mod 2 strategic implications
TRANSCRIPT
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MARKETING IMPLICATIONS TO STRATEGY
Module 2
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MARKETINGS STRATEGIC ROLE
Market orientation vs. product/production
orientation
Factors affecting:
Competitive conditions
Levels of economic development and different
business philosophies
Strategic inertia (automatic continuation ofstrategies successful in the past, regardless of
changing conditions)
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PRODUCT ORIENTATION VS. MARKET ORIENTATION
Company Product Market
Missouri-Pacific
Railroad
We run a railroad We are a people-
and-goods mover
Xerox We make copying
equipment
We improve office
productivity
Standard Oil We sell gasoline We supply energy
Columbia Pictures We make movies We entertain
people
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STRATEGY
A fundamental pattern of present andplanned objectives, resource deployments,and interactions of an organization with
markets, competitors, and otherenvironmental factors (Hofer & DanSchendel, 1978)
Should specify:
What
Where
How
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COMPONENTS OF STRATEGY
Scope
Goals and objectives
Resource developments Identification of a sustainable competitive
advantage
Synergy (complement/reinforcement)
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HIERARCHY OF STRATEGIES
Corporate
Business-level
Functional
What business are we in?
What business shouldwe be in?
What portion of our total resources
should we devote to each of thesebusinesses to achieve overall
goals and objectives?
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HIERARCHY OF STRATEGIES
Corporate
Business-
level Functional
Critical focus: how a business
unit competes within the
industry.
Sustainable competitiveadvantage
Appropriate scope: how many
and which market segments to
compete in
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HIERARCHY OF STRATEGIES
Corporate
Business-level
Funct ional
Marketing strategy
Focus: effectively allocate and
coordinate marketing resources and
activities to accomplish the firmsobjectives within a specific product-
market.
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PHASES OF VALUE CREATION AND DELIVERY
Choosing the value
Providing the value
Communicating the value
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WHAT IS THE VALUE CHAIN?
The value chainis a tool for identifying
was to create more customer value
because every firm is a synthesis of
primary and support activitiesperformed to design, produce, market,
deliver, and support its product.
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PRIMARY ACTIVITIES
Inbound logistics
Operations
Outbound logisticsMarketing and sales
Service
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SUPPORT ACTIVITIES
Procurements
Technology development
Human resource mgmt Firm infrastructure
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CORE BUSINESS PROCESSES
Market-sensing process Gathering and acting upon info about the market
New-offering realization process
Research, develop, launch new offerings Customer acquisition process
Define target and prospecting for new customers
Customer relationship management process
Build better understanding, relations, and offerings
Fulfillment management process Receiving and approving orders, shipping,
collections
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CHARACTERISTICS OF CORE COMPETENCIES
A source of competitive advantage
Applications in a wide variety of markets
Difficult to imitate
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MAXIMIZING CORE COMPETENCIES
(Re)define the business concept
(Re)shaping the business scope
(Re)positioning the companys brand identity
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WHAT IS HOLISTIC MARKETING?
Holistic marketingsees itself as
integrating the value exploration, value
creation, and value delivery activities
with the purpose of building long-term,mutually satisfying relationships and
co-prosperity among key stakeholders.
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QUESTIONS TO ADDRESS IN HOLISTIC MARKETING
What value opportunities are available?
How can we create new value offerings
efficiently?
How can we delivery the new offeringsefficiently?
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THE STRATEGIC PLANNING, IMPLEMENTATION, AND
CONTROL PROCESSES
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MASTER MARKETERS
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WHAT IS A MARKETING PLAN?
A marketing planis the
central instrument for
directing and coordinatingthe marketing effort.
It operates at a strategic and tactical
level.
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LEVELS OF A MARKETING PLAN
Strategic
Target marketing
decisions
Value propositionAnalysis of
marketing
opportunities
Tactical
Product features
Promotion
Merchandising Pricing
Sales channels
Service
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CORPORATE HEADQUARTERS
PLANNING ACTIVITIES
Define the corporate mission
Establish strategic business units (SBUs)
Assign resources to each SBUAssess growth opportunities
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GOOGLE
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MAJOR COMPETITIVE SPHERES
Industry
Products
Competence
Market segment
Vertical channels
Geographic
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DIMENSIONS THAT DEFINE A BUSINESS
Customer Groups
Customer Needs
Technology
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CHARACTERISTICS OF A SBU
It is a single business or collection of related
businesses
It has its own set of competitors
It has a leader responsible for strategic
planning and profitability
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THE STRATEGIC PLANNING GAP
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WHAT IS CORPORATE CULTURE?
Corporate culture is the
shared experiences, stories, beliefs,
and norms thatcharacterize an organization.
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THE BUSINESS UNIT STRATEGIC PLANNING
PROCESS
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SWOT ANALYSIS
Strengths
Weaknesses
Opportunities
Threats
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MARKET OPPORTUNITY ANALYSIS (MOA)
Can the benefits involved in the
opportunity be articulated convincingly to
a defined target market?
Can the target market be located andreached with cost-effective media and
trade channels?
Does the company possess or haveaccess to the critical capabilities and
resources needed to deliver the customer
benefits?
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MARKET OPPORTUNITY ANALYSIS (MOA)
Can the company deliver the benefits better
than any actual or potential competitors?
Will the financial rate of return meet or
exceed the companys required threshold forinvestment?
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OPPORTUNITY AND THREAT MATRICES
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GOAL FORMULATION AND MBO
Units objectives must be hierarchical
Objectives should be quantitative
Goals should be realistic
Objectives must be consistent
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PORTERS GENERIC STRATEGIES
Overall cost leadership
Differentiation
Focus
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CATEGORIES OF MARKETING ALLIANCES
Product or service alliance
Promotional alliance
Logistics alliances
Pricing collaborations
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MCKINSEYS ELEMENTS OF SUCCESS
Strategy
Structure
SystemsStyle
Shared values
Staff
Skills
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MARKETING PLAN CONTENTS
Executive summary
Table of contents
Situation analysisMarketing strategy
Financial projections
Implementation controls
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EVALUATING A MARKETING PLAN
Is the plan simple?
Is the plan specific?
Is the plan realistic?
Is the plan complete?