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Marketing Strategy Masterclass Marketing Strategy Masterclass The 100 questions you need to answer to create your own winning marketing strategy For Jack This book is much more Jack ’ s than he will ever believe. Far more than just ‘ being his turn ’ ; to see focus and determination in one so young has served, more than once, to keep me working on what has turned out to be a very long project indeed. Thank you Jack Marketing Strategy Masterclass The 100 questions you need to answer to create your own winning marketing strategy Including the new ‘ SCORPIO ’ model of Market Strategy First Edition Paul Fifield AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD PARIS • SAN DIEGO • SAN FRANCISCO • SYDNEY • TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP, UK 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA First edition 2008 Copyright © 2008, Paul Fifield. Published by Elsevier Ltd. The right of Paul Fifield to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher Permissions may be sought directly from Elsevier ’ s Science & Technology Rights Department in Oxford, UK: phone: ( ϩ 44) (0) 1865 843830; fax: ( ϩ 44) (0) 1865 853333, E-mail: [email protected]. Alternatively you can submit your request online by visiting the Elsevier web site at http://elsevier.com/locate/permissions , and selecting Obtaining Permission to use Elsevier material Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress ISBN: 978-0-7506-8631-0 For information on all Butterworth-Heinemann publications visit our website at elsevierdirect.com Typeset by Charon Tec Ltd., A Macmillan Company Printed and bound in Hungary 08 09 10 11 12 10 9 8 7 6 5 4 3 2 1 Contents (short form) Preface xi Introduction xiii Part One: Preparing for the marketing strategy 1 1 The internal business drivers 3 2 The external environment 19 3 The business strategy 52 4 The marketing objectives 70 Part Two: Developing the marketing strategy 83 5 Industry or Market? (I) 95 6 The Customer (C) 131 7 Segmentation and Targeting (S) 190 8 Positioning and Branding (P) 250 9 Customer Retention (R) 317 10 Organisation: Processes and Culture (O) (with Hamish Mackay) 357 11 Offerings (O) 423 Part Three: Co-ordinating your marketing strategy stances 483 12 Co-ordinating your marketing strategy 485 Part Four: Implementing your marketing strategy 505 13 Making it happen 507 Appendices 543 Index 591 This page intentionally left blank Contents Preface xi Introduction xiii Part One: Preparing for the marketing strategy 1 1 The internal business drivers 3 1. What do our shareholders require from us? 4 2. What do our stakeholders require from us? 6 3. Who are the key implementers in the organisation and what are their personal values and requirements? 8 4. How should we best describe their/our strategic intent? 9 5. Out of these various factors do we have a clear statement or understanding of the corporate/business mission? 10 6. What (therefore) is the long-term financial objective that the organisation is dedicated to achieving? 12 7. What are the Financial Hurdles? 13 8. What is the Vision of the organisation? What should it be? 15 2 The external environment 19 9. What resources do we have and how are they being utilised? 20 10. What are the strengths and weaknesses of the organisation? 23 11. What is the ‘ Environment Audit ’ and how do we create one? 28 12. What opportunities and threats exist in our broad macro-environment? 34 13. Are we (really) customer focused? 35 14. How is our industry put together? What business are we in? 36 15. Are there opportunities arising from the structure of our business/industry? 43 16. Who are our real competitors and what are their competencies? 45 17. What are the opportunities for our organisation in the competitive environment? 47 18. Are we internally or externally driven? 48 3 The business strategy 52 19. What is our business/corporate objective? 53 20. What is our business/corporate strategy? 55 viii Contents 21. What are the options for sustainable competitive advantage? 58 22. What do we believe is the most appropriate sustainable competitive advantage we should be seeking? – Our competitive strategy 64 4 The marketing objectives 70 23. What are the marketing objective(s)? 72 24. How do I develop the KPIs from the marketing objectives? 