Introducing Strategic Marketing

in the Media

Who am I? Dr John Oliver, Associate Professor in Media Management

Executive Member and former Deputy President, European Media Management Association

Visiting Fellow at Reuters Institute (University of Oxford)

Research lead for BU Creative, Digital & Cognitive Science (150 staff)

Background in marketing, advertising, strategic management, consulting and executive training

Published in international media and management journals

Practice-led research and teaching philosophy

Examine the nature of marketing and what makes it ‘strategic’

Evaluate strategic trends in the media environment.

Understand the nature of aspects of marketing theory.

Day 1: Understanding the Strategic Marketing Environment

Day 2: Developing Strategic Marketing Responses

Teaching Block Programme

Key readings on VLE – use them to support your assignment discussion.

Engage in tutorial support (online, telephone, skype).

People who engage, do better than those who dont!

Online Support

Lecture Outline

1. Evaluating Marketing Definitions

2. Changing Focus of Marketing

3. Corporate Strategy, Marketing Strategy and Marketing Plan

4. Philosophical Orientations (Market v Brand)

5. The 7 Ps Marketing

6. Marketing Strategy & Ethics

7. Summary

Indicative Reading

Brennan, R., et al (2008). Contemporary Strategic Marketing, Chapter 1

Gronroos, C., (2006). On defining marketing: finding a new road map for marketing. Marketing Theory, Dec, Vol. 6, Issue 4, 395-417

Hooley, G. J., et al (2012). Marketing Strategy & Competitive Positioning, FT Prentice Hall, Chapters 1, 2

Lusch, R.F. and Vargo. S.L., (2006). The Service Dominant Logic of Marketing. Dialog, Debate, and Directions, Armonk, NY:M.E. Sharpe

Urde, M., Baumgarth, C. and Merrilees B., (2013). Brand orientation and market orientation – From Alternatives to synergy. Journal of Business Research, Vol.66, Issue 1, pp. 13-20

Varadarajan, R., (2010). Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises. Journal of the Academy of Marketing Science, 38, 119–140.

“an organization’sintegrated pattern of decisions that specify its crucial

choicesconcerning products, markets, marketing activities and

marketing resources in the creation, communication and/ordelivery of products that offer value to customers”

Varadarajan (2009:119)

“The management process responsible for identifying, anticipating and satisfying customer requirements

profitably”. Chartered Institute Of Marketing (2011)

“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging

offerings that have value for customers, clients, partners, and society at large”.

American Marketing Association (2014)

1. Evaluating Marketing Definitions

2. Changing Focus of MarketingFo

cus

of

Activi

ty

1950s

1960s 1980’s

1990’s 2000s

Consumer Marketing

Industrial Marketing

Non-profit marketing

Services MarketingRelationship

MarketingDigital Marketing

1970s

Source: Adapted from Christopher, Payne, Ballantyne (1993:9)

Experiential Marketing

3. Corporate Strategy, Marketing Strategy & Marketing Plan

Corporate Strategy

Marketing Strategy

Marketing Plan

Purpose, Scope, Mission and Direction

Market, core strategy, positioning, and competitive advantage

Marketing mix, budgeting, implementation and control

So what is Strategic Marketing?

Concerned with a “long range” and “systematic analysis” of marketing trends.

Links marketing strategy to corporate strategy

Continuous analysis of the marketing environment;

- PESTEL- the nature of an industry- competition- changing consumer needs- strengths / weaknesses of the

company- the brand portfolio and

architecture

“Marketing must be

related to strategy and not only or

predominantly occupy itself with tactical

issues”Gronroos (2004:396)

An “action orientated” process concerned with the day-to-day management of the marketing strategy. This will involve;

Devising a marketing plan (objectives, positioning, tactics)

To generate sales and repeat sales

Using the most efficient and cost effective marketing communications methods

Managing the marketing budget (how much can we/should we spend?)

Managing the 7 Ps in the marketing mix

Marketing Plan

4. Philosophical Orientations (Market v Brand)

“How can management square

the general principle that the customer is king

with the specific beliefthat our brands are our

greatest assets?”

