PLANNING & STRATEGY
1: MARKET-LED STRATEGIC MANAGEMENT
The purpose of marketing
Radical strategies
Rational strategies
Robust strategies
Fabric of the marketing concept
15 points
Marketing strategy views (market needs vs company capabilities)
Product-push marketing
Customer-led marketing
Resource based marketing
Fundamental marketing principals
Role of marketing in strategy
- Customer needs and wants
- Competitive positioning matching capabilities
- Engage resources to deliver
2: CUSTOMER ANALYSIS
Possible Stakeholders
What is the customer?
Consumer insights
Key questions to understand customers
Marketing research method
Company records
Tailor-made research
Off-the-peg research
Seasonality
Research
Qualitative
Quantitative
Advantages
Disadvantages
2: SELECTING TARGET MARKETS
Multi factor approach
Market factors
Size of segment
Segment growth rate
Stage of industry evolution
Predictability of market
Price elasticity and sensitivity
Bargaining power of customers
Seasonality and cyclically of demand
Competitive factors
Competitive intensity
Quality of competition
Threats of substitution
Degree of product differentiation
General business environment
Exposure to economic fluctuations
Exposure to political and legal factors
Degree of regulation/deregulation
Social acceptability and physical environment impact
Current market position
Relative market share
Rate of change of market share
Exploiting marketing resources
Unique and valued product and services
Economic and technological position
Relative cost position
Capacity utilisation
Technological position
Capability profile
Management strength and depth
Marketing strength
Forward and backward integration
Forward and backward integration
Making market and segment choices
Atttractiveness
Company strengths
3: COMPETITOR ANALYSIS
Competitive Benchmarking
Step 1: Who to benchmark against
Industry leaders
Lesser players
Particular business activities
Step 2: What aspects of business to benchmark
Value chain
Key factors for success
Step 3: Collecting relevant data to enable processes and operations to be compared
Published sources
Data sharing
Interviews
Step 4: Comparison with own processes
Based on steps 1-3 compare processes
Identify areas of benefit
Develop targets for improvement
Levels of Competitor Focus
Focus 1: Strategic group - Direct competitors
Focus 2: Industry competition - Indirect competitors
Focus 3: Potential entrants/subsitutes
Components of competitor analysis (predicting future strategies)
Current and future objectives
Current strategy
Resource profile
Assessing competitors capability profiles
Ability to conceive and design (innovate)
Ability to produce
Ability to market
Ability to finance
Ability to manage
Types of competitors
good
bad
3: ORGANISATIONAL RESOURCE BASE
Marketing resources
Dynamic capabilities (Creation of assets)
Marketing capabilities (Deployment of assets)
Marketing assets (resource assets in firm)
Absorptive capability
Adaptive capability
Innovative capability
Assets
Company name and reputation
Brands
Difficult to build
Add value for customers
Create defensible competitive positions
Build customer retention
Transform markets
Perform financially
Can cross national borders
Adding brand value
Internal Marketing Support
Information systems/market intelligence
Existing customer base
Corporate culture
Analysis of resources: business or product portfolio
Breadwinners
Developments
Balancing portfolio
Products that generate cash now
Others that use cash now but promise to generate cash in the future
Imbalance
Future focused
Present focused
4: CHANGING MARKET ENVIRONMENT
Product Life Cycle
Sales and Profit
Adoption curve
The chasm
The Hype Cycle
Technology trigger
Peak of inflated expectations
Trough of disillusionment
Slope of enlightenment
Industry evolution (issues and strategies)
Emergence
Transition to maturity
Decline
Innovators (2.5%)
Early Adopters (13.5%)
Early Majority (34%)
Late Majority (34%)
Laggards (16%)
5: SUSTAINABLE COMPETETIVE ADVANTAGE
Competitive strategy
Cost leadership
Differentiation
Achieving cost leadership
Achieving leadership through differentiation
Basic Strategies
Build (Growth)
Hold or Defensive (Maintenance)
Niche (Focused)
Harvest (Reaping)
Deletion (Divestment)
Frontal
Flanking
Encirclement
Bypass
Guerrilla
Position defence
Flanking defence
Pre-emptive strike
Counter-offensive
Mobile defense
Contraction defense
Porters
6: COMPETING THROUGH INNOVATION & NEW PRODUCT DEVELOPMENT
Pressures and spurs to innovation
Types of New Product
Cost reductions
Repositionings
Improvements
Additions
New product lines
New to the world
New product success
Development process
Step 1: Idea generation
Step 2: Screening
Step 3: Business analysis
Step 4: Product development
Prototypes
Step 5: Market testing
Step 6: Launch (commercialisation)
7: COMPETING THROUGH SUPERIOR CUSTOMER SERVICE
Product/service differentiation
Generic offer
Expected offer
Augmented offer
Potential offer
Relationship marketing
Relationship marketing ladder
Good vs not so good customers
What is providing superior service
Expectation gap
Assessing customer satisfaction
Measuring/monitoring satisfaction
- Use complaints and suggestion systems
- Customer satisfaction surveys
Performance importance matrix
8: SEGMENTATION AND POSITIONING
Principles
Market segmentation
Choice of target markets
Competitive positioning
Principles
Companies
Products and services
Brands
Risks and errors
Credibility vs uniqueness claimed
3 basic underlying requirements
Variables used
- Background customer characteristics
- Consumer attitudes
- Customer behaviour
Subjective measures
Objective measures
Benefit segmentation
Perceptions and preferences
Purchase behaviour
Consumption behaviour
Response to marketing mix
How to decide which segments to pursue?
Organisational resource strength
Attractiveness
Kotler & Armstrong (categories and strategies)
Market leader
Market challenger
Market follower
Market nicher
9: SEGMENTATION AND POSITIONING RESEARCH
Model for segmentation research
- Set boundaries
- Collect data
- Analyse data
- Validate the segments
- Implement
- Track the segments
Multi dimensional positioning analysis
10: STRATEGIC ALLIANCES AND NETWORKS
Characteristics of a new business environment
Strategic collaboration
Drivers
Types of networks
Type of network relationships
Environmental volatility
Collaborative
Transactional
Continuum of collaboration and inter organisational commitment
Alliances and partnerships
Outsourcing
Partnerships
Short term
Long term
Strategic alliances
Joint ventures
Vertical integration
Risks
Managing network organisations
Drivers
Choice of partners
Facilitators
Components
Network effectiveness
Organisational change
Market orientation and customer service
Role of marketing in network organisations
Relationship marketing