests and tastes but there are always people who have the same interests and
tastes in common. Holidays, too, are opportunities to gain new experiences or socialize for many
people. The case illustrates that people have many different expectations from a holiday. Holiday
companies need to be sufficiently creative to be able to identify means of fulfilling these expectations.

While packaged holidays may still be popular, the growth of the Internet has brought a new product
into the arena - self-service holidays. People now find it easy to arrange their own holidays via the
Internet on a ‗pick and mix‘ basis. This has implications for providers and some interesting
developments may be noted. Brittany Ferries, for example, not only provides cross Channel travel
facilities but also networks with a large number of hoteliers and self catering establishments to provide
a comprehensive overall service.

Office Improvements

Business to business selling has some commonalities with selling to consumer markets but in many
ways it is different. Finding the locus of decision making in commercial, industrial or business
organizations is usually one of the critical success factor. Looking at who influences, decides, buys,
authorizes, uses, etc. the product or service needs to be thoroughly understood. Rarely is it a single
person so the seller has much research to do find the key personnel. Moreover, the people involved in
the decision making may all have different ideas of what is required and this has to be uncovered and
understood by the sales person.

Chapter 9

Barney Malone

Management succession in the running and managing of businesses is always a problem. This is
particularly the case where the founder of the business is involved. In this case there is a gap produced
by the departure of Molly and there does not appear to be anyone to fill it. In very small businesses of
this type having a good strategy alone is not sufficient one also needs to have the personnel capable of
running the business whatever direction it takes. One option might be for Barney to sell off the beauty
salon and invest the money produced in a venture where he or his wife has the necessary skills to
develop it. Businesses do not need to sell complementary products though this can often create
synergies.

The Competitive Advantage Grid Chapter 9 spreadsheet may be developed and modified to illustrate
the issues in this case.

Singapore Sam

In small businesses such as this the core competencies are usually those relating to the personal
interests and experiences of the owners of the business. In this case those relating to antique market and
those relating top IT. In the case of the IT experience this is a fast moving area and it seems likely that
whatever competencies Sam acquired from his experiences in this connection may soon become out of
date and no longer be classifiable as competencies at all.

The decision seems to rest on whether the interest in antiques and the financial and other opportunities
it affords are sufficient to motivate Sam to pursue his current line of business. Returning to the IT field
and setting up a business in that connection is obviously still a possibility but the decision to do so
needs to be taken quickly.

The Competitive Advantage Grid Chapter 9 spreadsheet may be developed and modified to illustrate
the issues in this case.

Chapter 10

Home Baker

We live in a world where convenience has become an important criterion when it comes to shopping
but at the same time people still enjoy creative recreational pursuits which may have practical
applications and uses. This is particularly the case with hobbyists who often make, repair or simply
create products which they could just as easily purchase off the shelf in its completed form.

Most people like to express themselves in a creative way and arguably this could be the case when it
comes to home baking. Indeed, a person who does not appear to be creative at all may suddenly find
this activity a means of achieving self-expression.

There may not be any well defined ways of identifying the users for such a product and using simple
demographic segmentation methods on their own may not be productive. Life style and general
psychographic approaches may be more productive but these may be then linked to certain
demographic profiles.

The Observatory – segmentation strategy

The observatory offers basically two products – an exploration of the universe and extensive facilities
to study shrubs and plants. This is an unusual combination yet at the same time one could see it as all
being a window on the ―natural world‖. If the organisation were to define its business as being that of
giving people first hand experience of the natural world then the two products could be identified as
two product market segments. It may even be possible to introduce new products which differ from the
existing one but constitute new market segments. The existing two market segments can of course be
further segmented themselves.

The case presents an opportunity to consider how both existing and new products-market segments
might be segmented and even how products may be designed or modified to stimulate interest.


