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1. The Role of Marketing for Business and
Marketing Management Understanding
 Market-Driven Management: Strategic and Operational Marketing by
Lamben J-J.
 Strategic Marketing Management by Philip Kotler and Alexander Chernev
 Marketing As Strategy: Understanding the CEO's Agenda for Driving
Growth and Innovation by Nirmalya Kumar
 Marketing Plans: How to Prepare Them, How to Use Them by Malcolm
McDonal and Hugh Wilson
 Blue Ocean Strategy: How to Create Uncontested Market Space and Make
the Competition Irrelevant by W. Chan Kim and Renée Mauborgne
 On Competition by Michael E. Porter
 Bottom-Up Marketing/ Marketing Warfare by Al Ries and Jack Trout
 Inside the Tornado: Strategies for Developing, Leveraging, and Surviving
Hypergrowth Markets by Geoffrey Moore
 Business Model Generation by Alex Osterwalder
 The Long Tail by Chris Anderson
1. The Concept of Marketing and Its
Development, Important Marketing Trends
2. The Marketing Role in the System of
Company Management
3. The Marketing Management Functions
(organization, planning, coordination,
control)
4. The Notion of Corporate Marketing
5. International and Domestic Practices of Designing
the Systems of Marketing Management
The Origin and Development of
Marketing
 Stages
 Origin
 1900s-1950s.
 Marketing is practically-oriented on the outcome sales. (At this stage the
following tools are being employed: advertising, sales stimulation)
 Establishment
 1960s.
 The growth of market competition requires establishing what to produce
 1970s.
 Marketing as a major tactic function of management. Its tasks are
successful trade, customer’s behaviour and environment research which
allows to design more effective short-term plans
 1980s.
 Marketing is becoming the basis of strategic analyses
 Active Development (hopefully, in Belarus )
 Since 1990s till now.
 Marketing is appreciated at both tactic and strategic levels of management.
The concept of corporate marketing appears. Business, and therefore,
marketing should be socially oriented
1900-1950s.
 In 1915 the company went outside the American market
 After only 5 month of TV development in the US the P&G places its first TV ads
 In 1941 the customer service is created
 1956 – the sales volumes reached USD1 bln
1960s, 1970s
 In 1961 the brand ‘Pampers’ appeared on the market
 In the 70s the company faced the strategic growth crises. That resulted in the
stronger orientation on customer needs and the development of brand policy
1980s.
 1983 was the record year in launching new brands (22)
 This time there was the external sales expansion of 150%
 By the end of the 80s the company – the leader in the most of the European
markets, and it began to win on local markets (the Iberian Peninsula,
Scandinavian countries and the Balkans)
Since 1990s.
 Since June 1, 2006 three main directions has been developed by the company:
P&G Beauty & Health, P&G Household Care, Global Gillette
 2006 - new innovation model – connect and develop – was started; the deep
cooperation with retailers, especially with Wal-Mart
Marketing Management
Marketing Management
The Present-Day Marketing Role
 marketing is an important part of the corporation
strategy, defines its long-term competitive advantages
 marketing supports the organization structure changes
and is based on democratic way of decision-making
 marketing requires both the corporate culture
development and personal motivation
 marketing leads to long-term customer relationships
 marketing changes thinking and priorities of the whole
company team, not only of top managers
http://www.mycustomer.com/feature/marketing/2020-vision-
three-pillars-marketing-organisation-future/165103
 HBR: Nike transformed the athletic shoe industry with technological
innovations, but today many people know the company by its flashy ads
and sports celebrities. Is Nike a technology company or a marketing
company?
 I’d answer that question very differently today than I would have ten years
ago. For years, we thought of ourselves as a production-oriented
company, meaning we put all our emphasis on designing and
manufacturing the product. But now we understand that the most
important thing we do is market the product. We’ve come around to
saying that Nike is a marketing-oriented company, and the product is our
most important marketing tool. What I mean is that marketing knits the
whole organization together. The design elements and functional
characteristics of the product itself are just part of the overall marketing
process.
 We used to think that everything started in the lab. Now we realize that
everything spins off the consumer. And while technology is still important,
the consumer has to lead innovation. We have to innovate for a specific
reason, and that reason comes from the market. Otherwise, we’ll end up
making museum pieces.
