MARKETING MANAGEMENT & STRATEGY
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1 MARKETING MANAGEMENT & STRATEGY Equivalent QCF level: Level 7 Credit Value: 30 Learning time (hours): 300 UNIT PURPOSE This unit provides the learner with an understanding about the importance of creating a value proposition for an organisation in generating competitive advantage. It will consider management tools and techniques as well as information sources needed to perform this successfully. UNIT INTRODUCTION The unit explores how organisations can formulate value propositions. It will consider the main tools and techniques needed to develop them and also evaluate how they will help organisations obtain competitive advantage. In doing so, learners will analyse a range of organisations and attempt to analyse their value propositions and also identify the extent to which this has helped reap competitive advantage. The unit will also consider the information sources that need to be analysed in order to create viable value positions. This unit also provides a critical understanding of the practical tools, techniques, operations and activities of the marketing process, and the marketing decisions on which effective marketing management and planning are based. These two themes divide operational marketing activities from management decisions, and learners should be able to develop diagnostic skills in both themes of the unit so that they become familiar with processes related to marketing effort. Finally, learners need to be able to link external or environmental market dynamics with organisational response. Learners will be able to reflect through their practitioner experience and application of the service/product-market relationships and customer/client behaviours in meeting the unit outcomes. One of the main focuses for the design of this unit has been the further development of relevant employability and professional skills. Such skills are implicit in the learning outcomes. Multiculturalism has been considered during the design of this unit, and will be considered when the assessment brief is written. 1
2 LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT To pass this unit, the learner must generate evidence that demonstrates all learning outcomes have been met through the achievement of all the unit s assessment criteria. Learning outcomes On completion of this unit, the learner will: 01 Know how to appraise and develop strategies for the value proposition of an organisation competing in a market sector Assessment criteria On completion of this unit, the learner can: 1.1 Define a value proposition of an organisation 1.2 Analyse an organisation to establish its value proposition 1.3 Evaluate people management strategies their contribution towards the value proposition 1.4 Explain how a value proposition can generate competitive advantage for an organisation 1.5 Evaluate the value propositions offered by competing organisations 1.6 Analyse the use of market research in competing organisations 1.7 Develop appropriate strategies to synthesise a value proposition for an organisation and consider: Tools 2 Content Value proposition: customer value proposition (economic, functional, emotional, and symbolic) Competitive advantage: the advantage that an organisation has over the competitors in the industry giving it higher sales and/or the retention of more customers People management strategies: recruitment and selection; training and development; performance management; employee engagement; rewards and recognition Marketing mix: product, price, place, promotion, process, people and physical evidence Marketing plan: Review of the marketing environment, Review of the detailed marketing activity, Review of the marketing system (Portfolio planning, 80:20 rule, 7Ps) Database marketing: the use of databases to gather information of customers and/or potential customers to perform direct marketing activities in the most relevant manner
3 LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT Techniques Processes people management competitive advantage Management tools & techniques: Feasibility Study, Cost- Benefit Analysis, Market Research, The BCG Matrix, The Product Life Cycle Analysis, The Ansoff s Matrix, The 7-S McKinsey method, Gap Analysis, Value Chain Analysis, Four Corner's Analysis, War Gaming, etc. 02 Be able to evaluate marketing opportunities in a sector of the economy 2.1 Identify sources of information that would assist in obtaining important information for an organisations value proposition 2.2 Gather relevant information from a range of sources for the formulation of a value proposition 2.3 Conduct situational analyses for a given organisation 2.4 Identify marketing opportunities and threats that are related to an organisation in a given economic sector, to include marketing concepts and theories SWOT Analysis: Strengths and Weaknesses (Internal), Opportunities and Threats (external) Porter's Five Forces Industry Analysis: The threat of new entrants, Bargaining power of buyers, Threat of substitutes, Bargaining powers of suppliers, Competitor Rivalry TOWS Matrix: identify strategies by matching items in SWOT analysis External opportunities & threats: Future trends, The economy, Funding sources, Demographic, The physical environment, Legislation and Local, national or international events 5C Analysis: Company analysis (Goals & Objectives, Position, Performance, Product line), Competitor analysis, Customer analysis (Market Research to analyse Demographics), Collaborator analysis (Partnerships, Distributors, Suppliers, Agencies), Climate analysis (PEST factors) 3
