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ASTON PROGRAMME FOR SMALL BUSINESS GROWTH
WORKSHOP 5 MARKETING STRATEGIES
THURSDAY 30 TH NOVEMBER 2017
2
NOTES
3
TIMETABLE
TIME SESSION DESCRIPTION LEAD
12:30 - 13:00 Arrival and refreshments
13:00 - 13:10 10 mins
Introduction Welcome Objectives
Paula
13:10 - 14:30 80 mins
Marketing in Turbulent Times Part 1
Developing and applying a marketing strategy
Geoff
14:30 - 14:45 Break
14:45 - 15:15 30 mins
Live Case Study Martyn Rowlands, Pipekit Ltd Paula
15:15 - 16:45 90 mins
Marketing in Turbulent Times Part 2
Strategic Focus Geoff
16:45 - 17:15 Break
17:15 - 18:50 95 mins
Understanding Customers
Understanding your organisation’s resources and customers
Segmentation
Geoff
18:50 - 19:00 10 mins
Reflections and Wrap Up
Workshop wrap-up
Paula
4
NOTES
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OBJECTIVES
BY THE END OF THE WORKSHOP I WILL HAVE:
• Considered how to develop an appropriate marketing strategy for my business growth
• Reflected on my current marketing presence and established the approach that is most appropriate for my business to generate more sales
• Identified my customer segments and their needs
WORKSHOP OBJECTIVES
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DEVELOPING AND APPLYING A MARKETING STRATEGY
DISCUSSION
• Applying strategic marketing thinking: What is marketing strategy?
• How does it fit with overall firm strategy?
• Developing a coherent and successful marketing strategy
• Implications for implementation of chosen marketing strategies
• Why firms fail when it comes to marketing strategy implementation?
Marketing strategy process
Strategic marketing Product marketing Operation
Corporate
objectives
Marketing
audit
SWOT
analysis
SWOT
balance
Product-market
objectives
Strategic
focus
Core
strategy
Marketing
mix
Estimate
results
Organise
Implement
Track
7
DEVELOPING AND APPLYING A MARKETING STRATEGY
Strategic Marketing Triangle
Market
Environment
Strategy Organisation
'Fit'
Strategic Marketing Planning: The Basic Questions
• WHERE are we now?
• HOW do we get here?
• WHERE do we want to go?
• WHERE might we go?
• WHERE must we go?
• HOW do we get there?
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DEVELOPING AND APPLYING A MARKETING STRATEGY
Know:
• In business- Your company- Your competition- The market- The business and
economic environment
• In battle- Your forces- Your opposition- The battle ground- The climate
Micro environmental forces
Publics
Competitors
Suppliers
Intermediaries
Customers
Company
Political
Socio-demographic
Legal
Economic
Technological
Natural
Macro environmental forces
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NOTES
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EXERCISE: MICRO ENVIRONMENTAL FORCES
Publics
Intermediaries
Competitors
Customers
Suppliers
Company
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EXERCISE: MACRO ENVIRONMENTAL FORCES
Political
Economic
Socio-demographic
Technological
Legal
Natural
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DEVELOPING AND APPLYING A MARKETING STRATEGY
ENVIRONMENT ANALYSIS
• Macro: Changes taking place in the broader environment?
• Micro: Trends
For example Customers Current? Future?
What do they want & need?
Competitors Who/what do/will we compete with?
• Key Success Factors What it takes to win in this business?
• Opportunities What might we do?
• Threats What must we do?
Big Data: The Management Revolution – Getting Started
You don’t need to make enormous up-front investments in IT to use big data (unlike earlier generations of IT-enabled change). 1. Pick a business unit to be the testing
ground. 2. Challenge each key function to identify
five business opportunities based on big data.
3. Implement a process for innovation that includes four steps: experimentation, measurement, sharing, and replication.
4. Keep in mind Joy’s Law: “Most of the smartest people work for someone else.”
McAfee & Brynjolfsson: Harvard Business Review October 2012
YOU CAN’T MANAGE WHAT YOU DON’T MEASURE
Big Data: The Management Revolutionby Andrew McAfee and Erik Brynjolfsson
•“You can’t manage what you don’t
measure.”
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DEVELOPING AND APPLYING A MARKETING STRATEGY
STRENGTHS, WEAKNESSES, OPPORTUNITIES
AND THREATS
Draws from the audit
It concentrated on a few key
issues
Strengths and weakness
are key factors for success
(KFS) in the industry.
