Marketing Strategy Revision Notes

8/17/2019 Marketing Strategy Revision Notes

1/31

Marketing Strategy Revision Notes

Lecture 1 – Marketing Strategy

Strategy Defnitions

• A fundamental pattern of present and planned objectives,resource deployments and interactions of an organisation withmarkets, competitors and other environmental factors (Kenn1990

• A pattern in a stream of decisions (!int"berg

• #eatures$ %onditions of uncertainty, maintaining a position ofadvantage, successive e&ploitation of known or emergent

possibilities, cycles

Hierarchy o Strategy (3)

• %orporate strategy (which industry should we be in'

• usiness strategy (what product)service markets should we bein'

• !arketing strategy (target market, consumers, lines, branding

etc

Market Driven v Driving Markets

• !arket driven$ *An orientation that is based on understandingand reacting to the preferences and behaviours of playerswithin a given structure+

• riving markets *Inuencing the structure of the marketand)or the behaviour of market players in a direction thatenhances the competitive position of the company+

Mutua!!y "enefcia! #$changes

• !utual satisfaction of both provider and customer

• -rovider goals (.urvival, /nancial, social, spiritual, ecological 2ers of products, services

• %ustomer goals (.olutions, bene/ts, altruism, well3being 4esponses as purchases, support

• 56uilibrium between goals


2/31

%rganisationa! Stakeho!&ers

• !any$ customers, distributors, suppliers, employees,managers etc

Marketing an& 'erorance %utcoes

• !arket oriented culture

• !arketing resources (assets, capabilities

• !arket performance (satisfaction, loyalty, share

• #inancial performance

Ro!e o Marketing in the %rganisation

• 7nternal$ 7dentify and communicate customer ants an&nee&s throughout the organisation

• etermine the co*etitive *ositioning to match the needsof the customers with company capabilities

• irect all resources to deliver customer satisfaction

+++Marketing Strategy 'rocess (,igure 1)+++

•usiness purpose %ore strategy (environment, company %ompetitive positioning (market target, comp8 adv8 7mplementation (control, organisation !arketing mi&


3/31

"usiness 'ur*ose

• !ission statement helps to clarify objectives of the business,may encourage investment

• -rovides employees with a greater understanding of the

objectives they should be striving for and be committed to

•

hat business are we in' hat business do we want to be in'

• .trategic 7ntent$ :ision of where the company wants to be

• %ompany :alues$ !oral, ethical guidelines that must beadhered to

• istinctive %ompetencies$ !ust be articulated, clearly stating

what di2erentiates the organisation from similar competitors

•

!arket e/nition$ %ustomer targets to serve, wants and needs

• -ositioning$ ;ni6ue and distinctive factors

-ore Strategy (#nvrionent an& %rganisation)

• .tatement of company objectives as well as the broadstrategies that will be used to achieve them

• 4e6uires detail analysis of environment as well as organisationresources

• rganisational 4esources$ (Distinctive resources, corecompetencies and weaknesses v competitors

• -roduct portfolio today, tomorrow, yesterday breadwinners

< developments and sleepers, ego and failures alancedportfolio that generates cash today as well as promised togenerate future cash

• 5nvrionment (!arkets served$ .egmentation, opportunities,.=


4/31

• n the basis of the above, the company will look to de/ne the.,S

• %ore strategy e8g8 !arket e&pansion, geographic e&pansion,

share etc

-o*etitive 'ositioning (Market targets an& co*/ a&v)

• .tatement of the arket targets (where the company willcompete and &i0erentia! a&vantage (how the company willcompete

• eveloped to achieve the objectives laid down by the core

strategy

• !arket =argets$ .elect targets most suitable to company>sstrengths, while minimi"ing vulnerability of weaknesses

• %hoice criteria$ !arket attractiveness and company>sstrengths in serving those markets

• Attractiveness #eatures$ ?arge si"e, growing, high contributionmargins, low rivalry, high entry and low e&it barriers, lowvulnerability

