This document discusses several factors relevant to strategic marketing: 1. It identifies key stakeholders for an NHS organization and a pharmaceutical company and their respective interests. 2. It outlines several strategic marketing frameworks and tools including Porter's competitive strategies wheel, product life cycle analysis, BCG matrix, GE/McKinsey matrix, and industry life cycle analysis. 3. It discusses blocks to creativity for individuals and organizations and examines Henry Ford's reluctance to change the Model T as an example. 4. It provides an overview of international market entry methods such as indirect exporting, direct exporting, licensing, joint ventures, and direct investment.

1. Strategic marketing
Tony Proctor

2. 1

3. Factors impacting on marketing
strategy

4. Exhibit 1.1 Selected stakeholders Interests for
an NHS organization
Stakeholder Interests
Staff
Provision of quality health care
Self development and promotion prospects
Current Job Satisfaction
Receive excellent care and attention
Work in a safe and good quality environment
Enhance health prospects and life expectancy
Patients
Advice on how best to recover from treatment and avoid future health problems
Unions
Access to information
Responsibility to members to ensure fair working practices, safe environment
Support from medical staff
Support and advise members in all areas of employment rights, i.e. Equal Opportunities, Discrimination,
Racial Incidents
Government
Recruitment of new members
Quality Standards
Legal requirements/Health and Safety/Equal Opps/Pay and Conditions
Press
Financial Management, high achievementbeing used and managed effectively
Praise and publicity for ensure resources
Adverse publicity – making the facts known
Prospective Patients
Challenging use of finances and pleasant environment
Excellent treatment in a caring
Access to information
Choices

5. Exhibit 1.2 Stakeholders for a pharmaceutical company
Stakeholders Interests
General public Safe, reliable, tested drugs
Legal/ courts Tested drugs which do not result in serious side effects
for the users.
Government Reasonably priced drugs which have been shown to be
effective in use.
Media Stories showing either the benefits of drugs or very
harmful side-effects of drugs which have not been
properly tested.
Scientific Community Details of development and testing of new drugs.
Shareholders Return on investment and shareholder value created.
Suppliers Steady and secure demand for the products and services it
supplies.
Financial institutions A sound developing and following sound marketing and
corporate strategies which will produce guaranteed
returns from lending and investment.
Rank and file employees Secure and interesting employment with good future
prospects.
Competitors New developments that lead to competitive advantage.
Consumers Safe and effective treatments.
Management Control and influence over what happens in the firm.

6. Porter’s wheel of competitive strategy

7. 2

8. Product life cycle

9. BCG Matrix

10. Product life cycle portfolio
matrix

11. GE/McKinsey Matrix

12. Directional Policy Matrix

13. ADL Matrix
Industry life
cycle stage
Competitive Embryonic Growth Mature Aging
Position
Dominant Hold position and Hold position and Hold position and Hold position
seek to maximize share expand with
share industry
Strong Attempt to Attempt to Hold position and Hold position or
improve position improve position expand with harvest
and maximize and be selective in industry
share attempts to
improve share
Favourable Selective attempts Attempt to Find niche and Harvest or phased out
to improve improve position attempt to guard withdrawal
position and be selective in it.
attempts to
improve share
Tenable Selectively push Find niche and Find niche and Phased out
for position attempt to guard it hang on or phased withdrawal or
out withdrawal
abandon
Weak Improve or get out Turnaround or Turn around or Abandon
abandon phased out
withdrawal

14. 3

16. Balanced Scorecard
Figure 3.1 The balanced scorecard

17. EXHIBIT 3.5 FORD MODEL ‘T’—THE MINDSET OF HENRY
FORD
Henry Ford’s model ‘T’ remained unchanged for years while General
Motors (Chevrolet) was making changes often using new technology.
Henry Ford said: ‘We’ll give the customer any colour he wants as long
as it is black.’ It was an arrogant statement by an arrogant man who had
been on top so long he thought nothing could dislodge him from the
number one position.
In the late 1920s Ford nearly went out of business as a result of this
myopic approach. General Motors (Chevrolet) took over as number one
in the US and Ford did not catch up until the late 1980s.

