Henley Business School Strategic Marketing Paper

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[Type text] Henley Business School Strategic Marketing Assignment The use of specific cultural references and gender markers in these course materials does not imply bias or criticism. The copying, storage in any retrieval system, transmission, reproduction in any form or resale of the course materials or any part thereof without the prior written permission of Henley Business School is an infringement of copyright and will result in legal proceedings. Henley Business School reserves the right to change course content, structure and all terms and conditions related to the programmes at its sole discretion. www.henley.ac.uk © Henley Business School, April 2015 Item code: STMK-AQ-7A ii © Henley Business School, April 2015 STMK-AQ-7A Introduction The assessment of the Strategic Marketing module is by assignment only. The assignment comprises an individual written report providing you with the opportunity to research and reflect on the application of the concepts and techniques studied in this module to a specific organisational problem or challenge. Your assignment is to be based on a marketing-related problem or opportunity of your choice within your organisation. Typically, it will be associated with the department or function where you are currently employed, but it may also cross functional, or even organisational, boundaries where appropriate. The marketing activity (or activities) you choose should have clearly identifiable internal and/or external customers. The outcome should be a report bringing together theory and practice. Within your analysis and discussion you should develop your learning from the course and use concepts and theories to help you to analyse, justify and discuss the challenges and your plan and recommendations. Purpose of the assignment The assignment is designed to:  test your understanding of the concepts and theories introduced in the module  test your ability to apply relevant concepts and theories to practical situations and problems You are encouraged to reflect on how the ideas and concepts presented in the module have informed your thinking on management theory and practice. Where possible, think about marketing theory and its applications in the broader context of other modules you have studied on the MBA: what are the implications of marketing strategy and implementation? Throughout the assignment your analysis should draw upon appropriate material from the module. Assessment brief Identify a marketing-related problem or opportunity within your organisation. You have two options: (A) Focus on a current marketing problem or opportunity, propose a course of action likely to deliver value to the business, and describe the implementation and expected impact of the proposed course of action. or: (B) Focus on a past marketing problem or opportunity, describe and critique the course of action taken at the time, and propose further action. © Henley Business School, April 2015 1 Strategic Marketing: Assignment Suitable marketing problems and opportunities include, but are not limited to, the following:  customer service problem  ethical dilemma  internal branding initiative  marketing communications in the Web 2.0 environment  emerging pricing models  evolving customer and/or market trends  market segmentation initiatives  relationships with stakeholders  challenges across the value chain The report needs to include the following five elements: Option A Option B 1 Executive summary Executive summary 2 Part 1: Analysis of a current marketingrelated problem or opportunity within your organisation Part 1: Analysis of a past marketingrelated problem or opportunity within your organisation 3 Part 2: Proposed future course of action likely to deliver value to the business Part 2: Critique of the course of action taken at the time 4 Part 3: Implementation and expected impact of the proposed course of action Part 3: Recommendations for future action 5 Part 4: Interdependencies and reflection Part 4: Interdependencies and reflection These elements are described in detail below. 2 © Henley Business School, April 2015 STMK-AQ-7A Element Description – Option A Description – Option B Executive summary You should provide a concise executive summary at the front of your assignment report, presenting a high-level summary of the problem or opportunity, the recommended course of action, the justification for that course of action and the business benefits. Typically, this should be no longer than one page. You should provide a concise executive summary at the front of your assignment report, presenting a high-level summary of the past problem or opportunity and associated course of action, assessment of that marketing initiative and proposal for future actions. Typically, this should be no longer than one page. Part 1 Analysis of a significant current problem or opportunity Analysis of a significant past problem or opportunity (30% of marks) In summary, in this section of your assignment you should briefly describe the contextual setting of the selected marketing activity. This is to be followed by a clear identification of the significant marketing problem or opportunity, and a careful analysis of the chosen problem or opportunity using models and frameworks from both the module material, and supported by appropriate evidential data. In summary, in this section of your assignment you should briefly describe the past problem or opportunity, carefully explaining how it impacted on the performance of the organisation and/or department or function in which the problem or opportunity was located. This should be done using relevant models and frameworks from the module material, and be supported by appropriate evidential data. More specifically, this section should set out the context and structure for your assignment, including: – overview of the organisation and/or department or function in which the problem or opportunity is located, and its business strategy More specifically, this section should set out the context and structure for your assignment, including: – overview of the organisation and/or department or function in which the problem or opportunity was located – overview of the relevant context surrounding the marketing initiative under analysis – overview of the relevant context contributing to the problem – your relationship to the organisation/initiative to be or opportunity that you intend to analyse discussed – your relationship to the organisation/challenge to be This section needs to clearly identify, with justification, a discussed marketing initiative that impacted on the organisation’s This section needs to clearly identify, with justification, a critical problem or opportunity relating to marketing that © Henley Business School, April 2015 performance, clearly showing what was the underlying problem or opportunity that motivated the adoption of that 3 Strategic Marketing: Assignment impacts on the organisation’s performance, clearly showing how the challenge has arisen and the impact that it has. The analysis of the current problem or opportunity may draw on data from secondary sources (e.g. marketing audits, customer surveys, etc) and/or simple fieldwork such as interviews with key stakeholders. specific marketing programme. The analysis of the past problem or opportunity may draw on data from secondary sources (e.g. marketing audits, customer surveys, etc) and/or simple fieldwork such as interviews with key stakeholders. Part 2 Proposed strategic actions and rationale Critical analysis of the past course of action (30% of marks) Propose a strategy (a course of action) to address the problem Critically analyse the strategy (course of action) taken at the or opportunity you have identified in your analysis in Part 1 and time, in response to the problem or opportunity described in that is intended to deliver value to the business. Part 1. Explain how the proposed strategy addresses the significant problem or opportunity presented in Part 1. Your analysis should include a critique of why that specific course of action was taken, a clear assessment of whether it addressed the problem or opportunity presented in Part 1, and how it delivered and/or failed to deliver value to the business. Part 3 Implementation and impact Future action (30% of marks) Detail the actions that will need to be taken to implement the change proposed and realise the intended business benefits. Discuss financial considerations of your proposals, and consider the impact of that change, identifying the likely benefits and risks, clearly indicating how these will be measured. Identify what needs to be done to either capitalise on the success or correct the failure identified in Part 2. In particular consider the effects of the change on the future ongoing management of the marketing objectives in the areas of: In particular, consider the effects of your proposal on the future ongoing management of the marketing objectives in the areas of: – the organisation’s objectives – marketing strategies – relationships with key stakeholders – the organisation’s objectives – marketing strategies – relationships with key stakeholders 4 © Henley Business School, April 2015 STMK-AQ-7A Part 4 Interdependencies and reflection Interdependencies and reflection (10% of marks) To demonstrate broader, holistic thinking you should examine the implications of your proposal on broader management challenges. To demonstrate broader, holistic thinking you should examine implications of the past course of action on broader management challenges. You should also reflect on how the approaches taken in the module relate to other modules you have studied so far – e.g. what are the strengths and weaknesses of a strategic marketing approach for the problem you have been reviewing? Similarly, you should discuss how insights from other modules have or would impact on your recommendations and the expected outcomes. You should also reflect on how the approaches taken in the module, relate to other modules you have studied so far – e.g. what are the strengths and weaknesses of a strategic marketing approach for the problem you have been reviewing? Similarly, you should discuss how insights from other modules have or would impact on your recommendations and the expected outcomes. You should conclude with a short reflection on the value gained from undertaking the module and the assignment task in your appreciation of the link between marketing and other parts of the organisation, and its contribution to the business. You should conclude with a short reflection on the value gained from undertaking the module and the assignment task in your appreciation of the link between marketing and other parts of the organisation, and its contribution to the business. © Henley Business School, April 2015 5 Strategic Marketing: Assignment Assignment preparation guidance Your assignment must show, concisely, that you can apply what you have studied in the module. Therefore, do not write a descriptive or narrative account. Rather, demonstrate the use of relevant concepts, tools and methods of analysis described in the module materials to a practical challenge, drawing on material from the module as appropriate. Models or frameworks should be used in order to inform the analysis of the key dimensions of the situation being investigated. It is important to be selective regarding the models chosen – a smaller number of well chosen models will carry more weight than using many models with little relevance to the situation. Moreover, the chosen models should not simply be reproduced or included in your assignment without discussion of their relevance. Your work should include contemporary marketing references. While it is acceptable to reject specific concepts and theories, you should be careful to argue for your acceptance or rejection fully and try to highlight your viewpoint with relevant evidence. The outline structure given in this assignment brief provides a clear, step-by-step approach to tackling the assignment. You are encouraged to adopt this approach. Write in appropriate managerial style, while ensuring that you properly reference your sources. Submitting your assignment When you are ready to submit your assignment, please do so via the electronic submission of assignments area. Further information about using this electronic facility is given in the programme handbook. Submission date Please refer to My Calendar on your course home page for the assignment submission deadline for this module. If you foresee difficulties with the deadline, please discuss your circumstances with your programme administrator as soon as possible. Word count Your assignment should be approximately 5,000 words in length. The word count comprises all text (including contents pages, executive summaries and text in tables or diagrams, etc), with the exception of appendices and bibliography/references. You should attach to the end of your assignment a note of the number of words used (excluding appendices and bibliography/references). Assignments that exceed the specified word count range by more than 20% or that are more than 10% below the specified word count may be returned unmarked to you. No other penalty will apply and a returned assignment will not be considered a ‘fail’. You will be expected to amend the work to within the specified word count and to resubmit. 