Strategic Marketing Management

Today's customers

- expect higher quality & service

- able to access to information

- perceive fewer real product differences

- show less brand loyalty

Competitive Advantage

= perceived benefit - perceive sacrifice

Area of Success 

- Customer (acceptability in meeting customer's needs)

- Company capabilities (Feasibility- possessing capability to produce)

- Competitor (Suitablity- when compared with competition)

Understanding the Customers

Type of buyers

-Individual buying for own use

-Individual buying for others

-Industrial buying

- Intermediary (retailer)

Entrepreneurship [Advanced]

MARKETING PART

Characteristic of Market Plan
1) Provide strategy
2) Assumptions
3) Simple/short
4) Flexible
5) Criteria for control

Market Philosophy
1) Production driven philosophy
2) Sales driven philosophy
3) Consumer driven philosophy

Market Strategy
1) Product    2) Pricing   3)Promotion    4) Distribution    5) Budget    6) Implementation

Target Marketing
1) Market Segmentation
2) Market Targeting
3) Market Positioning

Market Segmentation
1) Customer characteristics
    - Geographic     - Demographic    - Psychographic
2) Buying Condition
    - Usage    - Desire benefit    - Buying Condition

Product Mix
1) Quality   2) Waranty   3) Guarantee    4) Service    5) Package

Price Mix
1) Consumer reaction    2) Cost    3) Competitive reaction

Promotion Mix
1)Advertising    2) Personal selling    3) Publicity    4) Sales Promotion

Distribution Mix
- Channel
1) Retailer    2) Wholesaler   3) Representatives
- Physical Distribution
1) Storage    2) Inventory    3) Transportation    4) Warehousing

Pricing Strategy
1) Introduction Stage
    Unique product  - Skimming
    Non-unique product - Penetration
2) Growth Stage - Consumer pricing
3) Maturity Stage - Demand-oriented pricing
4) Decline Stage - Loss leader pricing

Why Market Plan Fail? 
1) Lack of real plan (particulary regarding goals & objectives)
2) Inadequate situational analysis (dont know where you are now)
3) Unrealistic Goals ( This happen due to lack understanding of the situation)
4) Unexpected competitive move & product deficiencies, delay in getting finance.

Develop Market Plan
1) Objective    2) Target- Market share, growth, position   3) Risk    4) Return on Investment

BUSINESS PLAN PART

Benefit to entrepreneur: 

1) Effort in Business plan make entrepreneur view the venture critically and objectively

2) Entrepreneur can develop strategies and give expected result for outside evaluators.

3) Provide measurement for comparing forecast with actual result.

4) Tools to communicate with investors.

Benefit to Financial Sources:
1) Provide detailed of the market potential and plans for a securing a share of the market.
2) Show venture's ability to pay debt or provide return on equity.
3) Identify critical risks and crucial events with a discussion of contingency plans.

Component
1) Executive Summary
2) Company Overview
3) Business Environment
4) Goals & Business Strategies
5) Financial Plan
6) Action / Implementation Plan

Reason for Plan to Fail:
1) No experience    2) No total commitment    3) Unreasonable goal
 4) No understanding of threats or weakness    5) Customer need not established

FRANCHISE PART

Key success factor of franchise

1) Product / Services

https://www.google.co.uk/webhp?source=search_app&gws_rd=cr&ei=9PMmUrGDDNDs0gWJyoGAAw#q=neverwet

M.Porter competitive advantage [Book]

