hooley4e_ch01

8/3/2019 hooley4e_ch01

1/25

GRAHAM HOOLEY NIGEL F. PIERCY BRIGETTE

NICOULAUD

1Market-led strategicmanagement


2/25

Introduction

Marketing, centering on identifying and

satisfying customer requirements at profit

In greyser terms, marketing migrated frombeing functional discipline to how business

should be run

More than paying lip service to marketing

6-2


3/25

DOYLE DISTINGUISHES BETWEENTHE FOLLOWING

6-3


4/25

Radical strategies

Companies achieve spectacular growth in

sales and profits without building customer

value through superior products

Acquisition based

Marketing department based (High level of

advertising, proliferating product lines)

Public relations based (media hype to attractcustomers)

6-4


5/25

Rational strategies

High short term performance through

products cheaper than traditional competitors

Major innovations in technology, marketingmethods or distribution channels

Amstrad in electronics, and personal computers

(PCs), sock shop in specialty retailing

6-5


6/25

Robust strategies

Companies achieve steady performance over

long period by creating superior customer

value and building long-term customer

relationships.

Superior customer value, long-term investments

in relations with suppliers, distributors and offer

long-term advantage

6-6


7/25

WEBSTER PROPOSES MARKETINGAS A SET OF PROCESSES

6-7


8/25

Value-defining processes

Processes that enable the organization to

understand its environment in which it

operates better (understand resources and

capabilities)

Such as market research, buying behavior, product

use and so on

6-8


9/25

Value developing processes

Processes that create value throughout the

value chain

Procurement strategy, vendor selection, strategic

partnership with service providers etc.

6-9


10/25

Value-delivery processes

Processes that enable the delivery of value to

customers

Service delivery, customer relationship

management, management of distribution and

logistics, communication processes (such as

advertising and sales promotion) and customer

support services etc.

6-10


11/25

THE MARKETING CONCEPT ANDMARKET ORIENTATION

6-11


12/25

Definition of marketing

Definition from Ferrell and Lucas (1987):

Marketing is the process of planning and

executing the conception, pricing, planningand distribution of ideas, goods and services

to create exchanges that satisfy individual and

organizational objectives.

6-12


13/25

6-13

Providers goals

Survival

Financial

Social

Spiritual

Customers goals

Solutions

Benefits

Well-being

Offers

Services, products

customers &

providers satisfaction

Responses

Purchases,

su

pport

Figure 1.1 Mode l of mutua l ly benef i c ia l exchanges


14/25

Marketing concept

Marketing involves the following:

organisational culture: set of values and beliefs for

the organisation to serve customers needs

strategy: develop effective responses to changing

market environments by defining market

segments, and developing and positioning product

offerings for targets tactics: concerned activities of product

management, pricing, distribution and

communications such as advertising, personal

selling, publicity and sales promotion 6-14


15/25

Market orientation

Philosophy of marketing into reality

Definition from Kohli and Jaworski (1990):

Market orientation are activities towarddeveloping an understanding of customers current

and future needs.

6-15


16/25

Components and context of market

orientation are proposed: Customer orientationCustomer orientation Understanding costumers to create superior value

Competitor orientationCompetitor orientation

Awareness of the short-long term competitors capabilities

Interfunctional coInterfunctional co--ordinationordination

Using all resources to create value for customers

Organizational cultureOrganizational culture Linking employee and managerial behavior to customer

satisfaction

LongLong--term profitterm profit

6-16


17/25

Customerorientation

Interfunctionalcordination

Focus on thelong term

Competitororientation

6-17

Market-ledorganizational

culture

Figure 1.2 Components and contex t of marke t

or ien ta t ion


18/25

Resource based view of marketing

Focus on core competencies

Performance is driven by the resource profile

of the organization Possession and deployment of distinctive,

hard to imitate or protected resources

Three alternative approaches are apparent

6-18


19/25

Product push marketing

Activities on existing products and services

and look for ways to encourage, or persuade

customers to buy.

The key is to make customer want what we

are good at.

6-19


20/25

Customer-led marketing

Under this approach organisations chase their

customers at all costs.

The retailers react by giving customers morechoice, heavy promotions and deals to

stimulate purchases, and aggressive sales

force targets.

Customers get confused because of the over

complex promotions.

6-20


21/25

Resource based marketing

Companies base their marketing strategies on

equal consideration of the requirements of

the market and their abilities to serve it.

Resource based marketing seeks a long term

fit between the requirements of the markets

and the abilities of the organisation to

compete in it.

6-21


22/25

6-22

Figure 1.3 Market ing app roaches

Market needs

Organizational capabilities

Customer-led

marketing

Customer-led

marketing

Customer-ledmarketing


23/25

6-23

Figure 1.4 O rgan iza t iona l s takeho lders

Customers

Distributors

Suppliers

Employees

Managers

Shareholdrs

Focal

Organization


24/25

Contribution of marketing to

stakeholders objectives Firms that do well in marketplace also do wellfinancially

Adding value of firm for shareholders Firm adopting market-oriented culture

perform better financially than those that do

not

6-24


25/25

6-25

Figure 1.5 Market ing and per for mance outcomes

Market-oriented

culture

Financial

performance

Marketing

resources

Market

performance

Assets

Documents

hooley4e_ch01