marketing strategies in a challenging environment nimn

Marketing Strategies in a Challenging Environment

Presentation at

2011 NIMN MCTP

Introduction

L. Obileye/NIMN MCTP - 2011

Content

1. First Things First 2. What is Strategy? 3. Doing Things Differently 4. Conclusion


First things first…

• Two things are inevitable in the world. • These are Change and Competition! • What is the relationship between Change and

Competition?


Parable of the Weed!


Change vs. Competition

change |tʃeɪn(d)ʒ| • Verb • Make or become different

competition |kɒmpɪˈtɪʃ(əә)n| • Noun • activity or condition of

competing

Competitors perpetually crowd each other out.

1





competing

The fittest survive and prosper until they displace their competitors or outgrow their resources

2





competing

Strategists can accelerate effects of competition and rate of change!

3


“ If every business could grow

indefinitely, the total market would grow to an infinite size

on a finite earth

” - Bruce D. Henderson


“ Competitors that make their living in

the same way cannot coexist!

”

- Bruce D. Henderson (Quoting Gause’s Principle)


Power of 3

• Three critical things are at the heart of any business. They are: – People – Process & – Strategy

• The best people backed by the best process and the best strategy will fail if there is no proper execution.


What is Strategy?


Strategy is about the choices we make


What is Strategy? • It is a plan of action • Designed to achieve a major or overall aim • Often contrasted with tactics • Involves researching consumer behaviour

(present and future) • Provides a road map to the future (the best routes

to take you there)

Strategy without execution is a marketing slogan!


“ The essence of strategy formulation

is coping with competition.

”

- Michael E. Porter


Forces Governing

Competition

Threats of New

Entrants

Bargaining Power of

Customers

Threat of Substitutes

Bargaining Power of Suppliers

Forces Governing Competition by Michael Porter


Products and Markets Growth Strategies (adapted from Ansoff, 1965)

Market Penetration

Strategy

Product Development

Strategy

Market Development

Strategy

Diversification Strategy

Exi

stin

g C

lient

s/S

ecto

rs

New

Clie

nts/

Sec

tors

Existing Products

New Products

Clie

nts/

Sect

ors

Products


Strategy as QED

• Q – improve Quality • E – Expand access • D – increase Demand


QED – Improve Quality

• Improving quality is a product development strategy: – Requires innovation – Higher quality – Advanced technology – Superior service offering – Important element of Michael Porter’s 4 generic business

strategy focusing on product differentiation


QED - Expanding Access

• Expanding access is about new customers and their unmet demands using: – market penetration and/or – market development strategies


QED - Increasing Demand

• Increasing Demand is about: – repeat sales and – relationship management for existing customers


Doing Things Differently: Lessons From Entertainment Industry


“What we did then was to repackage the Kwam 1 brand and made it marketable to the corporate world, the educated people. The result was

that more shows came in and everybody made more money” – Dayo Olomu (The Punch Saturday, 25 Apr 2009)


Olomu & Success

‘When I met Sir Richard Branson and Barry Gibbons in 2002, I asked them what the secret of their success was. I was writing for Ovation then. ..he (Gibbons) looked into my eyes and said it was the ability to think differently from the others…..He also said, “Look at what Sir Branson has done. You don’t have to really invent anything. But you can still look at an existing business and find how you can do it differently.”


Olomu & Success

‘….I met Richard Branson two weeks after, during the launching of a Virgin Atlantic route and I asked him the same question (secret of his success) and he said it was the ability to do things differently from others’


“ I went to LASU for self development

” - Pasuma


‘Ohun’

In a quest for discovering new talents in Fuji music, popular musician and Fuji star Wasiu Alabi better known as Pasuma

has started a new reality TV show!


‘Ohun’

“Over the years, I have wondered if someone will ever think of doing a Fuji talent show, and rather than wait more, I have taken up the responsibility to contribute my own quota to the growth of Fuji music. I am optimistic Ohun will open doors for more Fuji talent shows and the more credible shows like ours, the better it is for the industry.”

- Pasuma (The Punch, 23rd Feb. 2011)


Conclusion


5 Skills of Strategic Marketer

1. Ability to understand the dynamics of competitive behaviour

2. Ability to predict effect of strategic action on competitive equilibrium

3. Ability to commit resources to new uses 4. Ability to predict risk and return 5. Willingness to act (execution)


Creating Apostles

• No matter the size of your sales force, the number of people not working for you who can use word of mouth for or against you is a hundred times more.

• We must develop strategies to create willing (and unwilling) apostles out of this giant “sales force”


Importance of the Mundane

• How do we answer the telephone? • How do our drivers drive? • How do we train our marketers? • What does our database tell us about our customers? • Do our customers have confidence in our products? • How do we define loyal customers? • How do we divide our marketing effort between

customer retention and development?


Service-Profit Chain

• The service-profit chain establishes relationships between profitability, customer loyalty and employee satisfaction.

• The links in the chain are as follows: – Profit and growth are stimulated primarily by customer loyalty – Loyalty is a direct result of customer satisfaction – Satisfaction is largely influenced by the value of services

provided to customers – Value is created by satisfied, loyal, and productive employees – Employee satisfaction, in turn, results primarily from high-quality

support services and policies that enable employees to deliver results to customers


Starve Your Competitor of Air

– Be the first to the market – Look for ways to enhance and improve your product/

service – Create a w-o-w experience, cut costs, save time, or

improve efficiencies – Get your customers/competitors to talk about your product

(sell yourself) – See the big picture – Get better information – Become a pillar of integrity


“ Ideas are useless unless used. The

proof of their value is their implementation

” - Theodore Levitt


Contributions & Discussion


Thank you for your attention!


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