Generic Competitive Strategies
1)Cost Leadership
2)Differentiation
3)Focus
Cost Leadership / Cost reduction - Gain sustainable cost advantages
- Experience curve
- Labor cost
- Accounting system / Utilization
- Economies of scale
- Linkages of Suppliers & Channel
Other Factors : Timing, location, regulation(tax,tariff...)
Differentiation
- Perception of buyers (reputation,advertising,packaging....)
- Premium product/ services
- Location (bank services)
- Advance Technology (apple inc.)
Defensive Strategy
Defensive Tactic - influence challenger's calculation of expected return from entry or repositioning
- Raising structural barriers (eg, Channel blocking tactics, raise cost of gaining trial,Tie up with suppliers)
- Increasing expected retaliation (eg, establish blocking position, Match guarantees, raise the penalty of exit or lost share, accumulate retaliatory resources, encourage good competitors, set examples, establish defensive coalition)
- Lowering the inducement for attack (reducing profit targets to reduce attractiveness, managing competitor assumptions)
Attacking an Industry Leader
Cardinal rule in offensive strategy is not attack head on with imitative strategy, regardless of the challenger's resources or staying power.
Case that violate the rule:
P&G v General Foods' Maxwell House (coffee)
Coca-cola v Gallo's (wine spectrum)
Successfully attacking leader requires 3 condition :
1) Sustainable competitive advantage ( Low cost or differentiation)
2) Proximity in other activities ( Partly or wholly neutralize leader's other inherent advantages. Eg, if challenger use differentiation, they also need to partly offset leader's natural cost advantage due to scale, first mover advantages...)
3) Some impediment to leader retaliation ( Blunting leader's retaliation. set impediment to their retaliation to avoid to bear unacceptable cost)
3 avenues of attact emerge as possible:
1) Reconfiguration (compete differently either lower cost or enhance differentiation although in same scope with leader) ( Sustainablility come from first mover advantages)
2) Redefinition ( Redefining the scope of competition) (can use focus within industry, integration or de-integration, geographic redefinition, horizontal strategy)
3) Pure spending ( final and riskiest way through investment to buy market share, cumulative volume, or brand identification.)
Other method
Alliances to attack leader (share resources, technology market access or other strength)
Conclusion
A challenger's attack on leader is unwise if it destroy industry structure. A closely related risk is where challenger gain market share but does not gain clear advantage over the leader, and the leader and the challenger are thus relatively balanced in competitive position. This resulting war can be protracted and expensive for both sides, 2 firm also gain any competitive advantages.
Does not simply attack leader because some leader are "good" , they are provide umbrella/protection for challenger's profitability.

International Marketing

Developing Global Awareness
1) Tolerance of cultural differences
2) Knowledge of cultures, history, world market potential, and global economic,social political trends.
Trade Barriers
- Tariff     - Quota     - Boycott & Embargoes

Global Population Trends
- Population, rural/urban population shift, rates of growth, age level, population control >> affect demand
- Controlling population growth  >> Eg, family planning in China.
- Rural/Urban migration
- Population Decline & Aging  >> woman choose career rather than married and give birth
- Worker Shortage & Immigration

Political Economy
Colonisatism, communism, democracy, fascism
Technology
How tech affect culture >>> freedom
Social Institution
Family, religion, school, media, government, corporation

Element of culture
Hofstede  > IDV,PDI,VAI, MAS
- Individualism/Colletivism Index
- Power Distance Index
- Uncertainty Avoidance Index
- Cultutal values and consumer behaviour
Ritual
-coordinate ppl's interaction and special occasions
EG, Funerals, Marriage ceremonies
Symbols
Language - communication
Aesthetics as symbols - picture,dance song >> national identities
Belief
Religion & Superstition >> Asion belief ghost , number as prosperity , feng shui
Though process
Asian & Western thinks differently

Cultural Change
- cultural borrowing
- Similarities
- Resistance to change
- Planned & unplanned cultural change
- Consequences of innovation

International Dispute Resolution
Conciliation - nonbinding agreement between parties
Arbitration - with a third party as referee

Human Resource Management

Dave Ulrich 1997 - 4 roles of the manager

1. Strategic Partner
2. Administrative Expert
3. Employee Champion
4. Change Agent

Micheal Porter 1980 - Business Level Strategy

1. Differentiation
2. Cost Leadership

Stewart & Brown 2009 - HR Strategy/Strategic Framework for HR

Bargain Labourer	Free Agent
Loyal Soldier	Committed Expert

Chapter5 Recruitment

1. Internal (recommended by employee), External ( Walk in)
2. Recruiting method - advertising, agencies, Universities recruiting, Professional association and electronic recruiting.
3. AIDA Technique

• Attention
• Interest
• Desire
• Action

Chapter6 Selection

• EEO - Age, Gender, Religion
• Test - Interest, Aptitude, Intelligence, Personality
• Interview
• Medical examination

The selection decision

Compensatory approach

Commited Expert > need people that can fit the culture ( time consuming/costly)

Successive Hurdles approach （排除法）

Free Agent > Fast recruiting

Chapter8 Remuneration

Financial v Non-Financial

Job evaluation

Job ranking/Job grading > must consider size of orgz, orgz resources, corp. culture, employee attitudes

Point system

Pay range

Standard range

Broadbanding> flatter structure,promote internal structure facilities job mobility.

