Traditional And Innovation Based Marketing

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Options, elements and steps required to form your business's marketing plan and an example of how systematic innovation can create victories in the market. Features tools and credits Blue Ocean Strategy by Kim and Mauborgne.

Transcript of Traditional And Innovation Based Marketing

Connect with Mike

• HanberyMarketing.com

• LinkedIn.com/in/MikeHanbery• Facebook.com/Denver.SocialMarketing

• Twitter @MikeHanbery

The Social Network Compass

EbookFebruary, 2010

ByMike Hanbery, MBANavigate your course

through Internet Social Networks.

A Market Without Competitors

Mike Hanbery, M.B.A.

Traditional and Innovative Approaches to Marketing your Business

H A N B E R Y M A R K E T I N G

Marketing Plan Components

• Market Summary• SWOT Analysis*• Marketing Strategy• Financials• Controls

Market Summary Components

• Target Markets• Demographics,

Geographics, Behaviors• Market Needs• Market Trends

Other Critical Components• Financials

Break-Even AnalysisSales ForecastExpense Forecast

• ControlsImplementation (Milestones)Organization (Accountability)Contingency Planning

Traditional Marketing Strategies

Michael Porter

• Five Forces

Generic Strategies• Cost Leadership• Differentiation• Focus/Niche

PRICELOW

Cost LeaderHIGH

DifferentiationSCOPE

Broad

Narrow

Strategic Alliances

• Product/Service Alliances• Promotional Alliances• Logistics Alliances• Pricing Collaborations

Innovation Marketing Strategy

“New Growth Theory”“Red Ocean” Strategy “Blue Ocean” Strategy

Compete in existing market space

Beat the competition

Exploit existing demand

Make the value/cost trade-off

Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost

Create unconstested market space

Make the competition irrelevant

Create and capture new demand

Break the value/cost trade-off

Align the whole system of a firm’s activities in pursuit of differentiation and low cost.

Blue Ocean Strategy

• 2005 Publication• Kim & Mauborgne (INSEAD)• Pursues systematic

innovation as marketing strategy

Premium Wines

B.O.S. Tools• Strategy Canvas + Value Curve• Example: US Wine Industry, Late 1990’s

High

Low

Price Use of enological

terminology

Above-the-line marketing Aging

quality

Vineyard prestige and legacy Wine

complexity

Wine range

PRINCIPAL FACTORS

OFF

ERIN

G L

EVEL

Budget Wines

B.O.S. Tools

• Four Actions Framework

A New Value Curve

Reduce

Eliminate Create

Raise

Which factors should be reduced

well below industry

standards?

Which factors should be created that the industry

has never offered?

Which factors should be raised well above

the industry’s standard?

Which of the factors that the

industry takes for granted should be

eliminated?

B.O.S. Tools

• Eliminate/Reduce/Raise/Create GridEliminate

Enological terminology and distinctions

Aging qualities

Above-the-line marketing

RaisePrice versus budget

wines

Retail Store involvement

ReduceWine complexity

Wine range

Vineyard prestige

CreateEasy drinking

Ease of selection

Fun and adventure

B.O.S. Tools• Strategy Canvas + Value Curve:

[ yellow tail ]High

Low

Price Use of enological

terminology

Above-the-line marketing Aging

quality

Vineyard prestige and legacy Wine

complexity

Wine range

PRINCIPAL FACTORS

OFF

ERIN

G L

EVEL

Easy Drinking

Ease of Selection Fun &

Adventure

Premium Wines

[ yellow tail ]Budget Wines

B.O.S. Tools• Strategy Canvas + Value Curve:

[ yellow tail ]High

Low

Price Use of enological

terminology

Above-the-line marketing Aging

quality

Vineyard prestige and legacy Wine

complexity

Wine range

PRINCIPAL FACTORS

OFF

ERIN

G L

EVEL

Easy Drinking

Ease of Selection Fun &

Adventure

Premium Wines

[ yellow tail ]Budget Wines

ReferencesGrant, R. M. (2008). Contemporary Strategy Analysis

(6e). Carlton, Victoria, Austrailia: Blackwell Publishing.

Kim, W.C. & Mauborgne, R. (2005). Blue Ocean Strategy. Boston, MA: Harvard Business School Publishing Corp.

Kotler, P. & Keller, K.L. (2006). Marketing Management (12e). Upper Saddle River, NJ: Pearson Prentice Hall.

The Social Network Compass

EbookFebruary, 2010

ByMike Hanbery, MBANavigate your course

through Internet Social Networks.

Connect with Mike

• HanberyMarketing.com

• LinkedIn.com/in/MikeHanbery• Facebook.com/Denver.SocialMarketing

• Twitter @MikeHanbery