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Corporate Marketing Strategy Developing document sample
Document Sample
CRM
Aims
To revisit the definition of Marketing
To understand the relationship between corporate
objectives and marketing strategy
To examine importance of customers and markets
Market sensing and market reaction patterns
MK282
Customer Relationship Marketing
Lecture Seven
Developing Marketing Strategy for CRM
Dr. Paurav Shukla
Definition of Marketing Drivers to Strategic Decision Making
‘The creative management function which promotes
Drivers promoting CRM Drivers against using CRM
trade and employment by assessing customer needs
High Acquisition costs Acq/Retention Diff Small
and initiates research and development to meet them. It
High Exit Barriers Low Exit Barriers
co-ordinates the resource of production and distribution
Sustainable Comp. Advantage Unsubstainable Comp.Adv
of goods and services, determines and directs the
Buoyant/Expanding Market Saturated Markets
nature and scale of the total effort required to sell
High Risk/Salience Low Risk/Salience
profitably to the ultimate user’.
High Emotion Low Emotion
McDonald Trust Only Required
Require Trust & Commitment
Perceived Need for Closeness No Reason for Closeness
Marketing is the management process for identifying, Satisfaction Benefits Retention Repeat Behaviour Strategy
anticipating and satisfying customer requirements Favourable
profitably.
CIM
Corporate planning process Marketing Objectives
What do we want to achieve?
Increase loyalty
Marketing
objectives Increase sales
Increase awareness
Who do we want to target?
Distribution Finance
objectives objectives Segmentation
Corporate
objectives
Targeting
Positioning
Production
HR objectives
objectives
Dr. Paurav Shukla 1
CRM
Definition of Market Segmentation Market Segmentation
‘Market segmentation is the sub-dividing of a market Mass markets vs individual markets
into homogeneous sub-sets of customers, where any Groups who exhibit broadly similar needs
sub-set may conceivably be selected as a target market Trends away from mass marketing
to be reached with a distinct marketing mix’
Kotler
Segmentation & the Strategic Process Segmentation Bases
Consumer Markets Industrial Markets
Geography Demographics
Situation Analysis
Marketing Objectives
Demographics and SES Operating variables
Psychographics Purchasing approaches
Market Segmentation
Behavioural Situational factors
Benefits Personal characteristics
Targeting Benefits
Positioning
Marketing Strategies
Marketing Mix
Tests of Segmentation Target Marketing and Positioning
Is the segment….. Is the segment growing or declining?
homogeneous? Is the segment changing?
measurable?
What does our strategy tell us?
accessible?
Where do our resources and capabilities lie?
substantial?
exclusive? Positioning: The relative competitive stance adopted
recognised by the customers themselves? within a target market
offer above-average returns? Strategic Positioning
Cost leadership positioning?
Differentiated positioning?
Focused positioning?
Dr. Paurav Shukla 2
CRM
Customers and Markets Analyzing market
Objectives
Segment
Marketing Mix One One Strategies
Segment
Market
Marketing Mix Two Two Actions
Segment
Three
Marketing Mix Three
Reaction
Patterns Strengths &
Weaknesses
Analyzing Market Analyzing Market
Objectives
Markets
Understanding
Group A Competitors Expansion
High •Narrow line Plans Individual Commercial
•Lower mfg. cost Users & Industrial Educational
•Very high service Group C
Quality
•High price •Moderate line
•Medium mfg. cost Personal Dell
Group B •Medium service Computers
Products
•Full line •Medium price
•Low mfg. cost
•Good service Hardware
•Medium price Group D
•Broad line Accessories
Low •Medium mfg. cost
•Low service
•Low price
Software
High Low
Vertical Integration
Analyzing Market Analyzing Market
Strengths and Weaknesses Three Variables to Monitor When Analyzing
Dominant Competitors:
Share of market
Strong Share of mind
Share of heart
Favourable
Tenable
Weak
Nonviable
Dr. Paurav Shukla 3
CRM
Analyzing Market Balanced Scorecard
"The balanced scorecard retains traditional financial
Reaction Patterns measures. But financial measures tell the story of past
events, an adequate story for industrial age companies
The Laid-Back Competitor
for which investments in long-term capabilities and
customer relationships were not critical for success.
The Selective Competitor
These financial measures are inadequate, however, for
The tiger Competitor guiding and evaluating the journey that information age
companies must make to create future value through
The stochastic Competitor investment in customers, suppliers, employees,
processes, technology, and innovation."
Kaplan, R & Norton, D. (1996), The Balanced Scorecard: Translating Strategy into Action, Boston, Harvard
Business School Press
Why organizations need BSC? Four perspectives of BSC
Financial Perspective
‘If you can’t measure it, you can’t manage it’.
Customer Perspective
‘Performance can't be compensated without
measurement.’ Internal Business Processes Perspective
‘People behave in the way they are being measured’. Learning & Growth Perspective
Financial Measurement
ROI, ROCE, Market Capitalisation
Limitations of Financial Measurements
Pancholi, J. (2004), Introduction to Balanced Scorecard, Presentation to JISCO executive committee
Kaplan, R & Norton, D. (1996), The Balanced Scorecard: Translating Strategy into Action, Boston, Harvard
Business School Press
Dr. Paurav Shukla 4
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