stake holder perspectives on marketing strategy

1. Developing competitive marketing strategies and
competitive positioning
(stakeholder perspectives)
By
Ibrahim Zubairu Abubakar
Gideon Gahuru

3. Cont’d
Who are the stakeholders?.

4. Negative impact of stakeholders

5. Negative impact of stakeholders

6. Negative impact of stakeholders
(Ranchhod, & Gurau, 2007 p: 5).

7. 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.

8. 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
 Markets
 Customers, differentiation, and other strategies
you may think up.

9. 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.

10. Components of Stakeholders

11. Aims of stakeholders & influence
Shareholders
Profit, high dividend & values of their share
Voting rights at AGM‟s
Managers
Company growth & job security
Day to day decision making powers
Employees
Suppliers
Pay levels, working conditions and job security
Industrial action or strike to persuade the
organization to do what they want
Regular orders & prompt payment
Shortage or delay of supplies
Customers
Low prices, & high quality (Reject or accept
offering)

12. Aims of stakeholders & influence
Loan and interest repayments on time.
Banks
Power to grant or withhold loans and to set
the level of interest to be paid back
Government
Complies with the laws, pays the correct taxes and
provides employment for the population
Can introduce laws to make firms not to carry
out its strategies.
Society
Local
government
CSR, free environment, treat employees fairly
and not to exploit consumers
Industrial action or strike to persuade for their
need
Local community
Road building and maintenance
Employment, sponsor local events, schools &
hospitals (CSR)
Opposition in the form of protest, can exert
pressure on organization to move or close

14. Classification of Stakeholders

15. Salience model classification of stakeholders

16. Integrated Model for Marketing Strategy Development

17. Stakeholder analysis

18. 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

19. Stakeholders engagement process

20. Stakeholder Positions

21. Styles of approach to stakeholder relationships.

22. Multiple Approach to Stakeholders

23. 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.

24. Stakeholder management

25. Cont’d

26. 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,

27. Stakeholders and Positioning

28. 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.

29. 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.

30. References















Boone, L.E & Kurtz, D. (1995). Contemporary Marketing. Eight editions. U.S.A, Dryden Press.
Desai, S.S (2013). An Analysis of the Competitive Marketing Strategies of the Hospitality Industry in UAE. The IUP
Journal of Management Research, Vol. XII, No. 1.
Ferrell et al. (2010). From Market Orientation to Stakeholder Orientation. Journal of Policy & Marketing, 29 (1), pp. 9396
Jobber, D. (1995). Principles and Practice of marketing. Great Britain, The Bath Press. 554-575
Jonker, J. & David, F. (2002). Stakeholder Excellence? Framing the Evolution and Complexity of a Stakeholder
Perspective of the Firm‟, Corporate Social Responsibility and Environmental Management, 9 (4), pp. 187-195.
Richard, L.D, & Dorothy, M. (2006). Understanding Management: Thomas- Southwestern United States Cancage
Learning.
Richard, L.D, & Dorothy, M. (2009). Understanding Management: Thomas- Southwestern United States Cancage
Learning.
John, R.D., (2001). Successful Competitive Positioning: the key for entering into the European consumer market.
European Business Review. MCB University Press, 13 (4) pp. 209
John W. ( 2008). Strategic Management of Healthcare Organization British Library.
Ramesh, K. A (2012). Importance of Relationship Marketing in Competitive Marketing Strategy,
Indian
Streams Research Journal Vol.2, Issue. II/ March; 2012 ISSN: -2230-7850
Ranchhod A & Gurau C. (2007). Marketing Strategies a contemporary approach. 2nd Ed. Essex: Pearson Education
Limited.
Kotler, P. & Armstrong, G. (2009). Principles of Marketing. 13th Ed. London: Pearson Education Limited.
Kotler, P. & Armstrong, G. (2011). Principles of Marketing. 14th Ed. London: Pearson Education Limited.
Petzer, D.J., Steyn, T.F.J. & Mostert, P.G. (2008) Competitive marketing strategies of selected
Hotels: an exploratory study. Southern African Business Review, Volume 12 Number 2
2008.