 Large, international corporations tend to become complex organizations,
which makes them inflexible. But in fast-growing emerging markets, you
cannot expect the same stable conditions that we are used to in mature
markets. To succeed in an increasingly volatile market environment, we
need simple structures and processes. We are constantly adapting our
structures to become faster and more flexible.
 To succeed in the highly competitive consumer-goods environment, we
need both a management team that reflects the diversity of markets in
which we operate and the innovation capabilities to address a broad
range of varying consumer needs.
 As CEO, I believe that a primary task for me and the management board is
to shape Henkel’s growth strategy and clearly communicate it to all
employees. Last year, to present our growth strategy for 2016, the
management board and I visited 28 sites in 22 countries. Overall, more
than 70 town-hall meetings have taken place around the world. And of
course, a critical part of my role is to make sure Henkel has the right
team in place. So in summary, those are my key tasks as CEO: get the
strategy and the team right.
 If you’re long term oriented, customer interests and
shareholder interests are aligned. In the short term, that’s not
always correct.
 One thing that I have learned within the first couple of years
of starting the company is that in inventing and pioneering
requires a willingness to be misunderstood for long periods
of time. One of the early examples of this was the customer
reviews. One wrote to me and said, “You don’t understand
your business. You make money when you sell things. Why do
you allow these negative customer reviews?” And when I read
that letter, I thought, we don’t make money when we sell
things. We make money when we help customers make
purchase decisions.
 Horizon planning – forget trying to plan incrementally in fast and volatile
markets. Start with a vision, then work backwards thinking about what you
want to achieve with more flexibility within a set of principles and directions
 Participation platforms – campaigns are out, platforms are in. Campaigns
push short-term messages, quickly forgotten, platforms build enduring ideas
built on ongoing participation (Coke’s “Live Positively”)
 Solomo consumers – the biggest shift in consumer behaviour is guided by
their smartphone, and everything it enables – to be social, and local, and
mobile
 Zero moment of truth – in a search-driven, digitally enabled engagement
process – there is a clear moment when potential customers will choose to
love or hate you
 Upward innovation – the best ideas come the bottom upwards, not the top
down
 Multiple Strategy of Branding is more common
 Subscription pricing – the biggest trend in pricing is not to sell products
around transactions but to sell a subscription, like a magazine, cloud
computing
 Emerging markets – the commonest market growth drivers are
psychological and demographic aspects
 Borderless segments – forget nationalism, think niches and motivation
 New social communities – community building is not simple, it’s not
just creating a Facebook page but need to being able to unite them
under one cause
 Crowd creativity – the best ideas are out there, not in your business.
So build a crowdsourcing platform and let customers build the best
new ideas
 Concept innovation – brands are not about products, not about
companies, but about bigger ambitions to make life better
 New business models – like Apple and Google, rethink how you create
value for customers through your partnerships with distribution and
supply
 Social innovation – ultimately we are all here not just to make money,
but to make the world a slightly better place. It is all about social
corporate responsibility of business
Marketing Management
 The art and science of choosing target
markets and getting, keeping, and growing
customers through creating, delivering and
communicating superior customer value
(Kotler Ph., Keller K.)
Marketing Role in the Management
System
 Management comprises the following levels:
 Corporate – marketing as philosophy (company’s
values, principles, goals and objectives), the basis
for business-model construction
 Business (SBU) – marketing as a strategy
(segmentation and positioning)
 Functional – marketing as a function
(marketing department)
 Operational – marketing as tactics (4P
implementation during a year)
Marketing Management
Marketing Management
Marketing Management
Sistema sees MTS as a promising core asset
capable of maintaining good growth rates and
increasing shareholder value by implementing
its operating strategy.
 2013 Strategy
◦ MTS aims at strengthening its position
as a leading national mobile operator
in Russia and the wider CIS, both in
subscriber numbers and revenue.
◦ The company is to increase its
revenues and improve customer loyalty
by promoting services of MTS through
the development of the tariffs «Super
0», «Super MTS».
◦ MTS gives priority to the development
of a data segment and new products in
order to effectively monetize mobile
traffic,
◦ MTS continues active implementation
of bank cards "MTS-Money», POS-
loans and other financial services
through a federal retail chain MTS.