•

.trength #eatures$ @igh market share, fast growth, uni6ueo2ering, superior 6uality, good margins, e&ploitable assets,eciencies, new tech

• %ompetitive Advantage$ %an be created by any of thecompany strengths or distinctive competencies relative to thecompetition hen choosing how to create this advantage itmust consider the value that it will provide to the customer aswell as the imitability of competitors

• %ost leadership re6uires 5. and a higher market share,generally B4isks$ =ech change, imitation, di2erentiationC

• i2erentiation creates a market based advantage, can chargepremium prices B4isks$ %ost, imitationC

• .imultaneous possible with tech8 and large market share(..

I*!eentation Marketing Mi$ (-ontro! an& %rganisation)


5/31

• !arketing !i&$ -roduct, price, promotion, distribution .ynergy

• rganisation$ f marketing e2ort and employees #unctional,

product and brand management, skill set

• %ontrol$ !onitor market (metrics and /nancial (47,%ontribution

Lecture 23 4 #$terna! #nvrionent

+Marketing #nvironent+

• !acro$ -5.=?5

• !icro$ %ustomers, suppliers, distributors, competitors,company

Macro 4 +'#S5L# 6na!ysis+

• *hat are the key drivers and in which direction are theychanging'+

• 'olitical (Dational and international governments, tari2s,elections, peace)war, uprising, trade areas

• #conomic (5conomy, globalisation, 74, inEation, currency, ta&,/scal, cycle, development, con/dence

• Socio3cultural (emography, lifestyle, ethnicity, gender,

e6uality, unemployment, Fgrey market>, Fyouth market>,


6/31

increased power, choice, frugality, green

• 5echnological (.horter commercialistion time for newinventions, rate of change, !oore>s law, shorter product lifecycles, 4G, 7nternet, mobile, innovative marketing tech and

metrics, A7, computer integration

• Legal (4egulation, compliance

• #nvrionment (%onscientious consumers, climate change,energy costs, raw materials

7!o8a!isation o Markets

• #arley 199H$ !any markets are becoming global in nature,

products more available and consumers more aware Iigantic scale 5o.B5val$ !arkets actually becoming more fragmentedC

Marketing Strategies or Macro4#nvironents

• Ilobal positioning J focus on core competencies on a globalscale

• !aster brand J consistent brand identity that links all parts of

business

•

5nd user focus• orld class service J as standard

• !ass customisation J scale economies but still personali"ation

+'orter9s : ,orces – In&ustry -o*etition+

• Riva!ry 6ong #$isting ,irs

3 7ndustry competition is roughly evenly balanced3 uring periods of low market growth3 @igh e&it barriers3 @igh #%3 ?ow product di2erentiation

• 5hreat o Ne #ntrants

3 ?ow entry cost3 5ase of using e&isting ) new distribution channels3 ?ow competitive retaliation e&pected3 ?ow di2erentiation3 Iaps in the market


7/31

• 5hreat o Su8stitutes3 !aking e&isting technology redundant3 7ncremental product improvement

• "argaining 'oer o Su**!iers

3 !ore concentrated than buyers3 @igh cost of switching3 .uppliers o2erings are highly di2erentiated

• "argaining 'oer o "uyers3 !ore concentrated than suppliers3 4eadily available alternative sources of supply3 ?ow switching costs3 7nternet 5ase of search, choice and comparison

• Ireater competition when$ ?ittle di2erentiation, low industrygrowth, high #%, high supplier switching costs, low buyerswitching cost, low entry barriers, high e&it barriers

5argets o -o*etitor 6na!ysis

• .trategic Iroup$ ho are they key direct competitors'

• 7ndustry competition$ ho is able and motivated to overcome

entry barriers to the strategic group'

• Dew entrants or substitutes$ ho is seeking to diversify orimplement new skills to capture demand'

-o*onents o -o*etitor 6na!ysis

• Assess competitor>s current and future objectives3 hat are they trying to achieve'3 hy are they trying to achieve it'3 Are they satis/ed with their achievements'Key$ .tates goals, market assumptions, investments