77 Part Two: Developing the marketing strategy 83 25. What is marketing strategy? 84 26. What are the steps involved in developing marketing strategy? 88 27. What does marketing strategy mean for my organisation? 91 28. Should I prepare my organisation for marketing strategy? 92 29. Why do I involve in the marketing strategy process? 92 5 Industry or Market? (I) 95 30. What business are we in (now)? 100 31. What business do we want to be in or should we be in? 105 32. How does this define the market/customer needs we should be satisfying? 112 33. Where/how should we be growing the business? 115 34. What are our strategic opportunities and threats? 118 35. What competition are we (really) facing? 122 36. What are the boundaries for effort? 125 6 The Customer (C) 131 37. Who are they? 139 38. What do they currently buy from us/our competitors and why? 142 39. What benefits are they seeking? 146 40. What do they want from us now/will they want in the future? 161 41. What barriers are getting in the way? 167 42. What will make them come to us? 174 43. Where do customers interface (connect) with our organisation? 183 7 Segmentation and Targeting (S) 190 44. What is the current state of segmentation in the organisation? 195 45. What do we want segmentation to do for our organisation? 201 46. What segments exist in our target market (defined business)? 208 47. How durable are the segments identified? 223 48. How can we prioritise the segments for approach? 227 49. Which segments should we target? 235 50. How can we market to different segments? 240 Contents ix 8 Positioning and Branding (P) 250 51. Differentiation or ‘ Commodity ’ marketing? 255 52. What market positions exist? 267 53. What market position do we own, or do we want to own? 274 54. How are we going to be different from the competition? 278 55. What is our brand? What are its unique ‘ values ’ and ‘ personality ’ ? 286 56. What are the costs and benefits of building a brand? 301 57. How do we invest in our brand and a differentiated market position? 309 9 Customer Retention (R) 317 58. How important is ‘ Retention ’ in our market? 323 59. How big are the ‘ problem ’ and the potential gains? 327 60. Is retention just about customer satisfaction? 332 61. Do our accounting and reporting systems impede retention activities? 339 62. How good is our Market(ing) Information Systems (MkIS)? 342 63. What is the strategic role of our Customer Relationships? 347 64. How are we planning to invest in our primary asset? 353 10 Organisation: Processes and Culture (O) (with Hamish Mackay) 357 65. Is our organisation focused on internal or external issues? 363 66. What is our organisation really good at – and does it matter? 369 67. What is going on with our culture? 377 68. Process – is our organisation joined up? 383 69. Is our organisation driven by the right information? 396 70. Which metrics are used to manage and drive our organisation? 405 71. Change management – what is that? 413 11 Offerings (O) 423 72. Where is the Customer value? 426 73. What is our Value Proposition? 436 74. What is the most appropriate business design for us? 445 75. Where are our new offerings? 451 76. How do we assess the Risk? 460 77. Are we managing the life cycle? 467 78. How do we take our Offerings to market? 473 Part Three: Co-ordinating your marketing strategy stances 483 12 Co-ordinating your marketing strategy 485 79. What makes ‘ good ’ strategy? 486 80. How do I plan with SCORPIO? 491 81. What is the minimum SCORPIO – the ‘Strategic Spine’? 494 x Contents 82. What is the defensive SCORPIO? Co-ordinating your ‘defensive marketing strategy’ 497 83. What is the offensive SCORPIO? Co-ordinating your ‘offensive marketing strategy’ 500 Part Four: Implementing your marketing strategy 505 13 Making it happen 507 84. How do we implement the strategy, and turn our thinking into action? 508 85. What are the barriers that could stop us implementing the strategy? 510 86. How can we control implementation? 513 87. Which ‘ Marketing Mix ’ should my organisation use? 516 Product or service policy 88. What jobs are your products or services being ‘ hired ’ to do? 521 89. What is our product (or service)-market match? 524 90. What are the product or service components that we need to manage? 524 Pricing policy 91.
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