Marketing Strategies Of Insurance Sector Commerce Essay

merchandise Strategies Of Insurance sphere Commerce EssayThe in the altogether detarotted pricing regime requires an altogether assorted underwriting simulation. N wiz exists at ane time. A rising model has to be put in place with no prior palpate. Underwriting, that was through by the tariff watchword of honor manger now, needs the application of a sharp human mind, superior expertise, keen knowledge of a particular hazard, a sensitive compendium of risk of exposure factors and their evaluation, a reflection of the insurers own then(prenominal) bring baffle in respect to similar risks accepted to predict the future loss potential of the risk as center of attentioned and a cultivated ability to wee a rate model that provides a margin to the insurer.With no past experience to guide their efforts, how will the insurers now pick-up these underwriting skills, expertise and knowledge paper in a short time? How rear the employee mindset, that looked to tariffs for the premium err be persuaded to look at and collect the vast data that is undeniable to price risks to fit the perceived risk factors? What atomic number 18 insurers doing to make their vary underwriters acquire these levels of skills, expertise and knowledge? It takes time to build expertise and experience notwithstanding a beginning has to be make.An insurer is in either case force now to redefine his identity either as a low-cost insurer and cut premium rates to stay in seam or consciously build price differentiators, because he provides and delivers superior node-perceived value. such delivered value may not be fiscal, scarce it is highly effectual effective and convenient to an insured, due to the insurers exceptionalized expertise, his particularized.PLACE OR scattering CHANNELSDistribution refers to the line of battles by which the merchandise after manufacturing is moved till it reaches the customer. There ar various intermediaries in either c only put u p line homogeneous wholesalers, retailers, etc. In the service business, agents and brokers atomic number 18 intermediaries in the transaction. Insurance business is sell through agents as intermediaries. In India, the regulation provide that an indemnification agent can represent unless on animateness and one non- life story insurer. An agent has to obtain a licence from the IRDA.Brokers withal act as policy intermediaries. besides they be different from agents in the sense that they are independent businessmen either working alone or in partnership. Brokers may be found in the non-life indemnification business part customers whose indemnity requirements are complex. They handle big risks and need superior financial and analytical skills.Intermediaries play a very significant role when the claim has to be settled. They have to see that the legitimate claim is duly gainful without delays. The opposite intermediaries at the stage of the claim areIn the boldness of gen eral insurance, surveyors and loss assessors, who are independent professionals, who are c every(prenominal)ed upon to inspect the restitution and losses claimed against.Motor accident claims tribunal to adjudicate on the quantum of requital that should be paid to the victims of force accidents.Lok Adalats consisting of judges, to enable expeditious summary organisation of long-pending disputes regarding claims.Review committees (in the LIC) at different levels, the top most macrocosm headed by a high court judge, to review claims which have been repudiated on cause of misrepresentation of fraud.Other organizations the like hospitals (for healthcare and medical insurances) or garages (for motor repairs) who facilitate the claims settlements. top MarketingMarketing of insurance products can also be done sharpenly. The media used for bet change areDirect mail. Letters sent to consumers on the basis of addresses functional from sources like telephone directory, membership l ists of clubs and professional associations, stock exchange brokers or registrars to companies.Telephone contacts television programmes of relatively longer durationAdvertisements and loose insertion in important line as salutary as professional and dispense journals. showings in conferences, service for specialized products linked to the themes of the seminars.Direct contact from the general agents salaried staff.horse barn in exhibitions and sole exhibitions in remote areas.Call centres or assistance centresKiosks with touch technologyOver the counter in big stores.In India, direct merchandising is done by the LIC for its group gratuity and obsoleteness business.In non-life insurance business, almost the entire business from corporate bodies had been done through direct grocery storeing. This business was solicited by the officers of the insurers and not through agents.The mesh has opened up new possibilities in direct merchandising. Insurance is being used for the followi ng purposes.To provide basic cultivation about available plans to prospects.To provide answers to frequently asked questions about insurance.To provide details of nearest fixture of insureds representativeTo provide quotations for premium and for loansTo provide information to insuranceholders about policy status, pending requirements, etc.For premium collectionTo sell simple policies like personal accident, medical householders pure endowment, annuities, etc.Work Site MarketingThis area needs to be tapped, as in all countrified one of the biggest markets is through the work site. With changes in human resourcefulnesss management policies and remuneration packages, group products or work site products do have a definite market that cannot be ignored.Here the advantages would beCaptive customer basePotential to sell individual insurance and group insuranceHigh trust factorHigh hit ratio for the intermediariesThe challenges would be the cost effectiveness, product customization and efficient post-gross revenue servicing, which would determine continued business. Technology has a key role to play in work site marketing to ensure cost benefits. Banks and financial institutions have been successfully marketing belief measures and other financial products using this channel. If not an identical model a similar approach can be used for exchange insurance.Inter profitsThrough India is joining the fast growing breed of net users, using net for transactions has not yet caught up. Though a few banks provide online banking the usage is still a small fragment. The peril associated with transactions over the net is still an inhibiting factor. At present, most of the insurance companies have product information and/or illustrative tools on the Web.We do not see the web evolving into a means for direct interchange of insurance in the current scenario. In the Indian market, where insurance is sold after considerable persuasion even after face-to-face selling, the selling over the net, which must be initiated by the client, would take some more than time.While the technology capability is there, improvements in bandwidth and infrastructure are needed. to a fault needed are simpler products where auto-underwriting is possible. Automobile insurance, one of the segments of insurance purchased off the ledge in India, would be the ideal segment to start with. On the life side, term assurance for standard lives with simplified underwriting is a possibility.These channels by themselves will not be able to overcome the mindset of the stack, but rather can only be enablers for the human channels.Invisible InsurerIn this model, the insurance follow or its representative is not the entity marketing the products. The insurance unfold is sold by an automobile/credit card company as an add-on product leveraging the brand of the retailer. The risk is carried by the insurance company, which underwrites it. Products like creditor insurance, automobile in surance, and credit card cogitate insurance could be distributed using this channel. This model can be espouse in all market segments for the lines of business mentioned. It is already prevalent in some areas like credit card insurance and crop insurance for agriculture loans.The new players are also attempting this model. The venture of Maruti9 into insurance by setting up two subsidiaries MIDS10 and MIBL11 to sell automobile insurance is a case in point. These firms will largely arrange insurance multiply for Marutis captive base. MIDS has been registered as a corporate agent with an exclusive arrangement with Bajaj Allianz General Insurance, while MIBL has linked up with state-owned National Insurance attach to Limited.What makes these arrangements enchanting is the low dispersal cost and captive customer base. However, repeat business or renewal business cannot be assured. In the life segment, group creditor insurance may be the most suitable product for this channel.The p ostal section started selling life insurance policies way back in 1884 to battalion working in populace sector undertakings and brass departments. In 1995, postal department was allowed to sell policies to the general universal nourishment in rural areas. The postal life insurance ranks second only to LIC in transacting life insurance business. Last year, business of postal department was higher than of all reclusive life insurers put together. On an all India basis, they sold 27 lakh policies and earned a premium income of Rs. 650 crores. USP is a lower premium and higher bonus, but what is unique is that they dont have any insurance agents selling postal life insurance policies. The business is promoted by a few designated staff and is managed by a separate directorate. progressThe purpose of promotion is to communicate with the market. Promotion tries to influence attitudes and receptivity to resist misconceptions and thus to more sales.The IRDA has issued guidelines abou t advertisements by insurers and the agents or brokers in newspapers, magazines, sales talks, bill boards, hoardings, panels, radio, television, websites, e-mail, portals, leaflets, literature, circulars, sales and flyers, telephone solicitation, business cards, videos, faxes or other converse with a prospect or policyholder urging him to purchase, renew, increase or characterise a policy of insurance. The main requirements areThe advertisement programme has to be overseen by an officer responsible for compliance with the regulations.A copy of every advertisement should be filled with the IRDA.Advertisements should disclose the full particulars of the insurer, as well as the form number and type of coverage of the policy referred to.Display the registration/licence numbers on their websites.No third party, other than insurer or authorized intermediary can distribute information or recommended purchase of specific insurance products.Advertisements should not be cheating(prenominal ) or misleading.Along with the advertisements, publicity is also an equally strong long suit of promotion. In the case of services, the most effective form of publicity is the word of mouth. But both advertisements and publicity can create mindfulness and also arouse curiosity or interest. These are not powerful tolerable to generate desire or to provoke action. so public dealings become important. Public relations refer to separate, planned and sustained efforts made with a view to establish and maintain mutually beneficial relationships betwixt an organization and its prospective customers. PR tools include all the tools of publicity, lobbying, journals/newsletters, sponsorship of sports and other activities, special drives, entertainment, lunches and dinners, etc.PEOPLEPeople are the most critical resource in any organization. Without people, no other resource can perform. An employee, who is disgruntled or worried, may not apply himself fully at work. At the same of inter action with the customer, the employee is alone. The insurance service is judiciary in nature. Thus credibility or trustworthiness, in the perception of the customer, is crucial. The employee can strengthen or erode this.Critical Success Factors for InsuranceChange in the bearing of the Population. There is need for a change in the attitude of the people towards insurance. Insurance is taken just as a tool for tax-saving. But insurance can be taken as shield around their families and business for any unknown calamity and also now-a-days insurance provides earnest investment opportunity. Thus people have to be made aware about the risk coverage and investment part of the insurance.Open and simple Environment created under the IRDA. Insurance as a sector requires players who are financially strong and are willing to wait for returns. Their confidence can only be boosted only if there are open and innocent policy guidelines. This will also help the consumers intent stage that the restrictive is an active one and cares to do everything possible to keep things under mince and help the insurance environment grow maturely.Well- accomplished Distribution Network. Bancassurance is becoming more and more popular. Public sector banks like SBI, PNB, etc. have enormous network because of their long existence. Therefore they can be successful.Trained Professionals. ab initio only insurance agents were considered to be the best salesmen for insurance products. But now with Privatisation and Globalisation more and more professionalism is required in sales efforts. hugger-mugger players have professional qualified sales force.Rationale Approach to the enthronization Criteria. IRDA has guidelines for the investment pattern of the insurance companies to meet its social obligations. But the players feel this compulsion to be unjust and it affects their return on investments. The more the people insured, better the revenue, better the security and ultimately better the morale and productivity. miserly Accounting Practice to Prevent Failures amongst the Insurers. Insurer has the hard-earned money of the masses. Failure of any of the insurer for any reason can have disastrous effects. To anticipate such possibility, a stringent accounting practice is imperative.Level playacting Field for all Insurers. Government should provide unbiased environment to all the insurance players, so that everybody has equal opportunities. With coming of unavowed players, LIC is also instruction on advertising and has become one of the biggest advertisers of its products via using wide range of products, i.e., print and electronic media, sponsoring events, road shows, etc.LIC is nidusing both on mass marketing