Setting pay rates

• Seniority > LS low cost
• Pay for Performance (merit pay) > CE, FA
• Skill-based pay > LS- multiskilling >> efficiency

Chapter9 Remuneration incentive

  1)Individuals Incentive Plan

• Bonus (base wage)
• Merit Pay
• Incentive Award & Recognition
• Sales Incentive

 2)Small Group Incentive Plan

• Scanlon Plan(sales able to make)
• Rucker Plan (cost able to reduce)
• Improshare Plan ( Labour Hour)

 3)Large Group Incentives

• Profit sharing Plans
• At-Risk Incentive

Chapter10 Employee Health & Safety

1) Determine do OSHA or not? Based on what strategy?

• Obstructionist
• Defensive
• Accomodative
• Proactive

2) Health & Safety Issue

• Terrorism
• Sexual harassment
• Obesity
• Smoking
• Bullying

3) Stress

Positive or negative effect?

Sources of stress - work load, relationship, needs, law & regulation

Ways to Manage Stress - Relaxation, Exercise, Diet, Talk, Planning time management & delegation.

Chapter 11 Workplace Relation

Union become attractive when :

- Lack of communication between employee & management

- Lower pay

- Poor working condition

- Ignore worker's problem

- Treat employee badly

Employee can fight their right through :

- Featherbedding- union require company to pay for work that is not performed

- Demarcation- Restrict specific type of work to member of particular union

- Strikes

- Go slow

Salaried Operations

- treated all employees equally to avoid them joining union - to control power of union.

Chapter7 Human Resource Department

- Include training & development, career planning and performance appraisal.

Systematic approach to T&D

- accessment- training needs- organization, task, person variable

- activity- classroom activities, simulation

- Evaluation- Kirkpatrick 1983- Reaction, learning, behavior and result.

EEO issue in T&D

Access : opportunity for all ppl in T&D

Treatment : The way all ppl being treated during T&D

Content : Subject matter and style of presentation

Language : Presented only in English

Attendance : Making employees attend programs they find offensive.

Chapter13 IHRM

Differences between domestic & International HRM

- Additional activity- currency exchange

- Increase involvement in employee's personal life- spouse employment

- Increase risk- safety from terrorism

- More complex in employee mix & internal influence- political, economic.

Cross-cultural issues

- Communication- language misunderstanding, Eg: High content v Low content ( use lot of cues)

- Ethics- standard of behaviour

- Trust- relationship >> mutual trust

- Management style- manipulative or participating style

- EEO- alert to cultural differences. 

Marketing

Organizational buying (Characteristics)
- Demand characteristics
- Size of the order or purchase
- Number of potential buyers
- Organizational buying objectives
- Organizational buying criteria
- Buyer-seller relationships and supply partnership

5 Environmental Forces Analysis
- Social, Economic, Technological, Competitive, Regulatory

3 Type of company
- International Firm
- Multinational Firm
- Transnational Firm

Marketing Channel for consumer goods & services

- Direct channel - channel A

- Indirect channel - Channel B,C & D

Select Price Level (Demand oriented)

- Skimming Pricing

- Penetration Pricing

- Prestige Pricing

- Price lining

- Odd-even Pricing

- Target Pricing

Picking a good brand name

- memorable, distinctive and positive

- fit the company or product image

- simple

- no legal or regulatory restrictions.

Branding Strategies                                      Product Life Cycle

a) Multiproduct branding                              - Introduction stage, Growth, Maturity & decline

b) Multibranding

c) Private branding

d) Mixed branding

Sales promotion (customer-oriented)

- coupon, deals, premium, contests, sweepstakes, samples, rebates.

Promotion Elements

- Advertising, personal selling, public relation, sales promotion, direct marketing

Personal Selling

- Prospective >Pre-approach >Approach >Presentation >Close >Follow-up

New Product Process

1) New product strategy development

2) Idea generation

3) Screening and evaluation

4) Business analysis

5) Development

6) Market testing

7)Commercialization

Market research

Define problem> Develop research plan>Collect relevant information>Develop finding>Take marketing action

Consumer purchase decision

1) Problem recognition

2) Information search                     1) Extended problem solving         1)High Involvement

3) Alternative evaluation                 2) Limited problem solving

4) Purchase decision                      3) Routine problem solving            2) Low Involvement

5) Post purchase decision