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MARKETING STRATEGY

MARKETING STRATEGY. Ilan Bijaoui 2006 ibii@netivision.net.il. FIVE P’S FOR STRATEGY Henry Mintzberg. Strategos: Art of the Army General. STRATEGY FOR CHANGE James Brian Quinn.

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MARKETING STRATEGY

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  1. MARKETING STRATEGY Ilan Bijaoui 2006 ibii@netivision.net.il

  2. FIVE P’S FOR STRATEGYHenry Mintzberg Strategos: Art of the Army General

  3. STRATEGY FOR CHANGEJames Brian Quinn A Strategy is a Pattern/Plan that Integrates an Organization’s Major Goals,Policies and Actions Sequences to a Cohesive whole

  4. CRITERIA FOR EFFECTIVE STRATEGY-Quinn

  5. THE CONCEPT OF CORPORATE STRATEGYKenneth R. Andrews Formulation Implementation Structure/ Relationship Opportunity & Risk Corporate Strategy Pattern Resources Processes/Behaviour Values Top Leadership Responsibility

  6. THE CORE COMPETENCE OF THE CORPORATION CK Perahalad G/ Hamel END PRODUCTS BUSINESS UNITS CORE PRODUCTS COMPETENCIES

  7. NEC STRATEGYComputing & Communication Convergence END PRODUCTS Alliances Semiconductors From Mechanical to Digital Communication From Mainframe to Processing Components New Markets

  8. SELECTED CORE COMPETENCIES/PRODUCTS

  9. CORE COMPETENCY IDENTIFICATION • IDENTIFY • Access to wide variety of markets • Contribution to perceived customer benefits • Difficult to imitate • Outsourcing and Core Competency (GE-GTE-Motorola TV Color) • STRATEGIC ARCHITECTURE • How long could preserve technology • How central is the core competence for customers • Future opportunities in other core competencies

  10. NATURAL ENVIRONMENT Raw materials Energy costs Pollution Geography Regulatory TECHNOLOGICAL ENVIRONMENT R&D spending, Patent protection, New development, Internet, Telecom. PM 4.4 Natural and technological environments

  11. DEMOGRAPHIC ENVIRONMENT Age Family Population Education ECONOMIC ENVIRONMENT GDP Interest Inflation , Unemployment Wages, Energy availability Economic PM 4.3 Demographic and economic environments

  12. FAMILY LIFE-CYCLE STAGES Young Middle-aged Older LIFESTYLE DIMENSIONS Activities Interests Opinions Demographics PM 6.5 Family and lifestyle

  13. POLITICAL ENVIRONMENT Antitrust, Environment, Tax, Incentives, Foreign trade, Stability CULTURAL ENVIRONMENT Career expectations, consumer activism, Lifestyle PM 4.5 Political and cultural environments

  14. THE STRUCTURING OF ORGANIZATIONSH. Mintzberg Strategic Apex Middle Line Techno Structure Support Staff Operating Core Ideology

  15. THE STRUCTURING OF ORGANIZATIONSH. Mintzberg Basic Parts

  16. Coordinating Mechanisms

  17. Configurations

  18. THE STRATEGISTH. Mintsberg Frame of the Job Perspectives Positions Agenda Issues Scheduling Values Experience Knowledge Competencies Model Style Within Outside Inside Core in Context

  19. MANAGING LEVELS Leading Individual Group Unit Linking Gate Keeper Doing Inside Doing Outside Action People Controlling System, Structure Directive Communicating Information Conceiving

  20. MARKETING DEFINITIONThe American Marketing Association The Process of Planning & Executing The Conception, Pricing, Promotion & Distribution of Ideas, Goods & Services To Create Exchange, that Satisfy Individuals & Organizational Goals

  21. Kotler: Marketing managers seek to influence the level, the timing, and composition of demand to meet the organization’s objectives Peter Drucker: The aim of marketing is to know and understand the customer so well that the product fits him and sells