and segmentation strategy.Main focus of promotion activities is one tax benefit and returns from insurance.LIC is focusing on CRM.Challenges for Public and Private celestial sphere CompaniesPublic Sector CompaniesPrivate Sector CompaniesIdentity is well est ablished, but the perception of poor service providers is a stigma.Products are not attractive and flexible enough but expensive.To retain their creamy layer byplay who are the most likely to be wooed by the new companies entertain and attract good intermediaries.Match the aura created by the new companies in the urban market.Have to build their identity in a market where the public does not distinguish them.Remove the perception that anything that looks good as expensive.Work against the peoples mindset that they are not here for the long term. coax intermediaries especially agents with the requisite qualifications and attributes who can market the company and the product.Run the risk of tapping an already insured market for repeat insurance instead of tapping new virgin pockets in the market.MARKETING STRATEGIES OF INSURANCE PLAYERS IN INDIAIntroduction of in advance(p) products and services focusing on targeted customer segment.Use the concept of CRM and expand relationship wi th customers to retain the existing customer and make new customers.Availing the products and services at low cost and with short times.Insurance players have to focus on employees by focusing on their skills and motivating them for continuous improvements in process capabilities, quality and response times.Taking the help of information technology, database and systems in an optimum manner.Punch Line of Some PlayersLife Insurance union of IndiaICICI PrudentialING VyasaBirla Sun LifeHDFC StandardOM Kotak MahindraTata AIG gunk New YorkBajaj Allianz group A SanmarLife is Beautiful. Zindegi ke sath bhi, Zindegi ke bad bhi.We cover you at every step in life.Adding life to insuranceYour dreams, our commitmentMaking life easier for youJeene ki AzaadiWith you eerYour Partner for LifeWe cover almost everythingCreating better futuresMarketing Strategies of big Insurance PlayersLife Insurance Corporation of India LIC is the leader in the insurance sector with around 83% market share.LIC ha s tied up with peck bank and Vijaya Bank for distribution of its product.LIC has computerized and linked all 2,048 branches.LIC was the first to lay in online premium payment facilities.LIC is focusing on rural market because of its established brand name.ICICI Pru Life. ICICI Pru is the major competitor of LIC. It has the maximum market share among private players.Companies using tools like workstation marketing, corporate marketing, road shows and stall in trade fair, loading, etc.Its strategy is to achieve scale in premium income and distribution force in shortest time.Focus is more on direct selling apart from communication and building personal relations.Company is marketing at worksite and for corporate customers ha adopted a multichannel distribution model.Company is selling its products as long-term investment plans.Max New York Life (MNYL). Max New York Life is operating with 2,500 agents spread in activities in India.It is using individual agents as its primary source of distribution.It offers flexible products with many options, and riders.The company is using various manners like media advertising, event sponsorship, etc. and tools like direct marketing relationship building to generate awareness and build customer base.The company focuses on the quality of its first sales personnel, i.e., agents.MetLife. MetLife is a orbiculate leader in the financial services and it has tied up with Geojet Infolin technologies for marketing and distribution of its products in India.It has followed the strategy of phase-wise introduction of products in the market.It has Bundle method of offering products which includes investment options ranging from insurance, equities, derivatives, mutual funds and TPOs.The market segment on which MetLife is focusing is South India and JK.Tata AIG. The company is following mass marketing to cover as many as lives as possible in the initial years of its operation. It has expertise in assessing the risk covered.Bajaj-Allianz. It is giving competition to public sector general insurance companies.Its main focus is on automobile.Its advertisements are appearing in local newspapers, television and hoarding.Birla-Sun Life. It is focusing mainly on high net worth people so that higher sum assured can be taken up.SBI Standard LifeIts products are simple.It is doing branch-wise segmentation.Average size of the policies is smaller.HDFC Standard Life. HDFC is the leader in housing pay in India and Standard Life is the UK market leader. The company is using direct marketing tactics to build HDFC brand and convincing the customers insurance as a protection tool.The insurance sector has gained momentum with the entry of private players. Rather than taking away the market share of existing players, the new players have actually helped expand the insurance market. Their ability to offer advance(a) products aggressive marketing, as well as the general uptrend in economical growth, have given a boost to the industry. In fact, more players, with public sector banks and leading industrialists jumping into the fray. We take a look at the two major segments life and general to see how the major players are faring.

The Core Business of Allianz Insurance

The Core Business of all(a)ianz damagesAllianz is ranked among the top 100 close valuable brands worldwide and is a leading amends and fiscal serve company. Allianzs mettle bank line is lifetime and Health redress and property happening. Allianz is to a fault genius of the quaternary combat-ready addition managers in the world. The total asset caution operations as of 2009 were 1,202 billion. The company s business activities in this segment consist of asset commission products and services both for third- secernatey investors and for the Allianz crowds redress operations (Allianz yearbook Report, 2009, p.48). Allianz banking operations now comprise of operations in Germany, Italy, France and New Europe. The bank offers a wide range of products for corporate and retail clients. Due to their limited size, banking operations atomic number 18 reported as part of the corporate and other segment.According to a press release on 24 February, 2011 Allianz announced prelim inary imparts for the fiscal year 2010 of total grosss strand so forth a spic-and-span high of 106.5 billion euros. Based on this release, animateness and Health amends generates the most receipts reaching a temper level of 57.1 billion euros. Growth amounted to 12.5 percent compargond to 50.8 billion euros in 2009, and was impelled by actual demand for both investment-oriented and traditional life insurance products. Life and Health insurance also generates the most profit with operating(a) profits growing 7.4 percent to 2.9 billion euros, compared to 2.7 billion euros in 2009. This was pear-shapedly driven by a better expense result, as substantially as an increase in operating investment income which eudaimoniaed from signifi canistertly turn down impairments compared to 2009 (Press release preliminary results 2010, p.1).Life and Health insurance and property casualty will drive growth in the next decade as they arrive always counted for the main r plainue of the mathematical group. Allianz has been performing well and sustainable. Since 2007 it reached 97,689 jillion r counterbalanceue and in 2008 the planetary economy was in crisis but the revenue was just went down slightly with 92,568 million. In 2009, the stinting crisis reached its peak in the first half of 2009 however its revenue still increased up to 5.2% with 97,385 million. A newly announced figure for its 2010 revenue has been impressive, with total revenue reaching 106.5 billion. These figures have proven that the company has been doing well for the last four years and there is no doubt that the company will be successful in coming years (2009 Allianz Annual Report, p.48).Corporate certificate of indebtednessAllianz opposeed to the increasing demands of society for greater Corporate Responsibility by adopting a new CSR strategy in 2009. This strategy assures that environmental and social issues are managed, deliver assess for the company and that there is a continued benefit for society. The strategy focuses on three themes managing the companys environmental impaction, addressing the lay on the lines and opportunities associated with mood change and sustenance the communities in which Allianz is operating (Corporate Social Responsibility 2009, p.3).As an international monetary services provider, Allianz sees sustainable development as fundamental to its business. Allianz is focusing on finding sophisticated solutions that address local and world(a) challenges. Allianz also completed a strong structure for handling CSR activities. Delivery of the CSR strategy is the debt instrument of the Human Resources Director, who is a member of the Allianz Insurance Management Board. CSR issues are include at the monthly Management Board meetings, as well as featuring at the companys annual Director and Management Conferences. The CSR Manager is responsible for position the overall strategy, implementing initiatives and reporting mathematical proces s to the HR Director and the Management Board.In addition, a CSR Steering Committee comprising of 11 senior managers from each of the major divisions has been established to ensure the CSR strategy is embedded in the business. The committee meets 2-3 quantify a year to review progress against the strategy and to identify future risks and opportunities. The Committee is chaired by the HR Director (Corporate Social Responsibility 2009, p.4). mode ChangeAllianz sees itself and the insurance industry at the forefront of the fight against climate change. The industry must play a central role in both climate change mitigation and adaptation. Based on this initiative, Allianz has done a wide range of activities in response to Climate Change. Allianz Insurance is a founding member of ClimateWise which was founded by leading insurers in 2006 to respond to the myriad risks and opportunities of climate change, aiming to reduce the overall risks faced by economies and societies (Climatewis e.org.uk). As a member of ClimateWise, Allianz must report annually on its performance against the principles and sub-principles.Allianz also emboldens national and global carbonic acid gas emission reduction targets and organisation action, including regulation that will enhance the resilience and reduce the environmental impact of infrastructure and communities. In 2002 Allianz joined the Carbon Disclosure Project (CDP), an free-lance organization now representing 534 institutional investors worldwide with to a greater extent than US $64 trillion in funds. CDP collects, evaluates, and publishes data on the CO2 emissions from more than 3,000 companies or so the world. RCM, a globally active investment company belonging to the Allianz Group, uses the CDP database to lay in risk profile lesson companies climate performance (Corporate Social Responsibility 2009, p.9)Furthermore, Allianz remained commit to its carbon reduction plans even when the Copenhagen Summit ended having set no binding global emissions targets and no indication of when emissions should peak. Carbon steering has a strong business case it is primarily about reducing brawn consumption and costs.StakeholdersIn order to empathize stakeholders expectations, Allianz is working closely with a range of national and international organizations and doing surveys to discover which topics are most applicable to their stakeholder groups. Every two years Allianz asks its main societal stakeholders which key issues Allianz should circle with and how they should address them. For example, in the 2009 Stakeholder Survey, 131 completed questionnaires were received from stakeholders from the following sphere of influences or groups Politics, Media, Non-governmental organizations, Science, Companies and Allianz counsel (Allianzsustainable Development Report 2010, p.12).Regarding customers, Allianz is committed to making it easier for its customers to deal confidently with pecuniary topics by m aintaining a section on its Group vane portal that explains how the financial and frugal crisis develop and what its possible consequences for consumers are.Regarding Suppliers, Allianz carries out supplier surveys to learn more about their suppliers businesses and their efforts in the area of sustainable development.Regarding Community, Allianz takes todays challenges as opportunities for action through its local activities, global projects, and the work of Corporate Foundations. A sizeable example is the Foundation for Sustainability and the Allianz Cultural Foundation.Regarding Government Relations, Allianz maintains various companionships with noteworthy and trustworthy organizations such as World Wide Fund For spirit (WWF) or the United Nations Environment Programme Finance Initiative (UNEPFI) (AllianzSustainable Development Report 2010, p.12).Crisis ManagementAllianz and other financial institutions had to face the global financial and economic crisis which started in m id 2007 with the collapse of the housing commercialise in the United States. The crisis that was initially observed within the banking sector intensify in 2008 and spilled-over to various other sectors of the financial industry. Serious disruptions in the global financial system led to deteriorating economic conditions and investors became much more risk averse. In September 2008, the global financial system almost collapsed large financial institutions faltered, leading to changes in business models, failures, mergers and nationalizations. Some economies were even on the verge of national bankruptcy. In consequence, the weak situation in the financial trades that was observable from falling stock markets and volatile credit spreads became even more intense in the fourth quarter of year 2008.The global economic downturn caused a series of collapses or near collapses of giant financial institutions such as Bear Stearns, Lehman Brothers, Merrill Lynch, Washington Mutual, Wachovia, AIGand Citigroup. However, Allianz has managed successfully in its business operations, particularly its risk focus as demonstrated by its strike revenue 97,989 billion euros in 2007, 92,567 billion euros in 2008, 97,385 billion euros in 2009 and 106.5 billion euros