Strategic Management for Entreprenuers.pptx

Strategic Management for Entreprenuers.pptx

1. Basics of Strategic Marketing and Customer Relationship Management

2. Learning outcomes To gain an understanding regarding the concepts - marketing, strategy and strategic marketing. To gain a brief understanding on strategic analysis. To gain an understanding on the importance of porter’s generic strategies and Ansoff Matrix. To identify practical issues with regard to strategy implementation To identify the significance of customer relationship management by referring to: Relationship Building Blocks Levels of relationship marketing Changing nature of customer relationships Customer relationship groups Benefits of CRM

3. What is Marketing ?

4. Definitions “The aim of marketing is to make selling superfluous (Drucker)” Simply, marketing is “meeting needs profitably” “Marketing is managing profitable customer relationships”

5. Marketing is a social and managerial process by which individuals and organization obtain what they need and want through creating and exchanging value with others (Kotler, 2011).

6. Role of marketing Marketing is; As an overall business philosophy As an important functional area of management As a skill

7. Role of Marketing as a philosophy and as a skill Marketing as a Philosophy Effectiveness (The ability to achieve appropriate objectives /the ability to create and keep profitable customer/Doing the right thing ) Marketing as a Function Efficiency (ability to minimize the use of resources in achieving organizational objectives/Doing things right)

8. As a skill Market relating ability Market sensing ability

9. Defining a Strategy A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem A company’s strategy consists of the competitive moves and business approaches that managers employ to attract and please customers, compete successfully, grow the business, conduct operations, and achieve targeted objectives

10. Contd.. A strategy is the pattern or plan that integrates an organization’s major goals, policies, & actions into a cohesive whole.

11. Strategic marketing management Strategic marketing is the process of creating & retaining satisfied customers through the integration of all business functions and through the continuous search for a sustainable competitive advantage through innovation.

12. Overview of strategic marketing management Strategy Identification and Selection Identification of strategic alternatives Selection of strategy Implementation Reviewing of strategies External Analysis Identification of opportunities, threats, trends and strategic uncertainties Internal Analysis Identification of strategic strengths, weaknesses, problems, constraints and uncertainties Strategic Analysis

13. Opportunities Threats Strategic uncertainties Trends

14. Customer Analysis Identifying Segments Benefits Usage level Application Organization type Geographic location Customer Loyalty Price sensitivity Motivations of Segments Valued elements Objectives of the customers Segment differentiation based on motivation priorities Changes occurring in motivations Unmet needs Reasons for dissatisfaction Severity of the issues Identified and non identified unmet needs

15. Competitor Analysis Identifying current competitors Customer based approaches Customer Choices Strategic Group Approach Group of firms that have similar; competitive strategies characteristics assets and competencies

16. Contd.. Identifying Potential Competitors Market Expansion Product Expansion Backward Integration Forward Integration The export of assets or competencies (synergistic mergers) Retaliatory or defensive strategies

17. Reaction patterns of competitors The laid back competitor The selective competitor The tiger competitor The stochastic competitor

18. Market analysis Two Primary Objectives are: Determining the attractiveness of the markets Understanding the dynamics of the market

19. Dimensions of a market analysis Actual and potential market size Market growth Market profitability Cost structure Distribution system Trends and developments Key success factors

20. Porter’s five factor model 0f market profitability

21. Environment Analysis Sub Components Technology Government Economics Culture Demographics

22. Internal Analysis Understanding a business in depth is the goal of internal analysis The analysis is based on specific, current information on sales, profits, costs, organizational structure, management style and other factors.

23. Sub components Performance analysis Profitability Sales Customer satisfaction Product quality Brand associations Relative cost New products Employee capability and performance Long term profits

24. Contd.. Strategic Options Past and current strategies (accurate profile should be developed) Strategic problems (different from a weakness) Organizational constraints (structure, systems, people and culture) Financial constraints (cash flows) Strengths / weaknesses

25. Strategic direction and formulation Porter’s Generic Strategies Ansoff Matrix

26. Porter’s Generic strategies

27. Ansoff Matrix

28. Strategy Implementation EVR Congruence

29. Barriers of strategy implementation Resistance to change Lack of clear and decisive leadership Lack of accountability Poor communication Too much focus on short term results

30. Part ii customer relationship management

31. Customer relationship management Perhaps the most important concept in modern marketing It deals with all aspects of acquiring , keeping and growing customers “The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction”

32. It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer satisfied. Marketers must be concerned with the lifetime value of the customer .

33. Relationship building blocks Value Satisfaction Customer-Perceived Value The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

34. Contd.. Total Customer Benefits The bundle of benefits customers expect from a given product or service Total Customer Cost The bundle of costs customers expect to incur in evaluating, obtaining, and using the product or service

35. Determinants of Customer Delivered Value Image value Personnel value Services value Product value Total customer Benefits Monetary cost Time cost Energy cost Psychological cost Total customer cost Customer Perceived value

36. Customer satisfaction Customer satisfaction depends on the product’s perceived performance relative to a buyer’s expectations. The extent to which a product’s perceived performance matches a buyer’s expectations.

37. Satisfaction (Cont.) Dissatisfied Satisfied Delighted (Highly satisfied) P < E P = E P > E

38. Five levels of relationship Marketing

39. Changing nature of customer relationships Selective Relationship Management Customer profitability analysis separates winners from losers Relating more deeply and interactively

40. Customer relationship groups

41. Benefits of crm Centralization and sharing of data Better customer service Higher customer satisfaction Improved marketing efforts More profit Customer knowledge reveals potential for development Benefits derived through loyalty

42. references Strategic Market Management , David Aaker , ( 5 th edition.) Principles of Marketing, Kotler et.al, (13 th edition) Marketing Management, Kotler et.al (12 th edition)

43. Thank you..