 2014 Strategy
◦ MTS invests in expansion of its 3G
networks and preparations for a major
roll-out of 4G networks.
◦ MTS prioritises the development of new
products. MTS’s pay TV will continue
expanding due to the launch of digital TV
in the Russian regions in September
2012, and in 2013, the implementation
of a hybrid TV platform which will
consolidate TV broadcasting on three
screens (TV, mobile device and
computer), and a CDN network.
◦ MTS is becoming an important player in
the Russian retail lending market due to
its joint project with MTS Bank. The main
strategic areas of the MTS Money project
are expanding mobile commerce,
enhancing mobile payment opportunities,
promoting new financial products to the
non-banking market, and stimulating the
sales of smartphones and data-
generating devices
Marketing Management
 more emotional slogan “You know that you
can“
 brand strategy was based earlier on
technological leadership, now company
appeals in its advertising campaigns to
people who count on
 The heroes of the new advertising campaign
are the ordinary people, while MTS minimizes
the involvement of celebrities in advertising
“You know that
you can“
be strong
carry love through the years
challenge
tell the truth in the face
become a great poet
http://manifest.mts.ru
/main
Key Strategy Elements
Objectives regarding
• the particular product-
market position
• sales volume
• market share
• customer satisfaction
• profit from the product
or the product group
SBU objectives
• sales volume growth
• cash flow
• gaining and holding
competitive advantages
General corporate objectives
• profit growth
• company’s profitability
• return-on-investments
• earnings per share
Objectives
Target markets/ segments
Decision-taking
concerning depth and
width of the product
range, branding,
commodity markets
development
Commodity markets for
SBU
Decision-taking
concerning intensive
growth and related
diversification
Types of activity
Decision-taking concerning
diversification, vertical
integration, acquisitions and
divisions
Scale
Marketing strategyBusiness strategyCorporate strategy
Element
Top Manages Marketers
 Organize and support
marketing initiatives
 Defend the customers’
interests
 Take control over
quality
 Deal with strategic
issues
 Interact with various
divisions and
departments of the
enterprise
 Practice net-profit-
oriented approach
 Marketing organization is a group of marketing
persons brought together to make decisions on marketing
areas like product, price, place, and promotion. Marketing
organization is the foundation of effective sales planning
for systematic execution of plans and policies. Marketing
organization provides a system of relationships among
various marketing functions to be performed by proper
coordination among marketing persons.
 Definition of Marketing Organization
"Marketing organization can be defined as a formal or
informal group of individuals working together to reach
quantitative and qualitative marketing objectives by making
decisions on product, price, place, and promotion."
Let’s get organized!
Management Structure with the sharp division
between sales’ and marketing functions
General Director
Deputy
Director on
Finance
Deputy
Director on
Sales
Deputy
Director on
Marketing
Deputy
Director on
Manufacturing
and
Operational
Process
Management structure with the leading
marketing role
General Director
Finance
Director
Sales and
Supplies
Director
Marketing
Director
Manufacturing
and
Operational
Process
Director
Top Manager
of Sales and
Supplies
Department
Top Manager
of Marketing
Department
Vice-President on Marketing
 Advantages (Pros) of
centralization
?
 Disadvantages (Cons)
of centralization
?
 Advantages (Pros) of
de-centralization
?
 Disadvantages (Cons)
of de-centralization
?
 The tendencies of corporate planning development
◦ The number of the central planning department in GE
became half as small in the early 80-s (up to 15 people)
◦ In 4 out of 73 US corporations people in charge of
corporate planning did not have separate special
headquarters (HQ)
◦ In the leading department of Heinz Co. strategic planning is
developed and designed by the President with the technical
assistance of his Secretary and, partly, line managers
◦ Such corporations as HP and J&J lack planning workers at
the level of HQ
 “De-centralized management is a nice way of searching
for innovations and training corporate leaders”
 “We possess more than 200 manufacturing firms; so we
need more than 200 great leaders”
 “De-centralized approach encourages innovations, it
allows people with different skills and different ideas
take a try of various products and technologies with the
aim of satisfying the hidden needs of patients and
clients”
 De-centralization also helps in international transactions
 How is it possible to maintain the image of LVMH and take
control of the quality of hundreds of product varieties going
through the enormous network of suppliers, producers,
retailers and marketers? How to keep 76000 focused on work
and support their sense of pride for what they do?
