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STRATEGIC MARKETING - Coggle Diagram
STRATEGIC MARKETING
PART 1:
Strategy and Marketing
The marketing strategy in the company
Operational
Design, execution and control of marketing plan
Strategic
Strategic diagnosis
Choosing marketing strategy
Definition and analysis of the market
Marketing Orientation
Requires
Competitor intelligence
Cross-functional coordination
Customer focus
Consequences
Financial, consumer, innovation and employee results
The relationship between Strategic Management and Marketing
3 Principles of Marketing
Competitive Advantage
Goal: create competitive advantage through differentiation
Focus
Focus is the concentration of attention and resources
Requirement to create customer value at a competitive advantage
A clear focus on customer needs and wants
Customer Value
Goal: Create customer value that is greater than the value created by competitors
Strategy
Reduce the price
Combine those 2 elements
Expand or improve product and/or service benefits
Strategy Management Process
Review current situation
Analyze Organizational and external environment
3.Develop new strategies
Implement Strategies
Evaluate Results
Marketing Plan
Marketing strategies
E.g: Ansoff, Kotler and Singh, Utterbarck and Abernathy, Buzzel, Gale and Sultan, Mintzberg, etc.
Action plan
Assignment of responsibilities for the execution of the marketing plan
Marketing goals
Results to be achieved in the short and medium term
Marketing control
The process by which firms asses the effects of their marketing activities and make necessary changes
Analysis and strategic diagnosis
E.g.: Swot Analysis
What does strategy mean in business?
A long-term plan of action designed to achieve a particular goal/set of objectives
Mission
Objectives
Developing
Resource Allocation
Sources of Synergy
PART 6:
Models for the analysis of the product portfolio
Matrix attractiveness of the market-competitiveness of the company
McKinsey Approach-General Electric
Step 1. Determine industry attractiveness of each business unit
Step 2. Determine the competitive strength of each business unit
Step 3. Plot the business units on a matrix
Step 4. Analyze the information
Each business unit is represented as a circle. The size of the circle should correspond to the proportion of the business revenue generated by that business unit
Shell Approach
Arthur D.Little's Approach
SWOT analysis
Internal Analysis
Strengths: are things that your organization does particularly well, or in a way that distinguishes you from your competitors.
Weaknesses: Like strengths, are inherent features of your organization, so focus on people, resources, systems, and procedures.
External Analysis
Opportunities: They usually arise from situations outside your organization and require an eye to what might happen in the future. Changes in government policies, changes in social patterns, population profiles, and lifestyles
Threats: include anything that can negatively affect your business from the outside, such as supply chain problems, shifts in market requirements…
Growth matrix-market share: BCG approach
Dogs: These are products with low growth or market share.
Question marks or Problem Child: Products in high growth markets with low market share.
Stars: Products in high growth markets with high market share.
Cash cows: Products in low growth markets with high market share
PIMS Model
Characteristics of the business environment (market attractiveness):
Short/long-term) market growth
Market size
Distribution channels (direct, wholesale, retail, etc.)
Customer characteristics (purchase amount, frequency, importance, etc.)
Inflation (materials and energy, labour costs, prices)
Position in product life cycle
Competitive strength:
Relative market share (compared to the 3 largest competitors)
Relative innovation rate and product line breadth
Location cost advantage
Relative marketing effort (salesforce, advertising, promotion)
Relative market coverage
Relative product quality
Characteristics of the service provision
Supply chain fitness:
Investment intensity (= investment volume / turnover)
Extent of vertical integration versus outsourcing
Labour productivity
Capacity utilisation
Investment mix (fixed vs working capital)
Lean overheads
Marketing intensity (= marketing expenditure / sales)
Research and development intensity (= research and development expenses / sales
Dynamics of change:
Changes in competitive strengths
Changes in supply chain fitness
Economic success factors (as variables to be explained):
Return on investment (ROI) (= profit / capital)
Return on sales (ROS) (= profit / sales)
Real growth
Concept and types of product portfolio
Phases of analysis of a portfolio of products
Evaluation of each unit of analysis
Examination of interrelationships
Definition of the unit of analysis
Determination of the future portfolio project
Models for the joint analysis of the product portfolio
Financial models
Decision Support
Matrix models
PART 5:
Analysis of competitors
Competitor identification methods
Methods based on management's judgements
Methods based on consumer assessments
Judgements on usage behavior
Analysis of similarities
Dislist of productd
Information on purchasing behavior
Competitors analysis
Information sources
Evaluation of competitors' objectives
"Maintenance" or "consolidation"
Intention to increase market share
Objectives of "harvesting"
Analysis of resources, capabilities and strategies
Is the product relevant to the company in terms of sales, profits or number of employees?
How is the degree of commitment in your market?
Is the management team aggressive?