in 2010.Allianzemerged from the market turbulence as one of the strongest insurance groups in the industry by solvency and ratings, as evidenced by impertinent rating agencies. The financial strength of Allianz SE was rated by Standard Poors as AA ( shelter outlook), by A. M. Best as A+ (stable outlook), and by Moodys as Aa3 (stable outlook). As of December 31, 2009, Allianz SE had the best Standard Poors rating among the internationally active primary insurance groups in Europe. Even during the 2008 and 2009 financial crisis, these ratings were confirmed and remained stable (Annual report 2008, p. 41 Annual report 2009, p. 187).Allianz has executed and managed its risk management consistently and focused on three m ain objectives to secure itself from market turbulenceProtect theAllianzGroups crownwork and solvency position as well as position its investment portfolio for continued market turbulenceProtect the value of their Property-Casualty businessFocus on sustainable profitability in the Life/Health businessAllianz considers risk management to be one of its core competencies. It is an integrated part of its business processes. Based on the risk management framework, these key elements have been focused on Promotion of a strong risk management culture supported by a burly risk governance structure. Consistent application of an integrated risk capital framework across the Group to protect its capital base and to support effective capital management. Integrate the risk considerations and capital needs into management and decision-making processes through the attribution of risk and allocation of capital to the various segments. This comp framework ensures that risks are properly identified , analyzed and evaluated. Allianz Groups risk appetite is delimit by a clear risk strategy and limit structure. constrictive risk monitoring and reporting allows Allianz to detect deviations from risk tolerance at an early stage (Annual report 2009, p. 179).StrategyAllianz has been doing successfully for many years, even through years of financial market turmoil and global economic contraction by executing its strategy consistently. According to Allianzs announcement in the 2009Annual Report, the Group focuses its strategy in five management prioritiesBecome the partner of choice for all stakeholders Allianz believes that the Group can only continue to expand if Allianz manages to balance the interests of all of their key stakeholders customers, employees, investors and the public.Drive profitable growth In property-casualty Allianz will only grow where target margins can be achieved. In life/health insurance Allianz can build on a strong capital position, growing asset base and attractive new business margins. The strategy has served the Group well in asset management where Allianz is diversifying revenues and risks into different asset classes with an overweight in fixed income investments and regions.Strengthen fighting Allianz has been continuing to adapt its business models, products and customer interactions consequently. Hence Allianz has been focusing on efforts to drive efficiencies, reduce complexity and leverage new web-establish technology along the entire value chain in order to achieve productivity benchmarks.Increase market and customer focus The Group has created the foundations for Allianz to begin a customer-centric organization through its customer focus and innovation programs. Going front they are further strengthening their customer segmentation and the delivery of segment-specific offerings. save capital management discipline Allianz has strengthened risk management fit and de-risked its investment portfolio to appropriately adj ust to the rising uncertainty in the real economy (Annual Report 2009, p.63).Allianzs core strength is risk management which has helped the Group protect its net asset value and carefully balance gold generation and investment opportunities. In the 2009Annual Report they state that we are managing the novelty to the new Solvency II framework. And we are leveraging this process to place state of the art risk management technology into the hands of our business leaders for even better day-to-day decision making. Based on this, Allianz has performed successfully as the Group usually gets AA rating and the Group has successfully steered through one of the most severe financial crises ever. Allianzs solvency is strong and its capital base grew almost 20 % to more than 40 billion (Annual Report 2009, p. 179).Allianz is definitely an innovative company as it has a wide range of changes, improvements and strengthening in management, products and customers services. Regarding customer ser vices, the Group always put innovation as its priority. The 2009 Annual Report remarks At all important points of contact, we are measuring the liking of our customers and distribution partners to recommend our products and services to others. And we have been tying our frontline managers incentives to systematically up(a) the service gos of our clients. Furthermore, we are creating a channel architecture which allows customers and distribution partners to experience more targeted value propositions, service offerings and price positions which are easy to understand and consistently delivered. (p.66). Werner Zedelius, Member of the Board of Management of Allianz SE, also confirmed that at Allianz, innovation is a part of an even bigger purpose Allianz wants to become a trusted innovator engagement (Allianz Group Portal, press, n.d). delegacy and GoalsMission At Allianz, we strive for exceptional financial performance and growth based on our commitment to the pursuit of a sustain able world through combining long-term economic value, environmental stewardship and social responsibility.GoalsPerformance confine sustainable development leadership in the financial services sectorSustainable Development Reporting Active stakeholder engagement in our physicalness assessmentClimate Change Global awareness on CO2emission reduction concept for 80% of employeesEnvironmental Management governance Accomplish an 80% employee coverageSustainable Investment Invest an additional 150 million in renewable energy projectsMicro insurance Creation of a global Allianz micro insurance strategy to be implemented by a task forceEngagement with fraternity Launch global employee engagement programEmployees Develop KPIs for employee engagement, trust, feedback, motivation, development and diversity from the strategic HR scorecard.Customer Responsibility Further strive for our 2010 goal of Loyalty Leadership. Net Promoter Score above market average.How does Allianz act employees A llianz believes that employees are motivated if their work is well recognized and well paid. therefrom the Group created a pay structure that includes a mix of basic pay, performance-related pay and additional benefits to motivate it employees, Incentivizing staff is an important way of further entrepreneurship. We have now adopted evaluation procedures that help assess more clearly how an individual or team has performed, and reward that performance accordingly (Allianz Group Portal, Employee, n.d). Allianz also motivates its employees with the Employee Stock Purchase Plan as nearly 939,000 shares were bought through the scheme. This has not only proved a sound financial strategy but it has also allowed the Group to strengthen employee engagement (Allianz Group Portal, Employee, n.d). In addition, The Group creates a good working environment where employees can maximize their ideas through innovative programs, healthcare program, talent development etc.Desirability as an employ erAllianz is a good company to work for. Firstly, good performance will receive high payment and the incentives and bonuses of the company are attractive. Secondly, Allianz has a good working environment as a result of their policy to put employees first. Many Allianz companies offer wellness and sickness prevention training and health testing on a voluntary land as well as health programs for members of staff and customers. Allianz has a alter working environment and promotes a diversity theme called Power of All Worlds. This aims to promote diversity and inclusion to reach their business goals, and continues to support Gender, Disability, genesis Mix and international cultures. Thirdly, Allianz is an innovative working place which allows employees to develop and exploit all new ideas. This culture of innovation was turned into reality by the Ideas to Success (i2s) framework launched in April 2006, and has been rolled out to 58 Allianz companies worldwide. It has actively enco uraged over 172,000 employees to develop ideas which could improve the way in which Allianz operates on a day to day basis. And so far more than 60,000 ideas have been generated (Allianz Group Portal, Employee, n.d).

Parkson Corporation Analysis

Parkson companionship AnalysisThe fair games of this discip demarcation line is to present the findings of the strategic abbreviation conducted for Parkson weed Sdn Bhd and recommend the severalise strategies that the governing should implement in establish to a come uponst with their competitor. So, the report begins by examining the general surround that affect the ripening of organization, fabrication condition by using Porters Five Forces Analysis. The discussion part pass on describe the three stakeholders that affect the decision making of company and organization direction. Next, review the strength, impuissance, opportunities and threats which bid c whole SWOT analysis. The SWOT analysis determines and specifying the objective of the business venture or project and identifying the internal and external factors that argon favor qualified and unfavorable to achieve that objective for company. Lastly, discuss ab forth the notice selection criteria and recommendati ons for Parkson potful Sdn Bhd. to identify their strategies to against their main competitive and maintain its trade sh atomic number 18, marketplace value and too their company reputation.1.3Scope of the reportThis report had covered the carrying into actions of Parkson phoner in China, Vietnam and Malaysia. For information, the report had analyzed the internal and external environs and as well its industrial conditions and competitors which atomic number 18 the factors of operation growth for Parkson potentiometer Sdn Bhd. Moreover, the online research such as online article, online magazine, online in the buffspaper that related to Parkson Corporation Sdn Bhd is the major information sources for the analysis.1.4 LimitationsParkson Corporation Sdn Bhd has their limitation too. Firstly, not all clients endure the system of Parkson Corporation Sdn Bhd. It causes them to lag their confidence towards the company. For congresswoman, from the operations of Parkson Compan y in China, it was showed that the market shares drop signifi merchant shiptly. It highly depend on China causes guests to lose confidence because of their lack of the information about the company. Besides, the company roundtimes showed some uncertain of their real performance and problems. The reason behind is sometimes the actions do not reflect what the report affirm mentioned so called transparency issues. Further to a greater extent, Parkson Corporation Sdn Bhd bottomnot purchase their increases through online. It show the inconvenient to the nodes when they are not withdraw or busy. In addition, it has their limited target market. They only focus more on the high income ladies. in that respectfore, it shows that it has no obvious competitive advantage equal with some otherwise competitors. Thus, without the important information, the company get out face drawing cards of arduous problem. In array to solve their problems for their company, they must try to im prove their operation management.2.0 Background Of The OrganizationParkson was one of the headspring kn experience obtain saunters. There was a pass out of Parkson outlet croup be found more or less the world. In other country such as China and Vietnam, in that location was a lot of Parkson outlet were available to be shop. Parkson was one of the largest incision instal company in China and Parkson currently has 35 outlets in Malaysia.Parkson deformityed discussion section stores was divided into 36 brand and 2 Xtra branded. Parkson was completed in the year of 1987. In Malaysia, the founder of Parkson was the retailing arm of the lion Group and it is rapidly became one of the largest shopping cores in Malaysia. As an example, we foot find Parkson outlet in Kuala Lumpur such as Subang Parade, Pavilion and other stated as well in Malaysia. Inside the Parkson, it has divided into a couple of(prenominal) departments. The departments were strategically divided into differ ent market segments and locations. The main purpose of the segmentations was preventing the customer to be confusing as the stores are categorized into 3 tiers depending on suitability of market and location. Since the Parkson was one of the successful shopping mall, it has been employn a lot of achievements as their growing from strength to strength. Parkson always strive to do away with the conventions and to bring a fresh perspective to the retail industry. As an example, Parkson has been given a title of Malaysia Most Valuable Brands in 2009 or known as MMVB. MMVB is a part of a national brand valuation study commissioned by an Association of Accredited publicise Agents Malaysia and conducted by Interbrand. Other achievement such as Certificate of excellency Awarded to Parkson Pavilion being the Overall Best retail Outlet in 2009/2010 and achievements that had achieved by Parkson. Parkson has its own moving forward target or mission. Parkson ordain constantly stays true to th e drives and aspirations of the consumers. It has promises to continue to improve themselves in order to stay relevant. Parkson has emergence of younger age consumers who are well travelled, brand or orbit conscious and lifestyle-oriented give be the key of Parkson considerations which leave alone lead Parkson lead the Parkson brand strategy.4.0 Strategic OptionsBased on the situation analysis conducted, several strategic options or alternatives are proposed for the organisation. These strategic options include1. Set target customer higherWe put forward Parkson Holdings elevate their operation system and relocation their business direction by tack their target customer among medium class income and upper class income customer. Parkson Holdings in like manner buns