professor colin egan Moscow, 4th October 2012

Effective Management
MasterClass
Strategic Marketing for Top
Management & Entrepreneurs
professor colin egan
th
Moscow, 4 October 2012
© colin egan, 2012
Московская школа управления СКОЛКОВО
Strategic Marketing
MasterClass
Introduction
© colin egan, 2012 | 2
Московская школа управления СКОЛКОВО
Strategic Marketing for
Profitable Growth: MasterClass Agenda
Something ‘Old’
– Marketing, Brands & Innovation
Something ‘New’
– Behavioural Data & Customer Relationship
Management
Something Measured
– Assessing Marketing Excellence
Over to You!
– Leaders, Managers & Entrepreneurs
© colin egan, 2012 | 3
Московская школа управления СКОЛКОВО
Strategic Marketing
Theory & Practice: A Professor’s Journey
Royal Philips International
–
Philips Marketing Academy
IBM
– IBM Marketing University
BP & Castrol
– BP Sales & Marketing Academy
YKK
– Marketing Excellence Programme
Coca-Cola
– Coca-Cola Professor of Marketing,
IEDC – Bled School of Management, Slovenia
© colin egan, 2012 | 4
Московская школа управления СКОЛКОВО
Strategic Marketing
MasterClass
Something ‘Old’:
Marketing,
Brands & Innovation
© colin egan, 2012 | 5
Московская школа управления СКОЛКОВО
A Tall Order:
Defining Marketing Strategy
A number of processes designed to analyze, anticipate
and create customer needs & preferences. To create a
compelling value proposition to meet these needs &
preferences fully and better than rivals. To capture the
imagination of customers and to secure their loyalty. To
organize all the firm’s assets and resources to maximize
the customer experience and the company’s profitability
along with that of selected business partners.
© colin egan, 2012 | 6
Московская школа управления СКОЛКОВО
What is a Brand?
© colin egan, 2012 | 7
Московская школа управления СКОЛКОВО
Why Invest in Brands?
© colin egan, 2012 | 8
Московская школа управления СКОЛКОВО
Brand Equity!
© colin egan, 2012 | 9
Московская школа управления СКОЛКОВО
What’s in a Name?
Kalashnikov
Hennessy
Marks & Spencer
Porsche
Jack Daniels
Ogilvy & Mather
Honda
Johnny Walker
Barclays
Anheuser-Busch
Sears
Goldman Sachs
Disney Brietling
Sainsbury’s
Tiffany
Philips
Simon & Schuster
Wrigley’s
Moet et Chandon
Hagen-Dazz
Mars
L’Oreal
Parker
Cadbury
Ralph Lauren
Lever Bros
Bosch
Merrill Lynch
Gucci
Daimler Benz
Forbes
Saatchi & Saatchi
Bloomburg
Reuters
Gillette
J.P. Morgan
McGraw-Hill
Louis Vuitton
© colin egan, 2012 | 10
Kellogg’s
Johnson & Johnson
Du Pont
Linn
Kimberley-Clark
Heinz
Cartier
Procter & Gamble
Bang & Olufsen
Nordstrom
Matshushita
Citroen
Harley-Davidson
Siemens
Dell
Reuters
Bayer
Smirnoff
Ericsson
Peugeot
YSL
Schwab
Rolls-Royce
Macy’s
Hewlett Packard
Marriott
Merck
Heineken
Hershey
Renault
Ferrari
Schweppes
Moscow School of Management SKOLKOVO
Morgan Stanley
Bose
Kalashnikov
Hennessy
Accenture
What’s in a Name?
Renault
e-bay
Pizza Hut
Ferrari
Schweppes
Hewlett Packard
Porsche
Duracell
Merck
Exxon
GM Marriott
Dell
IBM
Heineken
FedEx
MTV
YSL
Hershey
Schwab
Jack Daniels
DHL
Holiday Inn Bang & Olufsen
SingTel
Rolls-Royce
Kellogg’s
Ogilvy & Mather Bayer Gap
Reuters
Volkswagen
BMW
Goldman Sachs
Motorola
SAP
Pepsi
Microsoft
Brietling
Swatch
Honda
Disney
Johnson & Johnson
Du Pont
Caterpillar
Wal*Mart
Sainsbury’s
Linn
Kimberley-Clark
Johnny Walker
Tiffany
Panasonic
FKC
Macy’s
Nordstrom
Moet et Chandon
Apple
Yahoo!
