hooley marketing in the 21st-century

Marketing Challenges for the 21st Century

with

Graham HOOLEY Aston Business School

Marketing in the 21st Century

• A research project involving 5,638 firms in 13 countries to date:– UK; Netherlands; Greece; Austria; Finland;

Ireland; New Zealand; Australia; Hungary; Poland; Slovenia; Hong Kong; China

• Ongoing in Germany, Brazil, Korea, Taiwan

The changing marketplace

21%*44%Competition is well established and entrenched

65%55%The Internet and e-commerce is having a significant impact on business practices

63%68%Competition is now global rather than just domestic

86%90%Competition for sales is intense

75%80%New products and services are coming to market more quickly than in the past

26%*41%We operate in a market where all customers want essentially the same thing

69%64%Customer wants, needs and expectations are changing more rapidly

93%93%Customers are increasingly demanding better quality and reliability in the products and services they buy

UK (487)

Total (5638)

Pressures on Marketing

Increasingly demanding customers

Rapid technological

change

Intense, global, fluid competition

Heterogeneous & fragmenting

markets

Financial Performance

Overall Profit, ROI, Profit Margin

Market Performance

Sales Volume, Market Share, Customer

Satisfaction

Overall Performance

Financial and Market

Top vs Bottom 10%

How do the better performers manage?

Country differences in Performance

• Best performing countries:– Greece; New Zealand; China; Ireland;

Austria; Australia; Poland• Average performing countries:

– United Kingdom; Finland• Weaker performing countries:

– Hong Kong; Hungary; Slovenia; Netherlands

Marketing Strategy Basics

Create a LEARNING

ORGANISATION

39

50

42

23

26

27

22

9

24

35

25

13

0 10 20 30 40 50 60

Top Bottom UK

Learning Orientation

We continually question our own We continually question our own views of the market placeviews of the market place

Our organisational values include Our organisational values include learning as a key to improvementlearning as a key to improvement

Employee training is seen as an Employee training is seen as an investment rather than as a costinvestment rather than as a cost

Our ability as an organisation to Our ability as an organisation to learn is a key competitive advantagelearn is a key competitive advantage

3.773.88

4.274.22

4.023.8

3.2

3.954.1

4.414.23

3.853.97

3 3.2 3.4 3.6 3.8 4 4.2 4.4 4.6

United KingdomIrelandAustriaFinland

New ZealandAustraliaHungary

PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Our company’s ability to learn is a key competitive advantage

14

27

34

28

2

11

7

1

9

18

20

10

0 5 10 15 20 25 30 35 40

Top Bottom UK

Market research

We are good at using information We are good at using information about markets, customers and about markets, customers and

competitorscompetitors

We understand customer needs and We understand customer needs and requirements wellrequirements well

Our market research focuses on Our market research focuses on understanding customer needs and understanding customer needs and

requirementsrequirements

We make extensive use of market We make extensive use of market research in our organisationresearch in our organisation

2.853.17

2.962.62

2.722.8

2.62.9

2.663.46

3.123.37

2.532.93

2.5 2.7 2.9 3.1 3.3 3.5 3.7



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

We make extensive use of market research

Look for developing trends

Economic

Political

Technological

SocialLegal

Put your customers under the microscope

What really What really gives them gives them

value?value?

Understand what drives your competitors and their

strategies

The Learning Organisation

Data Acquisition

Information Processing

Information Dissemination

Take action as a result!

Create a LEARNING ORGANISATION

Heightened market orientation and a focus

on creating superior customer satisfaction


50

54

48

45

23

31

21

19

26

33

27

25

0 10 20 30 40 50 60

Top Bottom UK

Market Orientation

Customer satisfaction is systematically Customer satisfaction is systematically and frequently assessedand frequently assessed

Our people know how to add value for Our people know how to add value for our customersour customers

Our strategies are driven by the Our strategies are driven by the creation of customer satisfactioncreation of customer satisfaction

Our commitment to serving customer Our commitment to serving customer needs is closely monitoredneeds is closely monitored

4.344.6

4.415.33

4.344.42

4.554.41

4.524.83

4.264.78

4.224.52

4 4.2 4.4 4.6 4.8 5 5.2 5.4



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Customer satisfaction is systematically and frequently

assessed

What do we What do we make?make?

Whatever it is, Whatever it is, make them make them

want it!want it!

Product-Led Marketing

What do they want?

Whatever it is, give it to them!

Customer-Led Marketing

What are we good at that What are we good at that customers value?customers value?

Find a profitable match Find a profitable match between market needs and between market needs and

company resources!company resources!

Resource-Based Marketing

Create a LEARNING ORGANISATION



Positioning built on exploiting marketing resources, assets and

capabilities


Get your targeting and positioning right!