 “One of the key elements of managing such a set of
companies of such a huge scope is de-centralization. And for
such a purpose the right team of dedicated managers is
highly and badly needed”.
Top-management Middle management
◦ To understand and use
the concept of strategic
marketing
◦ To study and to practice
new methods of
designation and
implementation of
marketing strategies
◦ To follow the already set
tasks in terms of
marketing strategy
◦ To clarify the strategic
goals and make clear the
strategic tasks
◦ To educate and put
forward the ideas of
Strategic Marketing
Planning (SMP)
◦ To delegate powers to
SMP adherers
◦ To make use of the
system of stimulation for
the successful
implementation of
marketing strategies
 Functional - the different marketing activities are grouped on the
basis of functions to be performed like - product planning,
market research, advertising, sales, or promotion. Each main
function is further divided to sub-functions to be performed to
achieve marketing objectives. Each sub function is managed by
separate manager under the control of marketing manager
 Product oriented - common where organisation is producing or
marketing wide variety of products. For each product or group of
products a separate product manager is assigned and made
responsible for marketing decisions for that particular product or
group of products
 Market oriented - common in big organisations serving large
number of customers spreading over large territories. Depot
manager, district manager, area manager, zonal manager,
divisional manager, etc., are assigned to manage each territories
 Customer oriented - common in organisations engaged in
providing specialised services to different class of customer
The internal client + the external
client?
Types of interaction of internal and external
company’s clients
 Synergy - internal clients  external clients 
 Alienation - internal clients  external clients 
 Enforcement - internal clients  external clients 
 Internal euphoria - internal clients  external clients

Marketing approach usage towards
employees
Building-up, stimulation and coordination the
personnel for effective application of corporate and
marketing strategies
The purpose is customers’ satisfaction
through the process of interaction with the
motivated and client-oriented personnel
 Collecting information about the staff work and
their relationship with the customers
 Defining the needs of internal clients
 Applying the idea of client-oriented policy
 Training the personnel to manage non-
stardard situations with the clients
 Interfunctional cooperation
 Clever staffing formation policy
 Staff satisfaction
 The high standards of clients’ servicing inside the
company
 Marketing-oriented personnel
 The company’s and production image among the
personnel
Adaptation – loyalty is
absent
Initial loyalty – the
employee does not feel part
of the company yet
Sense of affiliation (belonging to
the company) – the employee is
an active participant, works
really hard and is able to take
personal decision in strategy
True loyalty – the
employee plays the key
role in the company
and feels its integral
part
The 3 main pillars of the L’Oreal EVP
are:
 A thrilling experience
Employees do the talking - A big
part of the EVP is getting
employees to use their own words
and imagery to tell prospective
applicants what it’s like to work
for L’Oreal. There is an entire
website devoted to this called
‘Thrilling Careers at L’Oreal‘.
 Inspiring company
 School of excellence
 Purpose
◦ Senior leadership
◦ Values
◦ External marketing
 Culture
◦ Internal communications
◦ Reward & recognition
◦ Learning & development
◦ Service support
 Employment
◦ Working environment
◦ Recruitment & induction
◦ Team management
◦ Performance appraisal
◦ Measurement systems
Employer
Brand
Association
sEmployer
Branding
Employer
Image
Employer
Attraction
Organization
Identity
Organization
Culture
Employer
Brand Loyalty
Employer
Productivity
Marketing Management
Rank 2010 2011 2012 2013 2014
1 Edward Jones SAS Google Google Google
2 Wegmans
Food Markets
Boston
Consulting
Group
SAS SAS SAS
3 Google Wegmans
Food Markets
Boston
Consulting
Group
CHG
Healthcare
Services
Boston
Consulting
Group
4 Nugget
Market
Google Wegmans
Food Markets
Boston
Consulting
Group
Edward
Jones
5 Edward Jones NetApp NetApp Wegmans
Food
Markets
Quicken
Loans
Marketing Management
Marketing Management
Marketing Management
Marketing Management
Marketing Management
Let’s take control!