18. Blocks to Individual Creativity
Strategic blocks: ‘one right answer approaches’, inflexibility in thinking. These
affect the approach taken to solve problems. They include the tendency to rely
heavily on past experience or particular techniques without challenging their
appropriateness; focusing on a narrow range of options for either problem
definition or problem solving; and adapting an over-ly serious approach to
problems which prevents the emergence of a playful, imaginative and humorous
climate.
V alue blocks: ‘over-generalized rigidity influenced by personal values’.
These occur when personal beliefs and values restrict the range of ideas
contemplated. Values co-exist and failure to reconcile them contributes to
difficult personal and organizational dilemmas.
Perceptual blocks: ‘over-narrow focus of attention and interest’. These arise
from a lack of sensory awareness at a physical level and therefore contribute to a
lack of awareness of implications of situations.
Self-image blocks: ‘poor effectiveness through fear of failure, timidity in
expressing ideas, etc.’. These reduce effectiveness in advancing ideas assertively.
They arise from a lack of self confidence in the value of one’s own ideas.
Individuals may be reluctant to seek help and talk about personal feelings.This

19. EXHIBIT 3.6 BLOCKS TO CREATIVITY IN ORGANIZATIONS
People and organizations tend to fall into a variety of traps when
trying to become more innovative.
1 Identifying the wrong problem
2 Judging ideas too quickly
3 Stopping with the first good idea
4 Failing to get the support of key personnel in the organization
5 Failing to challenge assumptions

20. 4

21. Industry life cycle

22. Revitalising markets

23. Strategies for declining/ stagnant
industries

24. Space analysis

25. Competitive Advantage Matrix

26. 5

27. Market Analysis

28. 6

29. Forces of competition

30. 7

31. The marketing environment

32. Booms and slumps and the
economy

33. Technological change

34. Cross impact matrix

35. The TOWS matrix

36. The TOWS matrix

37. 8

38. Complex buying decision

39. Factors influencing consumer
behaviour

40. Roles in the purchase decision
making process

41. Family Life Cycle Stages

42. Stages in the marketing research
process

43. 9

44. Sources of competitive advantage

45. 10

46. Requirements of a market
segment

47. Profiles

48. Perceptual map

49. Perceptual map

50. 11

51. Types of sales promotion

52. 12

53. Ansoff matrix

54. International Market Entry Methods
• Indirect export
• Direct export:
• A domestic-based export department or division
• An overseas sales branch or subsidiary
• Travelling export sales representatives
• Foreign-based distributors or agents
• Licensing
• Joint ventures
• Direct Investment

55. E XHIBIT 12.2 WHA T IS A NE W PRODUC T?
New to the world products: inventions— in-line skates,
Polaroid cam era, etc.
New category entries: P& G’s first sham poo, Ford ’s first M ini
Additions to product lines: Tid e liquid d etergent Product
improvements: current prod ucts m ad e better Repositionings:
Arm & H am m er’s baking sod a repositioned several tim es as
d rain
d eod orant, refrigerator d eod orant, etc
.

56. Reasons for product failure
• products lack useful/meaningful uniqueness
• planning is poor during the introduction phase
• the introduction is badly timed, e.g. before the market is ready for
the product
• key important points are sometimes overlooked in the enthusiasm to
go ahead
• poor marketing and failure after launch
• the top management in the organization does not provide adequate
support for the product
• company politics, e.g. between various brand managers
• unforeseen high product costs.

57. New product development phases

58. New product development

59. E XHIBIT 12.9 C ONC E PT TE STING
Uniqueness of the concept
Believability of the concept
Importance of the problem being addressed
Extent to which the concept is interesting
Extent to which it is realistic, practical, useful
Extent to which it solves a problem or meets a need
How much they like the concept
How likely they would be to buy the product
Their reactions to the proposed price
What problems they see in using the product

60. Entry strategies

61. Integrative growth strategies

63. Egan’s extension of Ansoff

64. 13

65. Reasons for customer defection

66. Good customer relations pathway

67. ORMSBY MOTORS

68. 14

69. Classical Gap Analysis

70. Marketing and Corporate Strategies