Casa resort

Key areas/issues for discussion/analysis:

1. Casa‘s strength in defining a focused target market.
- Delineating the target market is the first step towards strategizing marketing programs
effectively. Specific definition of target market helps in prioritising strategies and
implementing effective programs.
- Marketing programs that flow from the management‘s vision and mission and corporate
objectives is critical in ensuring corporate success.
- Management needs become clearer when specific programs especially those relating to
marketing flows from corporate goals.

2. The dynamic environment typical in the hospitality industry has to be addressed. Although
Casa is currently enjoying success with its present strategies, there is no guarantee that they
will continue to enjoy this in the future. Competitors will come in even though Port Dickson
already has a number of hotels and resorts. It is not impossible for Casa to lose its appeal if it
stops to innovate in its offerings and loyal customers may migrate to newer and more
attractive offerings.

3. Developing loyal customers and sustaining them is not an easy task. Casa‘s ability to retain
customers who keep coming back to the resort is a signal that something is going right but this
will not continue if Casa stops strategizing effectively. Thus, the need to continuously assess
new market, create innovative activities, develop creative marketing programs and training
activities aimed at retaining loyal and experienced personnel are key ingredients in ensuring
long term survival.

Possible answers to questions

1. Repositioning implies that Casa has to move away from its present position of targeting to
corporations. It is now positioned as ‗the place‘ to carry out organizational events like family
days or sports carnival etc. A possible repositioning strategy is to offer new services such as
personalized tours and accommodation package for tourists from Singapore or other ASEAN
countries that make up the majority of visitors to Malaysia. Linking itself with relevant bodies
such as the state Tourism Board or the local authority may be a good alternative where
specific events can be planned for Port Dickson town whilst ensuring that Casa is given
special privileges to address specific clients. In this way, both the town and the resort can
benefit from this win-win collaboration. Loyalty programs, relationship marketing, Customer
Relationship Management (CRM) are but some of the initiatives that Casa must now seriously
consider. It is no longer adequate to plan strategies to satisfy customers but the move must
now gear towards delighting customers through extensive personalization or even
customerization of services. Personalization efforts such as these must now be a priority if
Casa wants to be the driver of innovation.

2. Diverting to a new target market may well be a strategy that Casa needs to undertake.
Targeting to other target market such as specific international market like the Chinese market
(visitors from China are increasing in numbers over the years) or group visitors/tourists in
package tours may be an alternative worth considering. Casa therefore has to link with tour
operators for this purpose.

3. Training and retraining of its personnel is necessary if Casa wants to retain experienced staff.
Experienced staff who understand the requirements of the hospitality industry is a key
ingredient in attracting new customers and sustaining loyal ones. Facilities management and
enhancement must also be a priority. Guests to resorts such as Casa are attracted to visit
because of the facilities and the infrastructure at the resort that not only meet the needs of
guests but are also well maintained. There is noting more disturbing to a guest than a resort or
a hotel where facilities such as elevators, parking areas, swimming pools, etc. are not well
maintained.

Inova

1. The company is attempting to identify and target those segments from which there is demand
for its products and services. An organisation can not fully satisfy the needs of all the
customers in the market therefore it needs to segment the market in order to identify and
understand customers‘ needs and match its products/services to their needs.
2. The Company has gained a competitive advantage by offering services tailored to local
cultures and needs. The organisation has realised that they key to globalisation, is the
adoption of a local approach to its products or services.
3. No. It has adopted target marketing. The organisation targets specific market segments with
specific products/services that satisfy their needs.
4. By positioning its products/services in such a way that appear to be different/superior/unique.
There is a need to study the competition and its products/services. Differentiation will be
achieved on the basis of Inova‘s strengths, customers‘ needs and competitors‘ product‘s.




Chapter 11

Eau de nuit

Innovative distribution and marketing can sometimes produce good results as the case indicates. Any
product which appeals to a specific, identifiable group who use particular facilities in a similar manner
might be approached in this way. Golf accessories are a case in point.


