Developing competitive marketing strategies and competitive positioning

(stakeholder perspectives)

By

Ibrahim Zubairu Abubakar

Gideon Gahuru

Cont’d

Cont’d

Who are the stakeholders?.

Negative impact of stakeholders

Negative impact of stakeholders

Negative impact of stakeholders

(Ranchhod, & Gurau, 2007 p: 5).

Positive impact of stakeholders

Volvo Group’s mission statement By creating value for our customers, we create value

for our shareholders.

Toyota knows the importance of building close relationship with its suppliers. In fact, it even includes the phrase “achieve suppliers’ satisfaction” in its our mission statement, this has been the cornerstone of “Toyotas stunning success”.

L'Oreal knows the importance of building close relationships with its extensive network of suppliers, who supply everything from packaging to production equipment.

Contemporary Approach

Understanding organizational environment Stakeholder interests and concerns As well as, translating them into effective marketing

strategies and company positioning within a marketplace is one of the greatest challenges facing organizations.

It is no longer enough to take into account only Products Segments MarketsCustomers, differentiation, and other

strategies you may think up.

Cont’d

Nowadays it is necessary to consider not only customer company interactions, but also

Company shareholders Company community Company organizational environment and other

interactions (Ranchhod, & Gurau, 2007 p: 5). Stakeholder relationships contribute to either the

success or failure of marketing strategies “Management of the different stakeholders’

interests is a potential source of Competitive advantage.

Components of Stakeholders

Aims of stakeholders & influence

Shareholders Profit, high dividend & values of their share

Managers Company growth & job security

EmployeesPay levels, working conditions and job security

Suppliers

Customers

Regular orders & prompt payment

Low prices, & high quality (Reject or accept offering)

Voting rights at AGM’s

Day to day decision making powers

Industrial action or strike to persuade the organization to do what they want

Shortage or delay of supplies

Aims of stakeholders & influence

Banks Loan and interest repayments on time.

Government Complies with the laws, pays the correct taxes and provides employment for the

population

Society CSR, free environment, treat employees fairly and not to exploit consumers

Local government

Local community

Road building and maintenance

Employment, sponsor local events, schools & hospitals (CSR)

Power to grant or withhold loans and to set the level of interest to be paid

back

Can introduce laws to make firms not to carry out its strategies.

Industrial action or strike to persuade for their need

Opposition in the form of protest, can exert pressure on organization to move

or close

Classification of Stakeholders

Salience model classification of stakeholders

Integrated Model for Marketing Strategy Development

Stakeholder analysis

Stakeholder analysis

Identify and map internal and external stakeholders

Assess the nature of each stakeholders' influence and importance

Construct a matrix to identify stakeholder influence and importance

Monitor and manage stakeholder relationships

Stakeholders engagement process

Stakeholder Positions

Styles of approach to stakeholder relationships.

Multiple Approach to Stakeholders

Stakeholder management

Ranchhod proposes that companies can be grouped in the following views:-

Narrow: select stakeholders with direct relevance

to the firms core economic interests.

Broad: full range of stakeholders and their impact to the firm both economically and ethically on a long term basis.

Stakeholder management

Cont’d

The Role Of Stakeholders In Marketing

Stakeholder affect marketing initiatives in their Design, Implementation Evaluation

This is aimed at maximizing the benefit of all stakeholders:

Unfortunately, not given much attention to the implications of the stakeholder perspective for marketing theory and practice,

 

Stakeholders and Positioning

Conclusion

Competition in business is an effort of two or more parties acting independently to secure the business of a third party by offering the most favorable term. Market leaders can expand market demand, increase market share and protect market share in order to stay number one. In addition, market challengers can overtake market leaders, while market followers may adopt a product imitation strategy, market niches can focus on a smaller market thus according to their competitive positioning.

Cont’d

In the case of contemporary approach;Underlying assumption of the stakeholder perspective is

that stakeholders have in common a willingness and competency to act with the intent to influence the organization 

In turn, the organization is aware of these groups and recognizes the need to deal with them

To do so, the organization develops strategies that guide their behavior with regard to those groups and their interests.

However, this behavior and supporting strategies are based on the assumption that the groups (stakeholders) can be ‘managed’ to enable the organization to achieve its goals. This is not always the case.

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