6 © Henley Business School, April 2015 STMK-AQ-7A Use of appendices You are advised to be cautious when including appendices in assignments. There are no specific criteria for marking or mark allocation available for appendices, so the assessment process focuses on the appropriate use of appendices. When deciding whether or not to include appendices, consider the following points.  Appendices should add value or detail to the discussion and analysis undertaken in the main body of the assignment.  They offer students the opportunity to give greater relevant and appropriate detail to support the main analysis and discussion.  Models, theory and discussion that demonstrate critical evaluation and analysis of issues related to the module being assessed should always be presented within the main body of the text. This discussion should make sense without referring to the appendices. Using bullet points in the text (which does not constitute analysis) and putting the detailed analysis in the appendices is not acceptable practice and could result in failure.  The inclusion of appendices should not be viewed as an opportunity to include anything that cannot fit in the word count.  Assignments that make excessive use of appendices suggest inappropriate use. As a guide, we would not normally expect appendices to exceed one third of the length of the assignment.  Appendices should always be referenced at the appropriate point within the discussion in the main body of the text. © Henley Business School, April 2015 7 Strategic Marketing: Assignment Appendix 1 Assessment grade criteria Please refer to your Programme Handbook for further information on the marking categories shown in the table. 70–100 60–69 50–59 0–49 ‘Distinction’ ‘Merit’ ‘Pass’ ‘Fail’ Content Content Content Content Overall Overall Overall Overall Excellent selection and application of a range of appropriate module tools and concepts to develop an in-depth and critical analysis of the topic. Very good selection and application of appropriate module tools and concepts to develop a good level of analysis of the topic. Competent selection and application of appropriate module tools and concepts to develop an analysis of the topic that offers some insights. Inappropriate, poor or no use of module tools and concepts; failure to develop a coherent discussion or analysis of the topic. Strong demonstration of in-depth and critical understanding of module materials through application to practice. Clear demonstration of understanding of module materials through application to practice. Demonstration of ability to apply module materials through application to practice. Poor or no demonstration of understanding of module materials or failure to demonstrate ability to relate them to practice. Draws insightful conclusions thoroughly grounded in in-depth analysis of practical situation. Draws appropriate conclusions well grounded in analysis of practical situation. Draws conclusions grounded in analysis of practical situation. Failure to draw conclusions and/or conclusions not grounded in analysis. Excellent use of evidence to support analysis and discussion. Very good use of evidence to support Good use of evidence to support analysis and discussion. analysis and discussion. 8 Limited or inappropriate use of evidence to support analysis and discussion. © Henley Business School, April 2015 STMK-AQ-7A 70–100 60–69 50–59 0–49 ‘Distinction’ ‘Merit’ ‘Pass’ ‘Fail’ Part 1 Part 1 Part 1 Part 1 Provides a critical analysis and well structured discussion of the use and usefulness of the chosen areas. Discursive approach with some critical analysis. Discussion mainly descriptive with little or no critical analysis. Lack of critical analysis, discussion and evaluation. Demonstrates good ability to compare, contrast and critique the information available. Demonstrates a limited ability to compare, contrast and critique the information available. Part 2 Part 2 Part 2 Part 2 Comprehensive discussion/critique of strategic action relevant to the marketing problem or opportunity with logical justification that flows clearly from Part 1. Adequate discussion/critique of strategic action relevant to the marketing problem or opportunity with justification and links to Part 1. Limited discussion/critique of strategic action relevant to the marketing problem or opportunity that has some justification and links to Part 1. Minimal or no discussion/critique of strategic action relevant to the marketing problem or opportunity with minimal links to Part 1. Part 3 Part 3 Part 3 Part 3 Fully explores future actions and implementation issues with clear links to Part 2. Critically discusses impact on marketing objectives. Identifies future actions and implementation issues with clear links to Part 2. Considers impact on marketing objectives. Identifies some future actions and implementation issues with some links to Part 2. Limited or no identification of future actions and implementation issues. Not linked to Part 2. Demonstrates an excellent ability to compare, contrast and critique the information available. © Henley Business School, April 2015 9 Strategic Marketing: Assignment 70–100 60–69 50–59 0–49 ‘Distinction’ ‘Merit’ ‘Pass’ ‘Fail’ Part 4 Part 4 Part 4 Part 4 Provides excellent personal reflection Very good and appropriate personal to demonstrate greater insight and reflection to enhance insight and understanding. understanding. Personal reflection included but could be developed in greater depth or in more appropriate areas. Limited or no personal reflection or of little relevance to issue or the development of understanding. Structure Structure Structure Structure Addresses all components of the assignment brief with appropriate weighting across each component. Addresses all components of the assignment brief with appropriate weighting across each component. Addresses all components of the assignment brief with appropriate weighting across each component. Significant omissions of components of the assignment brief or significantly skewed weighting across each component. Excellent linkages between components developing a strong, logical structure to the overall argument that is easy to follow. Very good linkages between components giving a logical structure. Explicit linkages between components giving a coherent overall structure. Poor or no linkages between components; illogical or incoherent structure. Presentation Presentation Presentation Presentation Clear presentation with some use of graphical and tabular presentation. Poor presentation with no use of, or over-use of inappropriate, presentation formats. Excellent presentation including Very good presentation including creative and appropriate use of appropriate use of graphical and graphical and tabular presentation to tabular presentation. support the analysis. 10 © Henley Business School, April 2015 STMK-AQ-7A 70–100 60–69 50–59 0–49 ‘Distinction’ ‘Merit’ ‘Pass’ ‘Fail’ All figures and tables appropriately captioned and discussed in text. All figures and tables appropriately captioned and discussed in text. All figures and tables appropriately captioned and discussed in text. Limited or incorrect captioning of figures and tables; no in-text discussion. Accurate referencing using the Harvard referencing system. Accurate referencing using the Harvard referencing system. Accurate referencing using the Harvard referencing system. Limited or no referencing or clear demonstration of failure to understand the concept of referencing. Word count appropriate within allowed range. Word count appropriate within allowed range. Word count appropriate within allowed range. Word count above or below allowed range. © Henley Business School, April 2015 11 COMPANY PROFILE “We honour the potential in every human being like a seed waiting to blossom… if only someone would take the time to nurture it, water it, and believe in its inevitable growth” 1 1. ABOUT US Bridging the Gap recognizes the importance of providing synergistic services to clients by building capacity and developing effective, integrated human capital and business strategies. BTG’s services focus on the clients' most critical issues and opportunities: strategy, brand management and marketing, organization, operations, technology, transformation, digital, advanced analytics, corporate finance, mergers & acquisitions and sustainability across all industries and geographies. We bring deep, functional expertise, but are known for our holistic perspective: we capture value across boundaries and between the silos of any organization. We have proven a multiplier effect from optimizing the sum of the parts, not just the individual pieces. Two decades ago we were among the first to recognise South Africa’s need for the development of human capital. Today as a Level 1 Contributor according to the BBBEE Codes, we continue to lead the way spearheaded by our highly experienced executives. We are 100% Black Owned with a shareholding of 40% held by female. Projects executed have been across a range of industry sectors in private sector, government and SOE’s and our focus is on developing capacity in organisations to increase service delivery and organisational effectiveness. BTG is committed to:  Customised solutions for improving effectiveness and efficiencies.  On-time delivery within the confines of a given fiscal discipline.  Long-term strategic relationships with emphasis on adding value to our clients’ business.  Optimising and leveraging resources rather than duplicating what already exists.  Maintaining uncompromising high quality standards backed by a professional approach and ethical business practices. 1.1 OUR VISION, MISSION & VALUES Vision To be a strategic, value-adding partner to our stakeholders. Mission To build and create capacity in people and organisations through enhancing governance and growth, unlocking human potential, and thereby empowering and developing people. Our Values Excellence Professionalism Integrity Caring Growth 2 1.2  OUR VALUE PROPOSITION We focus on delivering expert knowledge through tried and tested products, services and processes while remaining innovative and delivering quality service  We are about shifting organisations from ‘Good to Great’.  We keep abreast of market changes, innovation, advancements and human resources best practices.  We aim to build and nurture relationships with clients, remaining strategic allies to the business and its people.  Flexible and dynamic approach and business model that allows us to expand and decompress through partnership. 1.3 OUR STRUCTURE Ownership by HDI: 100% Black (60% M & 40% F) Management Control: 100% Black (50% M & 50% F) Citizenship: South African Citizens Preferential Suppliers Procurement: 70% Black 1.4 OUR TEAM Bridging the Gap has a team of full time professionals who are specialist in the Human Resources discipline and a fraternity of 30 qualified consultants nationally, who provide high quality expertise in various areas including; change management, strategy development, organisational design, leadership development, project management, business process reengineering, IT systems related to HR to name but a few. 3 2. OUR APPROACH BTG has a consultative and participative approach to our consulting work. We believe that any external intervention in an organisation must be undertaken in a well thought through, planned with clear deliverables. We believe that clear communication about the purpose of the intervention needs to be communicated to all stakeholders in the organisation. Our approach is to work directly with groups and individuals, with the expressed purpose of enabling them to own the outcomes of the process and to be responsible for the implementation and monitoring of progress and results. We expect managers to support and encourage their staff to engage with the consultant team. We can provide coaching and follow up support at all stages of a project, but the onus rests with the organisation’s management and staff to ensure success. This approach is different from the ‘expert does and delivers’ service taken by some consultancy firms, and this approach means that we scope and cost the project appropriately to enable BTG consultants to spend the necessary time on site with your staff. Most importantly, we believe that organisational effectiveness is achieved through a well-designed interventions which should address the following key dimensions:  Organisational Purpose  Internal and External Environmental factors  Business Processes & Systems  Organisational & People Competencies  Leadership 2.1 ORGANISATIONAL DEVELOPMENT Our team of consultants work with organisations to develop, advance and strengthen strategy, structure, process, people and culture to improve organisational effectiveness, in a healthy way. We see our task as not an enabler and supporter for change rather than solve the client organisation’s problems. Our role is to work collaboratively with the organisation’s leaders and members to help identify, clarify, prioritise and deal with complex organisational issues. Creating an environment that will strive to achieve daily operational excellence while generating innovative strategies for sustainability and longevity. 