• Assess competitor>s current strategy3 hat target markets'3 hat is their strategic focus'3 hat marketing mi&'

3 @ow do they organise their marketing'Key$ Ad media, messages, new product introduction rates,


8/31

recruitment ads, price level, distribution channels

• Assess competitor>s resource pro/le3 !arketing culture'3 !arketing assets and capabilities'

3 -roduction and operation capabilities'3 #inancial resources'Key$ %ustomer relationship strength, new product successrates, 6uality of people, product availability, cost of promotion

• -redict competitor>s future strategies3 hat might they do'3 hat under3utilised resources do they have'3 @ow will they react to our actions'Key$ -ast strategies, past reactions recent ac6uisitions,

ownership

+'ro&uct Lie -yc!e ('L-) – ,igure 2+

• 7nsightful tool into an industry>s competitive environment

• -?%s follow predictable patterns or phases

• !arket conditions, opportunities and challenges vary over thelife cycle

• .trategies must adapt over the life cycle

Intro&uction Stage

• -roduct is launched into the market and generally sales areslow to pick up as customers and distribution have to be foundand convinced

• 7f the product is new to the world it will face little or nocompetition and the company will face a pioneer advantage

• Key$ @ow 6uickly until competitors launch an alternative'

7roth Stage


9/31

• 4apid increase in sales as product starts to attract newcustomers and potentially repeat purchases

• 7t is at this stage that competitors evaluate product marketand pro/t potential < evaluate potential competitive moves

Maturity Stage

• 4ate of growth slows down signi/cantly

• ?asts longer than other stages and is the most challengingone

• .evere competition, market fragmentation and decliningpro/ts due to over3capacity in the industry

• .earch for untapped niches and potential price wars eak

competition will e&ist 4emaining companies will have highmarket share

• !ay lead to increased substitutes

Dec!ine Stage

• .low or rapid decline in sakes

• !ay be due to better solutions, changing tastes, increasedcompetition domestically or international

+S'6-# 6na!ysis+

• .trategic -osition and Action 5valuation

• 5&tends environmental analysis beyond the consideration ofturbulence to look at industry strength and relate this to thecompetitive advantage and /nancial strength of the company

• =he company is rated on each of the four dimension to give a

competitive pro/le

• 5ach 6uadrant represents a di2erent *osture

• %ompetitive -osture$ %ompetitive advantage and an attractiveindustry B5val$ %ompany>s /nancial strength is insucient tobalance the environmental instability it faces Deed to raisemore capitalC

• Aggressive -osture$ .igni/cant advantages but are likely toface threats from competitionB5val$ 5&cessive /nances may allow ac6uisitions to occurC

• %onservative -osture$ =ypical for mature markets where the

lack of need for investment has generated /nancial surpluses


10/31

B?4 vulnerability due to lack of opportunities efende&isting productsC

• efensive -osture$ :ery vulnerable ivest and retreat nly a matter of time

Lecture ; – Interna! 6na!ysis

+-onsi&er the re!ationshi*+

• Assets %apabilities .ustainable competitive advantage


11/31

%rganisationa! Resource "ase

• 4esource ased :iew (4:

• ynamic capabilities

• !arketing assets

• ynamic marketing capabilities

• 4esource portfolio

Resource "ase&


12/31

3 -roduction e&pertise (Nuality3 %opyrights and patents3 #ranchises and licenses

• Su**!y -hain 6ssets

3 istribution control @elps to block competition3 -ockets of strength %oncentrating e2orts geographically3 istribution uni6ueness 4each target in a novel, uni6ueway3 istribution network and relationships 5nsures availability3 .upplier network and relationships iscounts, preference