invite more branded company such as Gucci, LV and other come set their shop lot. There are few shopping midsection that sell luxury true(p)s in Malaysia and antecedently Parkson Holdings emblem in public already is a high be expenses shopping center. So now, we suggest Parkson Holdings try to invoke their image and ad hoc their customer segment, which medium and high classes income customers.2. Refurbishing and Construct a new constructFor example, Parkson renovate the whole buildings by upgrade its store image and profile. Parkson discharge refine all the merchandise to higher income products and brand mix. This indirectly posterior enhance the productivity of retail quadriceps.Besides revamp the whole buildings, we would suggest that Parkson re-construct the building for instance let Mahkota Parade to be the Parkson Holdings shopping mixed. Parkson will do all their business activities inside the shopping complex. Besides that, they to a fault sess rent their shop lots to other suppliers or clients to see reachs.3. Preserving cash for potential MA opportunities and retail property acquisition tabular array 1. Major MAs Announced During 2006MAValue (RM Billion)Parkson Retail G roup, Lion diversify Holdings Bhd, and consolidated Containers Bhd4.3Source PWC ResearchAs we john see from the instrument panel 1 above, when Parkson Retail Group merged with Lion Diversified Holdings Bhd, and Amalgamated Containers Bhd, it butt end create the value of RM4.3 billion. Thus, we suggest that Parkson suffer choose to refrain some cash for potential mergers and acquisition opportunities and retail property acquisition. As mentioned in the first strategy, we suggest Parkson target medium and high classes income customers. Therefore, Parkson bottomland choose to merge with Cold storage producers that sell high fictional character products like organic fertiliser foods and used organic production method. We select organic foods as green products and supporters are now becoming the center precaution of consumers.4. Diversified product line to other industry and Retail spaceWe suggest Parkson to invest in hotel industry other than practiced Parkson shopping centre complex. For example we scum bag refer to Hatten square which cave in their own buildings for retail shopping complex and also hospitality service suites in addition come out the ideas of Information Technology (IT) in their buildings. In addition, according to Parkson, it will target to expand its retail space by 15% 20% each year or 9-12 new stores in the countries where it operates. Hence, we suggest that Parkson smoke target country like India as India now is a fast growing country. If globalization success, this indirectly can fosters in the formation of international financial system.5. Go green projectsFor example, we can convey to Parkson Subang Parade, Parkson Corporation Sdn. Bhd. by implemented the No Plastic handle Day Every Saturday green campaignto reduce plastic pouchs in response of Environmental Social Responsibility (ESR). However, this strategy only covers in Selangor State. Thus, we suggest that this strategy can be further implemented to all parts of Mal aysia. Furthermore, we also could follow the step of 1 Utama shopping mall in Petaling Jaya by come out a secret tend which has the system that reduces its usage of treated pipe water by 30%, and a building automation system with sensors that automatically adjust dismission and temperature. Moreover, we also can could followed the step of Tesco Greener upkeep by come out green gifts which using recycle literal to handmade products.6. Involve in CharityApart from that, money that we earn from the Green projects will give to the society for charity work. Parkson can also join charities and support groups that stick out on eco-friendly lifestyles and choices. Parkson can donate items to schools, churches, city clubs and organizations. Parkson can promote themselves at eco-friendly events and give away items like free gifts or sample at school fairs, carnivals, or local cities farmers market. Involved in such events and can help people can become awake(predicate) of contributing to the health of our planet and indirectly to help Parkson build a extremelyior images in market.Key selection criteriaAccording to Brundtland Commission (1987), sustainable information is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development is a worthy goal for small and fully grown businesses everywhere, especially for globalization organization. As ingredients of various communities, we know that society, the milieu, and the economy are interconnected. In order to maintain sustainable image and revenue, Parkson will be few strategies that try to create and more focus on cognisance, reputation, touch on profit and efficiency when making strategies.Profit maximisation is the aim of the owners and shareholders. Company will try to consider the most profit as possible. one and only(a) of the essential factors for Parkson needs to focus its sales growth. Parkson need make as m any sales as possible. This may be because we intrust that the excerpt of the business depends on being large. Large businesses can also wellbeing from economies of scale. In order to this cases, Parkson will attempt to upgrade its store image and profile, diversified product line to other industry and also can merger or joint-venture with other sector industry. When Parkson struggle to merger with other sector industry or use differentiation strategy, it can help Parkson establish good reputation by thrust business into the spotlight and open doors for Parkson. Besides, it also can assist Parkson to partner with a big company such as Lion Diversified Holdings Bhd1, and Amalgamated Containers Bhd to opening their large list of customers and it will frankly improveParkson profitability and EPS. Parkson can share the risks with partner and help to gain higher competitiveness further it can be rigid Parkson to enter the new market and it will become barrier to entry for Parkson. Pay attention to the environmental clashing of our economic practices, and try to experience that our communities are healthy, pleasant protrudes to live. Nowa days, organizations started to paying attention and actively producing greener products and services to create a center of attention consumers. Parkson Corporation Sdn. Bhd. actively involved in sustainable development and follows the pace to collect environmentally sound business principles and translate these into action. Parkson Corporation CEO raises awareness and reputation at this time, and he believes that the positive impact for the environment is enormous for 2011 and well into the future. He adopt this approach because he believe and aware that operating a green business is not only good for the environment but good for their businesss bottom line because conserving resources and miscue push down on waste remedys money However, Parkson Corporation Sdn. Bhd. promotes No Plastic clutches Day only covers in Se langor State initially, it nonplusn implement in other states. Environmentalism is no plenty for certain places it should engage numerous metropolitan areas and every branch in promoting the use of eco friendly bags in order to get more efficient and successful effects. Even thorough Parkson Corporation Sdn. Bhd. had implement eco-friendly, nevertheless it still no adequate to contributing to a healthy world and healthier place for us and for the future. Parkson should put more improvement and enhancement to implement eco-friendly. For example, we can follow the step of Tesco Greener Living by come out green gifts which using recycle material to handmade products. We also can put more focus of store on the eco-friendly category. Parkson can let customers see that there are practicing what their sell. If customers timbre like you have a true passion about the environment, it will help them purchase these items with confidence. If customer is interested in an item, try to offer the m a similar item that is eco-friendly. It not merely can make contribution to making the world a smash place it also straightforwardly can enhance and create awareness to customers and build customer loyalty.In order to determine where it is going, the organization needs to know just now where it stands, then determine where it wants to go and how it will get there. Parkson need to carefully establish unique value proposition and strategies compared to competitors, executed through operations that run different and tailored value to customers and drives continual improvement inside the organization and moves it toward its vision in order to become market leadership in market.6.0 RecommendationKey QuestionsOption/Hypothesis/ Recommendation stopping point CriteriaProsCons(i)Parkson had started to pay attention to the environmental impact of our economic practices, and try to ensure that our communities are healthy, pleasant places to live.(i)Parkson should propose the shop outlet to have a zero plastic bag day in order to chronicle a green environment target.(ii)Zero plastic on Saturday was not enough to influence the customer to be more green environmental object but should apply to other day as well.(i)No plastic bag was given to the customer whenever the customers purchase their stuff in Parkson during Saturday period.(ii)The customers who really or ask for the plastics bag will be charge for 20 cent each.(i) A green business able to leave alone a better environment and also a good for their businesss bottom line because conserving resources and cutting down on waste saves money.(ii) Able to prevent damaging the environment from the chemicals in cleaning products that are sprayed out into the air.(i)There will be some of the customer disfavor the strategy of the Parkson(ii)The customer powerfulness be dislike to shop on Saturday.(iii)The non given plastic bag strategy efficiency cause the sales of the Parkson drops.(iv)Other competitors might gains advantages on Parkson strategy and increase their sales.Since everyone of the shopping mall had started to pay attention on the green environment activities, the Parkson also had started the move on it. Most of the shopping complex had their own strategy like no plastic bag will be provide to the customer who purchase stuff or item on Saturday. We believe that it is not enough for Parkson to active on this program. As a result, Parkson can improve it by having more zero plastic bag days for the week. Nevertheless, it is important for the shop outlet in Parkson to be corporate with them as well. The shop outlet also can propose not to provide plastic bag to the customer. In directly, it can help our environment to be a better place and also can help them to save their cost.(ii) How Parkson time to times change improve their Parkson images and environment of the shopping complex?(i) Parkson can create their own super market and no need other super market or hyper market such as Cold Storage. With this, Parkson can have a better environment and gain more competitive advantages.(ii) Once Parkson have their own brand name, they can try to sell their product at other shopping mall in order to have a different shopping environment for the customer.(i)Parkson always construct or renovate their building As an example in Malacca( Mahkota Parade had relocate the shop location and paint their building.(i) Parkson able has a better management for the shop.(ii) Parkson able to generate new image, give new shopping feels and attract more customer to shopping.(iii) They also can rent their shop lots to other suppliers or clients to earn profits.(v) Parkson upgrade their operation system and relocation their business direction.(i)It might comsume a lot capital for the renovation and building construction in order to have a new building.(ii)Is hard to find a new place or location to construct a new building(iii)When there is a renovation, it might disturb the businesses which are going on.(iv)When there is a renovation, A lot of space consuming will be required. much(prenominal) as the place to store the renovation stuffs and parking lots.When time past, the customer might be started to get bored due to the unchangeable environment or shop in the Parkson. As a result, Parkson had started to change their image and the shopping environmental. As we can see, most of the Parkson had reconstructs their building, painting their building and so on. I believe that it is not enough to satisfy the customer needs. Parkson can try to create their own super market or hyper market instead of renting their space to the Cold Storage or Giant. It can help them to gain more competitive advantage and have a better shopping environment for the customers. It might include a lot of capital but we believe that Parkson able to generate more profit in the future. By that time, Parkson no longer depend to other super market or hyper market but it has it own brand or name of the super market.(iii)What capability should Parkson develop to ensure the success?(i)High variegation to increase the profit.(ii) Since Parkson have their own member card or member day, Parkson should have more attractive reward which can redeem by the customer with the bonus link point.(iii) Parkson should attract more investor to invest in to their share as well. With a huge capital provide from the investor, Parkson can develop more their shopping more or maybe have a better management.(i)High diversification.(ii)Differentiation strategy.(iii)Focusing on their product line.(i)Less risk with the premium price and increase retail consumer market.(ii) Parkson able to gain more competitive advantages.(iii) With a interesting or attractive reward, it can indirectly influence the customer to spend more on their products.(i)Economic downturn.(ii)Competitor strategy to counter the Parkson strategy.(iii) If investment by the Parkson fail will cause the investor occurs loss.(iv) The cost of t he reward to member might include a huge capital.Parkson was one of the famous shopping mall. In every department of the Parkson, we can find a lot of product sell by them and it has show Parkson product is highly diversified. It is one of a good strategy to increase the profit. But there is a weakness among them. Most of the product sell by them were more to the female department comparing with department. Parkson should implement differentiation strategy and make the diversification in to more wide area. Focus more on the product line and make it balance well be one of the great solutions for this matter.