Trends
 The process
 The components and elements
 The results
 Balance and conformity of the long-term and
short-term marketing goals
 Analysis of the reasons for the previous success
and / failure (UPS AND DOWNS)
 Balance between numerical and explanatory
information
 Working-out of marketing KPI
Clear goals’ and tasks’ definition
Supply specification
SWOT applicability
The ways to lower risks
Uniqueness / Originality
Tactics evidence
Resources in accordance with the importance
Analytics!
We have developed – now we implement
– and evaluate!
 Controlling KPI
 Correcting
 Depending on / Against external factors
alteration
 Depending on / Against internal factors
alteration

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Marketing Management

  • 1. 1. The Role of Marketing for Business and Marketing Management Understanding
  • 2.  Market-Driven Management: Strategic and Operational Marketing by Lamben J-J.  Strategic Marketing Management by Philip Kotler and Alexander Chernev  Marketing As Strategy: Understanding the CEO's Agenda for Driving Growth and Innovation by Nirmalya Kumar  Marketing Plans: How to Prepare Them, How to Use Them by Malcolm McDonal and Hugh Wilson  Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Chan Kim and Renée Mauborgne  On Competition by Michael E. Porter  Bottom-Up Marketing/ Marketing Warfare by Al Ries and Jack Trout  Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets by Geoffrey Moore  Business Model Generation by Alex Osterwalder  The Long Tail by Chris Anderson
  • 3. 1. The Concept of Marketing and Its Development, Important Marketing Trends 2. The Marketing Role in the System of Company Management 3. The Marketing Management Functions (organization, planning, coordination, control) 4. The Notion of Corporate Marketing 5. International and Domestic Practices of Designing the Systems of Marketing Management
  • 4. The Origin and Development of Marketing  Stages  Origin  1900s-1950s.  Marketing is practically-oriented on the outcome sales. (At this stage the following tools are being employed: advertising, sales stimulation)  Establishment  1960s.  The growth of market competition requires establishing what to produce  1970s.  Marketing as a major tactic function of management. Its tasks are successful trade, customer’s behaviour and environment research which allows to design more effective short-term plans  1980s.  Marketing is becoming the basis of strategic analyses  Active Development (hopefully, in Belarus )  Since 1990s till now.  Marketing is appreciated at both tactic and strategic levels of management. The concept of corporate marketing appears. Business, and therefore, marketing should be socially oriented
  • 5. 1900-1950s.  In 1915 the company went outside the American market  After only 5 month of TV development in the US the P&G places its first TV ads  In 1941 the customer service is created  1956 – the sales volumes reached USD1 bln 1960s, 1970s  In 1961 the brand ‘Pampers’ appeared on the market  In the 70s the company faced the strategic growth crises. That resulted in the stronger orientation on customer needs and the development of brand policy 1980s.  1983 was the record year in launching new brands (22)  This time there was the external sales expansion of 150%  By the end of the 80s the company – the leader in the most of the European markets, and it began to win on local markets (the Iberian Peninsula, Scandinavian countries and the Balkans) Since 1990s.  Since June 1, 2006 three main directions has been developed by the company: P&G Beauty & Health, P&G Household Care, Global Gillette  2006 - new innovation model – connect and develop – was started; the deep cooperation with retailers, especially with Wal-Mart
  • 8. The Present-Day Marketing Role  marketing is an important part of the corporation strategy, defines its long-term competitive advantages  marketing supports the organization structure changes and is based on democratic way of decision-making  marketing requires both the corporate culture development and personal motivation  marketing leads to long-term customer relationships  marketing changes thinking and priorities of the whole company team, not only of top managers http://www.mycustomer.com/feature/marketing/2020-vision- three-pillars-marketing-organisation-future/165103
  • 9.  HBR: Nike transformed the athletic shoe industry with technological innovations, but today many people know the company by its flashy ads and sports celebrities. Is Nike a technology company or a marketing company?  I’d answer that question very differently today than I would have ten years ago. For years, we thought of ourselves as a production-oriented company, meaning we put all our emphasis on designing and manufacturing the product. But now we understand that the most important thing we do is market the product. We’ve come around to saying that Nike is a marketing-oriented company, and the product is our most important marketing tool. What I mean is that marketing knits the whole organization together. The design elements and functional characteristics of the product itself are just part of the overall marketing process.  We used to think that everything started in the lab. Now we realize that everything spins off the consumer. And while technology is still important, the consumer has to lead innovation. We have to innovate for a specific reason, and that reason comes from the market. Otherwise, we’ll end up making museum pieces.