Urde, Baumgarth, Merrilees (2013:13)

Much discussion on whether firms should have a market orientation or a brand orientation

An outside–in (the market drives the company)

An inside-out (the brand drives the company)

A Market Orientation Changes in the market drive company values and strategy

Keeping up with changing consumer trends is essential

Satisfaction of customer needs and wants is paramount

Market segmentation is keyCustomer relationship management is essential

Key performance indicators include customer satisfaction, customer loyalty or churn, customer lifetime value

“Market orientation is on a more uncomplicated,

short-term, andfundamental level. If an

organization is only market oriented, then

it's still in the discussion about products and

markets.” (Urde, 1999:118)

A Brand Orientation Brand identity and values guide organisational culture, behaviour and strategy.

Prioritizing the brand in the organisation gives it integrity in relation to customers' desires and the actions of competitors.

Brand is more important than the needs and wants of customers

The brand is a strategic resource

Evaluates management proposals depending upon what the impact on the brand

“Brand orientation is an approach in which the

process of the organization revolve around the creation,

development, and protection of brand

identity in an ongoing interaction with target

customers with the aim of achieving

lasting competitive advantages in the form of brands”

(Urde, 1999:119)

Market or Brand Orientated?

Top 100 Global Brands 2014

Source: Interbrand.com

4. The 7 Ps of Marketing

The &These ingredients should be mixed and managed to successfully market products/services…at a profit!

An incorrect marketing mix will mean that customer wants and needs will not be satisfied

The 7Ps is a simple platform on which to develop successful marketing strategies

“The marketing function is the study of market forces and factors and the development of a company’s position to

optimise its benefit from them”.

Chartered Institute of Marketing (2009:2)

Product (Service)Should be developed in order to satisfy customer needs and wants It should provide the customer with value Think about: quality, features, packaging, variety, warranties

PriceAll other elements of the marketing mix involve cost. This variable is concerned with REVENUE. It also positions you in the market place.

What cost per unit?What pricing methods and payment terms?DiscountsCredit terms

PlaceConcerned with the distribution of the product/service. You need to think about the availability, quantity, time of delivery and place.

Location of sales outlets Method of transport Inventory level Online distribution

PromotionDecisions have to be made about the marketing communications mix, the spend, the timing, the proportions in the mix, how we integrate communications to get a consistent brand message

Advertising Personal Selling Sales Promotions Public Relations Direct Marketing

PeopleAnyone who comes into contact with the customersPeople deliver your promisesAre they well trained, motivated?Customers struggle to separate the product from the people to deliver it

ProcessWhat processes are involved in delivering your product?Processes are usually designed for the company’s benefit not the customer

Think about customer information, waiting times, website navigation etc

Physical Evidence

A service is intangible and therefore considered risky by consumers

Facilities are important (clean, tidy, ambience)

Provide customer testimonials, case studies Provide the customer with an experience

No organisation can divorce itself from the society in which it operates. As ethics concerns the study of moral principles, sometimes the requirements of business and customers conflict.

“The role of the marketer these days could be seen in terms of connecting with stakeholders not only in terms of value, but in terms of values. In a world

where intangible assets and corporate reputation are centre stage, the marketing team needs to focus on

ethical issues more than ever before.”Chartered Institute of Marketing (2011)

6. Marketing Strategy & Ethics

Unethical behaviour?

.

ASA

Report to professional bodies In-house Codes of Practice Government Codes of Practice Governance/Social Responsibility Regulatory Bodies, The Law

Organisations adopt a “social responsibility stance” as part of their marketing strategy.

This can act of as a competitive advantage, attract & retain high calibre staff, provide an opportunity for sponsorship/publicity.

Addressing unethical behaviour

Marketing Strategy should link to Corporate Strategy

Strategic Marketing involves analysis of the current and long term competitive environment

Tactical marketing is concerned with implementing the strategy by way of a marketing plan

Marketing needs to create ‘customer value’ ‘manage customer relationships’ ‘create profit’

Marketing achieves company goals by meeting and exceeding customer needs better than the competition.

This should be done ethically!

8. Summary