4 Organization Development is a body of knowledge and practice that enhances organizational performance and individual development, by increasing alignment among the various systems within the overall system. OD interventions are inclusive methodologies and approaches to strategic planning, organization design, leadership development, change management, performance management, coaching, diversity, team building, and work/life balance. The practice of OD is grounded in a distinctive set of core values and principles that guide behaviour and actions. 2.2 PROCESS OF DELIVERY We deliver comprehensive solutions that provide the client with value add in the various four phase in 6 steps of organisational effectiveness, as articulated in the diagram above. These solutions can be administered as a suite particularly for organisation transformation or as standalone solutions to address specific requirements on areas of challenge. We follow deliver all projects within four phases – Diagnostic, Planning, Implementation, Monitoring & Evaluation. 5 Diagnosis (1,2 Evaluation & lessons (6) 1 6 2 Implementation (5) 5 3 Detailed Planning 4 (3,4) 1. Diagnosis – BTG utilises a variety of methodologies and approaches in order to assess current and prevailing trends in an organisation, be it with regard to the strategy, people, customers, finances, processes, performance or leadership. The diagnosis is meant to paint an objective picture of the current situation as it is. This is particularly important in order to inform appropriate solutions to address whatever issues that the situation analysis yields. 2. Detailed Planning – This involves the development and agreement of detailed designs and approaches to deliver the desired future state and final implementation plans. Appropriate specific solutions are put in place in preparation for full-blown implementation. In some instances, where appropriate, this stage may involve piloting of solutions for purposes of customisation prior to a full scale implementation. 3. Implementation – BTG typically adopts a partnership approach to implementation in order to ensure client ownership of the project, processes and results. Whilst our experts lead the implementation of bespoke solutions, BTG’s keen interest in skills transfer propels us to ensure that the client is involved at all stages. 4. Monitoring and Evaluation – BTG utilises a variety of techniques and tools in order to provide continuous feedback to the organisation. Our monitoring & evaluation methodologies speak to all areas of the organisation, are meant to add value to decision making, learning and improvement initiatives within the organisation. 6 2.3 VALUES-BASED DELIVERY The practice of OD is grounded in a distinctive set of core values and principles that guide behaviour and actions. Values-Based Key Values include:  Respect and Inclusion – equitably values the perspective and opinions of everyone.  Collaboration – builds collaborative relationships between the practitioner and the client while encouraging collaboration throughout the client system.  Authenticity – strives for authenticity and congruence and encourages these qualities in their clients  Self-awareness – commits to developing self-awareness and interpersonal skills. OD practitioners engage in personal and professional development through lifelong learning.  Empowerment –focuses efforts on helping everyone in the client organization or community increase their autonomy and empowerment to levels that make the workplace and/or community satisfying and productive. 3. OUR SERVICES Highly effective organizations exhibit strengths across five areas: leadership, decision making and structure, people, work processes and systems, and culture. For an organization to achieve and sustain success, it needs to adapt to its dynamic environment. Evaluating and improving organizational effectiveness and efficiency is one strategy used to help insure the continued growth and development of an organization. Our offering includes: BTG ORGANISATION DEVELOPMENT SERVICES • • • • • • • • • • • • • • Strategy Development Organisation Diagnosis/Climate Surveys Organisational realignment Business Process Re-Engineering Organisation Design Interventions Change Management And Change Capability Building Performance Evaluation & Management Talent Management & Succession Planning Recruitment (Headhunting) Organisational Learning And Coaching Diversity Management Reward and Remuneration Structuring Board Of Directors Committee Structuring, Reward Structuring Leadership Development AND THE BENEFITS ARE… • Objectivity in the diagnostic process, helping teams to confront the real issues no matter how difficult • Providing innovative and authentic approaches to problem identification, and encouraging pro-active rather than reactive approaches to issues • Providing competent, independent capacity to deal with highly sensitive, complex, inter-racial, inter-gender issues that may render teams dysfunctional • Ensuring that organisations pro-actively identify and deal with strategic issues relating to mergers and acquisitions to sustain success and effectiveness. • Ensuring that organisations achieve transformation objectives 7 4. OUR CLIENTS & WORK  Successful development and implementation of organisational strategy for over 50 organisations nationally.  Change Management for Turnaround process for Department of Home Affairs, The Road Accident Fund and The Agricultural Research Council.  Restructuring for SENTECH, CIVICUS and DFID.  Corporate Governance facilitation for organisations such as the SABC Board and Executive Management, University of Venda, the Medical Research Council, the National Nuclear Regulator, National Home Builders Regulatory Council, SacOil, AgriSeta  Our customised training and development interventions.  Our diagnostic climate surveys for divisions in organisations such as SABC, AVUSA (ex-Johnnic), NHBRC, etc.  Placement of Board member, Executives and Senior Manager in large and medium organisation. 8 9 5. CONTACT DETAILS Bruma Johannesburg, 1862 South Africa, Gauteng Tel: 083 430 7637 Email: tumi@btgh.co.za OR john@btgh.co.za Webmail: www.btgh.co.za [Type text] Henley Business School Strategic Marketing Study guide Authors: Ana Canhoto, Guy Champniss, Moira Clark, Anne Dibley, David James, Cristiana Lages, Dan Nunan, Roger Palmer, Susan Rose, Lyndon Simkin and Baskin Yenicioglu The use of specific cultural references and gender markers in these course materials does not imply bias or criticism. The copying, storage in any retrieval system, transmission, reproduction in any form or resale of the course materials or any part thereof without the prior written permission of Henley Business School is an infringement of copyright and will result in legal proceedings. Henley Business School reserves the right to change course content, structure and all terms and conditions related to the programmes at its sole discretion. www.henley.ac.uk © Henley Business School, November 2017 Item code: STMK-SG-7A ii © Henley Business School, November 2017 Contents Module overview 1 Part 1: The marketscape Introduction to Part 1 9 9 Section 1 The theory of marketing 10 Section 2 Value and values 21 Section 3 Types of marketing 34 Section 4 The stakeholder approach 41 Section 5 Marketing in the digital era 49 Section 6 Global marketing 55 Section 7 Strategy and tactics 60 Section 8 Strategic marketing planning 67 Part 2: Value exploration Introduction to Part 2 Section 9 79 79 Research in marketing 80 Section 10 Market insight 88 Section 11 Customer buying behaviour 96 Section 12 Competitor insight 118 Part 3: Value creation 127 Introduction to Part 3 127 Section 13 Segmentation, targeting and positioning 128 Section 14 Brand management 140 Section 15 Innovation and new product development 152 Section 16 Pricing 163 Section 17 Channel management 172 Section 18 Integrated marketing communications 180 © Henley Business School, November 2017 iii Part 4: Value delivery 193 Introduction to Part 4 193 Section 19 Relationship marketing 194 Section 20 Business-to-business strategic relationships 204 Section 21 Customer engagement 210 Part 5: Evaluating and enhancing the value 219 Introduction to Part 5 219 Section 22 Value-based marketing evaluation 220 Section 23 Marketing metrics 225 References 239 iv © Henley Business School, November 2017 Module overview Module overview Aims and learning outcomes Aims The Strategic Marketing module is designed for practising managers to enable them to:  raise awareness of marketing as both a strategic and tactical function  develop an understanding of the practice of strategic marketing and the relevance of key marketing concepts Learning outcomes By the end of the module it is expected that programme members should be able to:  critically analyse theoretical explanations of marketing situations and assess their relevance  synthesise, evaluate and discuss leading theories and models that are used to explain key concepts in strategic marketing  recognise the external and internal forces that impact upon the choices involved in strategic marketing with regard to the development, production and distribution of goods and services  evaluate the impact of technology on marketing management and customer behaviour  identify factors that drive and influence the development of market structures and the comparative differences across various business contexts  appreciate the value of data and information used to analyse markets, customers and stakeholders  recognise the nature of relationships and partnerships that are vital to the creation of customer value  be aware of the importance of ethical and socially responsible marketing strategies Introduction The Strategic Marketing module is designed to enable practising managers to understand the underlying theoretical perspectives of the strategic management of markets across a range of organisational situations. It provides you with knowledge and information about both the theory and practice of contemporary marketing management. The learning experience of this module will equip you to identify and evaluate the choices available to an organisation within a marketplace and form effective marketing strategies to meet those objectives. Upon completion of the module you will be able to engage in a strategic debate at board level and be able to make informed choices regarding the selection and development of marketing activities. © Henley Business School, November 2017 1 Strategic Marketing The module is designed to answer the question: ‘How can an organisation derive value from a marketplace?’ You will be taken through the cyclical activity of analysing a market; identifying value opportunities; and creating and delivering marketing programmes. At the same time monitoring and evaluating the outputs and ultimate return of the marketing investment to the organisation is crucial and the module emphasises the need for rigour in marketing metrics. The module is structured into a series of parts, each of which investigates different aspects of value creation and evaluation of the return that this produces for the organisation. We explore these issues including a focus on the impact of digital and interactive communication technologies. The module will help you analyse and understand some of the changes that are occurring and their impact for strategic marketing management across a range of organisational contexts including business to consumer (B2C), business to business (B2B) and not for profit. Module structure The Strategic Marketing module comprises five sequentially related parts, which are further subdivided into sections, as shown in Figure 1. 