Marketing 5_6

8/7/2019 Marketing 5_6

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Marketing Strategy

Jon Kitto

[email protected]


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Key Elements of MissionStatements

Not just the mission as a "wish".

Purpose and values of the organization

Which business the organization wants to be in

(products or services, market) or who are theorganizations primary "clients" (stakeholders)

Which are the responsibilities of the organizationtowards these "clients"

What are the main objectives which support the

company in accomplishing its mission


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Mission vs. Vision

A Mission statement: tells you what thecompany is now. It concentrates on thepresent; it defines the customer(s), critical

processes and it informs you about thedesired level of performance.

A Vision statement: outlines what acompany wants to be. It concentrates on the

future; it is a source of inspiration; itprovides clear decision-making criteria.


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Business

Objectives

MarketingObjectives

Product Price Place PromotionObjectives Objectives Objectives Objectives

Objectives


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The strategic planning gap

10

20

30

40

50

60

70

New strategies gap

Operations gap

(60M) Corporate objective

(45M) Revised forecast

(30M) Initial forecast

Theplanning

gap

Time (years)

Sales

(m)


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Objectives should be ...

... Hierarchical

... Quantitative

... Realistic ... Consistent

... SMART

Specific

Measurable Achievable

Results-oriented

Time-bounded


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Ansoffs Growth Matrix

Markets

Products

Existing

Existing

New

New

MarketPenetration

MarketDevelopment

ProductDevelopment

Diversification


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Product market strategy

Marketpenetration

1

Marketextension

2

Productdevelopment

3

Diversification 4

ProductCurrent New

Current

NewMarket

Product

NewExisting

1 4

162

Existing

New

Market

S

ouce:

Ansoff

RISK


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Porters generic strategies

STRATEGIC ADVANTAGE

STRAT

EGIC

TARGE

T

Uniqueness perceivedby customer

Low costposition

Industry-wide

Segmentonly

FOCUS

DIFFERENTIATIONOVERALL

COSTLEADERSHIP

Source: Porter


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Strategic choice

DEVELOPMENTSTRATEGIES

GENERICSTRATEGIES

Cost leadership Differentiation Focus

ALTERNATIVEDIRECTIONS

Do nothing Withdrawal Consolidation

Market penetration Product development Market development Diversification

ALTERNATIVEMETHODS

Internaldevelopment

Acquisition

Jointdevelopment

Source

:Johns

on&

Scholes


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Approaches to developingsustainable competitive

advantageSuperior product benefit

Perceived advantage

Low-cost operationsLegal advantage

Superior contacts

Superior knowledge

Scale advantages

Offensive advantagesSource: Davidson, 1977


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Barriers to implementation

Culture

Power and politics

Analysis, not action

Resource issues

Skills


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Product Development &Management

Jon Kitto

[email protected]


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Anatomy of a Product

Core

Tangible

Augmented

Potential


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The product life-cycle

Introduction Growth Maturity Decline

Profit

Sales

S

alesandprofits(

)

(a) Growth-slump-maturity pattern

Salesvolum

e

Time

(b) Cycle-recycle pattern

Salesvolume

Salesvolume

(c) Scalloped pattern

Time

Time

Initialcycle Recycle


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The Product Life-cycle

I G M D

Salesandpro

fits()

Time

A

BSales

Profits


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Diffusion of Innovation


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Actors & Agents (Victoria University)


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Everett Rogers


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BCGs Growth ShareMatrix

Low

2

4

6

8

10

12

14

16

18

20

High

10x 1x 0.1x

High LowRelative market share

STARS QUESTION MARKS(problem children)

CASH COWS DOGS

Modest+ or -

cash flow

Largenegative

cashflow

Large

positivecashflow

Modest

+ or -cash flow

Optim

um

cash

flow

SOU

RCE:A

daptedfro

m

Hedl

ey(1

977

),p.12

Marke

tgrow

th


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GE multifactor matrix

Business strengths

Indus

try

attract i

veness

Low

Hig

h

Medium

Strong Medium Weak

Inve

stfo

rgrow

th

Harves

t/withd

raw

Mana

gesele

ctive

lyfore

arning

s


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Shell directional policymatrix

Prospects for sector profitability

Busin

essc om

petitiv

ecapabilit

ies

Strong

Weak

Average

Unattractive Average Attractive

Disinvest

Phasedwithdrawal

Phasedwithdrawal

Custodialgrowth

Cashgeneration

Doubleor quit

Tryharder

LeaderGrowthleader

Th B All H ilt


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The Booz Allen HamiltonClassification of New

ProductsNew to the world

New sector development

Additions to existing lines

Improvements and revisions toexisting lines

Repositioning Cost reduction through productmodification


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The Role of NPD

Avoid product obsolescence

Ensure match with environmental conditions

Enable the organisation to compete in new

and

developing sectors

Reduce dependence on vulnerable productsectors

Match the competition

Fill excess capacity

Achieve greater long term growth and profit


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The NPD process

Idea generation

Initial screening

Conceptdevelopment

Business evaluation

Product development

Product launch


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Why Brand?

For differentiation & recognition

To add value to a naked commodity

Easier to promoteHelps market segmentation

Can help boost share price

Easier to integrate - sales promotion,personal selling & packaging

Can help corporate image


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Brand Strategies

Manufacturers Brand Cadburys, Ford, Coca-cola

Multi - Branding (Individual Brand Name) Proctor & Gamble

Tide, Daz, Dreft, Ariel

Price Brand Tesco Value

Private/own Label

Boots, Sainsburys

Generic No Frills Products


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BRAND DEVELOPMENT

INCREASED SALES

COST EFFICIENCIES

VOLUME BUILDING

BRAND SALES GROW

RETAILER CONCENTRATION

VOLUME BUILDING

IMPROVED PRODUCTS

WIDER DISTRIBUTION

NETWORK BUILT UP

INVEST IN

NEW BRANDBUILD AWARENESS

OF ATTRIBUTES

SALES INCENTIVE

PROGRAMME, TRADE

PROMOTION, P.O.S

BRAND RECOGNITION

AND CUSTOMER

DEMAND FOR BRAND

RETAILERS

LIST

BRAND


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Packaging

Contain

Protect

Inform

Differentiate

Environmental considerations

Silent salesperson

Marketing 5_6

Documents

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