• 6!!iance "ase& 6ssets

3 Access to markets3 Access to management skills

3 .hared technology3 5&clusivity

Marketing -a*a8i!ities

• eploy marketing assets with synergy

• -roduct and service management$ !arshaling all resources to

deliver customer value, synergy

• istribution and logistics$ =imely, ecient, rapid, 7nternet

• -ricing and tendering$ %osts, competition, elasticity

• Advertising, promotion and selling$ !A4%!s

Dynaic Marketing -a*a8i!ities

• Ability to create new marketing resources or capabilities toidentify and respond to change .ustain competitiveadvantage

• A.4-=7:53 !arket sensing$ 5&ternal environment research, companyanalysis3 ?earning$ ?4 competitive advantage, continuous

• AA-=7:53 =argeting)-ositioning3 %4! Ac6uire and retain customers

*%apacity of an organisation to purposefully create, e&tend ormodify 4+


13/31

Marketing Resources as the ,oun&ation or Di0erentiation

• istinct resources of the company that are resistant tocompetitor imitation .ustainable competitive advantage

• Key characteristics3 5nable superior value for customers3 4esistant to duplication3 :alue can be appropriated by company

• 5&ample marketing resources$ rand reputation, customerrelationships, distribution networks

3 !any are intangible in nature3 uplication can be prevented through isolating mechanisms %omple& combination of resources used etc8

3


14/31

+5he Resource 'orto!io+ 4 ,igure 3

+Deve!o*ing an& #$*!oiting Resources+ 4 ,igure ;


15/31

+'ro&uctService ty*es in 'orto!io+ 4 ,igure :

+'ro&uct Lie -yc!e+ 4 ,igure > (-overe& ear!ier)


16/31

Lecture : – S?%5= S-6 an& -ore Strategy

S?%5 6na!ysis

• .trengths (7nt$ hat are we good at, relative to competitors'3 -eople, e&pertise range, systems, brand

•

eaknesses (7nt$ hat are we bad at, relative tocompetitors'3 Age of /rm, culture

• pportunities (5&t$ hat changes are creating new opp8 forus'3 %loud computing, network speed, regulation

• =hreats (5&t$ hat emerging dangers must we avoid or

counter'3 =a& changes, wider o2ering by competitors

Routes to -o*etitive 6&vantage – ,igure @

• =owards di2erentiation (:ertical @igh valued uni6ueness

• =owards cost leadership (@ori"ontal ?ow relative delivered

cost

• i2erentiation creates a market advantage

• %ost leadership creates a /nancial advantage

• Achieve both for .%A


17/31

6&vantage -reating Resources +


18/31

• 7ndustry .trength J growth potential, pro/t potential, /nancialstability, tech, resource utilisation, capital intensity,productivity

7eneric "usiness Strategies – 6NS%,, J ,igure A

• -roduct ) market growth matri&

+7eneric "usiness Strategies – -ost Lea&ershi* ('orter1BAC)+

• 5o. J most e2ective (o., optimum scale

• 5&perience J eciency through learning

• %apacity ;tilisation J unit costs, 47

• ?inkages J high 6uality could lead to lower service costs

• 7ntegration J forward and backward

• =iming J /rst mover advantages

• -olicy %hoices J product choice

• ?ocation J materials, geography, labour

+7eneric "usiness Strategies – Di0erentiation ('orter 1BAC)+

• -roduct J packaging, 6uality, branding, service

• -romotional J wider mi& of !arcomms, 7!%

• rand J positioning, emotional appeal


19/31

• istribution J 7nternet, routes, network, coverage

• -ricing J low, premium

Re& %cean v "!ue %cean Strategies

• %ompeting in e&isting market v %reate uncontested market

• eat the competition v !ake the competitionirrelevant

• 5&ploit e&isting demand v %reate and capture newdemand

• !ake value cost trade3o2 v reak value cost trade3o2

• oth$ *Align the whole system of a /rm>s activities with itsstrategic choice of di2erentiation or low cost+

+7enerating Strategic %*tions+

• !acro factor !icro factor 7nternal resources .trategic

bjective

+#va!uation o Strategies – S6,e -riteria+

• Suitability J does the proposed strategy address the keyopportunities and threats the organisation faces'