2 © Henley Business School, November 2017 Module overview Figure 1 Module structure © Henley Business School, November 2017 3 Strategic Marketing Part 1 The marketscape The first part introduces you to the discipline of marketing. It has eight sections. Section 1 The theory of marketing: provides an overview of the various marketing paradigms that have evolved over time, and highlights the current thinking around the market orientation concept. Section 2 Value and values: reviews the concept of ‘value’ by exploring what is valued by customers and how value can be created within organisations, and then discusses the ethical dimension of marketing. Section 3 Types of marketing: examines the contribution that marketing can make across a range of contexts, types of organisations and product offerings. Section 4 The stakeholder approach: focuses on the transition from transactional to relationship marketing, and the associated need to develop strategic relationships with key groups of stakeholders. Section 5 Marketing in the digital era: defines the key features of the digital era and considers the part social media plays in the development of relationship marketing and its impact on marketing communications. Section 6 Global marketing: introduces the concept of ‘glocalisation’ and analyses the impact of the global marketing environment on the marketing mix. Section 7 Strategy and tactics: considers the relationship between marketing objectives and overall corporate strategy, and draws a distinction between tactical and strategic marketing. Section 8 Strategic marketing planning: sets out the key components and structure of an integrated marketing plan. Part 2 Value exploration The second part considers the value of marketing research and intelligence gathering. It comprises four sections. Section 9 Research in marketing: explains the need for marketing research, and introduces relevant methodologies and tools for intelligence gathering. Section 10 Market insight: examines the forces and actors that operate in an organisation’s macro- and microenvironment. Section 11 Customer buying behaviour: describes models of buyer behaviour for both consumers and organisational customers. Section 12 Competitor insight: looks at the role of competitor analysis in delivering superior customer value. 4 © Henley Business School, November 2017 Module overview Part 3 Value creation The third part introduces the process of market segmentation, as well as the components of an effective marketing programme. It consists of six sections. Section 13 Segmentation, targeting and positioning: explains the concept of market segmentation, and how organisations use this information to target the most valuable customer groups and position their offering accordingly. Section 14 Brand management: defines branding and its role, and includes an assessment of the value brands create, as well as how to build a strong brand, particularly in a digital environment. Section 15 Innovation and new product development: considers the factors behind successfully introducing new products and product innovations to market. Section 16 Pricing: examines the key role price setting plays in generating revenue and communicating value to customers, as well as reviewing a range of pricing strategies. Section 17 Channel management: explores the strategic importance of effectively managing outbound logistics, marketing and sales, and customer services as part of the marketing programme. Section 18 Integrated marketing communications: reviews the role of integrated marketing communications in creating meaningful engagement and stakeholder relationships. Part 4 Value delivery In the fourth part we focus on how internal processes and staff behaviours impact on the customer experience. It has three sections. Section 19 Relationship marketing: discusses the philosophy behind relationship marketing and customer loyalty, as well as considering the role of customer relationship management. Section 20 Business-to-business strategic relationships: identifies the essential factors for successful B2B relationships and discusses the opportunities for co-creating value. Section 21 Customer engagement: considers the importance of perceived quality and outlines the factors that influence the customer experience, before identifying strategies for managing service failures. Part 5 Evaluating and enhancing the value In the final part, we consider the tools and techniques that allow marketing activities to be measured and evaluated. It comprises two sections. Section 22 Value-based marketing evaluation: considers the impact of marketing activities on an organisation’s financial and non-financial performance, and how, if at all, this can be measured. Section 23 Marketing metrics: sets out a framework of metrics for assessing the return on marketing investment and discusses the role of dashboards in providing meaningful information to senior managers. © Henley Business School, November 2017 5 Strategic Marketing Practice applications There is a set of practice applications to complement the module. The practice applications can be accessed online, alongside the module materials, and also as a pdf download. Practice applications are designed to give programme members the opportunity to apply their learning to practical situations. Programmes members might like to share their output with others or store it for future reference, for example, by using the various areas available in their VLE. Module textbook The module uses a textbook. Table 1 identifies how the chapters of the textbook relate to the parts and sections of the study guide and provides a list of the key topics and models covered in each part. We highly recommend reading this study guide carefully and using the textbook as an additional resource to take you through the content materials. The textbook is as follows. Key resource Dibb, S, Simkin, L, Pride, W M, & Ferrell, O C (2016) Marketing: Concepts and Strategies, 7th edn. Hampshire: Cengage Learning (Textbook provided) Key resources These are resources, such as textbook chapters, journal articles, video clips etc, that form an integral part of the module. They are supplied via links in the online module materials and are also available via the ARC Online in the resources area for the module. It is expected that programme members will access all of the key resources, as they form a key element of the module materials. Further resources These are suggested resources, such as textbook chapters and journal articles, which programme members may wish to follow up if they are particularly interested in a subject that isn’t covered in depth in the module materials. Further resources are not generally supplied. They are listed at the end of each section of the module materials and also in the ARC Online in the resources area for the module. References The module contains a references section, which provides full reference details for all references cited in the materials. References are provided in the Harvard (or author–date) style. 6 © Henley Business School, November 2017 Module overview Table 1 How the study guide relates to the textbook chapters and the key topics and models covered Study guide Section(s) Textbook chapter(s) Key topics Key models 1 The marketscape 1 2 3 4 5 6 7 8 The theory of marketing Value and values Types of marketing The stakeholder approach Marketing in the digital era Global marketing Strategy and tactics Strategic marketing planning 1–4, 22–4 Marketing orientation Customer perceived value Ethical marketing Types of marketing Service-dominant (SD) logic Globalisation Social media marketing Strategy vs tactics Developing marketing plans Components of market orientation (Sergeant, 1999) Product category volume (PCV) model (Hollensen, 2005) Data-to-value cycle (Smith et al, 2006) Product vs service continuum (Shostack, 1977) Generic strategy selection (Hollensen, 2003) Six markets model (Christopher et al, 2008) 2 Value exploration 9 Research in marketing 10 Market insight 11 Customer buying behaviour 12 Competitor insight 2, 3, 5, 6, 9 Marketing environment Customer decision journey Business buying process Competitor analysis Marketing information system (MIS) (Kotler and Armstrong, 2004) SWOT (strengths, weaknesses, threats, opportunities) Porter’s Five Forces PESTLE (political, economic, social, technological, legal, environmental) PESTLEID (as above, with the addition of international and demographic) Consumer decision-making (CDM) model (Blackwell et al, 2001) © Henley Business School, November 2017 7 Strategic Marketing Segmentation analysis Value proposition Brand building Diffusion of innovation Value-based pricing Vertical marketing systems Multichannel environment Integrated marketing communications (IMC) campaign development Ansoff matrix Directional policy matrix Consumer-based brand equity (CBBE) (Keller,1993, 2012) Product lifecycle (PLC) model Boston Consulting Group (BCG) matrix Four pillars of IMC (Kliatchko, 2008) 19 Relationship marketing n/a 20 Business-to-business strategic relationships 21 Customer engagement Transaction vs relationship marketing Customer relationship management (CRM) Strategic relationships Customer effort Customer lifetime value (CLV) Recency, frequency and monetary value (RFM) Six markets model (Christopher et al, 2008) Model for functional CRM 22 Value-based marketing evaluation 23 Marketing metrics Value-based approach (VBA) Key metrics Marketing dashboards 3 Value creation 13 Segmentation, targeting and positioning 14 Brand management 15 Innovation and new product development 16 Pricing 17 Channel management 18 Integrated marketing communications 4 Value delivery 5 Evaluating and enhancing the value 8 7, 8, 10–21 23 © Henley Business School, November 2017 Introduction to Part 1 Part 1 The marketscape Introduction to Part 1 Part 1 introduces you to the discipline of marketing. Here we explore the various definitions and interpretations of marketing as both an organisational function and philosophical approach to managing markets. An organisation’s marketing activity aims to influence the choices made by stakeholders, particularly customers, in relation to its business. We take a historical look back at the various marketing paradigms that have evolved over time and the economic, social and technological influences that have influenced such change. The Strategic Marketing module adopts a value-based approach to marketing and here we introduce you to the concept of value and how this yields advantage to the organisation. We aim to ensure that you can distinguish between strategic versus tactical marketing decisions and at the same time encourage you to consider both the relational and ethical aspects of marketing management decisions. Finally, we introduce you to the practical aspects of the structure and content of an effective integrated marketing plan. Part 1 structure Part 1 comprises eight sections: Section 1 The theory of marketing Section 2 Value and values Section 3 Types of marketing Section 4 The stakeholder approach Section 5 Marketing in the digital era Section 6 Global marketing Section 7 Strategy and tactics Section 8 Strategic marketing planning © Henley Business School, November 2017 9 Strategic Marketing Section 1 The theory of marketing Aims and learning outcomes Aims The aims of this section are to:  explore the various definitions and interpretations of marketing  introduce key marketing paradigms and analyse how they have evolved over time  present the market orientation concept Learning outcomes After working through this section you should be able to:  recognise the key theories of marketing and the significant changes that have occurred  compare market orientation and product orientation  debate which marketing orientation is being practised by your own organisation and whether it is appropriate or not Introduction Although marketing is a relatively new discipline it has been subject to a number of evolutionary changes. These have been in response to the wider environment and the changing business context as it has developed through the industrial revolution to the current emerging information economy. This section provides an overview of the various marketing paradigms that have resulted from market changes, and then highlights the current thinking around the market orientation concept. 1.1 The breadth of marketing In the 21st century, marketing activity occurs all around us all of the time. 10  Political leaders seek to persuade you to vote for them – they are marketing their manifesto, their vision for the future.  Universities and schools compete for research funding and student placements – they are marketing their distinctive subject specialisation or style of delivery.  Not-for-profit (third-sector) organisations campaign for social justice or environmental change – they are marketing their cause.  