  • 10.  Large, international corporations tend to become complex organizations, which makes them inflexible. But in fast-growing emerging markets, you cannot expect the same stable conditions that we are used to in mature markets. To succeed in an increasingly volatile market environment, we need simple structures and processes. We are constantly adapting our structures to become faster and more flexible.  To succeed in the highly competitive consumer-goods environment, we need both a management team that reflects the diversity of markets in which we operate and the innovation capabilities to address a broad range of varying consumer needs.  As CEO, I believe that a primary task for me and the management board is to shape Henkel’s growth strategy and clearly communicate it to all employees. Last year, to present our growth strategy for 2016, the management board and I visited 28 sites in 22 countries. Overall, more than 70 town-hall meetings have taken place around the world. And of course, a critical part of my role is to make sure Henkel has the right team in place. So in summary, those are my key tasks as CEO: get the strategy and the team right.
  • 11.  If you’re long term oriented, customer interests and shareholder interests are aligned. In the short term, that’s not always correct.  One thing that I have learned within the first couple of years of starting the company is that in inventing and pioneering requires a willingness to be misunderstood for long periods of time. One of the early examples of this was the customer reviews. One wrote to me and said, “You don’t understand your business. You make money when you sell things. Why do you allow these negative customer reviews?” And when I read that letter, I thought, we don’t make money when we sell things. We make money when we help customers make purchase decisions.
  • 12.  Horizon planning – forget trying to plan incrementally in fast and volatile markets. Start with a vision, then work backwards thinking about what you want to achieve with more flexibility within a set of principles and directions  Participation platforms – campaigns are out, platforms are in. Campaigns push short-term messages, quickly forgotten, platforms build enduring ideas built on ongoing participation (Coke’s “Live Positively”)  Solomo consumers – the biggest shift in consumer behaviour is guided by their smartphone, and everything it enables – to be social, and local, and mobile  Zero moment of truth – in a search-driven, digitally enabled engagement process – there is a clear moment when potential customers will choose to love or hate you  Upward innovation – the best ideas come the bottom upwards, not the top down  Multiple Strategy of Branding is more common  Subscription pricing – the biggest trend in pricing is not to sell products around transactions but to sell a subscription, like a magazine, cloud computing
  • 13.  Emerging markets – the commonest market growth drivers are psychological and demographic aspects  Borderless segments – forget nationalism, think niches and motivation  New social communities – community building is not simple, it’s not just creating a Facebook page but need to being able to unite them under one cause  Crowd creativity – the best ideas are out there, not in your business. So build a crowdsourcing platform and let customers build the best new ideas  Concept innovation – brands are not about products, not about companies, but about bigger ambitions to make life better  New business models – like Apple and Google, rethink how you create value for customers through your partnerships with distribution and supply  Social innovation – ultimately we are all here not just to make money, but to make the world a slightly better place. It is all about social corporate responsibility of business
  • 15.  The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering and communicating superior customer value (Kotler Ph., Keller K.)