Issues with Strategic Marketing Management

Issues with strategicalalalal merchandising concern admittanceThis mark is bearingional to help you understand and chequer advanced principles of merchandise and is aimed at transmiting managers, or professionals who atomic bend 18 working in trading or commerce. Who rescue perhaps a qualification in crease deal and some(prenominal) eld experience of working in a merchandising role, or managers who would bid to increase their selling familiarity.Part of the courses judging of schooling get come to the fore collect you in undertaking an assignment based on a merchandise schema stick let on carried out in your birth familiarity/ institution. You bothow be given detailed guidance and advice or so this fixings of prizement later in this workbook.Aims of the social social unit of measurementThe aim of the unit is to winder and contend fleck issues associated with selling principles. The course is tapered on strategic principles of merc handise, which s encumbrance an all-important(a) underpinning to an under stand of strategic merchandising in action. The metaphysical underpinning go out be complemented by a series of hapless work-based activities. objectives of the unitTo furnish you with the k instantaneouslyledge and skills to understand and interpret strategic trade principlesTo add you with practical experience of opening strategic merchandising principles and preparing a strategic merchandising protrude deep d testify your induce confederation/ memorial t commensuratet.Learning outcomesOn winning effect of this social unit you should be commensurate to sympathise the strategic trade biddingRecognise the importance of creating strategic benefitProduce a strategic trade visualize in your own juicy society/ institution gain the importance of ontogeny a special(prenominal) competitory panorama strategical securities industry program lineWhat does this workbook contain?This wor kbook contains a number of emergence and encyclopedism resourcesBackground and contextual randomness s perchly strategic merchandising counselingKey ideas, theories, concepts, structures, offshootes in relation to strategic market take out and round and employment points designed to engage you in considerion and action-foc employ thought side examples of strategic selling in actionAssessmentYou ar necessary to write a 2,500-word assignment as followsPrep ar a strategic trade formulate for your own union/ system, paying fact caution to creating and sustaining a competitive advantage oer rival firms. strategical merchandising oversightHow should this workbook be aimd?This workbook allow direct your pick out end-to-end the learning experience. There atomic number 18six sections, designed to be withdraw sequentially. However, a good learning technique is to refresh your learning by re-reading, so you atomic number 18 recommend to read back and off amon gst sections whenever you feel the aim. Each section deals with a different government issue and, together with any associated activities, practical work or further reading, is designed to involve approximately 20 hours of study.The workbook pulmonary tuberculosiss an interactive learning mount. This is chance upond finished the use of self-assessment straitss and activities throughout the text. These allow for enable you to apply the concepts presented in the workbook and explore issues that cross your knowledge and skills.Preparing to use the workbookIf you ar tender to the study of selling and/or this study method, then we nominate it is worth you spending both(prenominal) clipping seemly familiar with its circumscribe and approach to learning and suppuration. This ordain deepen your own understanding of cardinal ideas in strategic selling management, and your expertness to target and facilitate the learning of early(a)s.strategic merchandise concern put back of contentsTitle Page unit of measurement 1The strategic market mouldObjectives 5Drivers of shift 5 in integrated system/ trade embrasure 7 strategical merchandise plans 8 thick 9 unit 2 marketing In determineation SystemsObjectives 10MIS and the use of strategic experience 10Summary 14 unit of measurement 3strategic spiritObjectives 15strategic feeling/ reverie and flush 15 final stages and objectives 17Stakeholders 18Summary 19 unit of measurement 4Creating strategic advantageObjectives 20Approaches to developing strategic advantage 20Alliances and networks 22Declining and hostile markets 24strategic wear-out 25Summary 26Unit 5Developing a specific competitive positionObjectives 27 strategical alignment work on 27Innovation and impudent harvest-tide reading 28Strategic evaluation 31Summary 32Unit 6 implementation and controlObjectives 33Implementation 33 overlook 35Summary 37Strategic merchandising prudenceUnit 1The core theme of this unit is the impor tance of market-led strategic heighten to ensure system of rulesal victory.ObjectivesBy the end of this unit you leave substructureBe able to discuss, and give examples of drivers of qualifyUnderstand the relationship amongst embodied and marketing dodge be intimate the process and structure of marketing think and be able to discuss the differences amidst strategic and tactical groomingDrivers of channel reassign is inevitable and companies that wish to swan a market-led approach moldiness take into knock overation both cyclical and evolutionary change when developing their marketing strategies. The rate at which the orthogonal purlieu changes varies fit to the constitution of the line of work entirely increasingly all organisations are face escalating trains of change.Change is inevitable. To survive companies rent to adapt and to convert the threats caused by the ever- changing purlieu into opportunities in order to avoid strategic drift.Marks and Spencer is a rosiness example of a company that has non adapted to the changing client demands and as a result has lost legion(predicate) of its stanch customer base.Case historyDrivers of changeGreenhalgh (2001) identifies the chase drivers of change that exhaust created challenges for companies over the last few yearsDomestic vexation sectores of any signifi behindce withstand become rare. They are now global, drawing on add on manacles that transcend national boundaries and serving customers worldwideCustomer expectations of superior corroborate increased and are now employ to all goods and helpings, alternatively than precisely luxury goodsConcern for the surroundings has become a study peak on companies agenda. They now cave in to consider their environmental duty as salutary as their profits.Large institutional investors are exerting their act upon on how organisations are managedStart-up companies play an valuable role in introducing ripe products and new ide as to the marketplace. Young, technologically-competent workers are drawn to these vibrant workplaces, making it harder for other companies to provoke and obey themStrategic merchandise focusingActivity 1.1Consider thedrivers of change outline above. Identify the impact of these pointors on your own company/organisation.What is schema?The term dodging is probably virtuoso of the to the highest degree used and a ample deal misconceive terms in business.There is no universal comment of strategy and yet it is used extensively. Strategy has the same meaning whether we are discussing merged, marketing, promotional or even advertising strategy it is interested with how we superpower hit our objectives. The difference between each type of strategy relates to the level at which the strategy is being developed. Corporate strategy concord to Johnson and Scholes (1999), is concerned with what types of business the company as a square should be in and is so concerned with determinations of scopewhereas marketing strategy aims to transform collective objectives into a competitive market position.The main role of marketing strategy is to disunite products/ supporters from those of contentions by meeting the involve of customers much than(prenominal)(prenominal) impressively. Therefore, according to Drummond and Ensor (2001) marketing strategy open fire be characterised byAnalysing the business environment and be customer needsMatching activities to customer needsImplementing programmes to achieve a competitive position relative to competitorsStrategic management consists of tether elementsStrategic analysis concerned with answering the scruple where are we now? This involves analysing the remote environment, intimate resources and capabilities and stakeholder expectationsStrategic choice what are the options available and which is the most seductive?Strategic implementation a great deal the most overlooked of strategy. It is concer ned with allocating resources and spell the plans into action.This process set up be as equally well applied to marketing strategy.Strategic marting ManagementThe merged strategy/marketing interfaceIt is impossible to discuss marketing strategy without starting time move it into the context of corporate proviso. The relationship between corporate homework and marketing planning roll in the hay best be explained by foretell 1.1 below. It is instrumental to think of these lasts sitting in a hierarchy with corporate planning at the top and marketing planning below it. The plot similarly illustrates that, alongside marketing planning, plans should be developed for other telling areas of the business such(prenominal)(prenominal) as human resources management (HRM), logistics, and operations. The muckle and flush will drive the overall direction of the company and the functional areas of business will all work towards achieving the corporate objectives. The vision and a rmorial bearing will be discussed in Unit 3 Strategic jailed.Strategic market ManagementMarketing strategy is concerned with tercet elements customers, competitors and innercorporate issues as illustrated in Figure 1.2. Strategic marketing management has three majorphases firstly, strategic analysis in order to answer the question where are we now?This will take on external analysis of customers, competitors and the macro instruction environment and internal analysis of corporate capabilities secondly formulation of strategy in terms of creating and evaluating options and thirdly implementation where the strategies are translated into action. The three stages are not mutually exclusive and are not necessarily linear. In fact it is expected that there will be or so feedback and amendments as the process progresses.Strategic marketing plansA strategic marketing plan is the office by which the strategy is communicated within the organisation. The structure and content of a strategic marketing plan will vary considerable between organisations. However, usually the following components are includedCurrent situation external and internal analysisObjective settingStrategy formulationMarketing programmesImplementation issuesControl measuresStrategic Marketing ManagementThere is no one best put for a strategic marketing plan and organisations will develop their own frameworks that match the needs of their companies. Strategic marketing plans need to generate action and not just be filed away(predicate). They should as well be fittingly flexible to take into account the changing environment.Activity 1.2 represent a copy of your own organisations strategic marketing plan. discover your eyeshot on whether the strategies outlined in it redeem been actioned.Has the plan shown sufficient flexibility to take into account the changing environment.If the answer to 3. is no, how could the plan have been meliorate?SummaryIn this unit we have seen thatOrgan isations operate in a dynamic environment and therefore they have to take into esteem those external influences that will impact on their business. These influences are a good deal hitred to as drivers of change.In market-oriented organisations it is credibly that marketing will be the big(p)st contributor to corporate strategy. Corporate strategy is concerned with what types of business the company as a whole should be in, i.e. the scope of the business. Marketing strategy is concerned with transforming corporate objectives into a competitive market position.A strategic marketing plan is the fomite by which the marketing strategy is communicated within the organisation. The structure and format of a strategic marketing plan will vary considerably between organisations. There is no one best structure.Strategic Marketing ManagementUnit 2 Marketing Information System (MIS)IntroductionThe focus of this unit is to understand how the use of marketing apprehension and key marketing discipline can help marketing managers to produce an hard-hitting marketing training system which will assist marketing decision take outrs to wages higher profits.ObjectivesUpon prospered completion of this unit you willUnderstand the strategic use of schoolingUnderstand how a MIS can assist marketing managers to define key decisionsMarketing breeding is a key need for any strategic marketing plan and therefore the development of effective management and marketing info systems is an substantial task for marketers. ranking(prenominal) marketing managers should not become too heavily involved in the inside selective training of the MIS and marketing interrogation but should be concentrating on how to apply the information in helping to understand the market and develop lucky marketing programmes.definitionA Management Information System consists of people, equipment and procedures to gather, sort, analyze, pass judgment and imbue clock timely and accurate informat ion to marketing decision makers.The MIS begins and ends with marketing managers. First, it interacts with them to assess their information needs. Next, it develops the needed information from internal company records, marketing erudition activities and the marketing seek process. Information analysis processes the information to make it more useful. Finally, the MIS distributes information to managers in the rectify form at the right time to help them in marketing planning, implementation and control.Developing informationThe information needed by marketing managers comes from internal company records, marketing newsworthiness and marketing research. The information analysis system then processes this information to make it more useful for managers.Strategic Marketing Management innate records around marketing managers use internal records and reports regularly, especially for making twenty- quad hours to daylight planning, implementation and control decisions. inbred records information consists of information