  22. VALUE BRIDGE PRODUCT-PRICE FIRM VALUECUSTOMER VALUE MARKETING Psychological Bridge Physical Bridge

  23. MARKETING’S ROLES & GOALS Roles Goals Corporate Corporate strategy Market Share Customer, Competitive Perspective Strategic Marketing Growth Business Unit Products/markets Marketing Management Profitability

  24. MARKETING STRATEGY –THREE C’s Differentiate itself positively from its competitors, using its relative corporate strengths to better satisfy customer’s needs in a given environmental setting Business Environment Customers How to Compete? Where to Compete? Corporation Competition When to Compete?

  25. GILETTE’S MACH3 MARKET STRATEGY • Where (Market): All USA • How (Means): Premium Product 35% more expensive than SensorExcel • When (Timing): before Mr Zein (CEO) retires • Competition: Atra, SensorExcel, Shick • Customer: MUS$ 750 in research, 35 patents Global product • Philip Morris and Miller Beer (Corporate strength) • TI and digital watches (Competition strength) • Goodyear: focus on tire (strategic decision)

  26. FUTURE OF STRATEGIC MARKETING • Market Share • Deregulation • Acquisitions, mergers Columbia, Coca Cola • Channel Structure • Overseas companies • Fragmentation of Markets: : cars – segments • Early entrants • Customer’s requests: Quality and Price not enough • Demographic Shifts

  27. STRATEGIC MARKET PLAN-MARKETING PLAN A Strategic Market Plan is a plan of all aspects of an organization’s strategy in the market place A Marketing Plan deals with the delineation of target segments and the four P’s Source: Abell D F Hammond J. Strategic Market Planning Englewood Cliffs NJ Prentice Hall 1979. p9

  28. STRATEGIC MARKETING -MARKETING MANAGEMENT Source: Subhash C. Jain Marketing Planning & Strategy South Western College Publishing 2000

  29. DEFINITION OF COMPETITION • Natural Competition: Evolution by Adaptation • Strategic Competition: Understand competitive interaction, predict consequences, available resources, predict risk and return, make the commitment

  30. SOURCES OF COMPETITION • Customer Need • Existing Industry • New Industry • Product line • Type of the Firm

  31. COMPETITIVE INTELLIGENCE • Defensive Intelligence: protect business • Passive Intelligence: Ad hoc information for a specific purpose • Offensive Intelligence: identify new opportunities • Sources: Public (advertising, publications, speeches)Trade Professionals(Customers, Patents), Government, Investors

  32. FORCES DRIVING INDUSTRY COMPETITION Potential Entrants Threats Bargaining Power Bargaining Power Suppliers Industry Buyers Competitors Substitutes Threats

  33. Encirclement Flanking Bypass Frontal Guerrilla ATTACK STRATEGIES PM 12.6 Market challenger strategies

  34. HOW TO DEFINE A MARKET? • Product characteristics • Needs characteristics (Use) • Private/Owner brand • Regional sales • Boundaries: technology (material, energy); customer function, customer group (category)

  35. DEFINING MARKET BOUNDARIES Personal Financial Transactions Customer Groups: Airports, Stores Gas stations, saving associations, banks Customer Functions: cash, deposit,bill, check, transactions Technologies: ATM, System, Teller Source: Abell D F Hammond J. Strategic Market Planning Englewood Cliffs NJ Prentice Hall 1979. p9

  36. MARKET ORIENTED DEFINITIONS

  37. SEGMENTATION

  38. MARKET COVERAGE M1 M2 M3 M1 M2 M3 M1 M2 M3 P1 P2 P3 P1 P2 P3 X X X X X X X X X X X X X X X X X X X X

  39. Product attributes Product class Benefits Not competition Usage Against competition POSITIONING STRATEGIES Users Brands Activities Origin Personalities PM 10.4 Positioning strategies

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