Determinants of the degree of competence
Criteria for the diagnosis of competitive rivalry
The competitors' cost structure
The consumers preference structure
The market structure
Number of competitors and degree of product differentiation
Benchmarking
Analyze other companies (competition or not) to detect their strengths, in order to incorporate them into the company
Competition concept
From the consumer's perspective
Product category competition
Strategy: Persuade consumers that out product form is the best in its category
Generic competition
Strategy: Convince the market that our product category is the one that best meets the generic need
Product form competition
Strategy: Convince the segment that our brand is better than the rest
Budget competition
Strategy: Inform consumers that investing in our product is the best way to spend money
PART 2:
Definition and delimitation of the reference market
Product concept
5 product levels (Kotler)
Generic Product
A basic version of the product made up of only those features necessary for it to function
Expected Product
The set of features that the customer expect when they buy the product
Core Benefit
Fundamental needs or wants that the customer satisfies when they buy the product
Augmented Product
Any product variations, extra features, or services that help differentiate the product from its competitors
Potential Product
All augmentations and transformations the product might undergo in the future
Keys of the current marketing
Marketing 2.0
Customer-oriented marketing
Marketing 3.0
Value-driven marketing
Marketing 1.0
Product-centric marketing
Concept of the reference market, relevant market and product-market
Reference market
3 dimensions
Needs
Technological alternatives
Buyers
Relevant market
The part of the reference market in which the company competes
PART 8:
Market and product development strategies
Growth methods
Mergers or acquisitions
Cooperation agreements
Internal growth
Ansoff matrix
Product development
Market development
Market penetration
Diversification
Related diversification
Unrelated diversification
Divestment strategies
Disposal
Periodic supervision and recognition of product weakness.
Detailed assessment of weak products and decision.
Execution of elimination.
Harvest
The aim of the harvest strategy is to withdraw from the market recovering everything possible from the investments made
Stay
PART 9:
Strategies for the new development of the new products
Concept and types of new products
Incremental innovation
Disruptive innovation
Sustaining innovation
Radical innovation
The process of developing new products
Eight major steps in the new product development process
Concept development and Testing
Development Process
Concept development
Concept testing
Marketing strategy development
Idea screening
Business analysis
Idea generation
Product development
Test marketing
Commercialisation
Concept and types of innovation
New product from the company's perspective
New product from the consumer's perspective
PART 7:
Strategic marketing and competitive advantage
Strategies for obtaining competitive advantages
Differentiation strategies
Industry-wide distribution across all major channels
Consistent promotional support – often dominated by advertising, sponsorship etc
Superior product quality (features, benefits, durability, reliability)
Branding (strong customer recognition & desire; brand loyalty)
Low cost strategies
Use of bargaining power to negotiate the lowest prices for production inputs
Lean production methods (e.g. JIT)
Effective use of technology in the production process
Access to the most effective distribution channels
High levels of productivity
High capacity utilisation
Competitive marketing strategies
Market leader strategies
Defending current market share
Position defense
Flank defense
Preventive defense
Counteroffensive defense
Mobile defense
Market broadening
Market diversification
Contraction defense
Expanding Total Market
Expanding Market share
Increasing promotion efforts
Improving distribution system
Improving product qualities
Deploying aggressive sales force
Expanding existing product lines
Applying price-cut
Adding new product lines
Improving production efficiency
Challenger strategies
Flank attack
Encirclement (all-round) attack
Frontal Attack
Bypass attack
Guerrila attack
Follower strategies
The firms prefer to follow leader rather than to challenge are called the followers. However, market followers always react strongly in case of any loss.
In some capital goods industries like steel, cement, chemical, fertilizer, etc., product differentiation is low, service qualities are similar, and price sensitivity is high. They decide to provide similar offers by copying the market leader.
Specialist strategies
Customer size specialist
Specific customer specialist
Vertical level specialist
Geographic specialist
End-user specialist
Product or product line specialist
Event specialist
PART 4
In what ways can a company divide a consumer or business market into segments?
Market Segment
Behavioral segmentation
Needs and benefits
Decision roles
Demographic segmentation
Age and life-cycle stage
Life stage
Gender
Income
Generation
Race and culture
Psychographic segmentation
Buyers are divided into groups on the basis of psychological/personality traits, lifestyle, or values
Geographic segmentation
Nations, states, regions, countries, cities or neighborhoods
User and user related variables
Occasions
User status
Usage rate
Buyer-readiness stage
Loyalty status
Attitude
Marketing funnel
Market targeting
PART 3
: Evaluation of the market
The product lifecycle
Growth Stage
Maturity stage
Introduction stage
Decline
Life Cycle determining forces
Theory of the process of innovations
Product Evaluation
The consumer considers whether trying the new product makes sense
Product Interest
The consumer seeks information about the new product
Product Awareness
The consumer becomes aware of the new product but lacks information about it
Product Trial
The consumer tries the new product on a small scale to improve this or her estimate of its value
Product Adoption
The consumer decides to make full and regular use of the new product
Theory of product-market evolution
The order of entry
K-Strategies: used by companies that enter the market when there are numerous competitors
R-Strategies: typical of those companies that enter the market in the first moments
Diversity of resources and capabilities
Specialist: company that concentrates its offer in a narrow market segment
Generalist: company that invests in technology, production and distribution to become a market leader
The process of technological change
Dominant process
Specific process
Flexible process