Opportunities and threats
external to the company.
Based on the planning
assumptions.
Strength Weakness
Opportunity Threats
Good indicators Danger signals
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EXERCISE: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
S & W O & T ACTION
Strong Opportunity
Strong Threat
Weakness Opportunity
Weakness Threat
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EXERCISE: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
CERTAINTY IMPORTANCE ACTION
High
High
Low High
High Low
Low Low
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STRATEGIC FOCUS
STRATEGIC OBJECTIVES
• What are our goals?
• How can they be quantified in terms of:
Profitability & Financial Returns?
Sales and Market Share?
Customer Satisfaction & Retention?
Employee Satisfaction?
Resource Utilisation?
Marketing strategy process
Strategic marketing Product marketing Operation
Corporate
objectives
Marketing
audit
SWOT
analysis
SWOT
balance
Product-market
objectives
Strategic
focus
Core
strategy
Marketing
mix
Estimate
results
Organise
Implement
Track
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STRATEGIC FOCUS
STRATEGIC FOCUS
• How we will achieve our
objectives?
• What are the main components
of our strategy?
IMPROVE
PERFORMANCE
EXPAND
VOLUME
IMPROVE
PROFITABILITY
Identify main elements of the business strategy
STRATEGIC FOCUS
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EXERCISE: STRATEGIC FOCUS
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PRODUCT - MARKET EXPANSION
PRODUCT-MARKET EXPANSION
Existing
Markets
New
Markets
Existing Products New Products
Product Development
Diversification
MarketPenetration
Market
Development
PRODUCT-MARKET EXPANSION
• Customer targets – who to serve? What to offer?
• Competitor targets – who we compete with?
• Positioning – reason for customer to prefer doing
business with us?
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PRODUCT - MARKET EXPANSION
PRODUCT-MARKET EXPANSION
g Customers
• Offer customer value
• Create and sustain a differential advantage
• Market targeting
ROUTES TO COMPETITIVE ADVANTAGE
Differentiation
Cost Focus
Stuck in
the middle
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STRATEGIC FOCUS
MARKETING MIX
Offering What bundle of product and services?
Price How will we cost our offerings?
What (and how) will we charge for it?
Promotions How will we communicate our offerings
to the target customers?
Distribution How will we physically get our offerings to
where consumers want to purchase or use them?
Staff What combination of people/skills?
Systems What systems (e.g. knowledge, IT) needed to
deliver the offerings to our customers?
Processes What processes are required to ensure delivery?
Style What culture to support our marketing goals
and activities?
Structure What’s the most appropriate organisational
structure for implementing the marketing activities?
ORGANISATION
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STRATEGIC FOCUS
SUMMARY
• Marketing Strategy Process
• Marketing Audit
• Resource Advantage
• Strategic Focus – the key elements of business strategy
• Product-Market Led Expansion
• Routes to Competitive Advantage
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UNDERSTANDING CUSTOMERS
DISCUSSION
• Understanding the organisation’s resources
• Matching the organisation’s resources to market
opportunities
• Understanding the organisation’s customers
• Customer analysis: Segmentation, Targeting and
Positioning
• Customer management
KEY MARKETING CHALLENGES
FACING FIRMS
• Who and what’s the best way to attract customers?
• What’s the best use of the firm’s resources given alternative
marketing investments?
• How to keep current customers happy? Avoid switching to
competitors?
• Which customers are most important?
• How to avoid resorting to endless price competition?
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UNDERSTANDING CUSTOMERS
ASSETS AND CAPABILITIES
Assets -
The resource endowments the
business has accumulated
(George Day, Journal of Marketing, 1994)
Capabilities -
The glue that binds the assets
together and enables them to
be deployed advantageously
PRIME MARKETING ASSETS
• Company Name and Reputation
• Brand Name and Reputation
• Relationships with Key Customers
• Supply Chain Relationships
• Strategic Alliances
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UNDERSTANDING CUSTOMERS
KEY MARKETING CAPABILITIES
• Customer Relationship Management
• Sales Management Skills
• New Product Development Ability
• Communications (Internal and External)
• Market Sensing Capabilities
• Strategic flexibility, adaptability, agility
DEVELOPING AND EXPLOITING
RESOURCES
Re
so
urc
es
Markets
Exis
ting
New
Existing New
Exploit Current
Skills
Diversified
Opportunities
Next
Generation
Fill the
Gaps
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UNDERSTANDING CUSTOMERS
UNDERSTANDING CUSTOMERS
Analysis of opportunities to serve
Careful selection of customers
Customer management strategy
to grow long-term value of firm
UNDERSTANDING CUSTOMERS
Customer strategy at the
heart of marketing strategy.
