CIM Professional Certificate in Marketing. Stakeholder Marketing Tutor Kit

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1 Stakeholder Marketing Tutor Kit Theme 1 Section 1: The importance of stakeholders on the marketing process 1.1 Assess the different categories of relationships that exist between organisations 1.2 Assess the relative importance of the different stakeholder groups and consider the relationships and their influence and impact on the organisation. 1.3 Explain the nature of the interactions between the organisations and its different stakeholder groups 1.4 Explain the significance of the range of pressure groups as key stakeholders interested in the organisation and their potential impacts upon market orientated organisations 1.5 Specify the role of marketing in managing these pressure groups effectively 1.6 Evaluate the different options to developing a RM approach within a market orientated organisation Directed Reading Links to building blocks The first theme aims to introduce the concept of stakeholders and emphasise that marketing orientated organisations must recognise the need to address a wide range of stakeholders in order to remain competitive. Moreover, organisations should be aware of their existing relationships with all their stakeholders and how these relationships can be developed to deliver mutually beneficial solutions. This may involve working more closely with suppliers or being more active in the local community. It is essential that students understand the relative importance of stakeholders and how they might impact upon the development of the marketing and communications mixes. The sessions should focus on: consideration of the range of stakeholders, their needs, importance, influence and impact on the organisation explaining the variety of relationship networks that exist and how to analyse these in order to determine their impact on the organisation and how a management strategy can be determined explaining, with a range of examples, the difference between sectional and causal pressure groups and their impacts eg, Fair Trade changed their purchasing policy for various items for retailers and marketing communications campaign to inform customers and ensure that a positive impact is created, which should impact positively upon the long term reputation of the organisation. discussing the shift from transactional marketing to relationship marketing (RM) and how this approach can facilitate customer loyalty, and build trust and commitment from stakeholders. Exploring Corporate Strategy, 7th Edition, Johnson & Scholes, Chapter 5: Stakeholder Expectations and Organisational Purpose Relationship Marketing (1999), Peck, Payne, Christopher, Clark Chapter 1: Relationship Marketing - The Six Markets Framework

2 Chapter 2: The Customer Domain - Managing Relationships with buyers, intermediaries and consumers Seminar/Group Activity Task 1 Each student is to conduct a stakeholder analysis for their own organisation and present their findings to the group. Students should identify the internal, external and connected stakeholders Using the Johnson and Scholes Stakeholder Power/Interest Map analyse their relative importance to the organisation. From the analysis indicate how they will impact on one area operational marketing and the organisations response. Students should prepare an individual 10 minute presentation. Task 2 In groups of 4, discuss with examples, how a sectional pressure group, such as a trade union, and a causal pressure group eg, Greenpeace or Fair Trade, can impact on market orientated organisations. Nominate a spokesperson to feedback your findings. Timing 45 minutes Task 3 Using the internet, research strategic alliances, such as the Star Alliance, and in pairs evaluate the benefits for the airline industry. Feedback, and tutor to record responses on whiteboard. Timing 1 hour Stakeholder Marketing Tutor Kit Version 4 2

3 Case Study Website/Resources Stakeholders and Communication The Vodafone case study looks at how Vodafone business principles underpin the communication with all stakeholder groups. It provides a sound underpinning to how strategy can inform the type and form of communication with stakeholder groups. Textbooks Egan, J. (2001/04) Relationship Marketing: exploring relationship strategies in marketing, FT/Prentice Hall Bruhn, M. (2003) Relationship Marketing, Management of Customer Relationships, FT/Prentice Hall Buttle, F. (1997) Relationship Marketing: Theory and Practice, Paul Chapman Peck, H et al (1997) Relationship Marketing: Strategy and Implementation. Ford, D. (1998) Managing Business Relationships John Wiley & Sons Gummerson, E. (1999) Total Relationship Marketing. Butterworth- Heinemann Christopher, M (1993) Relationship Marketing, Payne, A et al (1995) Relationship Marketing for Competitive Advantage, O Connor, J & Galvin, E. (2001) Marketing in the Digital Age FT- Prentice Hall Journals Journal of Services Marketing European Journal of Marketing Journal of Marketing Websites Stakeholder Marketing Tutor Kit Version 4 3

4 Assessment Support Use exemplar assessments to help students prepare for the exam Undertake assignment based assessment activities such as the seminar/group activity outlined above to help prepare for assessments Stakeholder Marketing Tutor Kit Version 4 4