AOL
Harley-Davidson
Matshushita
Citroen
Sun
Barclays
L’Oreal
Technics Parker
Cisco Anheuser-Busch Philips
Intel
Heinz
Lever Bros
Sony
Smirnoff
Budweiser Hagen-Dazz
Bosch American Express
Peugeot
Ericsson
Mars
Cadbury
Nike
Cartier
Kodak
Snickers
Kleenex
Merrill Lynch
Sears
Amazon.Com
Mobil
Hertz
Bose
Siemens
Gucci
Fuji
Reuters
Procter & Gamble
Ralph Lauren
GE
Orange
Ariel
Burger King
Oracle Wall St. JournalGillette
BT
J.P. Morgan
Simon & Schuster
Business Week Daimler Benz
Forbes
HSBC
AT&T Xerox
Saatchi
&
Saatchi
Mercedes
Fortune
Wrigley’s
BP
Citibank
Bloomburg
McGraw-Hill
Morgan Stanley
Shell
Coca-Cola
Louis Vuitton
Vodaphone
Diagio
Castrol
Marks & Spencer
© colin egan, 2012 | 11
Moscow School of Management SKOLKOVO
The Benefits of
Brands for Suppliers
Create & Maintain
Image
Enable
Segmentation
& Positioning
Underpin Strategic
Defence
(Buy Time)
Give an Identity
to Products
Sustainable
Differential
Advantage
Drive Offensive
Marketing
(Stretch/Extend)
Build Loyalty,
Share &
Profitability
Intellectual
Property
© colin egan, 2012 | 12
Transcend
Technologies
Moscow School of Management SKOLKOVO
The Benefits of
Brands for Customers
Recognition
& Familiarity
Buying
Effectiveness
Identification
Assurance
Buying
Efficiency
Easier Choice
Risk
Avoidance
© colin egan, 2012 | 13
Moscow School of Management SKOLKOVO
The Benefits of Brands for
Channel Partners
Raises
Stockturn
& Margins
Enhances
their Stores
Buying
Effectiveness
Strategy &
Profits
Reinforces
their
Positioning
Buying
Efficiency
Builds Store
Traffic
© colin egan, 2012 | 14
Moscow School of Management SKOLKOVO
‘Made in Russia’
© colin egan, 2012 | 15
Московская школа управления СКОЛКОВО
‘Made in Russia’
© colin egan, 2012 | 16
Московская школа управления СКОЛКОВО
‘Made in Russia’
© colin egan, 2012 | 17
Московская школа управления СКОЛКОВО
From Thai Truck to F1:
Endeavour & Energy…
© colin egan, 2012 | 18
Московская школа управления СКОЛКОВО
… and a little luck!
© colin egan, 2012 | 19
Московская школа управления СКОЛКОВО
What’s in a Name?
The Brand Management Process
Brand Process
Inputs
Intangible Marketing
Asset Management
Value
Creators
R&D
Services
Engineering
Etc.
Reputation
Distribution
Service
People
Know-how
Patents
Partnerships
Objective
Realised
Value
(+ve image)
Loyalty
Creation
Customer
Focus
Feedback
© colin egan, 2012 | 20
Outputs
Moscow School of Management SKOLKOVO
Innovation Strategies
Copy Rivals!