  • 16. Marketing Role in the Management System  Management comprises the following levels:  Corporate – marketing as philosophy (company’s values, principles, goals and objectives), the basis for business-model construction  Business (SBU) – marketing as a strategy (segmentation and positioning)  Functional – marketing as a function (marketing department)  Operational – marketing as tactics (4P implementation during a year)
  • 20. Sistema sees MTS as a promising core asset capable of maintaining good growth rates and increasing shareholder value by implementing its operating strategy.  2013 Strategy ◦ MTS aims at strengthening its position as a leading national mobile operator in Russia and the wider CIS, both in subscriber numbers and revenue. ◦ The company is to increase its revenues and improve customer loyalty by promoting services of MTS through the development of the tariffs «Super 0», «Super MTS». ◦ MTS gives priority to the development of a data segment and new products in order to effectively monetize mobile traffic, ◦ MTS continues active implementation of bank cards "MTS-Money», POS- loans and other financial services through a federal retail chain MTS.  2014 Strategy ◦ MTS invests in expansion of its 3G networks and preparations for a major roll-out of 4G networks. ◦ MTS prioritises the development of new products. MTS’s pay TV will continue expanding due to the launch of digital TV in the Russian regions in September 2012, and in 2013, the implementation of a hybrid TV platform which will consolidate TV broadcasting on three screens (TV, mobile device and computer), and a CDN network. ◦ MTS is becoming an important player in the Russian retail lending market due to its joint project with MTS Bank. The main strategic areas of the MTS Money project are expanding mobile commerce, enhancing mobile payment opportunities, promoting new financial products to the non-banking market, and stimulating the sales of smartphones and data- generating devices
  • 22.  more emotional slogan “You know that you can“  brand strategy was based earlier on technological leadership, now company appeals in its advertising campaigns to people who count on  The heroes of the new advertising campaign are the ordinary people, while MTS minimizes the involvement of celebrities in advertising
  • 23. “You know that you can“ be strong carry love through the years challenge tell the truth in the face become a great poet
  • 25. Key Strategy Elements Objectives regarding • the particular product- market position • sales volume • market share • customer satisfaction • profit from the product or the product group SBU objectives • sales volume growth • cash flow • gaining and holding competitive advantages General corporate objectives • profit growth • company’s profitability • return-on-investments • earnings per share Objectives Target markets/ segments Decision-taking concerning depth and width of the product range, branding, commodity markets development Commodity markets for SBU Decision-taking concerning intensive growth and related diversification Types of activity Decision-taking concerning diversification, vertical integration, acquisitions and divisions Scale Marketing strategyBusiness strategyCorporate strategy Element
  • 26. Top Manages Marketers  Organize and support marketing initiatives  Defend the customers’ interests  Take control over quality  Deal with strategic issues  Interact with various divisions and departments of the enterprise  Practice net-profit- oriented approach
  • 27.  Marketing organization is a group of marketing persons brought together to make decisions on marketing areas like product, price, place, and promotion. Marketing organization is the foundation of effective sales planning for systematic execution of plans and policies. Marketing organization provides a system of relationships among various marketing functions to be performed by proper coordination among marketing persons.  Definition of Marketing Organization "Marketing organization can be defined as a formal or informal group of individuals working together to reach quantitative and qualitative marketing objectives by making decisions on product, price, place, and promotion."
  • 28. Let’s get organized! Management Structure with the sharp division between sales’ and marketing functions General Director Deputy Director on Finance Deputy Director on Sales Deputy Director on Marketing Deputy Director on Manufacturing and Operational Process
  • 29. Management structure with the leading marketing role General Director Finance Director Sales and Supplies Director Marketing Director Manufacturing and Operational Process Director Top Manager of Sales and Supplies Department Top Manager of Marketing Department Vice-President on Marketing
  • 30.  Advantages (Pros) of centralization ?  Disadvantages (Cons) of centralization ?  Advantages (Pros) of de-centralization ?  Disadvantages (Cons) of de-centralization ?
  • 31.  The tendencies of corporate planning development ◦ The number of the central planning department in GE became half as small in the early 80-s (up to 15 people) ◦ In 4 out of 73 US corporations people in charge of corporate planning did not have separate special headquarters (HQ) ◦ In the leading department of Heinz Co. strategic planning is developed and designed by the President with the technical assistance of his Secretary and, partly, line managers ◦ Such corporations as HP and J&J lack planning workers at the level of HQ
  • 32.  “De-centralized management is a nice way of searching for innovations and training corporate leaders”  “We possess more than 200 manufacturing firms; so we need more than 200 great leaders”  “De-centralized approach encourages innovations, it allows people with different skills and different ideas take a try of various products and technologies with the aim of satisfying the hidden needs of patients and clients”  De-centralization also helps in international transactions
  • 33.  How is it possible to maintain the image of LVMH and take control of the quality of hundreds of product varieties going through the enormous network of suppliers, producers, retailers and marketers? How to keep 76000 focused on work and support their sense of pride for what they do?  “One of the key elements of managing such a set of companies of such a huge scope is de-centralization. And for such a purpose the right team of dedicated managers is highly and badly needed”.
