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Strategic marketing

Tony Proctor

Factors impacting on marketing strategy

Exhibit 1.1 Selected stakeholders Interests for an NHS organization

Stakeholder Interests Staff Provision of quality health care Self development and promotion prospects Job Satisfaction Work in a safe and good quality environment


Patients Unions

Receive excellent care and attention Enhance health prospects and life expectancy Advice on how best to recover from treatment and avoid future health problems Access to information Support from medical staff

Responsibility to members to ensure fair working practices, safe environment Support and advise members in all areas of employment rights, i.e. Equal Opportunities, Discrimination, Racial Incidents Recruitment of new members Quality Standards Legal requirements/Health and Safety/Equal Opps/Pay and Conditions Financial Management, ensure resources being used and managed effectively Praise and publicity for high achievement Adverse publicity making the facts known Challenging use of finances Excellent treatment in a caring and pleasant environment Access to information Choices Achievement of a full recovery after treatment



Prospective Patients

Exhibit 1.2 Stakeholders for a pharmaceutical company

Stakeholders Interests

General public
Legal/ courts

Safe, reliable, tested drugs

Tested drugs which do not result in serious side effects for the users. Reasonably priced drugs which have been shown to be effective in use. Stories showing either the benefits of drugs or very harmful side-effects of drugs which have not been properly tested. Details of development and testing of new drugs. Return on investment and shareholder value created.



Scientific Community Shareholders


Steady and secure demand for the products and services it supplies. A sound developing and following sound marketing and corporate strategies which will produce guaranteed returns from lending and investment. Secure and interesting employment with good future prospects.

Financial institutions

Rank and file employees


New developments that lead to competitive advantage.

Consumers Management

Safe and effective treatments. Control and influence over what happens in the firm.

Porters wheel of competitive strategy

Product life cycle

BCG Matrix

Product life cycle portfolio matrix

GE/McKinsey Matrix

Directional Policy Matrix

ADL Matrix
Industry life cycle stage Competitive Position Dominant Embryonic Hold position and seek to maximize share Attempt to improve position and maximize share Growth Hold position and share Mature Hold position and expand with industry Hold position and expand with industry

Aging Hold position


Attempt to improve position and be selective in attempts to improve share Attempt to improve position and be selective in attempts to improve share Find niche and attempt to guard it

Hold position or harvest


Selective attempts to improve position

Find niche and attempt to guard it.

Harvest or phased out withdrawal


Selectively push for position

Find niche and hang on or phased out withdrawal Turn around or phased out withdrawal

Phased out withdrawal or abandon Abandon


Improve or get out

Turnaround or abandon

Balanced Scorecard
Figure 3.1 The balanced scorecard

EXHIBIT 3.5 FORD MODEL TTHE MINDSET OF HENRY FORD Henry Fords model T remained unchanged for years while General Motors (Chevrolet) was making changes often using new technology. Henry Ford said: Well give the customer any colour he wants as long as it is black. It was an arrogant statement by an arrogant man who had been on top so long he thought nothing could dislodge him from the number one position. In the late 1920s Ford nearly went out of business as a result of this myopic approach. General Motors (Chevrolet) took over as number one in the US and Ford did not catch up until the late 1980s.

Blocks to Individual Creativity

Strategic blocks: one right answer approaches, inflexibility in thinking. These affect the approach taken to solve problems. They include the tendency to rely heavily on past experience or particular techniques without challenging their appropriateness; focusing on a narrow range of options for either problem definition or problem solving; and adapting an overly serious approach to problems which prevents the emergence of a playful, imaginative and humorous climate. Value blocks: over-generalized rigidity influenced by personal values. These occur when personal beliefs and values restrict the range of ideas contemplated. Values co-exist and failure to reconcile them contributes to difficult personal and organizational dilemmas. Perceptual blocks: over-narrow focus of attention and interest. These arise from a lack of sensory awareness at a physical level and therefore contribute to a lack of awareness of implications of situations. Self-image blocks: poor effectiveness through fear of failure, timidity in expressing ideas, etc.. These reduce effectiveness in advancing ideas assertively. They arise from a lack of self confidence in the value of ones own ideas. Individuals may be reluctant to seek help and talk about personal feelings.This barrier seems to be the greatest impediment to the successful implementation of new ideas.

EXHIBIT 3.6 BLOCKS TO CREATIVITY IN ORGANIZATIONS People and organizations tend to fall into a variety of traps when trying to become more innovative. 1 Identifying the wrong problem 2 Judging ideas too quickly 3 Stopping with the first good idea 4 Failing to get the support of key personnel in the organization 5 Failing to challenge assumptions

Industry life cycle

Revitalising markets

Strategies for declining/ stagnant industries

Space analysis

Competitive Advantage Matrix

Market Analysis

Forces of competition

The marketing environment

Booms and slumps and the economy

Technological change

Cross impact matrix

The TOWS matrix

The TOWS matrix

Complex buying decision

Factors influencing consumer behaviour

Roles in the purchase decision making process

Family Life Cycle Stages

Stages in the marketing research process

Sources of competitive advantage


Requirements of a market segment


Perceptual map

Perceptual map


Types of sales promotion


Ansoff matrix

International Market Entry Methods

Indirect export Direct export: A domestic-based export department or division An overseas sales branch or subsidiary Travelling export sales representatives Foreign-based distributors or agents

Licensing Joint ventures Direct Investment

EXHIBIT 12.2 WHAT IS A NEW PRODUCT? New to the world products: inventionsin-line skates, Polaroid camera, etc. New category entries: P&Gs first shampoo, Fords first Mini Additions to product lines: Tide liquid detergent Product improvements: current products made better Repositionings: Arm & Hammers baking soda repositioned several times as drain deodorant, refrigerator deodorant, etc

Reasons for product failure

products lack useful/meaningful uniqueness planning is poor during the introduction phase the introduction is badly timed, e.g. before the market is ready for the product key important points are sometimes overlooked in the enthusiasm to go ahead poor marketing and failure after launch the top management in the organization does not provide adequate support for the product company politics, e.g. between various brand managers
unforeseen high product costs.

New product development phases

New product development

EXHIBIT 12.9 CONCEPT TESTING Uniqueness of the concept Believability of the concept Importance of the problem being addressed Extent to which the concept is interesting Extent to which it is realistic, practical, useful Extent to which it solves a problem or meets a need How much they like the concept How likely they would be to buy the product Their reactions to the proposed price What problems they see in using the product

Entry strategies

Integrative growth strategies

Egans extension of Ansoff


Reasons for customer defection

Good customer relations pathway



Classical Gap Analysis

Marketing and Corporate Strategies