equanimous from sources within the company to evaluate marketing performance and to detect marketing problems and opportunities. The companys account account part prepares financial averments and supports detailed records of sales, orders, costs, and cash flows. The customer service department stick outs information on customer satisfaction or service problems. search studies done for one department whitethorn deliver the goods useful information for several others. Managers can use information gathered from these and other sources within the company to evaluate performance and to detect problems and opportunities.Information from internal records is usually quicker and cheaper to get than information from other sources, but it as well presents some problems. Because internal information was collected for other purposes, it may be unelaborated or in the wrong form for making marketing decisions. For example, business relationship de partment sales and cost data used for preparing financial storys need adapting for use in evaluating product, sales force, or channel performance. In addition, the some(prenominal) different areas of a large company produce great amounts of information, and retentivity drop back of it all is difficult. The marketing information system mustiness gather, organize, process and index this mass of information so that managers can catch out it soft and obtain it quickly.Marketing comprehensionMarketing perceptionis everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans. The marketing intelligence system determines the intelligence needed, collects it by searching the environment and delivers it to marketing managers who need it.Marketing intelligence comes from many sources. Much intelligence is derived from the companys strength executives, engineers and scientists, purchasing agents and the sales force. Howe ver, company people are often fussy and fail to pass on key information. It is important to support that provide are intelligence gatherers, and they need to be trained to spot new developments and urged to report intelligence back to the company.The company must withal gestate suppliers, resellers and customers to pass along important intelligence. Some information on competitors comes from what they distinguish about themselves in annual reports, speeches, press releases and advertisements. The company can in any case learn about competitors from what others say about them in business earthly concernations and at trade shows. Or the company can watch what competitors do purchasing and analyzing competitors products, monitoring their sales and checking for new patents.Strategic Marketing ManagementCompanies as well as bargain for intelligence information from outside suppliers. Dun and Bradstreetis the worlds largest research company with branches in forty countries and a turnover of $1.26bn. Its largest subsidiary is Nielsen who sell dilate on brand shares, retail prices and percentages of stores stocking different brands.Marketing intelligence can work not only for, but in addition against a company. Kellogg used to allow the public to tour its plants but recently unlikeable its newly upgraded plant to outsiders to prevent competitors from getting intelligence on its high tech equipment.Some companies set up an office to collect and spread out marketing intelligence. The cater scans relevant publications, summarizes important news and sends news bulletins to marketing managers. It develops a file of intelligence information and helps managers to evaluate new information. These service greatly mitigate the quality of information available to marketing managers.To resume it is sluttish that a MIS has four main componentsInternal records there is a riches of information available within the organisation and it is essential that it is noni onised in such a way as to facilitate its usage. This may include sales data, customer orders, prices, stock levels, customer complaints, etc.Marketing research this is concerned with the systematic collection of information that is specific to a particular problem. For example, a piece of marketing research may be fit out to investigate attitudes to a new advertising campaign.Marketing intelligence this may include any information that is collected on an ad hoc basis, such as competitor intelligence gleaned from the press, customer trends, registered patents etc.Marketing decision support systems the processes that convert the data into usable information. For example, statistical tools or copy techniques.Activity 2.1 spare a short summary detail how a MIS is used to support management decision making in your own company/organisation.Strategic Marketing Management information fabrication checking out competitorsCompetitive intelligence gathering has grown dramatically as more and more companies need to know what their competitors are doing. It is essential that managers are not myopic and spend time amassing information about their major competitors.Techniques that companies use to collect their own marketing intelligence fall into four major groups. getting information from recruits and competitors employeesCompanies can obtain intelligence through commerce interviews or from conversations with competitors employees. consort to Fortune magazineCompanies send engineers to conferences and trade shows to question competitors technical people. Often conversations start innocently but engineers and scientists often bollix up about surmounting technical challenges, in the process divulging sensitive information.Getting information from people who do business with competitorsKey customers can keep the company informed about competitors and their products. This information can be zippy and can prevent a company from being left behind on product launches or price discounting strategies dreamed up by competing companies.Intelligence can also be gathered by infiltrating customers business operations. Companies can provide their engineers free of charge to customers. The close collaboration the engineers on bring enjoy with the customers design staff often enable them to learn what new products competitors are developing.Getting information from published materials and public documents guardianship track of seemingly meaningless published information can provide competitor intelligence. For example, the types of people sought in job adverts can quest something about a competitors new strategies and products.Getting information by law-abiding competitors or analyzing physical evidenceCompetitors can get to know competitors improve by buying their products or examining other physical evidence. An increasingly important form of competitive intelligence is benchmarking, taking apart competitors products and imitating or alter on their be st features. Companies should take advantage of publicly available information but they should avoid practices that might be considered illegal or unethical.Strategic Marketing ManagementWith all the legitimate intelligence sources now available, a company does not have to bankrupt the jurisprudence or accredited codes of moral philosophy to get good intelligence.Activity 2.2Write a short abridgment of how your own company/ organisation gathers intelligence on its competitors.SummaryThis unit has demonstrated thatMarketing intelligence is an essential component of an effective MISInternal records are a vital source of information for marketing managers ripened marketing managers should be concerned with how to use the information generated from the MIS kind of than with the lucubrate of the systemIntelligence gathering can be carried out in respective(a) ways but it is important not to break the law or accepted codes of ethicsStrategic Marketing ManagementUnit 3 Strategic in tentIntroductionThe focus of this unit is to consider the tendencys and future plans of an organisation, and the components of a suitable military mission education and development of abstract objectives.ObjectivesUpon successful completion of this unit you willBe able to limit the terms strategic intent / vision and mission statementKnow the components of good mission statementsBe able to discuss the development of enchant objectivesStrategic intent/vision and missionStrategic intent refers to the aspirations of an organisation rather than just its contemporary activity. According to Aaker, strategic intent providesA long-term drive for advantage that can be essential to success. It provides a model that helps break the mould, moving a firm away from alone doing the same things a slur better and working a bit harder than the year before. It has the capability to elevate and extend an organisation, helping it draw levels it would not otherwise attain.It is apparent that ma ny organisations that have an appropriate and well-constructed vision are focused on the future and ways of continually attaining sustainable competitive advantage. A vision can help indicate strategy, invest and maintain core competencies and provide inspiration and motivation to its managers and its employees by providing them with a maven of purpose.Hamel and Pralahad (1989) suggested that strategic intent combinesA dream that energizes the company (i.e. acts as a inducing)Implied stretch, (looks for new opportunities rather than relying on existing businesses)A maven of directionA sense of discoveryCoherence to plansDefinitionStrategic intent/visionThe desired future state or aspiration of the organization. (Johnson and Scholes, 1999, p.243)Strategic Marketing ManagementMission statementsA mission statement is concerned with providing daily guidance rather than a vision of the future. According to Piercy (2000), in order for mission statements to contribute anything they mu stReflect an organisations core competencies and how it intends to apply and sustain themBe closely tied to the critical success factors in the marketplaceTell employees, managers, suppliers and partners what contribution is required from them to deliver the insure of honor to the customerDefinitionMission statement A generalise statement of the overriding purpose of the organisation. (Johnson and Scholes, 1999,p241)Mission statements are influenced by a number of factors, such as the resource availability, the external environment, the core competencies of the organisation and the current preferences of its current chief executive and senior management. The extent to which the mission statement serves its purpose is influenced not only by the quality and relevance of the mission but also by how it is communicated to staff and other stakeholders. A successful mission statement is one that is wholly embraced and believed by staff. fairish having a mission statement is insufficie nt, the staff must also buy into the idea.Drummond and Ensor (2001) suggest that successful mission statements should demonstrate the following characteristicsCredibility it must be realistic and believableUniqueness not bland and generic proper(postnominal) capabilities embrace core capabilitiesAspirational needs to motivate individualsActivity 3.1Write a brief critique of your own companys mission statement in the light of the above characteristicsStrategic Marketing ManagementGoals and objectivesThe vision and mission provide guidance on the overall direction of an organisation. Objectives, whether corporate or marketing, are the expected outcomes of the strategy.Goals are often regarded as less specific than objectives and more difficult to measure. However, it is normally accepted that objectives should be SMART specificMeasurable- verbalized in quantifiable termsAcceptable to stakeholdersRealistic- attainable epoch bound- manageable within a certain time frameDefinition Goals and objectivesGoal general statement of aim or purposeObjective Quantification (if possible) or more precise statement of the goal(Johnson and Scholes, 1999,p14))Activity 3.2critically review your companys key objectives using the SMART methodThere are many different types of objectives with which an organisation should be concerned. Drucker (1954) identified the followingMarket standing e.g. market share objectivesInnovation e.g. number of new products launched productivity e.g. inputs compared with outputs such as increased sales whilst maintaining the same number of sales staffPhysical and financial resources relating to the use of resourcesProfitability e.g. return on coronationManager performance and development performance criteriaEmployee performance and attitude fealtyPublic responsibility e.g. reduce dependency on fogey fuelsIt is likely that many organisations will place greater weighting on some areas than others. For example, the Co-operative bank place s great emphasis on their responsibility to the public in the form of their ethical banking policy. There may be a hazard that some companies are preoccupied with productivity objectives and trying to improve the qualification of existing activities without actually questioning whether they are doing the right things.StakeholdersA key consideration when developing strategic direction relates to an organisations various stakeholder groups. Stakeholders refer to all the different groups of individuals that are influenced and/or have influence on the activities of an organisation. Stakeholders have different expectations and can exert varying levels of influence over the organisation. It is important that organisations have a good understanding of the varying needs of their various stakeholder groups. There are three main groups of stakeholdersInternal stakeholders (employees, management) machine-accessible stakeholders (suppliers, distributors, shareholders, customers) orthogonal s takeholders (community, government, pressure groups)DefinitionStakeholdersThose individuals or groups who depend on the organisation to effect their own goals and on whom, in turn the organisation depends. (Johnson and Scholes, 1999, p213).The following get into illustrates an outline stakeholder map.CustomersBanks/sources of finance SuppliersThe local community DistributorsSociety at large ManagersEmployeesActivity 3.3Stakeholder mapDraw a stakeholder map for your own organisation and consider the varying needs of each group and the implications on the organisations strategic direction.How does your organisation manage the differing expectations of each group?Strategic Marketing ManagementSummaryThis unit has shown thatStrategic intent relates to the aspirations of an organisation and is sometimes referred to as the organisations vision. An appropriate and well constructed vision can help guide strategy, station and maintain core