Longevity bulbs

Such bulbs might be distributed and sold through as many different outlets as possible. A push strategy
whereby merchandising help and discount incentives to retailers is likley to produce the best results. A
premium can be charged for such bulbs but not so much as to make the bulbs so much more expensive
than traditional bulbs. Bulbs need to be made to meet the requirements of a wide range of fittings and
intensity of lighting conditions.

Chapter 12

Remote Applications

Technology advances with amazing rapidity and new innovations soon become standard applications.
One needs to look carefully at exactly what this product does and how it actually works before thinking
about how one sets about marketing the product. Is there really a demand for such a product in the
home?

There may be more applications for such a product in the business / industrial world. Certainly the
ability to turn an appliance off at the mains plug outlet without having to move from the position where
one is using the appliance could be very useful. From the consumer market perspective this kind of
products requires the use to identify useful applications for the product.

One might market the product through DIY shops and any electrical retail outlets providing push
support in terms of promotion.

Surplus Garden Furniture

Most of the garden furniture sold by DIY and garden centres may be of the cheap foreign imported
variety designed only to last for a season or two. As such the strategy of selling it off cheap at the end
of the season may be the most suitable approach to take. For more durable furniture such as that offered
by the firm in this instance there may be some mileage in thinking of operating internationally and even
shipping items among outlets.

New Product Evaluation

See DCF problem Chapter 12 spreadsheet


Profit contribution forecast for petfood

See ATR Chapter 12 case study spreadsheet


Vertical integration

See Case Cost Benefit Analysis Spreadsheet Chapter 12 spreadsheet.





Electric Cars

This is an instance where the innovation adoption curve can be illustrated. The product is of interest to
those with plenty of money but will it appeal to the all important next groups of people in the
innovation adoption curve? The entirely electric car certainly has many limitations but possibly over
time many of these can be removed and the product made more useful to the bulk of people who will
want to use it to replace petrol and diesel fuelled cars. It is hard to estimate how long this will be since
the technology to do so appear to be lacking at the outset. One has to remember, however, that in the
very early days TVs and computers faced similar kinds of problems.

Just as interesting is the use of intermediate technology mentioned in the case and used by some
manufacturers with some degree of usefulness by the consuming public.


Chapter 13

MANUFACTURER ACI

Key areas/issues for discussion/analysis:

1. ACI is not currently in total control of its distribution channel. Although the subsidiaries are
its main distribution arm, it is still the wholesalers who will be responsible for ensuring wide
distribution. Yet, existing wholesalers are not necessarily loyal to ACI brands and can easily
switch their concentration on other manufacturers‘ brands. There is perhaps a need for some
formal relationship between the regional subsidiaries and the wholesalers and this could be in
the form of collaboration or some form of administered relationship that will allow channel
members to work together on particular functions like cooperative advertising or joint sales
promotional efforts.

2. New product development is costly but highly profitable if a manufacturer can strike a
winning product that has clear competitive advantages. This however is not easy to achieve.
Thus, there is a need to involve channel members in new product development so that relevant
inputs including feedbacks from consumers can be used strategically in developing the new
product. ACI should incorporate the views of the subsidiaries and their wholesalers when
planning new products. There is no point in aggressively pursuing new product development
if these are not readily accepted by distributors.

3. Direct distribution to the high traffic outlets has become a necessary distribution arrangement
which the high traffic outlets or the big retailers seek. Relationship marketing is very much a
part of this type of channel arrangement as the big retailers are looking for long term
relationship where suppliers understand their needs and therefore, supply efficiency will be
enhanced. Efficient consumer response also demands established long term channel
arrangement where the use of information linkages like electronic data interchange between
supplier and distributor is possible for inventory management and stock replenishment
purposes.