The aim is to grow the
firm’s value through the
ultimate source of that
value
- the firm’s customers!
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SEGMENTATION
Who? What drives their behaviour?
Formalise & quantify their
perceptions & preferences?
What segments? What’s most
important to them?
Customer Analysis
Market
Segmentation
Analysis
Target
Market
Selection
Create
Effective
Positioning
Which segment(s) should
the firm target? Who are most
important? Why?
What positioning?
Developing effective
positioning
MARKET SEGMENTATION PRINCIPLES
• All customers are different and have different wants, needs
and expectations from purchases
• Given sufficient resources they will express these
differences in their purchasing and consumption behaviour
• Although each is different, some similarities may enable
them to be meaningfully grouped together as market targets
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SEGMENTATION
SEGMENTING MARKETS
Who they are?
Customer characteristics
Geographic, Demographic,
Socio-economic,
Psychographics
Geographic, Standard
industry classification,
Size, Type (new, repeat,
etc.)
How they buy?
Buying process, habits &
situations
What outlets,
Frequency,
Volume of purchase, etc.
Channels/procedures,
Frequency,
Importance of the purchase,
Volume
Why they buy?
Attitudes, Needs,
Preferences &
Motivations
Benefits,
Solutions,
Satisfactions
Benefits,
Solutions,
Long term value
Consumer Markets Business Markets
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NOTES
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EXERCISE: SEGMENTATION
Customer Segments
Product or Service Features
Principal Benefits Competitor
1.
2.
3.
4.
5.
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SEGMENTATION
SEVEN ROLES
Who buys? The Decision Making Unit (DMU)
Seven roles people play in a buying decision.
A need to identify who’s who…
• Who initiates?
• Who specifies?
• Who influences?
• Who decides?
• Who purchases?
• Who uses?
• Who blocks?
BUYING BEHAVIOUR: HOW?
• New task
• Modified purchase
• Straight re-buy
• New purchase
• Replacement purchase
• Routine/Habitual
• Low vs high involvement
purchase
Business markets Consumer markets
How they buy depends on the type of buying situation
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SEGMENTATION
BUYING DECISION PROCESS: HOW
• Problem recognition
• Characteristics and quantity
determination
• Product specification
• Supplier search
• Supplier evaluation
• Supplier selection
• Order routine specification
• Performance review
• Problem recognition
• Information search
• Evaluation of
alternatives
• Purchase decision
• Post-purchase
behaviour
The process displayed depends
on the type of buying situation
Business markets Consumer markets
BENEFIT SEGMENTATION -
TOOTHPASTE
PRINCIPLE BENEFITS
PRODUCT FEATURES PROMOTIONS EXAMPLES
WORRIERS
SENSORY
SOCIABLES
INDEPENDENTS
Decay Prevention
Flavour
White Teeth
Low Cost
Fluoride etc
Mint etc
Whitener
Minimal
Fewer Fillings
Fresh! Alive!
Sparkling Teeth
Offers, POS
CREST
GIBBS SR AQUAFRESH
ULTRABRITE
OWN LABEL
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SEGMENTATION
WHY IS SEGMENTATION IMPORTANT?
Who? What drives their behaviour?
Formalise & quantify their
perceptions & preferences?
What segments? What’s most
important to them?
Customer Analysis
Market
Segmentation
Analysis
Target
Market
Selection
Create
Effective
Positioning
Which segment(s) should
the firm target? Who are most
important? Why?
What positioning?
Developing effective
positioning
35
EXERCISE: SEGMENTATION
Customer Segments
Product or Service Features
Principal Benefits Competitor
1.
2.
3.
4.
5.