• 6cceptability J does the proposed strategy meet the

e&pectations of the stakeholders'

• ,easibility J would the proposed strategy work in practice, dowe have the /nances, people and resources'

Sustaining -o*etitive 6&vantage

• ;ni6ue and valued products

• %lear de/nition of market targets

• 5nhanced customer linkages

• 5stablished brand and credibility


20/31

Lecture > – Segentation= 5arget Markets an& 'ositioning

'ositioning Defnition

• =he act of designing the company>s o0ering and iage sothat they occupy a eaningu! and &istinct position in thetarget customer>s mind

Segentation Defnition

• ividing the market into groups of similar customers

+Segentation an& 'ositioning Stages+

• !arket segmentation %hoice of target markets -ositioning

-ustoer -haracteristics

• emographic (gender, age, geographic, subculture

• .ocio3economic (income, occupation, education, class

• -sychographic

• %ensus ) A%4D


21/31

• ?ife cycle

+Segent -riteria+

• Deed to be$

• !easurable

• Ade6uate si"e

• -ro/t potential

• Accessible

• @omogenous within

• @eterogeneous across

• F;ni6ue in response to market stimuli>

,actors 60ecting Market Segent 6ttractiveness

• -5.=?5 and -4=54

Segent 6ttractiveness %rganisationa! Resources

• 7deal$ Attractive segments that match organisationalresources

• 5valuating market targets J %urrent and potential company

strengths in serving the segment

• %urrent position$ share, e&ploitable resources, uni6ue o2erings

• 5conomic and tech$ relative cost, capacity utilisation, techavailable

• %apability pro/le$ management strength, marketing,forward)backward int8

"asic 'ositioning %*tions

• ?ow price

3 %ustomers$ price sensitive, standard indi2erent3 .trategic focus$ internal eciency3 4esource re6uirements$ e2ective cost control, internalmonitoring

• -remium 6uality

3 %ustomers$ demanding, discerning, less price sensitive

3 .trategic focus$ 6uality control, image management


22/31

3 4esource re6uirements$ market sensing, brand image

• .uperior service

3 %ustomers$ service sensitive, less price sensitive

3 .trategic focus$ %4!3 4esource re6uirements$ 4A=54

• 7nnovation

3 %ustomers$ adventurous, early adopters3 .trategic focus$ /rst to market, continuous improvement3 4esource re6uirements$ identify gaps, creative, 4G, rapidproducts

•

i2erentiated

3 %ustomers$ selected bene/t, segments3 .trategic focus$ segment leadership3 4esource re6uirements$ sensing, segmentation, creativity

+'erce*tua! 'ositioning Ma*s+ 4 ,igure B

• @igh up and high rightOOO (Pust like a normal graphO

• Nuality v -ersonalisation

• Nuality v -rice

• *%an be used to illustrate future positioning aims+

'ositioning Risks an& #rrors

• !ust be credible, believable, consistent and not too

broad)narrow

Di0erentiation -riteria or "asis o 'ositioning

• 7mportant, istinctive, -re3emptive, .uperior, %ommunicable,A2ordable, -ro/table

+5he 'ositioning Stateent+

• #or (target customer who (needs, opportunity, the (product

name is a (product category that (statement of ;.-8 ;nlike(primary competitors, our product (distinctive di2erentiation8


23/31

Lecture @ – -o*eting throughE Marketing Mi$ Innovation

+?hat is &igita! arketingF+

• =he use of digital technologies to create an integrated,targeted and measurable communications mi& which helps toac6uire and retain customers while building deeperrelationships with them

• =argeted J bespoke recommendations and choices

• !easurable J metrics, click through, heat, 47, conversions etc


24/31

• 4elationships J continuous communication, feedback,engagement etc

+Digita! Marketing Mi$+

• -roduct J (7ndividual, customi"ed, digital (7nnovation,di2erentiation, augmented, life cycle