Beat Rivals
(First & Fast)
Market
Complementary
Products
Spread
Risk
© colin egan, 2012 | 21
Respond to
Changing Needs
& Preferences
Maximise
Shareholder
Value
Build a
Balanced
Portfolio
Moscow School of Management SKOLKOVO
Leverage Core
Competence
Strategic
Windows
Stakeholder
Image
Enhancement
Off-set
Disruptive
Technologies
Strategic Marketing
MasterClass
Something ‘New’:
Behavioural Data
& CRM
© colin egan, 2012 | 22
Московская школа управления СКОЛКОВО
‘Hot Topics’ in Marketing
& Buyer Behaviour…
•
Customer Intimacy: Deep & long customer relationships
•
Viral Marketing: Spread the word…
•
Guerrilla Marketing : The art of surprise!
•
Ambush Marketing: Capture the moment…
•
The Network Effect: Needs must…
•
Suggestive Marketing: People who bought this…
•
Marketing 3.0: Company values touch customers’ hearts & minds
•
Social Networks: Friends…
•
Social Media: Social interaction and co-creation of value
© colin egan, 2012 | 23
Московская школа управления СКОЛКОВО
Key Customer Relationship
Management [CRM] Technologies
Data Warehouse
Data Mining
Customer Service
Sales Force Automation (SFA)
Field Force Automation (FFA)
IT Infrastructure
Enterprise Resource Planning (ERP)
Supplier Relationship Management (SRM)
Partner Relationship Management (PRM)
Intranets / Extranets
© colin egan, 2012 | 24
Московская школа управления СКОЛКОВО
Key CRM Initiatives
Cross-selling and Up-selling
Customer Retention
Behaviour Prediction
Customer Profitability Profiling
Customer Value Modelling
Channel Optimisation
Personalisation
Etc.
© colin egan, 2012 | 25
Beware!
Privacy Issues
Московская школа управления СКОЛКОВО
Strategic Marketing
MasterClass
Something Measured
© colin egan, 2012 | 26
Московская школа управления СКОЛКОВО
Evaluating a Marketing Strategy
Validity: Reliability of information and assumptions
Distinctive: Differentiated from competition, industry breakout
Suitability: Given corporate strategy, objectives, etc.
Feasibility: Given resources/competences
Acceptability: Given company culture, ethics and values
Consistency: Are the marketing elements balanced?
Vulnerability: Given risks and contingency plans
Flexibility: Can we adapt fast enough?
Rewardability: Payoff versus risk
© colin egan, 2012 | 27
Московская школа управления СКОЛКОВО
Assessing
Marketing Strategy Investments
Discounted Net Present Value (NPV)
Required Internal Rate of Return (IRR)
Payback Period
Etc.
Risk Assessment
Opportunity Cost Analysis
Market Dynamics (Zero-Sum?)
Diminishing Returns Analysis
Assessing the Cost of Failure
Consider the Risk of NOT Making the Investment
© colin egan, 2012 | 28
Московская школа управления СКОЛКОВО
And Finally, the Evidence…
Explaining Marketing Performance
A
Marketing
Culture
A
long term
perspective
Balanced
portfolio
© colin egan, 2012 | 29
Understanding
buyer
behaviour
Marketing
Excellence
Innovation
Moscow School of Management SKOLKOVO
Market
environment
sensitivity
Asset-based
marketing
management
Striving
for
competitive
advantage
Strategic Marketing
MasterClass
Over to You!
© colin egan, 2012 | 30
Московская школа управления СКОЛКОВО
What Makes Great Leaders, Managers
& Entrepreneurs?
Flair
Commitment
‘Personality’
Drive
Process
Professionalism
Method
Hi-Tech
Hi-Touch
© colin egan, 2012 | 31
Московская школа управления СКОЛКОВО
Building a Marketing Culture
Strategy
Skills
(Competencies)
Staff
Shared
Values
Style
(Leadership)
Systems
Structure
© colin egan, 2012 | 32
Московская школа управления СКОЛКОВО
Leadership & Shared Values:
The Vector Metaphor
Desired Direction
1
Resultant Force
© colin egan, 2012 | 33
Московская школа управления СКОЛКОВО
Leadership & Shared Values:
The Vector Metaphor
Desired Direction
1
Resultant Force
Desired Direction
2
Resultant Force
© colin egan, 2012 | 34
Московская школа управления СКОЛКОВО