  • 34. Top-management Middle management ◦ To understand and use the concept of strategic marketing ◦ To study and to practice new methods of designation and implementation of marketing strategies ◦ To follow the already set tasks in terms of marketing strategy ◦ To clarify the strategic goals and make clear the strategic tasks ◦ To educate and put forward the ideas of Strategic Marketing Planning (SMP) ◦ To delegate powers to SMP adherers ◦ To make use of the system of stimulation for the successful implementation of marketing strategies
  • 35.  Functional - the different marketing activities are grouped on the basis of functions to be performed like - product planning, market research, advertising, sales, or promotion. Each main function is further divided to sub-functions to be performed to achieve marketing objectives. Each sub function is managed by separate manager under the control of marketing manager  Product oriented - common where organisation is producing or marketing wide variety of products. For each product or group of products a separate product manager is assigned and made responsible for marketing decisions for that particular product or group of products  Market oriented - common in big organisations serving large number of customers spreading over large territories. Depot manager, district manager, area manager, zonal manager, divisional manager, etc., are assigned to manage each territories  Customer oriented - common in organisations engaged in providing specialised services to different class of customer
  • 36. The internal client + the external client? Types of interaction of internal and external company’s clients  Synergy - internal clients  external clients   Alienation - internal clients  external clients   Enforcement - internal clients  external clients   Internal euphoria - internal clients  external clients 
  • 37. Marketing approach usage towards employees Building-up, stimulation and coordination the personnel for effective application of corporate and marketing strategies The purpose is customers’ satisfaction through the process of interaction with the motivated and client-oriented personnel
  • 38.  Collecting information about the staff work and their relationship with the customers  Defining the needs of internal clients  Applying the idea of client-oriented policy  Training the personnel to manage non- stardard situations with the clients  Interfunctional cooperation  Clever staffing formation policy
  • 39.  Staff satisfaction  The high standards of clients’ servicing inside the company  Marketing-oriented personnel  The company’s and production image among the personnel
  • 40. Adaptation – loyalty is absent Initial loyalty – the employee does not feel part of the company yet Sense of affiliation (belonging to the company) – the employee is an active participant, works really hard and is able to take personal decision in strategy True loyalty – the employee plays the key role in the company and feels its integral part
  • 41. The 3 main pillars of the L’Oreal EVP are:  A thrilling experience Employees do the talking - A big part of the EVP is getting employees to use their own words and imagery to tell prospective applicants what it’s like to work for L’Oreal. There is an entire website devoted to this called ‘Thrilling Careers at L’Oreal‘.  Inspiring company  School of excellence
  • 42.  Purpose ◦ Senior leadership ◦ Values ◦ External marketing  Culture ◦ Internal communications ◦ Reward & recognition ◦ Learning & development ◦ Service support  Employment ◦ Working environment ◦ Recruitment & induction ◦ Team management ◦ Performance appraisal ◦ Measurement systems Employer Brand Association sEmployer Branding Employer Image Employer Attraction Organization Identity Organization Culture Employer Brand Loyalty Employer Productivity
  • 44. Rank 2010 2011 2012 2013 2014 1 Edward Jones SAS Google Google Google 2 Wegmans Food Markets Boston Consulting Group SAS SAS SAS 3 Google Wegmans Food Markets Boston Consulting Group CHG Healthcare Services Boston Consulting Group 4 Nugget Market Google Wegmans Food Markets Boston Consulting Group Edward Jones 5 Edward Jones NetApp NetApp Wegmans Food Markets Quicken Loans
  • 50. Let’s take control! Trends  The process  The components and elements  The results
  • 51.  Balance and conformity of the long-term and short-term marketing goals  Analysis of the reasons for the previous success and / failure (UPS AND DOWNS)  Balance between numerical and explanatory information  Working-out of marketing KPI
  • 52. Clear goals’ and tasks’ definition Supply specification SWOT applicability The ways to lower risks Uniqueness / Originality Tactics evidence Resources in accordance with the importance Analytics!
  • 53. We have developed – now we implement – and evaluate!  Controlling KPI  Correcting  Depending on / Against external factors alteration  Depending on / Against internal factors alteration