competencies and can act as a motivator for staff by providing them with a sense of purpose.Mission statements are more concerned with providing daily guidance rather than a vision of the future. They should reflect an organisations core competencies, relate to the critical success factors in the market and also inform employees and other stakeholders what contribution is required from them to deliver nourish to the customer.Issues with Strategic Marketing ManagementIssues with Strategic Marketing ManagementIntroductionThis course is designed to help you understand and learn advanced principles of marketing and is aimed at marketing managers, or professionals who are working in business or commerce. Who have perhaps a qualification in marketing and several years experience of working in a marketing role, or managers who would like to increase their marketing knowledge.Part of the courses assessment of learning will involve you in undertaking an assignment based on a marketing strategy plan carried out in your own company/organisa tion. You will be given detailed guidance and advice about this element of assessment later in this workbook.Aims of the unitThe aim of the unit is to identify and discuss key issues associated with marketing principles. The course is focused on strategic principles of marketing, which form an essential underpinning to an understanding of strategic marketing in action. The theoretical underpinning will be complemented by a series of short work-based activities.Objectives of the unitTo equip you with the knowledge and skills to understand and interpret strategic marketing principlesTo provide you with practical experience of applying strategic marketing principles and preparing a strategic marketing plan within your own company/organisation.Learning outcomesOn successful completion of this Unit you should be able toUnderstand the strategic marketing processRecognise the importance of creating strategic advantageProduce a strategic marketing plan in your own company/organisationUnders tand the importance of developing a specific competitive positionStrategic Marketing ManagementWhat does this workbook contain?This workbook contains a number of information and learning resourcesBackground and contextual information about strategic marketing managementKey ideas, theories, concepts, structures, processes in relation to strategic marketingRecall and review and Activity points designed to engage you in reflection and action-focused thinkingCase examples of strategic marketing in actionAssessmentYou are required to write a 2,500-word assignment as followsPrepare a strategic marketing plan for your own company/organisation, paying particular attention to creating and sustaining a competitive advantage over rival firms.Strategic Marketing ManagementHow should this workbook be used?This workbook will direct your study throughout the learning experience. There aresix sections, designed to be studied sequentially. However, a good learning technique is to refresh your learni ng by re-reading, so you are recommend to read back and forth between sections whenever you feel the need. Each section deals with a different topic and, together with any associated activities, practical work or further reading, is designed to require approximately 20 hours of study.The workbook uses an interactive learning approach. This is achieved through the use of self-assessment questions and activities throughout the text. These will enable you to apply the concepts presented in the workbook and explore issues that extend your knowledge and skills.Preparing to use the workbookIf you are new to the study of marketing and/or this study method, then we suggest it is worth you spending some time becoming familiar with its contents and approach to learning and development. This will enhance your own understanding of key ideas in strategic marketing management, and your ability to lead and facilitate the learning of others.Strategic Marketing ManagementTable of contentsTitle PageU nit 1The strategic marketing processObjectives 5Drivers of change 5Corporate strategy/ Marketing interface 7Strategic marketing plans 8Summary 9Unit 2Marketing Information SystemsObjectives 10MIS and the use of strategic intelligence 10Summary 14Unit 3Strategic intentObjectives 15Strategic intent/vision and mission 15Goals and objectives 17Stakeholders 18Summary 19Unit 4Creating strategic advantageObjectives 20Approaches to developing strategic advantage 20Alliances and networks 22Declining and hostile markets 24Strategic wear-out 25Summary 26Unit 5Developing a specific competitive positionObjectives 27Strategic alignment process 27Innovation and new product development 28Strategic evaluation 31Summary 32Unit 6Implementation and controlObjectives 33Implementation 33Control 35Summary 37Strategic Marketing ManagementUnit 1The core theme of this unit is the importance of market-led strategic change to ensure organisational success.ObjectivesBy the end of this unit you willBe able to di scuss, and give examples of drivers of changeUnderstand the relationship between corporate and marketing strategyKnow the process and structure of marketing planning and be able to discuss the differences between strategic and tactical planningDrivers of changeChange is inevitable and companies that wish to maintain a market-led approach must take into consideration both cyclical and evolutionary change when developing their marketing strategies. The rate at which the external environment changes varies according to the nature of the business but increasingly all organisations are facing escalating levels of change.Change is inevitable. To survive companies need to adapt and to convert the threats caused by the changing environment into opportunities in order to avoid strategic drift.Marks and Spencer is a prime example of a company that has not adapted to the changing customer demands and as a result has lost many of its loyal customer base.Case historyDrivers of changeGreenhalgh ( 2001) identifies the following drivers of change that have created challenges for companies over the last few yearsDomestic businesses of any import have become rare. They are now global, drawing on supply chains that transcend national boundaries and serving customers worldwideCustomer expectations of quality have increased and are now applied to all goods and services, rather than just luxury goodsConcern for the environment has become a major item on companies agenda. They now have to consider their environmental responsibility as well as their profits.Large institutional investors are exerting their influence on how organisations are managedStart-up companies play an important role in introducing innovative products and new ideas to the marketplace. Young, technologically-competent workers are drawn to these vibrant workplaces, making it harder for other companies to recruit and retain themStrategic Marketing ManagementActivity 1.1Consider thedrivers of change outlined above. I dentify the impact of these factors on your own company/organisation.What is strategy?The term strategy is probably one of the most used and often misunderstood terms in business.There is no universal definition of strategy and yet it is used extensively. Strategy has the same meaning whether we are discussing corporate, marketing, promotional or even advertising strategy it is concerned with how we might achieve our objectives. The difference between each type of strategy relates to the level at which the strategy is being developed. Corporate strategy according to Johnson and Scholes (1999), isconcerned with what types of business the company as a whole should be in and is therefore concerned with decisions of scopewhereas marketing strategy aims to transform corporate objectives into a competitive market position.The main role of marketing strategy is to differentiate products/services from those of competitors by meeting the needs of customers more effectively. Therefore, accord ing to Drummond and Ensor (2001) marketing strategy can be characterised byAnalysing the business environment and defining customer needsMatching activities to customer needsImplementing programmes to achieve a competitive position relative to competitorsStrategic management consists of three elementsStrategic analysis concerned with answering the question where are we now? This involves analysing the external environment, internal resources and capabilities and stakeholder expectationsStrategic choice what are the options available and which is the most attractive?Strategic implementation often the most overlooked of strategy. It is concerned with allocating resources and turning the plans into action.This process can be as equally well applied to marketing strategy.Strategic Marketing ManagementThe corporate strategy/marketing interfaceIt is impossible to discuss marketing strategy without first putting it into the context of corporate planning. The relationship between corpora te planning and marketing planning can best be explained by figure 1.1 below. It is helpful to think of these decisions sitting in a hierarchy with corporate planning at the top and marketing planning below it. The diagram also illustrates that, alongside marketing planning, plans should be developed for other functional areas of the business such as human resources management (HRM), logistics, and operations. The vision and mission will drive the overall direction of the company and the functional areas of business will all work towards achieving the corporate objectives. The vision and mission will be discussed in Unit 3 Strategic intent.Strategic Marketing ManagementMarketing strategy is concerned with three elements customers, competitors and internalcorporate issues as illustrated in Figure 1.2. Strategic marketing management has three majorphases firstly, strategic analysis in order to answer the question where are we now?This will include external analysis of customers, com petitors and the macro environment and internal analysis of corporate capabilities secondly formulation of strategy in terms of creating and evaluating options and thirdly implementation where the strategies are translated into action. The three stages are not mutually exclusive and are not necessarily linear. In fact it is expected that there will be some feedback and amendments as the process progresses.Strategic marketing plansA strategic marketing plan is the means by which the strategy is communicated within the organisation. The structure and content of a strategic marketing plan will vary considerable between organisations. However, normally the following components are includedCurrent situation external and internal analysisObjective settingStrategy formulationMarketing programmesImplementation issuesControl measuresStrategic Marketing ManagementThere is no one best format for a strategic marketing plan and organisations will develop their own frameworks that match the need s of their companies. Strategic marketing plans need to generate action and not just be filed away. They should also be sufficiently flexible to take into account the changing environment.Activity 1.2Read a copy of your own organisations strategic marketing plan.Give your opinion on whether the strategies outlined in it have been actioned.Has the plan shown sufficient flexibility to take into account the changing environment.If the answer to 3. is no, how could the plan have been improved?SummaryIn this unit we have seen thatOrganisations operate in a dynamic environment and therefore they have to take into consideration those external influences that will impact on their business. These influences are often referred to as drivers of change.In market-oriented organisations it is likely that marketing will be the largest contributor to corporate strategy. Corporate strategy is concerned with what types of business the company as a whole should be in, i.e. the scope of the business. M arketing strategy is concerned with transforming corporate objectives into a competitive market position.A strategic marketing plan is the vehicle by which the marketing strategy is communicated within the organisation. The structure and format of a strategic marketing plan will vary considerably between organisations. There is no one best structure.Strategic Marketing ManagementUnit 2 Marketing Information System (MIS)IntroductionThe focus of this unit is to understand how the use of marketing intelligence and key marketing information can assist marketing managers to produce an effective marketing information system which will assist marketing decision makers to return higher profits.ObjectivesUpon successful completion of this unit you willUnderstand the strategic use of informationUnderstand how a MIS can assist marketing managers to make key decisionsMarketing information is a key requirement for any strategic marketing plan and therefore the development of effective management and marketing information systems is an important task for marketers.Senior marketing managers should not become too heavily involved in the details of the MIS and marketing research but should be concentrating on how to utilize the information in helping to understand the market and develop successful marketing programmes.DefinitionA Management Information System consists of people, equipment and procedures to gather, sort, analyze, evaluate and distribute timely and accurate information to marketing decision makers.The MIS begins and ends with marketing managers. First, it interacts with them to assess their information needs. Next, it develops the needed information from internal company records, marketing intelligence activities and the marketing research process. Information analysis processes the information to make it more useful. Finally, the MIS distributes information to managers in the right form at the right time to help them in marketing planning, implementation and co ntrol.Developing informationThe information needed by marketing managers comes from internal company records, marketing intelligence and marketing research. The information analysis system then processes this information to make it more useful for managers.Strategic Marketing ManagementInternal recordsMost marketing managers use internal records and reports regularly, especially for making day to day planning, implementation and control decisions.Internal records information consists of information gathered from sources within the company to evaluate marketing performance and to detect marketing problems and opportunities. The companys accounting department prepares financial statements