Basic Positioning Options

Low Price

Premium Quality

Innovation

Superior Service

Customised

High Price

Basic Quality

Imitation

Limited Service

Standardised

23

35

15

23

22

5

5

27

5

13

12

17

16

12

18

0 5 10 15 20 25 30 35 40

Technical product/service quality

Customer service provided

Low Price Offerings

Degree of innovation

Degree of Customisation

Top Bottom UK

Competitive Positioning

3.243.32

3.232.97

3.313.31

3.04

3.263.35

3.143.31

3.253.22

2.9 3 3.1 3.2 3.3 3.4



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Price Positioning

3.713.63

3.723.62

3.763.76

3.35

3.553.71

3.563.95

3.633.64

3.25 3.35 3.45 3.55 3.65 3.75 3.85 3.95 4.05



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Quality Positioning

3.813.78

3.633.58

3.883.84

3.29

3.563.76

3.73.91

3.853.7

3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 4



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Service Positioning

3.523.44

3.63.39

3.683.66

3.15

3.373.56

3.293.71

3.413.46

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Innovation Positioning

3.693.563.56

3.763.69

3.643.58

3.613.66

3.773.82

3.693.67

3.5 3.55 3.6 3.65 3.7 3.75 3.8 3.85



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Customization Positioning

Low Price

Quality

ServiceInnovation

Customization

Low price, Low price, no frillsno frills

Quality Quality leaderleader

Positioning Examples

Low Price

Quality

ServiceInnovation

Customization

Positioning Examples

Low Price

Quality

ServiceInnovation

Customization

Low Price

Quality

ServiceInnovation

Customization

Innovation & Innovation & CustomizationCustomization

Service leaderService leader

Key Marketing Resources

RESOURCESRESOURCES

CULTURECULTURE ASSETSASSETS CAPABILITIESCAPABILITIES

37

36

51

55

11

9

14

25

18

36

3713

0 10 20 30 40 50 60

Relationships with key target customers

Superior levels of customer service andsupport

Credibility through being established inthe market

Company or brand name and reputation

Top Bottom UK

Customer Based Marketing Assets

3.933.99

3.893.96

3.983.96

3.673.61

3.783.87

3.74.13

3.843.86

3.5 3.6 3.7 3.8 3.9 4 4.1 4.2



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Customer Based Marketing Assets

17

15

15

16

4

3

1

7

4

5

85

0 5 10 15 20

Copyrights and Patents

Superior cost control systems

Superior marketing informationsystems

Cost advantage in production

Top Bottom UK

Marketing Support Assets

3.053.13

3.113.25

3.173.08

33

3.163.25

2.983.21

3.053.11

2.9 2.95 3 3.05 3.1 3.15 3.2 3.25 3.3



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Marketing Support Assets

14

21

29

24

3

2

4

5

7

10

105

0 5 10 15 20 25 30 35

Relationships with distribution channelintermediaries

The uniqueness of the distributionapproach

Extent or nature of distribution network

Good relationships with suppliers

Top Bottom UK

Channel Based Marketing Assets

3.193.35

3.133.3

3.293.31

3.093.14

3.173.33

3.193.36

3.263.24

3.03 3.08 3.13 3.18 3.23 3.28 3.33 3.38



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Channel Based Marketing Assets

10

13

15

17

2

2

2

5

4

4

72

0 5 10 15 20

Access to partner's finance

Access to partner's managerial know-how

Access to partner's technology

Market access through alliances

Top Bottom UK

Alliance Based Marketing Assets

3.13.18

3.113.06

3.183.17

2.973.02

3.083.31

2.973.27

3.163.11

2.9 3 3.1 3.2 3.3 3.4



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Alliance Based Marketing Assets

41

42

34

28

6

8

7

23

24

20

101

0 10 20 30 40 50

Maintaining and enhancing customerrelationships

Creating relationships with keycustomers

Understanding customer wants andneeds

Using information about markets,customers and competitors

Top Bottom UK

Customer Linking Capabilities

3.753.8

3.733.65

3.833.77

3.63.54

3.663.84

3.673.97

3.593.72

3.45 3.55 3.65 3.75 3.85 3.95 4.05



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Customer Linking Capabilities

The Relationship Marketing Ladder

Prospect

Customer

ClientSupporter

Advocate

Partner

Emphasis on Emphasis on customer customer catchingcatching

Emphasis on Emphasis on customer keepingcustomer keeping

(Source: Adrian Payne 1995)(Source: Adrian Payne 1995)

27

24

21

31

2

3

3

11

11

8

144

0 5 10 15 20 25 30 35

Good marketing management capability

Good operations management expertise

Effective human resource management

Strong financial management

Top Bottom UK

Management Capabilities

3.463.55

3.413.24

3.593.57

3.183.3

3.213.46

3.283.75

3.373.41

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Management Capabilities

21

19

23

26

3

3

4

5

7

8

116

0 5 10 15 20 25 30

Effective new product developmentprocesses

Good internal communications

Good at pricing both for demand andfinancial return

Ability to launch successful newproducts/services

Top Bottom UK

Organisation Spanning Capabilities

3.253.38

3.33.26

3.393.28

3.123.26

3.393.55

3.283.65

3.143.33

3.05 3.15 3.25 3.35 3.45 3.55 3.65 3.75



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Organisation Spanning Capabilities

17

16

16

23

3

3

2

5

6

5

53

0 5 10 15 20 25

Shared commitment with partners

Mutual trust with partners

Good at pooling expertise with partners

Ability to manage relationships withsuppliers

Top Bottom UK

Networking Capabilities

3.333.39

3.463.43

3.483.4

3.34

3.513.63

3.563.72

3.373.44

3.3 3.4 3.5 3.6 3.7 3.8



PolandHong Kong

ChinaSloveniaGreece

NetherlandsAverage

Networking Capabilities

Create a LEARNING

ORGANISATION



Positioning built on exploiting marketing resources, assets and

capabilities

Establish closerelationships with key customers and groups

Rethink the role of marketing in the organisation


Market Orientation

Managerial Capabilities

Customer Linking

Capabilities

Market Innovation Capabilities

Human Resource

Assets

ReputationalAssets

Customer Performance

Market Performance

Financial Performance.50

.26.37

.16

.40

.26

.42

.44

.22

.25

.20

.38

.27

.21

.49

Chi-square=34.68. sig=.05, RMSEA=.07. GFI=.97, NNFI=.89,

CFI=.95

UK Performance Model

Hooley, Greenley, Cadogan, Fahy J. (2005) "The performance impact of marketing resources"

forthcoming Journal of Business Research

Marketing Support Resources

Market Based Resources

Performance

hooley marketing in the 21st-century

Documents