This is a summary of the book "Hooley, G., Piercy, N., Nicoulaud, B. and Rudd. J. (2017), N.F., Marketing Strategy and Competitive Positioning, 6/E, Pearson United Kingdom".
Including chapter 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 16, 17, 18, important articles and lecture notes. This is all you ...
1.1 The marketing concept and market orientation
Marketing concept = in increasingly dynamic & competitive markets, the companies which are most
likely to succeed are those that take notice of customer expectations and needs, + push themselves
to satisfying them better than their competitors.
Webster 1997 difficult to define the position of marketing within organizations as marketing involves:
Culture – marketing communicates the values and beliefs of the company.
Strategy – marketing develops effective strategies based on changing markets.
Tactics – marketing is concerned with the day-to-day activities of the 4P’s.
Marketing orientation concerning the development of the market understanding throughout an
organization, and create a substantial management challenge. Components of market orientation:
Customer orientation: understanding customers well enough to create superior value.
Competitor orientation: awareness of the short- & long-term capabilities of competitors.
Interfunctional coordination: using all company resources to create value for customers.
Organizational culture: linking employee and managerial behavior to customer satisfaction.
Long-term creation of shareholder value: as the important business objective.
1.2 The resource-based view of marketing
The resource-based view (Porter) performance differences can be explained from within the firm
itself (resources/capabilities), instead from outside the firm (operating industries). It focuses on the
core competencies of a company.
Three alternative marketing approaches:
1. Product push marketing = focus on organizational
capabilities, not the market – sell what we can make
firms focus their activities on their existing products + look
for ways to encourage customers to buy
2. Customer-led marketing = focus on what the market
wants – provide everything.
3. Resource-based marketing = consider both capabilities
and market wants between the two other extremes.
a. Resource-based view (Porter): competition is
based on capabilities, not the industry.
1.3 5 different organizational
stakeholders
Shareholders – two types of shareholders
- Individuals with emotional and long-term personal relations to the business
- Financial investors which seek to maximize the long-term value of their investments
1
, Employees their priorities are generally combination of compensation (salaries), job
satisfaction & security (of employment). They may have long-term commitment to the firm.
Managers also concerned with personal rewards in the form of salaries and prestige.
Professional managers may have less long-term commitment and see their role as temporary
on their longer-term career.
Customers the ultimate source of shareholder value.
Suppliers and distributors rely on the firms they serve to ensure the achievement of their
own goals. They may be looking for security, predictability, and satisfactory margins.
On top of the stakeholders identified by Doyle, there are some more:
Society & community can be significantly affected by the actions of the firm, e.g. fabric
closure causes unemployment.
Natural or physical environment
Well-developed marketing resources (assets and capabilities), when used in the marketplace, can
lead to superior market performance. For example:
o Satisfied and well-motivated staff (marketing asset) makes significant contribution to sales
volume and creating satisfied & loyal customers.
o Well-known/respected brands, together with well-developed marketing capabilities (e.g.
CRM) also affect market performance directly.
1.4 Six marketing fundamentals
Principle 1 – Focus on the customer customers are the only ones who can tell how well
the organization satisfies its customers.
Principle 2 – Only compete in markets where you can establish a competitive advantage
Principle 3 – Customers do not buy products they buy what the product can do for them,
or in other words, the problem it solves. Customers are less interested in the technical
features of a product, than in what benefits they get from buying or using the products.
Principle 4 – Marketing is too important to leave to the marketing department
Marketing is everyone’s job in the organization, as all can have an impact on the satisfaction
the customer derives.
Principle 5 – Market are heterogeneous markets are made up of different individual
customers, sub-markets, or segments.
Principle 6 – Markets and customers are constantly changing
All products have a limited life that expires when a new or better way of satisfying the
underlying want or need is found firms should plan more long-term and innovate.
Competitors those who have the potential to give more value to your stakeholders than you do…
Resources = assets + capabilities
Industries are firms with similar technology and products.
2
,Markets consists of customers with the same problem (could be fulfilled by multiple industries)
1.4 Three different roles of marketing in leading strategic
management
Path to profit = customer value customer satisfaction customer loyalty increased profit.
How to create value?
Identification of customer requirements and communicate throughout the organization
Identify customers’ requirements & communicate them effectively through the organization.
Determine competitive positioning to match needs with capabilities
Define the competitive positioning to match the customers’ needs with company capabilities.
Implementing the marketing strategy
Gather all relevant organizational resources to deliver customer satisfaction.
Resource-based view of the firm difference between market orientation & resource-based view:
market orientation is outward-looking responsiveness & a resource-based view is inward-looking.
Competitive positioning combines these views: identifying target markets and competitive
advantage attractiveness of markets depends on resources available to build competitive
positioning.
3
, Chapter 2 – Strategic Marketing Planning
2.1 Introduction in Strategy
Marketing strategy ensuring organization’s capabilities are matched to the market environment
(want and needs of customers).
Strategy direction & scope of an organization over the long term, which achieves advantages in a
changing environment through its configuration of resources and competences with the aim of
fulfilling stakeholder expectations.
The need to assess critically the organization’s resource profile (strengths and weaknesses) &
the environment it faces (opportunities and threats).
Primarily concerning the effectiveness (doing the right things) rather than efficiency (doing
what you do well).
Enormous changes in business environment – economic situation, globalization, changing
political situations, other technological advancements (internet, block chain, cloud, etc.).
Strategic planning attempts to answer three basic questions:
1. What is the business doing now?
2. What is happening in the environment?
3. What should the business be doing?
Strategic fit for any strategy to be effective the needs and requirements of customers (the
market condition in which it’s implemented) & resources and capabilities of the organization, both
needs to be well tuned strategic planning is the process to create the strategic fit.
Three perspectives on strategy:
1. Market based perspective: are we taking advantage of opportunities?
2. Resource based perspective: are we taking advantage of our resources?
3. Stakeholder based perspective: are we fulfilling stakeholder expectations?
Two central issues in marketing strategy formulation: identification of target markets + creation of
sustainable differential advantage delivering superior customer value.
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lynngreeven. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.18. You're not tied to anything after your purchase.
