Strategic Marketing

1. Imperatives for Market-Driven Strategy

2. Markets and Competitive Space
3. Strategic Market Segmentation
4. Strategic Customer Relationship Management
5. Capabilities for Learning about Customers and Markets
6. Market Targeting and Strategic Positioning
7. Strategic Relationships
8. Innovation and New Product Strategy
9. Strategic Brand Management
10. Value Chain Strategy
11. Pricing Strategy
12. Promotion, Advertising and Sales Promotion
Strategies
13. Sales Force, Internet, and Direct Marketing Strategies
14. Designing Market-Driven Organizations
15. Marketing Strategy Implementation And Control
 Chapter 5

Capabilities for Learning

About Customers and
Markets

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Capabilities for learning about customers and markets

* Market-driven strategy, market sensing and

learning processes
* Marketing information and knowledge resources
* Marketing intelligence and knowledge
management
* Ethical issues in collecting and using information

5-3
 Learning capabilities at P&G

* Competitive strength from superior customer

knowledge
* To deliver a customer experience, less formal
research, more one-to-one communication
* Consumer Village
* Online virtual reality Cave
* Watch people clean baths
* Understand what it is like to live on $50/month
* Social networking sites

5-4
 Market Sensing and Learning Processes

* Market sensing processes

* Learning organization
* Learning and competitive advantage
* Learning about markets
* Barriers to market learning processes

5-5
 Market sensing at Tesco International

* Retailer entry to U.S. grocery market, not

with existing format
* Discovering what U.S. consumers want:
* Senior managers live with U.S. families
* Probe lifestyles of families
* Prototype store
* Developing a new retail format and targeting
the grocery gap

5-6
 Market sensing processes
* Open-minded inquiry processes
* Analyzing competitors actions
* Listening to front-line employees
* Searching for latent customer needs
* Scanning the peripherary of the market
* Encouraging experimentation

5-7
Marketing information and knowledge resources

* Scanning processes
* Specific marketing research studies
* Internal and external marketing information
resources
* Relationships with external marketing research
providers

5-8
 Screening A New Research Supplier

1. Client Would you recommend this

supplier?
2. Supplier Do you have sufficient funds for
this project?
3. What parts of the project will be
subcontracted, and how do you manage
subcontractors?
4. May I see your interviewers manual and data
entry manual?
5. How do you train and supervise
interviewers?
5-9
 Screening A New Research Supplier

6. What percentage of interviews are

validated?
7. May I see a typical questionnaire?
8. Who draws your samples?
9. What percentage of your data entry is
verified?
10. Managers - What do you think about
this supplier?
Source: Seymour Sudman and Edward Blair,
Marketing Research, A Problem-Solving Approach, Irwin/McGraw-Hill, 1998, 67.

5-10
 A Framework for Market Sensing
Probability of the Event Occurring
High Medium Low
7
Utopia Field of
6 Dreams
Effect of the
5
Event on the Things to
Company 4 Watch
3
2 Danger Future
Risks
1

* 1=Disaster, 2=Very bad, 3=Bad, 4=Neutral, 5=Good, 6=Very good, 7=Ideal

5-11
 Learning About Markets
Objective
Inquiry
Keeping and Synergistic
Gaining Access Information
to Prior Distribution
Learning
Mutually
Informed
Interpretations
Source: George S. Day, Journal of Marketing, October 1994.

5-12
 Barriers to market learning

* Managers reject new

insights/information
* Rigid organizational structures and
inflexible information systems
* Politics favour the status quo
* Overwhelming pressure of existing
business operations
* Tendency to active inertia
5-13
 Best Buys customer knowledge strategy

* Strategy treats customers as individual,

develops solutions for needs and engages
employees to serve them
* New ideas from listening more closely to
customers and employees
* Knowledge shared with manufacturers and
product developers
* Core innovation competency is gathering
and synthesizing customer intelligence

5-14
 Customers and design at Xerox
* Customer-led innovation - dreaming with
the customer
* Not just building prototype and getting
feedback
* Focus groups as first step in commercial
printer design
* Changing designs in response to customer
insights
* Investment in understanding what
customers think about the bright ideas

5-15
 Marketing research project
* Defining the problem
* Understanding the limitations of the
research
* Quality of the research
* Costs
* Evaluating and selecting suppliers
* Research methods

5-16
Existing marketing information resources

*
* In-company resources
* Open source resources
* Research agency resources

5-17
 Creating new marketing information
* Observation and ethnographic studies
* Marriott - rethink hotel experience for
road warriors
* GE - developing plastic fibers position
* Intel - use of computers by children in
China
* Research surveys
* Internet-based research

5-18
Problem definition to guide marketing research studies

Research Describe the topic

Project and Scope for the study and
the background.

Research Set specific goals for

Objectives the study - why is it
being undertaken?

Identify the specific

Research pieces of information
Questions required and the
questions that need
to be asked to obtain
that information
Planned When completed how
Outcomes should the results be
presented for management
use?
5-19
Impact of the Internet on Marketing Costs and Availability

* Online Surveys
* Fast
* Inexpensive
* Limitations in population coverage
* Resistance to excessive Web
communications
* Customer feedback and peer-to-peer Web
communications
* Monitoring customer Web behavior

5-20
 Marketing and management information systems

* Marketing information systems

* Management information systems
* Marketing decision support systems

5-21
Marketing Decision-Support System Components

Database Display

Analysis
Capabilities Models

5-22
Marketing intelligence and knowledge management

* Marketing intelligence
* Knowledge management
* Role of the chief knowledge officer
* Leveraging customer knowledge

5-23
 Ethical issues in collecting and using information

* Invasion of customer privacy

* Information and ethics
* Information collection
* Research subjects
* Information sharing

5-24
 Neuromarketing

* Magnetic resonance imaging (MRI)

* Pictures response of brain to stimuli
* Probing consumer preferences is
controversial
* Invasive
* Privacy issues
* Information sharing
* Insurance companies
* Employers
* Law enforcement
5-25