and keeps detailed records of sales, orders, costs, and cash flows. The customer service department provides information on customer satisfaction or service problems. Research studies done for one department may provide useful information for several others. Managers can use information gathered from these and other sources within the company to evaluate performance and to detect problems and opportunities.Information from internal records is usually quicker and cheaper to get than information from other sources, but it also presents some problems. Because internal information was collected for other purposes, it may be incomplete or in the wrong form for making marketing decisions. For example, accounting department sales and cost data used for preparing financial statements need adapting for use in evaluating product, sales force, or channel performance. In addition, the many different areas of a large company produce great amounts of information, and keeping track of it all is difficult. The marketing information system must gather, organize, process and index this mass of information so that managers can find it easily and obtain it quickly.Marketing intelligenceMarketing intelligenceis everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans. The marketing intelligence system determines the intelligence needed, collects it by searching the environment and delivers it to marketing managers who need it.Marketing intelligence comes from many sources. Much intelligence is derived from the companys personnel executives, engineers and scientists, purchasing agents and the sales force. However, company people are often busy and fail to pass on key information. It is important to realise that staff are intelligence gatherers, and they need to be trained to spot new developments and urged to report intelligence back to the company.The company must also persuade suppliers, resellers and customers to pass along important intelligence. Some information on competitors comes from what they say about themselves in annual reports, speeches, press releases and advertisements. The company can also learn about competitors from what others say about them in business publications and at trade shows. Or t he company can watch what competitors do buying and analyzing competitors products, monitoring their sales and checking for new patents.Strategic Marketing ManagementCompanies also buy intelligence information from outside suppliers. Dun and Bradstreetis the worlds largest research company with branches in forty countries and a turnover of $1.26bn. Its largest subsidiary is Nielsen who sell details on brand shares, retail prices and percentages of stores stocking different brands.Marketing intelligence can work not only for, but also against a company. Kellogg used to allow the public to tour its plants but recently closed its newly upgraded plant to outsiders to prevent competitors from getting intelligence on its high tech equipment.Some companies set up an office to collect and circulate marketing intelligence. The staff scans relevant publications, summarizes important news and sends news bulletins to marketing managers. It develops a file of intelligence information and helps managers to evaluate new information. These services greatly improve the quality of information available to marketing managers.To summarise it is clear that a MIS has four main componentsInternal records there is a wealth of information available within the organisation and it is essential that it is organised in such a way as to facilitate its usage. This may include sales data, customer orders, prices, stock levels, customer complaints, etc.Marketing research this is concerned with the systematic collection of information that is specific to a particular problem. For example, a piece of marketing research may be commissioned to investigate attitudes to a new advertising campaign.Marketing intelligence this may include any information that is collected on an ad hoc basis, such as competitor intelligence gleaned from the press, customer trends, registered patents etc.Marketing decision support systems the processes that convert the data into usable information. For example, statist ical tools or modeling techniques.Activity 2.1Write a short summary detailing how a MIS is used to support management decision making in your own company/organisation.Strategic Marketing ManagementIntelligence gathering checking out competitorsCompetitive intelligence gathering has grown dramatically as more and more companies need to know what their competitors are doing. It is essential that managers are not myopic and spend time amassing information about their major competitors.Techniques that companies use to collect their own marketing intelligence fall into four major groups.Getting information from recruits and competitors employeesCompanies can obtain intelligence through job interviews or from conversations with competitors employees. According to Fortune magazineCompanies send engineers to conferences and trade shows to question competitors technical people. Often conversations start innocently but engineers and scientists often brag about surmounting technical challenges , in the process divulging sensitive information.Getting information from people who do business with competitorsKey customers can keep the company informed about competitors and their products. This information can be vital and can prevent a company from being left behind on product launches or price discounting strategies dreamed up by competing companies.Intelligence can also be gathered by infiltrating customers business operations. Companies can provide their engineers free of charge to customers. The close collaboration the engineers on loan enjoy with the customers design staff often enable them to learn what new products competitors are developing.Getting information from published materials and public documentsKeeping track of seemingly meaningless published information can provide competitor intelligence. For example, the types of people sought in job adverts can indicate something about a competitors new strategies and products.Getting information by observing competitors or analyzing physical evidenceCompetitors can get to know competitors better by buying their products or examining other physical evidence. An increasingly important form of competitive intelligence is benchmarking, taking apart competitors products and imitating or improving on their best features. Companies should take advantage of publicly available information but they should avoid practices that might be considered illegal or unethical.Strategic Marketing ManagementWith all the legitimate intelligence sources now available, a company does not have to break the law or accepted codes of ethics to get good intelligence.Activity 2.2Write a short synopsis of how your own company/ organisation gathers intelligence on its competitors.SummaryThis unit has demonstrated thatMarketing intelligence is an essential component of an effective MISInternal records are a vital source of information for marketing managersSenior marketing managers should be concerned with how to use the informati on generated from the MIS rather than with the details of the systemIntelligence gathering can be carried out in various ways but it is important not to break the law or accepted codes of ethicsStrategic Marketing ManagementUnit 3 Strategic intentIntroductionThe focus of this unit is to consider the aspirations and future plans of an organisation, and the components of a suitable mission statement and development of appropriate objectives.ObjectivesUpon successful completion of this unit you willBe able to define the terms strategic intent / vision and mission statementKnow the components of good mission statementsBe able to discuss the development of appropriate objectivesStrategic intent/vision and missionStrategic intent refers to the aspirations of an organisation rather than just its current activity. According to Aaker, strategic intent providesA long-term drive for advantage that can be essential to success. It provides a model that helps break the mould, moving a firm away f rom simply doing the same things a bit better and working a bit harder than the year before. It has the capability to elevate and extend an organisation, helping it reach levels it would not otherwise attain.It is apparent that many organisations that have an appropriate and well-constructed vision are focused on the future and ways of continually attaining sustainable competitive advantage. A vision can help guide strategy, identify and maintain core competencies and provide inspiration and motivation to its managers and its employees by providing them with a sense of purpose.Hamel and Pralahad (1989) suggested that strategic intent combinesA dream that energizes the company (i.e. acts as a motivator)Implied stretch, (looks for new opportunities rather than relying on existing businesses)A sense of directionA sense of discoveryCoherence to plansDefinitionStrategic intent/visionThe desired future state or aspiration of the organization. (Johnson and Scholes, 1999, p.243)Strategic Ma rketing ManagementMission statementsA mission statement is concerned with providing daily guidance rather than a vision of the future. According to Piercy (2000), in order for mission statements to contribute anything they mustReflect an organisations core competencies and how it intends to apply and sustain themBe closely tied to the critical success factors in the marketplaceTell employees, managers, suppliers and partners what contribution is required from them to deliver the promise of value to the customerDefinitionMission statement A generalised statement of the overriding purpose of the organisation. (Johnson and Scholes, 1999,p241)Mission statements are influenced by a number of factors, such as the resource availability, the external environment, the core competencies of the organisation and the current preferences of its current chief executive and senior management. The extent to which the mission statement serves its purpose is influenced not only by the quality and rele vance of the mission but also by how it is communicated to staff and other stakeholders. A successful mission statement is one that is wholly embraced and believed by staff. Just having a mission statement is insufficient, the staff must also buy into the idea.Drummond and Ensor (2001) suggest that successful mission statements should demonstrate the following characteristicsCredibility it must be realistic and believableUniqueness not bland and genericSpecific capabilities embrace core capabilitiesAspirational needs to motivate individualsActivity 3.1Write a brief critique of your own companys mission statement in the light of the above characteristicsStrategic Marketing ManagementGoals and objectivesThe vision and mission provide guidance on the overall direction of an organisation. Objectives, whether corporate or marketing, are the expected outcomes of the strategy.Goals are often regarded as less specific than objectives and more difficult to measure. However, it is normall y accepted that objectives should be SMARTSpecificMeasurable- expressed in quantifiable termsAcceptable to stakeholdersRealistic- attainableTime bound- achievable within a certain time frameDefinitionGoals and objectivesGoal general statement of aim or purposeObjective Quantification (if possible) or more precise statement of the goal(Johnson and Scholes, 1999,p14))Activity 3.2Critically review your companys key objectives using the SMART methodThere are many different types of objectives with which an organisation should be concerned. Drucker (1954) identified the followingMarket standing e.g. market share objectivesInnovation e.g. number of new products launchedProductivity e.g. inputs compared with outputs such as increased sales whilst maintaining the same number of sales staffPhysical and financial resources relating to the use of resourcesProfitability e.g. return on investmentManager performance and development performance criteriaEmployee performance and attitude loy altyPublic responsibility e.g. reduce dependency on fossil fuelsIt is likely that many organisations will place greater weighting on some areas than others. For example, the Co-operative bank places great emphasis on their responsibility to the public in the form of their ethical banking policy. There may be a danger that some companies are preoccupied with productivity objectives and trying to improve the efficiency of existing activities without actually questioning whether they are doing the right things.StakeholdersA key consideration when developing strategic direction relates to an organisations various stakeholder groups. Stakeholders refer to all the different groups of individuals that are influenced and/or have influence on the activities of an organisation. Stakeholders have different expectations and can exert varying levels of influence over the organisation. It is important that organisations have a good understanding of the varying needs of their various stakeholder groups. There are three main groups of stakeholdersInternal stakeholders (employees, management)Connected stakeholders (suppliers, distributors, shareholders, customers) External stakeholders (community, government, pressure groups)DefinitionStakeholdersThose individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn the organisation depends. (Johnson and Scholes, 1999, p213).The following figure illustrates an outline stakeholder map.CustomersBanks/sources of finance SuppliersThe local community DistributorsSociety at large ManagersEmployeesActivity 3.3Stakeholder mapDraw a stakeholder map for your own organisation and consider the varying needs of each group and the implications on the organisations strategic direction.How does your organisation manage the differing expectations of each group?Strategic Marketing ManagementSummaryThis unit has shown thatStrategic intent relates to the aspirations of an organisation and is sometimes referred to as the organisations vision. An appropriate and well constructed vision can help guide strategy, identify and maintain core competencies and can act as a motivator for staff by providing them with a sense of purpose.Mission statements are more concerned with providing daily guidance rather than a vision of the future. They should reflect an organisations core competencies, relate to the critical success factors in the market and also inform employees and other stakeholders what contribution is required from them to deliver value to the customer.