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

  1. Customer needs and wants
  1. Competitive positioning matching capabilities
  1. 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

  1. Use complaints and suggestion systems
  1. 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

  1. Background customer characteristics
  1. Consumer attitudes
  1. 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

  1. Set boundaries
  1. Collect data
  1. Analyse data
  1. Validate the segments
  1. Implement
  1. 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