4 LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT Strategic decisions derived from external analysis: Set or reaffirm goals, create an action plan etc. 03 Be able to construct an integrated strategic marketing plan for an organisation 3.1 Create a strategic marketing plan for a given organisation, to include the following areas: marketing objective the advantages and disadvantages of various campaign channels design of a marketing campaign various management tools and techniques involved in marketing planning tools and techniques to create solutions and benefits to customers 3.2 Evaluate the strategic marketing plan Planning: Clear, Quantified, Focused, Realistic, Agreed Strategic Marketing Plan Elements: Situational Analysis, Objective Setting, Strategy, Tactics, Action Situation Analysis: external threats, external opportunities, internal strengths, internal weaknesses, Critical success factors in the industry, our sustainable competitive advantage Objective Setting: SMART objectives, Marketing objectives, Marketing Communication objectives, Business objectives, Business Mission, etc. Strategy: Porter's Generic Strategies, PLC, Product Portfolio Planning, Pricing Strategies, Promotion strategies, Distribution Strategies Strategic Marketing Plans: analyses trends in the industry, competitive position and the demographics and buying habits of the target customers 4
5 LEARNING OUTCOMES, ASSESSMENT CRITERIA AND CONTENT Tactical Market Planning: advertising, community building and sales promotions Promotional mix: Advertising, Personal selling, Sales Promotion, Public relations, Direct Marketing, Corporate image Means of advertising: Price advertising, Image advertising, Local service advertising, Business-to-business advertising, Direct response advertising New Media: blogs, podcasts, message boards, product reviews, Wikipedia, social networks, mobiles Modern Advertising Methods: Guerrilla Advertising, Product Placement Advertising, Cell Phone & Mobile Advertising, Web Banner Advertising, Bandwagon Advertising, Testimonials and Endorsements, Surrogate Advertising, Pixel Advertising, Contextual Advertising, Keyword Advertising, Blog Advertising, Mobile Advertising, Public Relations Advertising Delivering Solutions: The Star Model, Customer Orientation, and Integration of components, Linking strategies with organisation Corporate Governance and Business ethics: CSR, Structures, Rights, Duties, and Obligations 5
6 GUIDANCE FOR TUTORS DELIVERY & ASSESSMENT It is important that tutors use a range of teaching and guidance methods to ensure that their learners will meet the intended learning outcomes for this unit. This would include participating or revising lectures/notes, attending webinars, workshops, individual/group assessments and mock/draft feedback for assignments. However, learners should always be encouraged to participate in independent learning using the resources on the IMSS, e-library and Mintel reports. Learners need to use analytical thinking, participative approaches and investigative mindsets in order to be able to enhance their learning experience through reflection of theory in conjunction with their own experience. It is important to plan the delivery of the unit to ensure that learners have enough time to undertake the relevant research needed to meet the learning outcomes and to facilitate selflearning. Learning outcomes 1 provides a background on the value proposition and its contribution to competitive advantage. In delivering this outcome, tutors can first explain the basic concepts of value propositions and learners can in turn take part in group discussions where the different value propositions of competing organisations, and the extent to which they help organisations attain competitive advantage, can be evaluated. Learners will be able to build on the knowledge gained to develop value propositions using a range of tools and techniques. Tutors can also encourage learners to evaluate a range of sources of information, and to select the most appropriate ones to aid in the formation of the value propositions. The learning outcome also discusses the fundamentals of marketing management. A major portion of this learning outcome is devoted to carrying out an effective Strengths, Weaknesses, Opportunities and Threats analysis. Tutors can explain basic marketing concepts and theories such as PESTEL/SLEPT, SWOT and Porter's five forces analysis. Learners can identify advantages of disadvantages of each method using real-world examples. Learning outcome 3 explores the implications of strategic marketing management programs organisations. It provides a basic introduction to marketing and strategic marketing management. It is constructed in such a way as to provide understanding of a strategic marketing plan and the need of strategic planning, and includes