Individuals dress to impress or even shock you – they are marketing their own personal identity, differentiating themselves from the crowd. © Henley Business School, November 2017 Section 1 Global advances in education, in our capacity to manufacture and distribute goods and services more efficiently and effectively, the levels of both individual and corporate wealth to which we aspire, and the proliferation of new technologies and means of communication, have all promoted constant (some would argue enforced) engagement with more and more marketing activity as we live our daily lives. Given the power of information and communication technology (ICT), it is not surprising that many people associate marketing with advertising and public relations. The role of marketing is assumed to be that of promoting products and services to key target audiences as well as supporting and augmenting sales activities within organisations so that they will be successful in driving positive return on investment (ROI) for their owners. However, as you will see during this module, the range of modern marketing outcomes that marketers might wish to achieve can be as complex as the characteristics of the markets they seek to serve today. Table 1.1 illustrates some of these outcomes. Table 1.1 Different types of product and service advertising Desired marketing outcomes Examples Promoting a product image www.coca-cola.co.uk www.cocacolazero.com Driving short-term sales www.easy.com www.headandshoulders.com www.lorealparis.com Supporting a longer term relationship www.rolls-royce.com www.villagevet.co.uk www.unison.org.uk www.unitetheunion.com Lifestyle and personal marketing www.linkedin.com www.youtube.com www.facebook.com Marketing a service rather than a product www.amazon.co.uk www.ecostreet.com www.bitc.org.uk www.cim.co.uk Corporate brand www.nestle.com www.redcross.org.uk Promoting a cause www.vodafonefoundation.org think.direct.gov.uk/ Communication with stakeholders www.btplc.com/Sharesandperformance www.vodafone.com/content/index.html © Henley Business School, November 2017 11 Strategic Marketing 1.2 The evolving nature of markets and marketing The American Marketing Association (AMA) defines marketing as: 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. (AMA, 2014) Marketing is therefore concerned with an exchange process in which value is derived for both parties (the buyer and the seller). Dibb et al (2016: 11) view marketing as consisting of ‘individual and organisational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion, and pricing of goods, services, and ideas’. Although today in most parts of the world marketing involves freedom of exchange between equal parties, this may not always have been the case. As illustrated in Figure 1.1, the evolution of marketing can be conceptualised by comparing the changing power relationship between consumers and producers over time. Figure 1.1 Marketing evolution (Adapted from Berthon, Holbrook & Hulbert, 2000) 12 © Henley Business School, November 2017 Section 1 Early marketing endeavour, pre-industrial revolution, was characterised by a power equilibrium maintained through a lack of the information channels open to us today. Inefficiencies in transportation and communication, and not least in the perishable nature of goods, meant that the majority of products were sourced, developed and exchanged on a local basis, driven by personal contact or individual referral. Power was of less significance and broadly shared. The onset of the industrial revolution ushered in huge economies of scale for producers eager to meet the needs and wants of expanding markets. Producer-led power predominated as consumers had little choice but to accept standardised offerings that delivered lower prices and higher profits. As economies grow and industrialisation brings with it lower costs of production, increased competition and greater economic wealth, so markets are first flushed with an array of product choice that in time gives way to market congestion and maturity. History shows us that these trends might take decades to come about, but as the developed economies of Europe and the Americas mushroomed through the midpoint of the 20th century so the concept of the marketing-led organisation was born. With time, markets increasingly become saturated, technological advancement overcomes consumer ignorance of alternatives and as a consequence supply increasingly outgrows demand. In this situation we see service and the advent of the service culture introduced in order to add value, and with it longevity, to customer relationships, both business to consumer (B2C) and business to business (B2B). Thus we see a shift in the balance in power, with power now vested more with the customer than the producer. The final, contemporary, stage of market evolution finds customers more demanding and fragmented in their needs than ever before; greater commoditisation of products occurs, requiring producers to seek alternate ways to differentiate. The acceleration of knowledge and technological advancements are such that for both parties – the customer and the producer – the challenges involve the management of information overload and pressure of time, requiring greater interactivity and collaboration between parties. Traditional boundaries between buyer and seller become less well defined, or are only best defined in relation to particular offerings. The nature of value itself shifts from the physicality of the product, through to the intangibility of service orientation, to the immediacy for both parties of the interactive virtual environment. Today the online environment has become a social exchange network through which products, services, information, leisure pursuits, communication and personal relationships can be exchanged and managed. Lusch (2007) refers to this contemporary stage of marketing as the ‘marketing with’ era, where value is created not as an exchange of products and services but it is rather realised as they are being used together with customers and society at large. This era is characterised by value co-creation by various stakeholders through a collaborative process. © Henley Business School, November 2017 13 Strategic Marketing  Try and identify the internal markets (i.e. senior management, sales force, IT department, production department, etc) and external markets (different types of customers, suppliers, the media, the distribution chain) with whom the marketing department need to interact.  How and in what ways do existing and potential customers articulate the ‘value’ in the goods and services that you offer to them? Is it similar to the ‘value’ that your organisation ascribes to them?  What are the key underlying opportunities and constraints facing your organisation in each of the markets identified?  How will your organisation compete effectively against the competition in each of these markets?  How is the technological revolution in new and interactive media impacting on your current and future relationships with customers and other key stakeholder groups?  How and by whom should these relationships be managed in a consistent and integrated manner? 1.3 Market orientation Marketing in one form or another has been present throughout history, but it only really emerged as a coherent business philosophy and structured way of doing things in the mid1950s (Dibb et al, 2016: 18). The industrial revolution transformed the means of production in the late 19th century, heralding unprecedented opportunities to mass-market products in developing markets. Higher production efficiency, standardisation, access to low-cost labour markets and resulting lower costs in the production process all contributed towards a ‘production orientation’ in many organisations. Regarded by many marketers as confined to history, recent growth in emergent, fast-developing geographical markets (e.g. Asia, the Indian sub-continent and China) owes much to a refocus on production orientation. The immediate and sustaining growth delivered to Western economies garnered from mass production, early promotion campaigns and a focus on product utility did much to develop a strong ‘product orientation’ within marketing theory and practice throughout the first half of the 20th century. Here both the organisation as a whole, and its marketing focus, is heavily dependent on innovating and delivering superior products – researching them, sourcing them, bringing them to market with speed and efficiency, extending and innovating them over time. As markets develop and grow, new entrants emerge and the pace of competition quickens. In order to survive and prosper organisations must continually innovate and refine their product offerings in the light of challenges faced from competitors and the nature of customer feedback on the utility of products and services currently offered. To secure sufficient demand for products and services in the light of increased competition, or to stimulate demand for products that would otherwise not achieve a positive consumer response, organisations often focus upon a ‘sales orientation’ designed, through tactical promotional campaigns or direct selling, to bolster product sales and secure short-term marketing objectives. 14 © Henley Business School, November 2017 Section 1 Adopting a sales orientation can be very appealing to the organisation. Where effective, a sales orientation delivers immediate short-term cash and, with it, profitability to the organisation. It focuses marketing and sales staff on a single, tangible course of action – to make that next sale. There is a strong, measurable and directly accountable link established between marketing objectives and performance outcomes. Aggressive sales techniques can and do alter immediate customer behaviour in favour of the organisation in both B2C and B2B markets. Sales orientation fits well with the manner in which publicly quoted companies report operational performance to financial markets. However, there are risks associated with a single focus upon sales. The needs of customers might well become subverted by the overriding transaction focus within the organisation of making another sale. Focused as it is on short-term results, a sales orientation might simply reflect a broader commitment by the owners (or those most powerful within the organisations) to a ‘financial orientation’ that will be followed even at the expense of the needs of customers and other less powerful stakeholder groups. Here the task of management (and of marketing) will be to maximise the amount of cash that can be achieved from any given asset. Selling tries to get the customer to want what the company has, marketing on the other hand, tries to get the company to produce what the customer wants. (Levitt, 1960: 45–56) Under this approach sales and marketing campaigns can become increasingly short term and tactical in nature. They will inevitably focus more on customer acquisition to the detriment of retention and development of longer term loyalty. The quest for immediate sales results tends to focus the interest of marketers on narrow, top-performing segments now, to the detriment of segments that offer potential for development in the future. Short-term transactional approaches tend to restrict the opportunities for relationship building, and to create a greater likelihood of reconsideration by the customer on each purchase occasion. By contrast, ‘market orientation’ takes a broader, more integrated, view of the philosophical and organisational demands that must be met by marketers if organisations are to be market or customer led. Here the organisation is focused upon understanding the needs and wants of the customer segment(s) in the market, and ensuring that their products and/or services meet those needs. Product, sales and market orientations mean that organisations follow distinctive philosophies, and marketing management and staff concentrate on different activities. Figure 1.2 identifies the differences in the three orientations. © Henley Business School, November 2017 15 Strategic Marketing Figure 1.2 Product, sales and market orientations (Adapted from Doyle, 2002: 39) 1.4 Conceptualisations of market orientation There have been numerous alternative conceptualisations of market orientation promoted by academics and practitioners over the past 30 years. However they may differ, at the heart of the concept lies the idea of a commitment across an organisation to meeting the needs and wants of customers. A customer-led company recognizes that its only true assets are satisfied customers. Without satisfied customers the balance sheet’s assets are merely scrap. (Doyle, 2002: 40) Market-orientated organisations begin by serving a particular market only when they have a clear understanding of the needs of their customers. They strive to maintain close links with their customers seeking to match or exceed customer expectation of the goods and services that they bring to that market, being ever mindful of the need to differentiate their offers from those provided by competing organisations. In essence, market orientation refers to the way an organisation implements the marketing concept. 