MARKETING**STRATEGY*&*ORGANISATION
Prof.dr.'Henry'RobbenNyenrode'Business'Universiteit
Building*Sustainable*Business.
Are'you'up'to'the'challenge?
Hi; I’m Henry Robben.
I am a Professor of Marketing at Nyenrode Business Universiteit and I act as a consultant to companies.
With Claudia Hartman I take care of our four sons, read whatever is available, enjoy first-person shooter games, cycle as much as I can, and cheer for Oranje, the Dutch national soccer team.
For a living, I catalyze strategic marketing processes to help individuals and companies realize their ambitions.
I have turned my passion into my job, that is why I’m here with you today. Combining my academic work with practice is a ‘conditio sine qua non’ for me.
+31 6 26 556 572
Henry Robben
henryrobben
henryrobben.com
onhandigeharry
henry_robben
Building Sustainable Business.
The Marketing Concept
The planning and the implementation of
marketing activities in order to optimise the
company’s current and future
competitiveness.Moenaert; Robben & Gouw; 2011:26
Figure'1.1Chapter'Flowchart
Chapter(2:(Understanding+the+BusinessChapter(3:(Understanding+the+Environment+
Chapter(4:(Strategic+Ambition+
Chapter(5:(A+Concept+of+the+FutureChapter(6:(Shaping+the+Future+
Chapter(7:(Commitment+to+Execution+
Chapter(8:(Return+on+Business+
Value'Net;'Abell;'SWOT;'STEP;'CODA;'Customer'Value'Proposition;'
Competitive'Advantages;'Business'Model;'Portfolio'Analysis;'Market'
Intelligence
Corporate'vs'Personal'Ambition;'Mars'exercise;'Newspaper'article;'Objectives'Assessment;'
Sustainability'Analysis
Market'Making,'Market'Hunting,'Market'Farming;'Segmentation,'Targeting,'Positioning;'Business'Model;'Strategic'Option'Analysis
Implementation;'See'N'Start'N'Sustain;'Marketing'Management
Marketing'Balanced'Scorecard;'Ambidexterity
“…(it(is(essential(to(ask(and(answer(the(right(questions.”
Moenaert,'Robben'&'Gouw'2011:28
Chapter(1:(The+Business+Roadmapping+Cycle+
$$$ Resource-Based View
Competitive Advantage &Enabling Business Model
$$ Black Box
Includes the famousMarketing-Mix Toolbox
Vision;(mission;(the(grand(choices
How(and(where(do(we(compete?
How(and(when(do(we(implement? Bridging(decisions
Operational(oriented
Annual(time(horizon
Action(oriented
Short/medium(time(horizon
Limited(risks
Value(oriented
Higher(risks
Effect(proHits
Long(time(horizon
Marketing'&'Strategy.Corporate(
strategy
Marketing
Strategy
Operational
(strategy
Procurement(Strategy
Operational(marketing(strategy
Logistics
(strategy
Human(Resource((strategy
Information(Technology(strategy Financial(strategy
Figure'2.1DeVining'the'Business
Ques%on(1:(Who(do(we(serve?(
Answer:(Define(customer(segments
Ques%on(2:What(do(we(offer?
Answer:(Define(customer(value(proposi%on
Ques%on(3:(How(do(we(do(that?(
Answer:(Define(resource(configura%on
What'Business'Are'We'In?
Implications'of'the'AbellNmodel
• Products'and'services'are'results• Strategic'positioning• The$sum$of$the$decisions$on$these$dimensions
Figure'2.2Media'Spending'in'the'German'Market
(Source'of'data:'GfK)
1999 2001 2003 2005 2007 2008 2009 2010
16%16%17%15%12%10%10%10%
3%3%3%3%3%2%2%2%
9%10%8%8%8%10%11%9%
3%3%3%3%3%3%4%4%
14%13%12%13%13%13%8%6%
14%15%17%18%20%20%24%27%
41%40%40%41%40%42%42%43%
9.499.30 9.65 9.95 9.778.799.379.17 Total&(Billion&€)
Games
Software
Cinema
Video(rental
Video(sell>through
Music(
Books
1999200120032005 2007200820092010
“The”'media'industry
Figure'2.3WayNtoNMarket'Architecture
Company
InMluencers
(Advisers;(Regulatory(Institutions;Media;(etc.)