an introduction to performing an analysis of the customer, the company, the competition, and the industry as a whole. Tutors can provide theoretical information on objective setting, strategy and tactic planning and various tools related to business planning. Learners can research practical situations where real marketing campaigns are carried out and then work to construct a strategic marketing plan for an organisation they are familiar with. Management tools and techniques involved in strategic marketing should be discussed and evaluated, as they can provide various methods that help to illustrate how analysis can be used to form an effective strategic marketing plan that can increase the efficiency and profitability of a business. Tutors can provide the essential theoretical models such as product portfolio strategies, competitive strategies, pricing strategies, etc. Learners can then undertake to align the identified tools and techniques with practical organisational objectives, in order to determine the desired outcomes and critically analyse those tools and techniques. 6
7 GUIDANCE FOR TUTORS OUTLINE LEARNING PLAN The following outlined learning plan can be used as a guidance document in conjunction with the unit assessment. It is simply a way in which this unit can be delivered. TOPIC AND SUGGESTED ASSIGNMENTS/ACTIVITIES/ASSESSMENT Introduction to unit and programme of learning Tutor discussion on how to formulate value propositions and how they contribute towards competitive advantage Learner input on analysing real world organisations and their value propositions and how they can be formulated Learner research on marketing communications contributing to Component 1 Tutor input on marketing plans and formulating appropriate marketing strategies Learner input on practical examples of external environment analysis and corporate governance and business ethics Learner research on B2B marketing communication contributing to Component 2 Review of unit and programme of assignments PROGRAMME OF SUGGESTED ASSESSMENT/ASSIGNMENTS The following table illustrates the respective assessments for the unit and identifies the corresponding assessment criteria. Assessment Criteria covered Assignment title Scenario Assessment method 1.1, 1.2, 1.3, 1.4, 1.5, 1.6, 1.7, 2.1, 2.2, 2.3, 2.4 Component 1 You are requires to select an organisation operating in a competitive industry. Evaluate the nature of the industry identifying the key success factors. Identify the value proposition offered by the key players (not including your chosen firm) in the industry Report 7
8 GUIDANCE FOR TUTORS PROGRAMME OF SUGGESTED ASSESSMENT/ASSIGNMENTS Assessment Criteria covered Assignment title Scenario Assessment method 1.1, 1.2, 1.3, 1.4, 1.5, 1.6, 1.7, 2.1, 2.2, 2.3, 2.4 Component 1 Cont. Identify your selected firm s value proposition and critically evaluate the potential for establishing a competitive advantage in light of the competitor and industry analysis Report 3.1, 3.2 Component 2 You have been charged with developing a strategic marketing plan for the re- launch of a product of your choice Presentation Special attention must be paid to the marketing tactics with a clear identification of the core elements of a marketing campaign and the measures used to ensure that the plan is effectively controlled and evaluated 8
9 RESOURCES TEXTBOOKS Piercy N F (2001) Market Led Strategic Change (3rd Ed.) Butterworth Heinemann Hooley G., Saunders J. A. and Piercy N F. (2004) Marketing Strategy and Competitive Positioning (3rd ed.) Pearson Education Ltd Baker, M.J. (2000) Marketing Theory a learner text Thompson Learning Brennan, R. Baines, P., and Garneau, P. (2003) Contemporary Strategic Marketing Basingstoke: Palgrave Doyle, P. (2001) Marketing Management and Strategy (3rd Ed.)) Financial Times/Prentice Hall Bruhn, M. (2003) Relationship Marketing Pearson Education Ranchhod, A. (2004) Marketing Strategies: A Twenty first Century Approach Financial Times/Prentice Hall McDonald, M. (2002) Marketing Plans How to prepare them, How to use them (5th Ed.) Elsevier Butterworth Heinemann Kotler, P. and Keller, K.L. (2006) Marketing Management (12th Ed) Pearson Education Inc. Barabba V P, Zaltman G, (2002), How Customers Think: Essential Insights into the Mind of the Market, Harvard Business School Press, USA McDonald, M. H. (2003) Marketing Plans: How to Prepare Them, How to Use Them (4th Ed.) Heinemann, Oxford. Piercy, N.F. (2001) Market led Strategic Change Transforming the process of going to Market. Butterworth Heinemann Brennan R., Baines P., Garneau P., (2003) Contemporary Strategic Marketing, Palgrave Macmillan Basingstoke Little E., and Marandi E., (2003) Relationship Marketing Management, Thomson London Doyle P., (2000) Value Based Marketing, John Wiley and Sons Chichester Ranchhod A., (2004) Marketing Strategies A twenty first century approach, Pearson, Harlow Aaker D., (2005) Strategic Market Management (7th Ed.) John Wiley, Chichester Egan J., (2004) Relationship Marketing (2nd Ed.) FT Prentice Hall JOURNALS Journal of Marketing Management Journal of Strategic Marketing Journal of Management and Strategy WEBSITES The Marketer Forbes Hubspot
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