Tesco - know thy stakeholder By Mallen Baker on May 3, Many a company leader acknowledges the importance of knowing your customers. But few can claim to have got close to that goal, says Mallen Baker How hard do you try to understand what your stakeholders think, what they want you to do?
This companion blog to the textbook by Marian Burk Wood is your essential guide to news and views in the world of marketing.
Check back regularly for updates to cases, concepts and companies. Saturday, 3 November Yes, competitors are stakeholders Stakeholders also known as publics are groups such as community residents, media representatives, stockholders, financial analysts and others who have an interest in or some influence on marketing performance.
Obviously, customers, employees, managers, suppliers, government regulators and others can directly influence a business and its performance, meaning they're particularly important stakeholders.
So why consider competitors as stakeholders? Because every company can, directly or indirectly, affect the performance of its competitors.
Often a marketing plan is designed to capture market share from a particular rival or reinforce customer loyalty in the face of competition from a new up-and-comer. Doesn't that make you a stakeholder in your competitors' performance and your competitors stakeholders in your performance?
Comet's recent descent into administration is largely due to intense competition from online electronics retailers. If those online competitors didn't exist, Comet would likely still be in business. The competitors intended to increase market share and turnover, and the unintended consequence was that Comet couldn't survive.
Amazon's Kindle Fire directly competes with Apple's iPad. Amazon actually offers a head-to-head comparison to show how its product beats the iPad. Clearly, both Amazon and Apple are competing for the same customers, with implications for market share and for ongoing revenues from downloaded content.
BSkyB has seen customer enrollments slow due to more competition from Virgin, BT, and others that are offering good deals to attract customers.
Subscribers aren't one-time buyers; losing a customer means losing future revenue, just as gaining a customer means gaining future revenue. The stakes are high. Show respect for your competitors and take their actions seriously, because what they do may very well change the course of your marketing.
I'm not suggesting that competitors consult with each other or collude, because antitrust rules make certain kinds of competitive agreements and coordinated actions like price-fixing illegal.
I am saying that a healthy, competitive industry is in the interests of all participants, including customers. New choices emerge when many companies compete, whereas customers face fewer choices when firms like Comet go into administration.
In fact, competition can spark real creativity and innovation when companies are motivated to overtake rivals or recapture market share from rivals. Read more in my post here.The Stakeholder Checklist. The most important factors you need to make clear decisions on if you want to stand any chance of influencing your stakeholders successfully.
External Stakeholders are individuals or groups outside a business or project, but who can affect or be affected by the business or project. Arguably external stakeholders wield the most influence on the long term success of a business or project, because external stakeholders will often be the end users/customers.
@TahsinaQuasem Hi tahsina. Do you mean that you have to do a stakeholder analysis of a newspaper and how an increase in prices would affect stakeholders? If so, start by making a list of all the possible stakeholers of your newspaper - everyone who is affected by, or impacts on,, the newspaper.
Stakeholder mapping External stakeholders: These are those individuals or groups who have an interest in the product, but do not produce or consume it directly.
These groups are shown in the diagram by the dotted circle on the left. The process was developed in consultation with over fifty internal and external stakeholders, including suppliers, multi-stakeholder bodies such as the Ethical Trading Initiative, civil society groups such as Unseen, Oxfam and the Ethical Tea Partnership, and Government bodies.
2 Summary Stakeholder influence mapping is a tool to examine and visually display the relative influence that different individuals and groups have over decision-making.