5 Theme 2 Section 2: Stakeholder Relationship Marketing 2.1 Explain the position and importance of the key stakeholders in the market orientated organisation and establish relationship priorities for the organisation. 2.2 Explain the concept of relationship marketing and its approach in developing customer retention, encouraging customer loyalty, stakeholder interest and engagement both internally and externally 2.3 Explain how relationship marketing is based on trust, commitment and co operation and the importance of this concept not only to customers but the broader stakeholder audience 2.4 Explain how relationship marketing can contribute to both long term and short term customer retention Directed Reading Links to building blocks This theme recognises the importance of relationship marketing in the broadest context with stakeholders ranging from customers, media organisations, government and customers. The theme also explores the key underpinning theories behind relationship marketing and its role in developing loyalty, engagement, interest and sustainability of the relationships. As a result, this session should ensure that students: appreciate the impact of short and long term relationships and how these impact on long-term sustainability demonstrate an understanding of the range of stakeholders, their needs and importance, influence and impact on the organisatio explain the key components of relationship marketing eg, relationship lifecycle model, ladder of loyalty analyse how marketing tools can be used to establish and build trust, loyalty and commitment from stakeholders discuss the long term benefits customer retention in relation to Reicheld s service profit cycle, adopting CRM. Exploring Corporate Strategy, 7th Edition, Johnson and Scholes Chapter 5: Stakeholder Expectations and Organisational Purpose Relationship Marketing (2001), Egan Chapter 1: Relationship in Marketing Chapter 2: Relationships Chapter 3: Relationship Economics Chapter 4: Strategy Continuum Chapter 5: Relationship Drivers Chapter 8: Supplier Relationships Chapter 9: External partnerships Total Relationship Marketing (2002), Gummerson Chapter 2: Classic market relationships Chapter 3: Mega relationships Chapter 5: Nano relationships Stakeholder Marketing Tutor Kit Version 4 5

6 Seminar/Group Activity Task 1 For your own organisation, or one of your choice, analyse the type of relationship in terms of length, importance, personnel involved, level and type of contact for the following stakeholders: supplier local community shareholders government or regulatory body customers Prepare a 10 minute presentation. Task 2 Read The Launch of Nectar: Will the Nectar Loyalty Scheme Reap Rewards? (Principles and Practice of Marketing, 5 th Ed, Jobber, Chapter 15) and complete the questions. Discuss your answers and tutor to summarise key points on whiteboard. Task 3 In groups of 3-4, explain what part loyalty schemes play in relationship development for the following organisations: BP Vodafone Waterstones Tesco How have these organisations developed loyalty strategies and what benefits (or not) have they generated? Using a flipchart summarise your findings and present to the group. Timing 1 hour Case Study Website/Resources Task 4 Read the Common Goal (Marketing Communications (2007) Egan, Chapter 12) and complete the questions. Discuss your answers and tutor to summarise key points on whiteboard. Relationship Marketing: The RSPB - a bird in the hand This case focuses on the application of relationship marketing in the not-forprofit sector. It demonstrates how marketing activities need to be developed to build long-term relationships and increasing involvement in the charity. It highlights the need to understand customer segments and how these segments have different customer retention characteristics. Textbooks Stakeholder Marketing Tutor Kit Version 4 6

7 Egan, J. (2001/04) Relationship Marketing: exploring relationship strategies in marketing, FT/Prentice Hall Bruhn, M. (2003) Relationship Marketing, Management of Customer Relationships, FT/Prentice Hall Buttle, F. (1997) Relationship Marketing: Theory and Practice, Paul Chapman Peck, H et al (1997) Relationship Marketing: Strategy and Implementation. Ford, D. (1998) Managing Business Relationships John Wiley & Sons Gummerson, E. (1999) Total Relationship Marketing, Butterworth- Heinemann Christopher, M (1993) Relationship Marketing, Payne, A et al (1995) Relationship Marketing for Competitive Advantage, O Connor, J & Galvin, E. (2001) Marketing in the Digital Age FT-Prentice Hall Egan, J (2007) Marketing Communications, Thomson Learning Jobber D (5 th Ed.) Principles and Practice of Marketing, McGraw Hill Journals Journal of Services Marketing European Journal of Marketing Journal of Marketing Websites Assessment Support Use exemplar assessments to help students prepare for the exam Undertake assignment-based assessment activities such as the seminar/group activity outlined above to help prepare for assessments Stakeholder Marketing Tutor Kit Version 4 7