End>Customer(Segments
Segment(1 Segment(2 Segment(3 Segment(4
Direct(Channels(
(Face>to>Face;(Internet;(etc.)
Indirect(Channels
(Distributors;(Resellers;(OEMS;Convertors;(etc.)
Be'Where'Your'Customer'Is
The'focal'customer:'Who'decides?'Who'pays?'Who'consumes?
An industrial company enables the competitiveness
of its customers
Your Company Your Customer Their Customers
... hence creating profitable sales
for itself
Figure'2.4Perspectives'on'Derived'Demand'in'Business'Markets
... hence leading to more (less)sales of the industrial company's
products and services
More (less) demand by end customers, leads to more (less)
demand by the direct customers...
the'statistical'perspective'on'derived'demand
the'strategic'perspective'on'derived'demand
13
Needs(to(create(value(for
The'Value'Principle
While(creating(value(for
The!Supplier
The$Customer
Needs
Symbolicneeds
Functionalneeds
Experientialneeds
In$the$beginning...
UndesiredSituation'='State'
ofFelt'Deprivation
DesiredSituation'='State'
ofFelt'FulVilment
Need:,to
,live,a,passion
ate,life
hedo
nism
,,pleasure
Need:,peace,and,security
puritanism,,security,orienta8on
Need:,Post:materialism,,quality,orienta8on
Need:,materialism,,price,orienta8on
Dreamers10.7,%
Homebodies20.8,%
SeGled14.4,%
Adventurers12.9,%
Ra8onal:Realists7.5,%
11.7,%Demanding
10.9,%Organics
11.0,%Open:minded
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��$(%���$����'���������#����'��&�+��$��&��"�#'�)$%!�)�����
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���%�,&�'���"$#�*�
�$#�&��"�#'�'�$#����"�#'�'�$#�
������ (&'$"�&�'�$#�
Figure'2.7Most'Important'Reason'for'Brand'Choice:'Digital'Compact'Cameras
(Source'of'Data:'GfK'NOP'UK;'December'2010'N'%'refers'to'proportion'of'buyers'mentioning'brand'purchase'reason)
24%
10%
28%23% 24%
24%8% 6%
7%14% 15%
8%8%
8%
4%
3%
4%10%
20% 18%
28%
16%
17%11%
17%
13%
18% 9% 3%18%
16%
31%
7%15%
11%
21%
4%
6%9%
9%
9%
11%
7%
7%8%
8%
10%3%
1%
5% 5%
8%7%
15%
6%10% 7%
8%
2%
2%
3%
7%
5%2%
0%
5%
10%
5%10% 2%
8%
4%4%
12%3%5%
5%
5%4%6%
2% 1%3%4%
4% 5%9%
4% 3%4% 3%10%2%
3%
TOTALCanon Fuji Kodak Nikon Olympus PanasonicSamsung Sony
Attractive)product)designs
Special)features
Top)brand)in)category
Recommended)by)friends)
Recommended)instore)
Tech)advanced)brand
Promotion)or)special)offer
Brand)reputation
Good)reviews
Good)price>performance)ratio
Good)quality)brand
Value)for)money
Low)price
Brand)Experience
Winning'in'a'Market
Competing5in5Changing5Markets
2011)Business(Model©5R.Moenaert5–5H.5Robben5–5P.Gouw
The'core'functional'product'or'service'your'company'offers
The'beliefs,'images,'ideas'or'impressions'the'market'holds'about'your'company'and/or'the'products'you'offer
The'company/customerN'interaction'process,'as'perceived'by'the'customer,'by'means'of'which'your'company'identiVies,'builds'and'maintains'relationships'with'its'customers'and'delivers'its'offering
The'Vinancial'and'nonNVinancial'costs'your'customers'make'in'order'to'own'or'consume'your'products/services'
Customers’'Outlook'on'Differentiating'Advantages'(CODA)
PriceCustomer Process
Image
Offering
Porter, 2001; Greenwald & Kahn, 2005; Moenaert, Robben & Gouw 2011
Competitive Advantage
Strength that, in a given segment, influences the customer decision process in favor of the company
A$customer$is$someone$who$has$not$yet$found$a$better$
alternative
Nirmalya!Kumar
We$should$give$the$customer$a$reason$to$BUY$and$to$STAY.