Possible answers to questions

1. It is possible for ACI to pursue some form of strategic collaboration with the wholesalers so
that they will be more committed to the distribution arrangement outlined by ACI. Without
any formal linkage such as this, there are no formal ties that will bind the wholesalers to ACI.
Alternatively, ACI can also develop formal arrangement through relationship marketing.
Relationship marketing is capable of getting wholesalers to actively support ACI and its
products and therefore they are more inclined to be brand loyal. The sharing of knowledge and
expertise between ACI and the distributors can create long term bonds. At the extreme end,
ACI may consider vertical integration or vertical marketing system where the wholesaling
function is incorporated into its distribution structure and the thirteen subsidiaries might
expand their function into wholesaling as well.

There is definitely room for relationship marketing to develop in ACI‘s current channel relationships.
At one end, relationship marketing between ACI and the high traffic outlets can be well established
whilst on the other end, the thirteen subsidiaries and the wholesalers can also develop relationship
marketing on a formal basis. Relationship marketing can improve the current distribution efficiency as
interdependence and cooperation is enhanced between channel members.


WAN MART

Key areas/issues for discussion/analysis:

1. The dilemma faced by the small retailers with the existence of larger retail competitors dictate
the need for them to be innovative in strategizing their business operation. Wan Mart‘s
diversion in concentrating more on their supply business is perhaps an innovative attempt to
ensure sustainability in light of the competitive environment.

2. Business relationships that are well established is an essential ingredient in ensuring effective
business operations that are not only long term but will also develop trust and commitment
amongst the players. This is key to the development of relationship marketing in the
distribution channel where channel members develop long term partnership which is likely to
create efficient channel operations. Wan Mart‘s firm relationship with Ramly transcends the
boundary of transactional relationships and have now move into the realm of long term
partnership.

3. Competition will always be present in any business environment and Wan Mart must deal
with such competition by looking beyond the traditional mode of managing their business. If
in the past they have been concentrating on end users in their mini market operations, they
must now focus on how best to strategize the distribution business where their main clientele
are other business operators including the burger stall owners, the restaurant operators and the
caterers who will seek Wan Mart for their supply of frozen burgers.

Possible answers to questions

1. The similarity of relationship marketing and Chinese business philosophy lies in the
recognition that establishing, developing and maintaining long term relationship is important
in strengthening business relationship. Commitment and trust for example, are typical
constructs in relationship marketing and these are also present in Chinese business philosophy.

2. The concepts of trust and cooperation are essential in relationship marketing. A supportive
culture helps in strengthening the relationship and in the case of Wan Mart, their well
established relationship with Ramly that has been cultivated over the years will help them in
sustaining their business operation for a long term period.

Chapter 14

Folix: transition from growth to maturity

This is an opportunity to look at all those things which contribute to blinkered thinking and lack of
creativity in an organisation. All these factors contribute to lack of innovation and an inability to get to
grips with the demands of a changing environment as the industry moves to a different stage in its life
cycle.

Maturity to decline

Issues of family control of the business and personal preferences of the owner are important issues
here. Operating in declining markets is a viable strategy until the market becomes too small to provide
an organisation with the kind of returns on investment it requires. Downsizing the scale of operation
and becoming a leaner and fitter organisation may provide a temporary solution but an exit strategy
will probably be required in the long term.

Wanting to operate close to local markets may be a somewhat out of date desire these days. Internet
marketing and speedy and reliable delivery services can offset the attractiveness of simply working in
close proximity to the market. Video conferencing and similar links which facilitate examining
machines and parts from a distance make it easier to assess the nature of work to be carried out.

Successful SMEs

The TOWS matrix may well be a useful tool for explaining what the firms have achieved but the
success of both firms seems to be attributable to the development of good relationships with customers
thereby arguing the case that relationship marketing is very important to such firms.

The Wildlife Centre

The report may not stand up to scrutiny and many of the so called achievements may well be
attributable to other activities than the marketing undertaken.

Content of example spreadsheets provided – most spreadsheets
illustrate graphic representations of the analysed data – no
spreadsheets contain macros.

All spreadsheets may be altered and adapted and used with other data.