16 © Henley Business School, November 2017 Section 1 Kohli & Jaworski (1990) define market orientation in the following manner. The generation of appropriate market intelligence pertaining to current and future customer needs, and the relative abilities of competitor entities to satisfy these needs; the integration and dissemination of such intelligence across departments; and the coordinated design and execution of the organisation’s strategic response to market opportunities. The definition given above has been usefully distilled into three equally important behavioural strands (Narver & Slater, 1990): customer orientation, competitor orientation and interfunctional co-ordination as illustrated in Figure 1.3. Each component must be aligned if the organisation is to be able to build an effective capacity to respond to market changes. Figure 1.3 The components of market orientation (Adapted from Sargeant, 1999: 31) In market-orientated organisations, it is the creation of real customer focus and the responsiveness of the organisation to changing customer and market demands that provides the context within which marketing strategy is developed. The quality of products and services provided across the whole organisation will need consistently to exceed customer expectation and consequently drive added value by comparison with competitive offerings. To avoid being overtaken by competitor offerings the competitor orientation requires diligent appreciation by the organisation of the short- and longer term strengths and weaknesses of current and future competitors. You will learn more about how marketers gain customer and competitor insight in Part 2 of this module. © Henley Business School, November 2017 17 Strategic Marketing Interfunctional co-ordination relates to the manner and degree to which the organisation utilises its internal capacity to support the creation of added value for its customers. The nature of the interdepartmental dynamics across the organisation as a whole supports or negates effort towards market orientation. Where conflicts of culture, purpose and priority occur across different departments within an organisation, market orientation is likely to break down. This behavioural approach to the components of market orientation makes it possible in principle to diagnose an organisation’s level of market orientation, to identify superior and less effective areas of performance, and to create practical strategies to advance performance for the future. Achieving and sustaining market orientation is an ongoing, dynamic process across the entire organisation. Senior management, across all functions, must be actively committed to its attainment if it is to be sustained. Where it is achieved, market orientation is associated with positive performance outcomes for the marketing activity itself and for the organisation as a whole, particularly in conditions of high market turbulence, rapid technological advance, fluctuating economic conditions and strong competition. Marketing and broader organisational planning cycles are integrated in a holistic manner. Staff and other stakeholder groups identify first with the organisation as a whole and not with their own interest within it, and interdepartmental relations are based on co-operation, not rivalry. 1.5 Market driven or market driving? Our earlier description of market orientation focuses mainly on ‘follower’ tendencies: that is to say following the lead of customers and to some extent competitors. While that has been true of many interpretations of market orientation, by both academics and practitioners, this was not necessarily what was originally intended by Jaworski et al (2000), as they highlight in the following key resource. As you read their article consider how your organisation approaches market orientation. Does it drive markets, is it market driven or a combination of both? Key resource Jaworski, B, Kohli, A K & Sahay, A (2000) Market driven versus driving markets. Journal of the Academy of Marketing Science, 28 (1), 45–54 So, in summary, market-oriented organisations are driven by their continued appreciation of the special characteristics present in the markets in which they are operating. But they may also be engaged in a more proactive marketing strategy explicitly designed to reshape, educate or lead the customer or market towards needs and wants that are currently either not present or exist in a latent form. Table 1.2 outlines the different characteristics associated with organisations whose marketing philosophy tends towards the ‘market-driven’ compared to the ‘market-driving’ approach. 18 © Henley Business School, November 2017 Section 1 Table 1.2 Characteristics of market driven vs market driving Market driven Market driving General Organisations respond to activity within existing known market parameters Organisations act to create change in existing market structures and the behaviours of customers and competitors Customer orientation Adaptation At the cutting edge of new customer needs and wants Identifying, analysing and answering to the customer Predicting which technologies are likely to be successful given customer needs and wants Shape customers’ behaviour proactively Respond to market structure Predict the evolution of customer needs and market boundaries Competitor orientation Continuous benchmarking Shape market structures proactively Imitating others Pioneer Identify difficult-to-imitate internal and external competences Discontinuous disruption (Adapted from Hollensen, 2005: 29) Carrillat et al (2004) took these ideas further and developed a framework for marketdriving organisations that emphasises the importance of transformational leadership and culture in the market-driving orientation. You will meet ideas regarding internal staff and climate again in Part 4, when we look at ‘value delivery’ in relation to customer management. Another theme, that of ‘capacity to innovate’, is encountered in more detail in Part 3 (Value creation) where we look at innovation and new product development (NPD) as a process. So as you work through the module there will be recurring themes and ideas, and this blurring of boundaries between functions and their activities is one of the major challenges of marketing in the modern organisation. Summary In this section we explored the various definitions and interpretations of marketing as both an organisational function and a philosophical approach to managing markets. An organisation’s marketing activity aims to influence the choices made by stakeholders, particularly customers, in relation to its business. We took a historical look back at the various marketing paradigms that have evolved over time, and the economic, social and technological aspects that have influenced such change. © Henley Business School, November 2017 19 Strategic Marketing Further resources Berthon, P, Holbrook, M B & Hulbert, J M (2000) Beyond market orientation: a conceptualization of market evolution. Journal of Interactive Marketing, 14 (3), 50–66 Carrillat, F A, Jaramillo, F & Locander, W B (2004) Market-driving organizations: a framework. Academy of Marketing Science Review, 2004 (5), 1–14 Lusch, R F (2007) Marketing’s evolving identity: defining our future. Journal of Public Policy and Marketing, 26 (2), 261–8 Webster Jr, F E (2005) A perspective on the evolution of marketing management. Journal of Public Policy and Marketing, 24 (1), 121–6 20 © Henley Business School, November 2017 Section 2 Section 2 Value and values Aims and learning outcomes Aims The aims of this section are to:  introduce the concept of value  examine the role of values in marketing  consider the ethical aspects of marketing management decisions  recognise how value and values yield advantage to the organisation Learning outcomes After working through this section you should be able to:  identify the difference between value as perceived by the customer and that which is created by the organisation  understand the role of values within a marketing context Introduction In this section we review a central concept within marketing, that of ‘value’, and explore how value is perceived by the customer and created within the organisation. The structure of the module is based around this theme. In Part 2 (Value exploration) we look at how we explore and understand what the customer values, and in Part 3 (Value creation) we look at how the organisation develops value-based marketing activities to meet customer expectations. Not surprisingly, customer and organisational value rarely meet perfectly and so some form of reconciliation must occur. The methodology proposed to achieve this is a ‘data-to-value cycle’, where customer insight is used to inform and modify organisational practices. This continuous cycle will also be developed in more detail in Part 4 (Value delivery). The second half of this section turns to an equally important, but often under-represented, area in terms of the ‘values’ that we bring to the marketing process as individuals, organisations and industry sectors. In this context we define values as those deeply held beliefs or moral principles that we use to make decisions about how to behave. Needless to say, environmental factors, such as globalisation and increasing pressure from various stakeholder groups, create a business environment where many different sets of values can collide. Therefore exploring values, ethics and professional codes of conduct is particularly useful and important to the practice of marketing. You may already be familiar with values at a personal and work–life level, and values in a business context. In this section we examine ethical decision-making and ethical climates as they impact on marketing practices. © Henley Business School, November 2017 21 Strategic Marketing 2.1 Definition of customer value We mentioned before that marketing is an exchange process in which value is derived. Two strategic questions regarding the nature of value dominate the marketing literature.  What is it that is perceived to be of value to existing and potential customers and stakeholders in the goods and services that organisations and their competitors bring to market?  How does (or should) an organisation identify, plan and manage value creation for customers in the course of its activities? 2.2 Customer value The concept of value is directly associated with the specific needs and wants of existing and prospective customers. It represents the perceived benefits that consumers receive from the exchange of ownership in goods or services associated with purchasing behaviour. Organisations that deliver products and/or services with higher perceived value and lower relative costs develop competitive advantage over others and ensure continued success. Value, thus defined in the minds of customers, is a subjective or perceived construct not always directly linked by them to utility, but guided by it. It is how customers themselves rate and rank the offerings presented to them by alternate organisations that is critical in affecting purchasing decisions. Identifying and distilling customer value requires extensive marketing research if it is to be properly understood and assessed. You will learn more about this in Part 2 of this module. An illustration of the components of customer-perceived value is shown in Figure 2.1. 22 © Henley Business School, November 2017 Section 2 Figure 2.1 Customer-perceived value (Adapted from Hollensen, 2005: 32) Many different factors (some direct and some indirect) affect the positive or negative perceptions of value by the customer in terms of: the impact upon these factors by marketers and customers alike, the relative costs associated with known or projected purchasing behaviour, and the perceived benefits that will accrue. Customer-perceived value therefore can be conceptualised as a multidimensional construct: Functional: refers to the rational and economic valuations made by individuals. Emotional: the affective dimension is less developed, but captures the feelings or emotions generated by the products or services. Social: relates to the social impact of the purchase made. (Sánchez-Fernández & Iniesta-Bonillo, 2007) Customers make an overall assessment of what is received and what is given (sacrificed) by a particular supplier compared with other competitors by considering the combination of product quality, service quality, price affordability and shopping experience (Chang & Dibb, 2012). This judgement results in customer-perceived value that is measured by both products/ services and customers’ experiences during the buying process. This approach goes beyond the traditional emphasis on product benefits and costs in customer-perceived value by considering the entire consumption process. According to Chang & Dibb (2012) © Henley Business School, November 2017 23 Strategic Marketing customers, rather than sellers, ‘own’ the process of assigning value to product and service offerings, which has implications for what can be done to improve value perceptions. 2.3 Needs, wants and demands At the most fundamental level, we can distinguish between customer needs, wants and demands (Doyle, 2002).  An expressed need is a basic requirement that individuals or groups of individuals are compelled to address. We all have a need for food, for security and for some form of shelter, as well as emotional-based needs relating to love, self-esteem and the positive development of the human and natural environments. These basic needs are often broad in nature and are not the product of marketing activity, but are more properly considered as the outcome of human biology and the fundamental nature of social relationships.  