8 Theme 3 Section 3: Utilising the marketing mix to support stakeholder relationships 3.1 Explain how a co-ordinated marketing mix can be used to meet the needs of an organisation s broader stakeholder audience 3.2 Analyse the behaviour and opinions of the decision making units in order to design and co-ordinate a marketing mix that is responsive to stakeholders needs and adds value to them. 3.3 Explain the dependencies of people place and process in supporting relationship marketing approaches 3.4 Explain the methods available for measuring the success of a co coordinated marketing mix aimed at multiple stakeholders Directed Reading Links to building blocks This theme aims to take a more holistic approach to the marketing mix for a broad range of stakeholders. Students will be expected to differentiate between the marketing mix requirements for a range of stakeholders by understanding their needs and expectations and adapting the marketing mix accordingly. Students will be expected to demonstrate an understanding of resource dependencies and measurement of the marketing mix activities. Sessions should focus on: consideration of how the marketing mix tools can be used to build trust, loyalty and commitment from stakeholders and how the different mix elements are used to develop these and deliver value to stakeholders explanation of how the marketing mixes can be monitored and how stakeholder satisfaction can be measured, including financial and nonfinancial measures identification of the five characteristics of services and how the service mix is coordinated to support and develop stakeholder relationships explanation of the DMU for B2B and B2C markets and how their behaviour and opinions impact on the development of the coordinated marketing mix. Principles and Practice of Marketing, 5 th Ed, Jobber, D Chapter 9: Managing Products: brand and corporate identity management Chapter 10: PLC, portfolio planning, and product growth strategies Chapter 11: Developing new products Chapter 12: Pricing strategy Chapter 17: Distribution Consumer Behaviour, 2006, Evans, Jamal and Foxall Chapter 7: Social Group, Tribal and Household Buying Influences Chapter 10: Repeat, Loyal and Relational Buying Relationship Marketing, 2001, Egan Chapter 6: Customer partnerships Stakeholder Marketing Tutor Kit Version 4 8

9 Seminar/Group Activities Task 1 Split students into groups of 3-4 and ask them to research the following companies and how they have responded to Corporate Social Responsibility in terms of adapting their marketing mixes. Suggest two methods for evaluating the success of the co-ordinated marketing mix that are most relevant to your organisation. Innocent Smoothies District Council/Local authority council Logistics company (Fed Ex, Kuehne and Nagel) Supermarket Using a flipchart to summarise findings and present to the rest of the group. Timing 1-1½ hours Task 2 In groups of 4, discuss what virtual groups/communities you belong to eg, Face book, My Space, Second Life, fan sites, ebay What is your relationship with these communities and do they influence your buying behaviour in anyway? Timing 30 minutes Task 3 In pairs investigate the following company websites and the virtual communities they provide: Tesco Manchester United Cadbury Virgin How effective are these sites in developing greater relational interaction with their consumers, and in what ways does this support loyalty and customer retention? Summarise the key points and feedback to the group. Timing 1 hour Task 4 In pairs research the extended marketing mix (people, process and place for: Malmaison Barclays Bank Pizza Express easyjet Discuss how their mixes support relationship marketing. Stakeholder Marketing Tutor Kit Version 4 9

10 Using a flipchart, present your findings to the group. Timing 1 hour Case Study Does Tesco hold all the cards? The purpose of this case study is to demonstrate the implementation of a highly successful customer retention programme. It highlights how an organisation such as a food retailer needs to develop an integrated marketing approach to achieve customer retention. Website/Resources Peck, H et al (1997) Relationship Marketing: Strategy and Implementation. Textbooks Egan, J. (2001/04) Relationship Marketing: exploring relationship strategies in marketing, FT/Prentice Hall Bruhn, M. (2003) Relationship Marketing, Management of Customer Relationships, FT/Prentice Hall Buttle, F. (1997) Relationship Marketing: Theory and Practice, Paul Chapman Peck, H et al (1997) Relationship Marketing: Strategy and Implementation. Ford, D. (1998) Managing Business Relationships John Wiley & Sons Gummerson, E. (1999) Total Relationship Marketing. Butterworth- Heinemann Christopher, M (1993) Relationship Marketing, Payne, A et al (1995) Relationship Marketing for Competitive Advantage, O Connor, J & Galvin, E. (2001) Marketing in the Digital Age FT-Prentice Hall Jobber, D (5 th Ed.) Principles and Practice of Marketing, McGraw Hill Journals Stakeholder Marketing Tutor Kit Version 4 10

11 Journal of Services Marketing European Journal of Marketing Journal of Marketing Journal of Consumer Behaviour Websites Assessment Support Use exemplar assessments to help students prepare for the exam Undertake assignment based assessment activities such as the seminar/group activity outlined above to help prepare for assessments Stakeholder Marketing Tutor Kit Version 4 11