File name Content
BCG Chapter 2 Illustrates the BCG matrix using data from some of the data from the question at
the end of the chapter.
DPM Chapter 2 Illustrates the Directional Policy Matrix using data from some of the data from
the question at the end of the chapter.
DPM Example
(Chapter 2)
Illustrates the Directional Policy Matrix shown in the text of the chapter.
Organisational
Health Chapter 3
Illustrates the use of a scorecard measuring staff satisfaction with communication,
openness, planning, ethos and direction in an organisation. Scores for different
levels of staff are shown.
Scorecard Chapter
3
Illustrates and example Balanced Scorecard
Chapter 3
Stakeholder
benefits
Illustrates benefits created for different stakeholder groups over time.
SPACE analysis
Chapter 4
Provides an illustration of SPACE analysis
Forecasting car
sales Chapter 5
Provides illustration in text worked out in a spreadsheet

Seasonal Sales
Chapter 5
Provides illustration in text worked out in a spreadsheet

Forces of
competition
Chapter 6
Provides a means of measuring the impact of the elements of Porter‘s 5 forces
model using data in the chapter.
Case Study Forces
of Competition
Chapter 6
Provides a means of measuring the impact of the elements of Porter‘s 5 forces
model using data in the case study at the end of the chapter.
Case Cross Impact
Chapter 7
Provides an illustration of Cross Impact Analysis using the data in the chapter.
Cross Impact
Chapter 7
Provides an illustration of Cross Impact Analysis using the data in the case study
at the end of the chapter.
Competitive
Advantage Grid
Chapter 9
Provides an illustration of Competitive Advantage Grid using the data in the
chapter.
Chapter 10
Perceptual Map
Spending Holiday
Hypothetical survey of 36 people regarding their perceptions in terms of
convenience and cost of travelling on holiday by different means across the
English Channel. Produces simple perceptual map using these two variables. Also
shows the market share of each one of the surveyed methods of travel.
Chapter 10
perceptual
mapping Kruskal
paper p32 using
solver
Extra file described in the file -―MDS with spreadsheet‖. Illustrates the use of
solver in Excel 2007 to facilitate the construction of MDS maps.
Chapter 10 Lap
top computer map
- using solver
Extra file described in the file -―MDS with spreadsheet‖. Illustrates the use of
solver in Excel 2007 to facilitate the construction of MDS maps.
Estimating PED
Chapter 11
Shows how the Price Elasticity of Demand can be estimated by monitoring
changes in prices
Pricing Strategy
Chapter 11
Shows the effect of PED on demand assuming various levels for PED and
percentage changes in price.
Pricing PED and
Profitability
Shows the influence of price changes on profitability
ATR model
Chapter 12
Works out a profit forecast for a new product.
DCF Chapter 12 Uses the yield method to work out DCF for two projects illustrated in the chapter
text.
DCF problem
Chapter 12
Uses the yield method to work out DCF for two projects highlighted in the
chapter case study.
Cost Benefit
Analysis
Chapter 12
Illustrates Cost Benefit analysis for the example shown in the chapter text
Case Cost Benefit
Analysis
Chapter 12
Illustrates Cost Benefit Analysis for the example illustrated in the chapter case
study.
Npv
Chapter 12
Illustrates Net Present Values for the example shown in the chapter text
ATR Chapter 12
case study
Illustrates ATR for the example illustrated in the chapter case study.
Marketing
Planning
Chapter 14
Estimates changes for net operation profit for various combinations of
Industry sales units
Company market share
Average price per unit
Variable cost per unit


Notes:
1. The two files relating to pricing Estimating PED Chapter 11 & Pricing Strategy
Chapter 11 can be used to illustrate how the piece elasticity of demand may be estimated and the effect
different price elasticities can have on profit.
2. Many of the spreadsheets are self explanatory but comments and explanations have been entered in a
comments in some files. If these are not readily visible click the View command and then Comments


Use of Powerpoint files provided.

These relate to the individual chapters in the book and also the 14 lecture sessions outlined above. They
can be used as adjuncts to the lectures.