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NOTES
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SUMMARY
MARKETING SUCCESS
• Deep understanding of the organisation’s resources and the strengths of
its brands
• Balanced look to ‘top’ line and cost-cutting
• Flexibility, responsiveness, adaptability
• Deep insight into customers’ needs, problems, decision-making
• Deliver affordable value to Target customers
• Deliver on the promise – unlock emotional and functional value
• Relationship continuity and customer equity
• Accountability
• Innovation and Creativity
38
DR GEOFF PARKES ASTON UNIVERSITY Geoff is the Associate Dean for International at Aston Business
School. He has worked at Aston for 10 years, initially as a
Visiting Lecturer and since 2011 as a full time member of the
Marketing Group. Prior to that, he ran a Commercial Finance
brokerage raising in excess of £20m per annum for small
firms. His marketing career includes time at Ideal Standard
Corporation and Black & Decker and for 10 years he was the
Sales and Marketing Director at Aga Cookers.
At Aston Geoff’s research interests include a number of areas including access to finance and
small firms, in particular studying personality and behavioural profiles of entrepreneurs and
the impact this has on funding strategies. He also leads the business schools international
activity and is researching the economic case for language competency in small firms. He
has also published work on transnational education and practitioner led module design. On
the back of his work Geoff and a team of academics from Aston secured £450,000 worth of
European Grant Funding (ERDF) to run a series of Access to Finance Workshops for
entrepreneurs. These Workshops provided entrepreneurs with the opportunity to
use psychometric testing to measure their own behavioural propensity to access finance.
Given his background as a practitioner, Geoff’s teaching emphasises the importance of
theory in the application of marketing strategy, and is able to draw on his own experience to
illustrate how evidence based decision making can improve marketing practice. He teaches
Strategic Marketing Management, Marketing Strategy and Marketing for the Entrepreneurial
Firm. He teaches undergraduate, postgraduate and also has taught extensively on Aston’s
Executive Education Courses. He has lectured on the widely acclaimed Goldman Sachs
10,000 Small Businesses Programme. He supervises on Aston’s Doctoral programme in
Business Administration (DBA).
At Aston Geoff is now involved in a number of initiatives designed to increase engagement
between the University and small firms. He sat on the steering group to develop and create
the first Venturefest West Midlands, a showcase event for the small business investment
community and he currently supports Pitchfest West Midlands management group. He is
also directly involved in new programmes to increase the flow of funds to small funds.
Geoff advises a number of small firms and is a Non-Executive Director of Dolphins Day
Nursery Ltd. He is also a Visiting Lecturer at VWA Studienakademie in Stuttgart.
PROFILE
39
PROFILE
MARTYN ROWLANDS PIPEKIT In 2011 Martyn Rowlands, Managing Director and founder of the company saw a gap in the market for a specialist plastic pipe distributor delivering on multiple channels Having worked for a number of years with multi-national manufacturers within the industry, Martyn undertook the launch of the business with no external lending to be financially independent. In March that year, PIPEKIT was born.
Despite launching during a troubled economy, Martyn used existing industry relationships to quickly secure distribution agreements and the business took off. Being a rural business, PIPEKIT knew the importance of multiple routes to market. Establishing a full e-commerce website supported by a Google Adwords and Shopping campaign was essential, allowing customers to easily find and order product from PIPEKIT online, by telephone or in person. This entrepreneurial spirit and determination has led PIPEKIT to become a successful company with both national and international outreach. In six years, PIPEKIT has become a recognised name in the industry and is the only company actively selling leading brand, industrial plastic pipe systems online. PIPEKIT is already viewed as experts in its field and by many of its customers as the ‘go to’ company for technical advice and support.
SCHEDULE
@AstonGrowth
#APFSBG
DATE EVENT VENUE
Thu 7th Dec 2017 Cash flow Aston Business School Birmingham B4 7ET
Tue 9th Jan 2018 13:00-19:00
Culture and People Clayton Hotel (formerly Hotel La Tour) Albert Street, B’ham B5 5JE
Mon 22nd Jan 2018 Pitching for Finance Growth Aston University Main Building Birmingham B4 7ET
Wed 24th Jan 2018 13:00-19:00
Operations and Processes Clayton Hotel B’ham Albert Street B5 5JE
Tue 6th Feb 2018 13:00-19:00
Options for External Finance Clayton Hotel B’ham Albert Street B5 5JE
Tue 27th Feb 2018 11:00-19:00
Presenting your Growth Strategy Clayton Hotel B’ham Albert Street B5 5JE
* To allow flexibility all additional workshops (highlighted in blue) will be run twice on the day in question generally from 13:00-16:00 and 16:30-19:30. Please inform Faye Oliver of your preferred time for planning purposes: [email protected]