Wants are narrower and reflect a particular desire for a product or service that will meet an underlying need. Wants come in many shapes and sizes and are complex in nature. They are shaped by our social and cultural experience, communicated and refined for us through interaction with the media and by personal experience, and made explicit and transformed into purchasing behaviours by the marketing activities of organisations.  The resulting demand for particular goods or services reflects the presence of a want requiring satisfaction. For demand to be real, this must be coupled with an ability or willingness to pay for the goods or services. Goods and services must be offered that not only reflect what existing and potential customers need and want, but also what they are prepared to pay for. In deciding between alternative product and service offerings, customers must to make choices. Choice is in turn determined by the nature of the need(s) requiring satisfaction: the perceived benefits accruing from the alternative product or service options available, and our ability to match those needs and benefits to current purchasing capacity. Foxall (2005: 8) states that choice: involves a multiplicity of possible outcomes, the arousal of conflict as a result of the individual’s perception that mutually exclusive outcomes are open to him, and an attempt to reduce this conflict by means of cognitive activity. Choice therefore is a cognitive and behavioural activity, and one that is affected by shifts in the nature of the need and the offerings available. Our customers apply cognitive effort to the process of selecting between alternatives. You will learn more about customer decision-making in both a B2B and a B2C context in Section 11 (Customer buying behaviour). In order to stimulate demand for a product or service, marketers offer higher or lower levels of utility to consumers or, alternatively, vary their price. Brock Smith & Colgate (2007) synthesise the existing customer-value literature in order to develop a practical framework for customer-value creation. This is designed to identify categories of value that might support the determination of competitive advantage in any marketing scenario. 24 © Henley Business School, November 2017 Section 2 Four core elements to customer value are identified: 1. functional or instrumental value 2. experiential or hedonic value 3. symbolic or expressive value 4. cost or sacrifice value Key resource Chang, C & Dibb, S (2012) Reviewing and conceptualising customer-perceived value. Marketing Review, 12 (3), 253–74 Brock Smith, J & Colgate, M (2007) Customer value creation: a practical framework. Journal of Marketing Theory and Practice, 15 (1), 7–23 2.4 Organisational value The traditional production, product or sales view of marketing (as discussed in Section 1) places value creation towards the middle or end of an organisation’s interactions with its customers. Goods and services are developed by the organisation with little regard to customer preferences or wants, and the focus of marketing endeavour centres around promotion and sales. Today in modern, congested, fast-moving markets where customers retain an abundance of choice, increased service and quality expectation are the norm. Greater access to knowledge, and learning of alternative offerings, brings with it greater consumer power and the opportunity to defect to other suppliers. To be truly effective in the modern world, customer-led organisations must anticipate the impact that their product or service offerings will have on the customer’s own value chain prior, during and after the creation and delivery of the offering. In competitive terms, value is the amount that buyers are willing to pay for what a firm provides them (perceived value) less the sacrifices that the customers offer to obtain access to the value (e.g. money, time). A firm is profitable if the value it commands exceeds the costs involved in creating the product. Creating value for buyers that exceeds the costs of doing so is the goal of any generic strategy. (Hollensen, 2003) The notion of organisational ‘value chains’ was first defined by Porter (1985) and has been widely adopted in the marketing literature to analyse the process by which organisations ‘add value’ to products and services in the minds of customers, and thereby achieve competitive advantage. © Henley Business School, November 2017 25 Strategic Marketing Analysis of organisational value chains enables the marketer to classify the activities and processes that exist generically in all organisations as they transform raw materials or intuitive service ideas into product and service delivery. At each stage in this process there are opportunities for the organisation to ‘add value’ to the product or service. The value chain consists of nine sequential activities. Primary activities relate to: 1. inbound logistics (receiving raw materials) 2. operations that transform materials into products or services 3. outbound logistics that take the products or services to market 4. marketing and sales 5. service Support activities across the organisation combine to add further value through: 6. procurement 7. technology development 8. human resource managemen 9. the organisational infrastructure deployed (planning, finance, etc). Marketing critiques of the generic value-chain approach focus upon its simplistic linear progression, the dominance of the supplier-orientated needs implicit within its progression, and the lack of interaction that customers might have at each different stage of the process. Even if value for the customer is given as a goal, the customer remains a lost soul and a passive recipient of the provider’s output. (Gummesson, 2002) As markets become more congested and complex so the value chain applicable to any one organisation cannot be viewed in isolation from the value chains of others operating in the same market. Effective strategic focus can only be achieved where value-chain analysis is extended across all the parties that interact to deliver value to the end consumer – suppliers, business partners, customers, internal employees, etc. Merchant (2012) argues that ‘conversations’ should become central to how organisations work and urges them to shift from linear supply-chain management to integrating customer feedback into product design, distribution and delivery. The value chain is not a collection of independent activities, but a system of interdependent activities within and across organisations that combine to deliver value to the end customer, and with it competitive advantage for the organisations concerned. Hollensen (2003) builds upon the work of Normann & Ramirez (1993) in developing the concept of a ‘value constellation’ to describe the chain of different players and the manner in which they must interact if real added value is to be established and maintained, as illustrated in Figure 2.2. 26 © Henley Business School, November 2017 Section 2 Figure 2.2 Value constellation (Hollensen, 2003: 46) 2.5 Bridging the gap between customer and organisation perceptions of value Most organisations make some use of existing customer intelligence to inform and enhance customer value. This is, in itself, an increasingly important source of competitive advantage, particularly where product or service attributes and price variation are minimal. Organisations seek to use discrete knowledge of customer preference to enhance value creation in the construction of their product or service offerings in a manner that it is difficult for competitors to emulate. Smith et al (2006) identify the manner in which organisations seek to use market intelligence and customer knowledge to add value for the organisation and the customer as the value chain progresses. Bridging the gap between customer perceptions of value and those placed upon it by the organisation, they apply the ‘data-to-value cycle’ (Figure 2.3) rather than the linear value-chain model in order to express the complex nature of information exchange necessary to inform real value creation for all parties. © Henley Business School, November 2017 27 Strategic Marketing Figure 2.3 The data-to-value cycle (Smith et al, 2006) The authors go on to propose 12 rules of value creation, as outlined in Table 2.1. Table 2.1 The 12 ‘rules’ of value creation Number Rule 1 Find data that records customers’ unmet, as well as met, needs 2 Use and synthesise multiple data sources 3 Use information to challenge current thinking 4 Do not rely on purely statistical analysis of quantitative data 5 Be explicit and rigorous about managing knowledge 6 Begin with real, needs-based segments 7 Target value-seeking segments 8 Value delivered is proportional to change achieved 9 Change what the customer wants changing, not just what you can change 10 Act faster than the market changes 11 Create a knowledge-sharing culture 12 Value creation does not happen in isolation from the rest of the business (Adapted from Smith et al, 2006: 138) 28 © Henley Business School, November 2017 Section 2 Smith et al (2006) go on to point to three key lessons that must be observed by organisations if this process is to be achieved effectively. 1. Clarity of definition – value creation is a complex co-operative activity, clear definition of the terms used is central to success. 2. Clarity of process – managing the creation of value requires clear understanding of the different stages and activities to be undertaken. 3. Clarity and observance of rules – the process must be ordered and consistently applied. In managing this process a balance between shareholder value and customer value must always be achieved by the organisation. A new stream of thinking, which centres around a service-dominant (SD) logic in marketing (Vargo & Lusch, 2004), asserts that value creation occurs when a customer consumes, or uses, a product or service, rather than when it is manufactured. The SD logic in marketing will be further discussed in Section 4.4, but it should be noted here that increasingly value creation is considered as a process where the customer is involved as a co-creator of value (Payne, Storbacka & Frow, 2007). A view of market ecosystems is evolving among both academics and practitioners alike, where value creation occurs through a continuous and reciprocal actor-to-actor (A2A) buying and consumption behaviour as opposed to fragmented B2B or B2C transactions (Wieland et al, 2012). Key Reading Wieland, H, Polese, F, Vargo, S L & Lusch, R F (2012) Toward a service (eco)systems perspective on value creation. International Journal of Service Science, Management, Engineering, and Technology, 3 (3), 12–25 2.6 Values, norms and marketing ethics: an introduction So far in this section we have focused on the importance of value to both customers and suppliers as a central component in the conceptualisation of marketing. Here we introduce the equally important but often under-represented significance of the values that we bring to the marketing process as individuals, organisations and industry sectors. In its broadest form, ethics can be defined as a set of moral principles or values, something that we all share but we interpret and action in a highly personal and relative manner. When differing or opposing ethical norms conflict it is often difficult to find effective resolution, even where artificial societal constraints on behaviour in the form of law or selfregulatory codes of conduct seek to mitigate disputes and guide appropriate behaviour. Left unchecked, conflict, physical harm or open warfare might ensue. In the same way, within society and business activity there are generally held rules of acceptable and unacceptable behaviour (often unspoken or only partially operationalised). While not necessarily illegal in nature, unethical business or marketing behaviour is behaviour generally regarded by the majority of the community concerned as inappropriate, unfair, manipulative or coercive behaviour. Table 2.2 lists some unethical marketing behaviours. © Henley Business School, November 2017 29 Strategic Marketing Table 2.2 Common unethical behaviours in customer-contact settings Misrepresenting the nature of the service or creating unrealistic expectations Promising a non-smoking room when none are available Quoting a short wait time when actual wait times are much longer Quoting only partial prices or prices for the least desirable service options Exaggerating the benefits of a specific service offering Misrepresenting the credentials of the service provider Creating a false need for service Customer manipulation Giving away a guaranteed reservation Engaging in excessive overbooking of capacity Changing customer appointments for illegitimate reasons Performing unnecessary services Overcharging for services Attempting to pad a bill