Developing competitive marketing strategies and
competitive positioning
(stakeholder perspectives)

By
Ibrahim Zubairu Abu...
Cont’d
Who are the stakeholders?.
Negative impact of stakeholders
Negative impact of stakeholders
Negative impact of stakeholders

(Ranchhod, & Gurau, 2007 p: 5).
Positive impact of stakeholders
Volvo Group’s mission statement

 By creating value for our customers, we create value fo...
Contemporary Approach
 Understanding organizational environment
 Stakeholder interests and concerns
 As well as, transl...
Cont’d
 Nowadays it is necessary to consider not only customer

company interactions, but also
 Company shareholders
 C...
Components of Stakeholders
Aims of stakeholders & influence

Shareholders

Profit, high dividend & values of their share
Voting rights at AGM‟s

Mana...
Aims of stakeholders & influence
Loan and interest repayments on time.

Banks

Power to grant or withhold loans and to set...
Classification of Stakeholders
Salience model classification of stakeholders
Integrated Model for Marketing Strategy Development
Stakeholder analysis
Stakeholder analysis
 Identify and map

internal and external
stakeholders
 Assess the nature of each
stakeholders' infl...
Stakeholders engagement process
Stakeholder Positions
Styles of approach to stakeholder relationships.
Multiple Approach to Stakeholders
Stakeholder management
 Ranchhod proposes that companies can be grouped

in the following views:-

 Narrow: select stake...
Stakeholder management
Cont’d
The Role Of Stakeholders In Marketing

 Stakeholder affect marketing initiatives in their
 Design,
 Implementation
 Ev...
Stakeholders and Positioning
Conclusion
 Competition in business is an effort of two or more

parties acting independently to secure the business
of a...
Cont’d
In the case of contemporary approach;
 Underlying assumption of the stakeholder perspective is
that stakeholders h...
References
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Boone, L.E & Kurtz, D. (1995). Contemporary Marketing. Eight editions. U.S.A, Dr...
Marketing strategy
Marketing strategy
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Marketing strategy