Competitive'advantages'do(not'happen'overnight.
You'have'to'design'them'into'your'products'and'services.'
The!Business!Challenge
"Every+organization+has+a+business+model,also+the+less+successful+ones"
in:+'Marketing+Strategy+&+Organisation",+Moenaert,+Robben+&+Gouw
NCustomer Process
Price ImageProduct/service
0
1
2
3
4
5
>5
OfferingImageCustomer Process
Price
Which reason(s) do you give to your customers to choose for your company?
Which reason(s) come into play in what phase?And
why?
Offering
Image
Customer Process
Price
Pre-Transaction
Implementation& Service
Purchase &Delivery
Marketing
Sales
Marketing / Account
Management / After Sales
The!Differentiation!Arena:!Customer!Value!Proposition.
Needs
Symbolicneeds
Functionalneeds
Experientialneeds
EnvironmentalSafety
Styling &Design
Functionalperformance Compatibility User
convenience Serviceability Pre-transactionprocesses
Transactionprocesses
Switchingcost
Productimage
CorporateReputation
Reliability &Consistency
Acquisitioncost
Disposalcost
Operatingcost
Professionalism
Post-transactionprocesses
Marketpresence
Empathy
User community
Bundling &Complementarities
Offering
Price Image
CustomerProcess
BeneVits Offered
Brandimage
Figure'2.9The'Differentiation'Arena
A business model is a graphical and empirical
representation of the customer value
proposition.
Figure 2.10Business Model of the El Bulli restaurant (Spain)
The Best Restaurant
in the World
Really, Really, Really Exclusive
A genuine journey
UnparallelledDining
Experience
Voted&Best&
Restaurant&in&the&
World&
Recogni4on&&&
admira4on&by&peers
Pioneer&in&Molecular&
Gastronomy
Discussed&on&
Internet,&press&and&
magazines
Open&during&half&a&
year&only&(‘Freedom&
for&Crea4vity’)
Ferran&Adrià:
visionary,&passionate&
entrepreneur&with&a
strong&network
Loca4on:
traveling&to&Barcelona
Innova4ve&Meal
The&&Service
Visi4ng&the&
kitchen
(Mysterious)
Reserva4on&process
50&guests&pers&night
8000&guests&per&year
2&000&000&requests
The&Tour
The
Terrace
Loca4on:
driving&through&Costa&
Brava
Quan4ty&of&staff
&#&60
Qual4ty&of&staff
‘unbelievably&a[en4ve’
El&Taller&
(infrastructure,&
processes,&
gatekeeping)
New&recipes,&
techniques&and&
equipment
Culture&of&
Innova4on
Process
Focus
Bragging&by&customers
(co^crea4on&of&
the&myth)
Ingredients&&&
procurement
Efficient& Customized
Convenience24/7
CompetitivePrices
Image :The proactive;
trustworthyPhonebank
Awareness(45 %)
Presscampaigns
Qualityawards
Word-of-mouth
recommendations
Successfultrack record
CustomerSatisfaction
(delight)
Leeds Workforce(empathy; language)
StaffRecruitment &
Training
Teams
Rotation
Employeesatisfaction
Cross-Selling
LimitedStaff
ACD : AutomaticCall Distribution
MidlandTechnologyBase (ATM)
HealthyCustomerBase (50 %
Acceptance)
Leedslocation
BRs handle 85%of inquiries
Hotdesking
Centralizedoffice
MINDICT Supervisors