with hidden charges Failing to indicate when a gratuity has been added to a bill Hiding mistakes or errors in service delivery Hiding damage to customer possessions Making it difficult to invoke a service guarantee General honesty and integrity Treating customers unfairly or rudely Being unresponsive to customer requests Failing to follow stated company policies and procedures regarding service delivery Sharing customer information with third parties without permission (Adapted from Schwepker & Hartline, 2005) 30 © Henley Business School, November 2017 Section 2 Business ethics (and marketing ethics as a subset of that inquiry) therefore focuses upon the nature of human and organisational conduct undertaken in the course of the business of that organisation. For managers, ethics in the workplace refers to rules (standards and principles) governing the conduct of that organisation and the individuals within it. Ethical behaviour in an organisational context therefore relates to: behaviour that is consistent with the principles, norms, and standards of business practice that have been agreed upon by society. (Trevino & Nelson, 2006) Business ethics and appropriate ethical practice require clear analysis and determination of that which is intrinsically the ‘right’ action at the individual, group, organisational or industry level in any given circumstance. Identification of the ‘right course of action’ might well compete with other individual or organisational imperatives, not least those associated with alternate courses of action that will readily deliver more efficient or effective performance or the generation of higher levels of profit or commercial advantage. Often, even when individuals know what the right thing to do is, they find it difficult to do because of organisational or industry pressures. Ethical marketing managers will need to make choices at each of the levels cited above to ensure consistency of purpose and equity in behaviour. Trevino & Nelson (2006) identify three basic steps that managers can apply in seeking to establish and resolve ethical dilemmas: 1. moral awareness – recognising an ethical dilemma is present 2. moral judgement – deciding what is right or wrong in the case in question 3. ethical behaviour – doing the right thing in the actions that follow In order to ensure that decisions are taken in an ethical manner, ethical decision-making must take into account the characteristics of the individual decision-makers, and the characteristics of the organisation and industry within which they operate, as illustrated in Figure 2.4. © Henley Business School, November 2017 31 Strategic Marketing Figure 2.4 Ethical decision-making model (Trevino & Nelson, 2006: 16) Managers, supervisors and co-workers have a significant impact on individual ethical decision-making within organisations. Managers set the context for action, evaluation, reward and punishment. The predominant ethical climate will be heavily influenced by the quality and the content of the leadership and direction provided by managers. Supervisory staff provide immediate, intermediate guidance and support – a bridge between management and co-workers – and will often have the benefit of practical experience to reinforce guidance on ethical decisions. Colleagues and co-workers provide a direct reference point for ethical decision-making and behaviour. Decision-makers who associate with others that behave unethically will be more likely to behave unethically as well. Organisations must pre-plan if they are to be able to manage the wide variety of opportunities that will occur where ethical decisions must be taken in a controlled, directed and effective manner. Pre-planning, the existence of codes of best practice, clear human resource management reward policies and customer-service requirements will all help to mitigate inappropriate behaviour and guide appropriate decision-making in any particular context. As with any other activity, ethically sound organisations plan and organise marketing activity within the context of well established, widely agreed and encouraged codes of practice and guidance. In Section 9.3 (Ethical issues in marketing research) you will learn about such codes of practice that now regulate marketing research practice in terms of the contact and access to people, particularly children and the vulnerable. Summary 32 © Henley Business School, November 2017 Section 2 The Strategic Marketing module adopts a value-based approach to marketing. In this section we introduced you to the concept of value and values, and examined how these yield advantage to the organisation. Further resources Smith, B, Wilson, H & Clark, M (2006) Creating and using customer insight: 12 rules of best practice. Journal of Medical Marketing, 6 (2), 135–9 Ferrell, O C (2005) A framework for understanding organisational ethics. In: Peterson, R A (ed) Business Ethics: New Challenges for Business Schools and Corporate Leaders. New York: M E Sharpe Hartley, R F (2006) Perrier – overresponding to a crisis. In: Marketing Mistakes and Successes, 10th ed. John Wiley & Sons, Chapter 8, pp119–27 Payne, A F, Storbacka, K & Frow, P (2007) Managing the co-creation of value. Journal of the Academy of Marketing Science, 36 (1), 83–96 © Henley Business School, November 2017 33 Strategic Marketing Section 3 Types of marketing Aims and learning outcomes Aims The aim of this section is to:  recognise the different roles of marketing in a range of contexts and types of organisations Learning outcomes After working through this section you should be able to:  identify the key features of the various types of marketing reviewed in this section  understand the relationship between the role of marketing and the type of organisation Introduction While marketing has its roots within the commercial sector there has been a growing awareness of the contribution that marketing practices can offer within other types of organisations, such as not-for-profit (charities, arts, etc), politics, and so on. Some of these were highlighted at the start of Part 1, and we return to them briefly in this section to discuss some of the important differences in the types of business and social context to which marketing is applied today. The module textbook gives insight into how to organise the marketing function, the evolving roles and tasks of the marketing manager, including how recent developments affect the role of marketing in the organisation. 3.1 Product vs services marketing As mentioned earlier, classical marketing arose with the development of mass production of goods, which opened up markets for a wide range of products. We can therefore think of products as tangible goods offered in t...
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Strategic Marketing 1

Contents
Executive summary ....................................................................................................................................... 3
Analysis of a current marketing related problem or opportunity within your organization ........................ 4
Human resource state in South Africa ...................................................................................................... 4
Human Capital Market Saturation ............................................................................................................ 5
Change in Customer trends in the Market ............................................................................................... 6
The proposed future course of action likely to deliver value to the business .............................................. 7
Diversification into Employees Wellness .................................................................................................. 8
Implementation and expected impact of the proposed course of action. ................................................. 11
Evaluation of the strategic marketing plan ............................................................................................. 12
Interdependencies and reflection............................................................................................................... 14
Strengths of Diversification as a strategic marketing option.................................................................. 15
Weakness of diversification as Strategic Marketing option. .................................................................. 17
Importance of the Marketing department in an Organization ............................................................... 17

Strategic Marketing 2

MARKETING TO COUNTER CHANGE IN CONSUMER AND MARKET TRENDS.

By (Name)

Strategic Marketing 3

Executive summary
Business organizations face several challenges in regards to production, marketing,
branding, competition and political environment. To overcome the challenges the organization,
evoke actions that will see to it that the setbacks are reduced or eliminated. At B.T.G., the
problem at hand in increased competition brought about by new entrants into the industry.
Business dynamics dictate that an increase in supply affects demand negatively and, thus, the
need for a drop in market prices. The organization deals in the provision of business advice to
other organizations. The company being small in size is equally a challenge as it hinders the
ability of the organization to reach more clients and thus expand its operation. Reduction in
market share, therefore, calls for the introduction of comprehensive marketing activities to
improve the brand and venturing into new areas in the industry (Asheim, Grillitsch, and Trippl,
2017 p. 81). The idea is to introduce an employee’s wellness initiative that will target private
companies and public organizations. Employees' needs in the current South African Human
resource set-up seem to be neglected, and thus the action will intend to put the needs of
employees first.
The move will be a fresh idea into the human resource field provided by an external
supplier. Understanding employees well being by providing better dietary advice, physical
exercise and mental development will ensure a client company relies on employees who are fit in
all life aspects. The end goal is to nurture individuals who will not only; be beneficial to their
respective career paths but their well being as well. Businesswise, venturing into the new field
will be an added portfolio into the different services provided by the organization and thus an
extra source of income. Additionally, the cause of action is a fresh idea into the human resource
setting and hence an upper hand over other organizations in the same industry.

Strategic Marketing 4

Analysis of a current marketing related problem or opportunity within
your organization
Bridging the Gap (B.T.G.) is an organization that operates in South Africa, focusing on
building integrated human capital and business strategies. The organization works with private
and public entities to develop human capital that will serve the respective clients effectively.
However, currently the company is facing increased competition in the market. Increased
competition has been brought about by saturation in the industry due to emergence of new
organizations which offer the similar services. Consequently, the effect has been a drop in
market share for B.T.G. and, therefore, a reduction in the revenue collection, which is
threatening to cripple operations at the organization.

Human resource state in South Africa
Human resource is robust industry which involves recruitment, training, maintaining and
developing of human personnel. In South Africa, most companies have in house human resource
departments and only seek external services when in need of headhunting or a large pool of
applicants are in question. In essence, the situations dictate that foreign players in the field ought
to be efficient in their operations and work towards providing clients with services that they are
unable to handle internally. Human capital is the most critical asset of any organization since
they are the driving force towards achieving several roles and duties for an organization to meet
its goals. Human resource roles span from production processes, service provision, marketing,
finance and delivery of products and services. In this respect, each of the employees will require
a set of training modules that will work to boost their morale in performing their respective
duties. Research shows workers in the South African Labor Market are not only motivate by the
amount of money they earn from the jobs but generally how their seniors and colleagues treat

Strategic Marketing 5
them. Good pay may be a motivating factor to go to work daily, but when the working conditions
are weak in terms of the environment being toxic, then productivity will drop. B.T.G.being an
organization that seeks to align human capital to business strategies, works towards empowering
staff of an organization through trainin...


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