12 Theme 4 Section 4: Communications with stakeholders 4.1 Evaluate the extensive range of marketing communication mix tools and explain how they can be co coordinated to contribute towards developing long term sustainable stakeholder relationships 4.2 Identify and evaluate the range of tools available to support the communications relating to internal customer loyalty i.e. employee support, engagement and retention within the organisation 4.3 Explain the challenges in communicating with stakeholders in international markets 4.4 Identify and evaluate the continuously evolving impact of new technologies and their contribution to economic an environmental sustainability of stakeholder relationships 4.5 Explain approaches to managing budget resource for tactical communication activities 4.6 Explain the methods available for measuring the success of co-ordinated marketing communications activities Links to building blocks This theme considers the need for stakeholder communications that may be tailored to meet the different needs for information. The promotional mix will be explored and students are expected to demonstrate understanding and application of a complex coordinated mix to communicate with diverse stakeholders both internally and externally. The international context of communications is introduced in this theme, and students should demonstrate an understanding of the environmental factors that impact on the promotional mix. In particular, the focus will also include the following: identification of a range of tools to support and development internal customer loyalty eg, training, secondments, staff enrichment programmes that are fundamental in delivering effective relationship marketing explanation of how integrated communications mixes are used to meet the needs of internal and external stakeholders demonstration of an awareness of electronic technologies and how they impact on marketing communications and relationship marketing eg, Orange Wednesdays, Amazon Conde Nast e-alerts explanation of how branding can be used to support policies on ethics, corporate social responsibility eg, sponsorship of local community events eg, Adidas Streetball Challenge demonstration of knowledge and application of a range of monitoring tools to measure marketing communications campaigns. Directed Reading Relationship Marketing (1999), Peck, Payne, Christopher, Clark Chapter 5: The recruitment and internal market domains The Principles and Practice of Marketing (5 th Ed), Jobber, D Chapter 13: Advertising Chapter 14: Personnel selling and sales management Chapter 15: Direct Marketing Chapter 15: Other promotional mix methods Chapter 18: Internet Marketing Chapter 22: International marketing Relationship Marketing (2001), Egan Stakeholder Marketing Tutor Kit Version 4 12

13 Chapter 7: Internal Partnerships Seminar/Group Activities Task 1 Before attending the session, ask the students to read Dove Campaign for Real Beauty and look at the Campaign for Real Beauty website. Working in groups of 4,discuss the following questions: how Unilever have changed their marketing communications strategy and explain why they have done this identify who will be the stakeholders in the Body Talk programme evaluate the methods used in the case study to measure the success of the campaign. Suggest three different methods that could be used to determine the effectiveness of the Body Talk campaign Students should present their findings to the group Timing 1 hour to 1½ hours Task 2 For your own organisation, or one of your choice, identify and evaluate how the selected organisation encourages and supports internal customer loyalty Working in pairs, compare your findings Feedback the key differences and examples of best practice to the group Timing 45 minutes. Task 3 Working in groups of four research an international market that one of your organisations is considering marketing to. You need to consider : o culture o language and symbols o availability of technology and media o standardisation versus adaptation Discuss the specific challenges of communicating with stakeholders in international markets. Summarise you findings and present them to the group. Timing 1 to 1½ hours Task 4 Working in pairs, prepare an A4 handout that summarises the advantages and disadvantages of two different budget approaches for managing tactical communications. Tutor will allocate budget approaches, and copy and distribute summary sheets. Timing 45 minutes. Stakeholder Marketing Tutor Kit Version 4 13

14 Case Study Euro Disney: The first 100 days (Disneyland Paris) This case shows how Euro Disney had difficulty in managing its relationships with internal, recruitment and customer markets in an unfamiliar cultural setting, and questions the extent to which service delivery systems are culturally specific. Peck, H et al (1997) Relationship Marketing: Strategy and Implementation. Website/Resources Textbooks Egan, J. (2001/04) Relationship Marketing: exploring relationship strategies in marketing, FT/Prentice Hall Bruhn, M. (2003) Relationship Marketing, Management of Customer Relationships, FT/Prentice Hall Buttle, F. (1997) Relationship Marketing: Theory and Practice, Paul Chapman Peck, H et al (1997) Relationship Marketing: Strategy and Implementation. Ford, D. (1998) Managing Business Relationships John Wiley & Sons Gummerson, E. (1999) Total Relationship Marketing. Butterworth- Heinemann Christopher, M (1993) Relationship Marketing, Payne, A et al (1995) Relationship Marketing for Competitive Advantage, O Connor, J & Galvin, E. (2001) Marketing in the Digital Age FT-Prentice Hall De Pelsmacker, P et al (2007) Marketing Communications, FT Prentice Hall Jobber, D. (5 th ed.) Principles and Practice of Marketing, McGraw Hill Journals Journal of Services Marketing European Journal of Marketing Journal of Marketing Websites Assessment Support Use exemplar assessments to help students prepare for the exam Undertake assignment based assessment activities such as the seminar/group activity outlined above to help prepare for assessments Stakeholder Marketing Tutor Kit Version 4 14

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