Advanced Introduction to Marketing Strategy

145 Pages·2022·6.9 MB·English

by  George Day

Advanced Introduction to Marketing Strategy
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Advanced Introduction to
Marketing Strategy
GEORGE S. DAY
Geoffrey T. Boisi Emeritus Professor, The Wharton School,
University of Pennsylvania, USA
Elgar Advanced Introductions
Cheltenham, UK • Northampton, MA, USA
© George S. Day 2022
All rights reserved. No part of this publication may be reproduced, stored
in a retrieval system or transmitted in any form or by any means, electronic,
mechanical or photocopying, recording, or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
The Lypiatts
15 Lansdown Road
Cheltenham
Glos GL50 2JA
UK
Edward Elgar Publishing, Inc.
William Pratt House
9 Dewey Court
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
Library of Congress Control Number: 2022934684
ISBN 978 1 80037 788 2 (cased)
ISBN 978 1 80037 790 5 (paperback)
ISBN 978 1 80037 789 9 (eBook)
EEP BoX
Contents
About the author vii
Preface ix
1 Marketing strategy: the guiding premises 1
Guiding premises 4
Persistent dilemmas shaping marketing strategy 8
My plan for this book 10
Summary 12
2 Marketing strategy: looking back to see ahead 13
Influences on strategy making 17
Looking toward a more turbulent future 19
Looking ahead 22
3 Achieving customer value leadership 24
What is customer value? 25
Customer value priorities 28
4 Sustaining customer value leadership 35
Changing value priorities: the threat of commoditization 36
Integrating outside-in and inside-out considerations 40
Summary 43
5 Innovating new value for customers: the
full-spectrum approach 45
Full-spectrum innovation 46
Pathways to faster growth 47
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vi ADVANCED INTRODUCTION TO MARKETING STRATEGY
Summary: outside-in innovation 58
6 Innovating the business model 60
Which way to grow? 65
7 Strategy formulation starts from the outside in 70
Which path to strategy? 71
Cognate concepts 73
An iterative approach to strategy formulation 78
8 Enabling outside-in strategy making 81
Leadership emphasis and role modeling 82
Performance gains from outside-in approaches 89
Summary of the performance effects 91
9 Preparing marketing for greater turbulence 93
Digital turbulence 95
Market turbulence 96
Implications for marketing organizations 99
Bringing the future forward 102
The changing role of the C-suite 103
Implications for marketing 105
Summary 108
Appendix: what role for marketing leaders? 109
References 113
Index 123
About the author
George S. Day is the Geoffrey T. Boisi Emeritus Professor in The Wharton
School at the University of Pennsylvania, USA. He was previously the
Executive Director of the Marketing Science Institute, and the Founder
and Co-Director of the Mack Institute for Innovation Management.
He has been a consultant to corporations such as General Electric, IBM,
Unilever, W.L. Gore, Boeing, LG Corp., Best Buy, Merck, Johnson &
Johnson, Agilent and Medtronic. He is the past Chairman of the American
Marketing Association. He has also served on ten boards of directors.
Dr. Day has authored nineteen books including Strategy from the
Outside-In: Profiting from Customer Value, with Christine Moorman
vii
viii ADVANCED INTRODUCTION TO MARKETING STRATEGY
(2010), Innovation Prowess (2013), and See Sooner, Act Faster, with Paul
Schoemaker (2019).
He has won ten best article awards and one best book award. He was
honored with the Parlin Award in 1994, the Converse Award in 1996, the
Sheth Foundation award in 2003, the Mahajan Award in 2001 and the
William L. Wilkie award in 2017. In 2003 he received the AMA/Irwin/
McGraw-Hill Distinguished Marketing Educator Award. In 2011 he was
chosen as one of eleven “Legends in Marketing.” In 2021 he received the
Sheth Medal.
Preface
The purpose of a business is to create and keep customers at a profit.
(Peter F. Drucker, 1954)
Welcome to this advanced introduction to marketing strategy. If you are
reading this preface, you will be familiar with the essentials of marketing
that are the foundations of a marketing perspective on strategy. These
essentials include: the four Ps, STP (segmentation, targeting and posi-
tioning), the product life cycle, customer lifetime value and marketing
metrics. You’ll also know about the marketing concept, which holds that
the purpose of a business is to profitably create and keep customers.
These staples of marketing are sound starting points for formulating
a strategy, but offer limited guidance for dealing with the cross-cutting
forces shaping the markets of the future. These forces include the digital
transformation of all business activities, increasing global trade tensions,
customer’s rising expectations for a personalized and integrated experi-
ence, the emergence of powerful platforms and, perhaps, a new medium
of exchange with crypto-currencies. Meanwhile the societal demands
on businesses to respond to ESG (environmental, social, governance)
issues are mounting. A next-generation marketing approach is needed
to help businesses navigate and profit from mounting turbulence and the
resulting uncertainty, and ensure the marketing function contributes fully
to the strategy dialogue with deep insights and the capabilities needed to
deliver marketing activities better than their rivals.
An advanced approach to marketing strategy starts from the outside
in, by taking the point of view of key market stakeholders (customers,
consumers, competitors and channel partners) to view the firm and its
future prospects objectively. The aim is to find the best ways to offer
superior value to the customers the business chooses to serve, and then
innovating new customer value to stay ahead of rivals. These are the
ix