  1. 1. Developing competitive marketing strategies and competitive positioning (stakeholder perspectives) By Ibrahim Zubairu Abubakar Gideon Gahuru
  2. 2. Cont’d Who are the stakeholders?.
  3. 3. Negative impact of stakeholders
  4. 4. Negative impact of stakeholders
  5. 5. Negative impact of stakeholders (Ranchhod, & Gurau, 2007 p: 5).
  6. 6. Positive impact of stakeholders Volvo Group’s mission statement  By creating value for our customers, we create value for our shareholders.  Toyota knows the importance of building close relationship with its suppliers. In fact, it even includes the phrase “achieve suppliers‟ satisfaction” in its our mission statement, this has been the cornerstone of “Toyotas stunning success”.  L'Oreal knows the importance of building close relationships with its extensive network of suppliers, who supply everything from packaging to production equipment.
  7. 7. Contemporary Approach  Understanding organizational environment  Stakeholder interests and concerns  As well as, translating them into effective marketing strategies and company positioning within a marketplace is one of the greatest challenges facing organizations.  It is no longer enough to take into account only  Products  Segments  Markets  Customers, differentiation, and other strategies you may think up.
  8. 8. Cont’d  Nowadays it is necessary to consider not only customer company interactions, but also  Company shareholders  Company community  Company organizational environment and other interactions (Ranchhod, & Gurau, 2007 p: 5).  Stakeholder relationships contribute to either the success or failure of marketing strategies  “Management of the different stakeholders‟ interests is a potential source of Competitive advantage.
  9. 9. Components of Stakeholders
  10. 10. Aims of stakeholders & influence Shareholders Profit, high dividend & values of their share Voting rights at AGM‟s Managers Company growth & job security Day to day decision making powers Employees Suppliers Pay levels, working conditions and job security Industrial action or strike to persuade the organization to do what they want Regular orders & prompt payment Shortage or delay of supplies Customers Low prices, & high quality (Reject or accept offering)
  11. 11. Aims of stakeholders & influence Loan and interest repayments on time. Banks Power to grant or withhold loans and to set the level of interest to be paid back Government Complies with the laws, pays the correct taxes and provides employment for the population Can introduce laws to make firms not to carry out its strategies. Society Local government CSR, free environment, treat employees fairly and not to exploit consumers Industrial action or strike to persuade for their need Local community Road building and maintenance Employment, sponsor local events, schools & hospitals (CSR) Opposition in the form of protest, can exert pressure on organization to move or close
  12. 12. Classification of Stakeholders
  13. 13. Salience model classification of stakeholders
  14. 14. Integrated Model for Marketing Strategy Development
  15. 15. Stakeholder analysis
  16. 16. Stakeholder analysis  Identify and map internal and external stakeholders  Assess the nature of each stakeholders' influence and importance  Construct a matrix to identify stakeholder influence and importance  Monitor and manage stakeholder relationships
  17. 17. Stakeholders engagement process
  18. 18. Stakeholder Positions
  19. 19. Styles of approach to stakeholder relationships.
  20. 20. Multiple Approach to Stakeholders
  21. 21. Stakeholder management  Ranchhod proposes that companies can be grouped in the following views:-  Narrow: select stakeholders with direct relevance to the firms core economic interests.  Broad: full range of stakeholders and their impact to the firm both economically and ethically on a long term basis.
  22. 22. Stakeholder management
  23. 23. Cont’d
  24. 24. The Role Of Stakeholders In Marketing  Stakeholder affect marketing initiatives in their  Design,  Implementation  Evaluation  This is aimed at maximizing the benefit of all stakeholders:  Unfortunately, not given much attention to the implications of the stakeholder perspective for marketing theory and practice,
  25. 25. Stakeholders and Positioning
  26. 26. Conclusion  Competition in business is an effort of two or more parties acting independently to secure the business of a third party by offering the most favorable term. Market leaders can expand market demand, increase market share and protect market share in order to stay number one. In addition, market challengers can overtake market leaders, while market followers may adopt a product imitation strategy, market niches can focus on a smaller market thus according to their competitive positioning.
  27. 27. Cont’d In the case of contemporary approach;  Underlying assumption of the stakeholder perspective is that stakeholders have in common a willingness and competency to act with the intent to influence the organization  In turn, the organization is aware of these groups and recognizes the need to deal with them  To do so, the organization develops strategies that guide their behavior with regard to those groups and their interests.  However, this behavior and supporting strategies are based on the assumption that the groups (stakeholders) can be „managed‟ to enable the organization to achieve its goals. This is not always the case.
  28. 28. References                Boone, L.E & Kurtz, D. (1995). Contemporary Marketing. Eight editions. U.S.A, Dryden Press. Desai, S.S (2013). An Analysis of the Competitive Marketing Strategies of the Hospitality Industry in UAE. The IUP Journal of Management Research, Vol. XII, No. 1. Ferrell et al. (2010). From Market Orientation to Stakeholder Orientation. Journal of Policy & Marketing, 29 (1), pp. 9396 Jobber, D. (1995). Principles and Practice of marketing. Great Britain, The Bath Press. 554-575 Jonker, J. & David, F. (2002). Stakeholder Excellence? Framing the Evolution and Complexity of a Stakeholder Perspective of the Firm‟, Corporate Social Responsibility and Environmental Management, 9 (4), pp. 187-195. Richard, L.D, & Dorothy, M. (2006). Understanding Management: Thomas- Southwestern United States Cancage Learning. Richard, L.D, & Dorothy, M. (2009). Understanding Management: Thomas- Southwestern United States Cancage Learning. John, R.D., (2001). Successful Competitive Positioning: the key for entering into the European consumer market. European Business Review. MCB University Press, 13 (4) pp. 209 John W. ( 2008). Strategic Management of Healthcare Organization British Library. Ramesh, K. A (2012). Importance of Relationship Marketing in Competitive Marketing Strategy, Indian Streams Research Journal Vol.2, Issue. II/ March; 2012 ISSN: -2230-7850 Ranchhod A & Gurau C. (2007). Marketing Strategies a contemporary approach. 2nd Ed. Essex: Pearson Education Limited. Kotler, P. & Armstrong, G. (2009). Principles of Marketing. 13th Ed. London: Pearson Education Limited. Kotler, P. & Armstrong, G. (2011). Principles of Marketing. 14th Ed. London: Pearson Education Limited. Petzer, D.J., Steyn, T.F.J. & Mostert, P.G. (2008) Competitive marketing strategies of selected Hotels: an exploratory study. Southern African Business Review, Volume 12 Number 2 2008.

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