• -rice J (ynamic, transparent, Ee&ible (-roduction cost,value, competitors, -e

• -romotion J (7nstantaneous, permission3based, interactive

• -lace J (7nternet, new channels, global, virtual

• 5valuation and performance control• =he impact of digital marketing on the traditional marketing

mi& is huge

• 58g8 radical change to prices, dynamic pricing in the aviationindustry not possible before the 7nternet

+Digita! 'rootiona! 5oo!s+

• nline advertising and .earch 5ngine !arketing (.5!3 ptimisation for search listings, .5, aliate marketing

• .5! helps distinguish between natural search and optimi"edsearch rankings back links, tags, mentions, adwords

• nline video and interactive ads (rich media

• .ocial media advertising

+5y*es o Socia! Me&ia 6ctivity+

•

.ocial %ommunity J 7nternet, sharing, sociali"ing, conversing

• .ocial -ublishing J 5ditorial, commercial, ;I%

• .ocial 5ntertainment J Iames, music, art

• .ocial %ommerce J %4!, service, retail, human resources

• B5val$ one of the most powerful marketing tools but absolutelyno control over itC

+Mo8i!e Marketing+


25/31

• =he creation and delivery of !ar%omm messages throughmobile devices

• Advantages J cost e2ective, targeted, personalised,

interactive, personal, time3Ee&ible, immediate, measurable,updatable, gateway to other channels

-ounications Market

• 4apidly changing !ove to mobile and 7nternet ?ess focuson published content and =8:

+: I9s o Digita! Marketing+

• 7denti/cation (customer speci/cs

• 7ndividualism (tailored for lifetime purchases

• 7nteraction (dialogue to learn about customer needs

• 7ntegration (knowledge of customers throughout company

• 7ntegrity (develop trust through non3intrusive marketing

+-o*eting 5hrough Innovation+

• -ressures and spurs to innovation to ensure survival pro/t andgrowth$3 5&ploit new technology3 7ntensive competition3 Dew customer targets3 %hanging needs and tastes3 .horter product life cycles3 Dew assets and capabilities

• %hanging customer behaviour is the core driver of innovation

• FDot just marginal product changes Nuest to create superior

value>+-an e *!an InnovationF+

• 7nnovation can fundamentally and radically change industries(cloud, biotech

• illingness to cannibalise


26/31

Innovation an& Marketing Strategy

• 7 -roactive %annibalism3 :alue innovation3 ig ideas

3 7nnovation networks3 Ilobalisation

• 77 isruptive 7nnovation3 -redicting industry change3 Dew business models3 7nnovative company3 4adical innovation

• 777 7nnovation .trategy

3 .uccess and failure3 Dew product planning3 -roduct development process3 .peed of innovation3 rganising for innovation

• 7: Dew -roducts

+?i!!ingness to -anni8a!ise+

• #irms must prepare to give up the old and embrace the new

• ;se new tools to solve new problems

• #irms must cannibalise before there is nothing left of value tocannibalise

#$a*!es o Disru*tive Innovations

• Ama"on (bookstores, 53bay (auction houses

+5o 5y*es o Disru*tive Innovations+

• ?ow 5nd J address over3served customers with a lower costbusiness model

• Dew !arket J compete against non consumption

+Innovators Di!ea+

%ontinue investing in sustaining innovations (better products

in established markets


27/31

3 !ay provide pro/ts now but what about the future'

%R

7nvest in new, disruptive innovations

3 !ay provide future pro/ts, but can we be certain if theywill)when'

-haracteristics o Innovations that 6cce!erate Di0usion

• .uperior value

• %ompatibility with e&isting processes

• ?ow comple&ity for ease of understanding

• ivisibility to facilitate trial

• %ommunicability

+Roa&8!ocks to Innovation+

• -erceptual J diculty identifying the problem, or info to solveproblem

• 7ntellectual 3 intellectual capabilities are limited

• 5motional J freedom of e&ploring new ideas andcommunicating them

• 5nvironmental J imposed by our immediate social)physicalenvrionment

• %ultural J stuck in tradition


28/31

Lecture A – -o*eting through Su*erior Service DrivingMarkets

7oo&4Services S*ectru

• 4elatively pure product J packaged goods

• @ybrid J fast food

• 4elatively pure service J 5ducation

+3S Mo&e! o -ustoer Service+

• .trategy J -art of corporate strategy and competitive

positioning8 %ommunicated throughout the organisation, aclear demonstration of the company>s commitment

• .ta2 J 4ecognition of importance, recruitment, training andempowerment

• .ystems J !easurement of performance, feedback, support

the delivery of info that customers want

• F!ust balance the level)6uality of service with impact of

service on customer outcomes8 =herefore avoiding over3servicing costs and under3servicing risks8>

• .54:N;A? and 4A=54

+Re!ationshi* Marketing La&&er+

• %ustomer %atching (emphasis on winning new customers$

3 -rospect (marketing to catch prospect

3 %ustomer (repeat buyer, identity

3 %lient (positive feelings

• %ustomer Keeping (emphasis on developing and enhancing

3 .upporter (loyalty

3 Advocate (recommends

3 -artner (mutual working


29/31

+-ornerstones o Re!ationshi* Marketing+

• .ound reasons on both sides for relationship• !utual trust and respect

• 5mployee motivation and commitment

+6ssessing -ustoer Satisaction+

• !atch customer e&pectations with customer e&periences, thedi2erence is the Fsatisfaction gap>

• 4A=54

• 4eliability

• Assurance

• =angibles

• 5mpathy

• 4esponsiveness

+Gua!ity 7a* 6na!ysis+

• 2er speci/cation J elivered o2er (production gap

• elivered o2er J %ustomer evaluation of o2er (perceptual gap

• %ustomer evaluation J %ustomer e&pectations (satisfactiongap

• .upplier side$ !arket intelligence gap < esign gap

+Market Driven v Driving Markets+

• !arket riven$ FAn orientation that is based on understandingand reacting to the preferences and behaviours of playerswithin a given market structure>

• riving !arkets$ FInuencing the structure of the marketand)or the behaviour of market players in a direction thatenhances the competitive position of the business

Market Driven (.oh!i an& aorski 1BBC)E


30/31

+Inte!!igence 7eneration+3 Dot simply understanding customer>s verbali"ed needs andpreferences but understanding the e&ogenous factors that inEuencethese needs3 #uture needs, who are the consumers

+Inte!!igence Disseination+3 ?inking di2erent departments3 #ormal and informal

+Res*onsiveness+3 .electing target markets3 -roduct development to address current)latent needs3 -roduction, distribution and communication to address needs

Market Driven (Narver an& S!ater 1BBC)E

+-ustoer %rientation+3 ;nderstanding customer preferences and how they develop overtime3 #ocus on the whole chain of customers

+-o*etitor %rientation+3 5&isting and potential

+Inter4unctiona! -oor&ination+3 .ynergy

Driving Markets (aorski an& .oh!i 2CCC)E

-hange the structure

econstruction3 5liminating players through competitor mergers and ac6uisitions3 .upplier integrations

%onstruction3 uilding a new modi/ed set of players3 Adding complementary products

%hanging #unctions3 :irgin e&ample

+Mo&iying Market "ehaviour+

irectly

3 uild customer constraints (7kea, 4emove customer constraints(5&pedia


31/31

3 uild competitor constraints (4egulation up, 4emove (4egulationdown

7ndirectly3 %reate new customer preferences, 4everse e&isting preferences

3 %reate new competitor preferences, 4everse e&isting preferences

+Nee& or a "a!ance& 6**roach+ (.4 market driven (?4 drivemarkets

Date post:	06-Jul-2018
Category:	Documents
Upload:	rufus-millman
View:	217 times
Download:	1 times

Marketing Strategy Revision Notes

Documents