2 - Competitive Marketing Strategies

Question 1

hierarchy of objectives

Answer 1

from more abstract to more specific:
- purpose
- mission/vision/values
- corporate objectives
- departmental objectives
- individual objectives

Question 2

purpose

Answer 2

aspirational

• builds community + unites people around a common passion

(brand w/ purpose are more profitable)

Question 3

mission, vision & values

Answer 3

mission: what we do
vision: what is our ideal reality (if mission is accomplished)
values: what we believe in

• all mutually reinforcing

Question 4

corporate, departmental + individual objetives

Answer 4

corporate: set by senior management + usually related to growth (top-line + bottom-line growth)

departmental: based on corporate objectives + measured by KPIs

individual: performance + personal development objectives (tied to corporate + dep. objectives)

Question 5

where does marketing fit?

Answer 5

departmental objectives
- action plan is developed to achieve corporate objectives

Question 6

marketing strategy formulation

Answer 6

1. STP process
2. marketing mix
3. analysis + budget allocation + measurement & monitoring

Question 7

STP process

Answer 7

segmentation + targeting + positioning

• strategic decisions that impact the marketing mix
• aligning w/ unique value to offer

Question 8

marketing mix

Answer 8

7Ps: price, process, product, people, place, physical evidence + promotion

• guided by STP decisions

Question 9

analysis

Answer 9

5 Cs:
- context (macro)
- customers (who + why)
- competition (marketing myopia)
- collaborators
- company (resources + capabilities)

Question 10

budgeting + allocation

Answer 10

correct allocation of resources to support marketing mix activities

• prioritization of goals

Question 11

measurement + monitoring

Answer 11

• keeping track of performance
• evaluating performance against goals
• taking corrective action
• feeds into future plans

Question 12

first mover advantages + disadvantages

Answer 12

+ recall, loyalty, tech leadership, economies of scale + resource capture

(-) free rider effects, tech discontinuities, shifting consumer tastes + missing consumer’s ideal point

Question 13

fast follower advantages + disadvantages

Answer 13

+ gains from challenges that first movers face and opportunities that emerge + comparatively quick

(-) incompatible w/ market leadership + lack innovation + implications for brand and price considerations
(ex: burger king mcmuffin ad)

Question 14

framing the game (underdog strategy)

Answer 14

players positions itself relative to a specific competitor (ex: Ben & Jerry’s + Patagonia)

+ gains the affect of consumers + allows small players to compete w/ big players

(-) growth limits + authenticity in the long run

Question 15

market coverage strategy

Answer 15

player closes off opportunities to competitors by closing gaps in the market (usually through line extensions)

fighter brand = low-value brand to compete against the low-price competition
+ captures low-end of market
- can lead to financial losses, distractions + cannibalization (luvs v pampers)

Question 16

competitive strategies

Answer 16

first mover advantage
imitation (fast follower)
framing the game (underdog)
market coverage

Question 17

Altius case study

Answer 17

fighter brand - lower quality golf ball (cheaper)

• endorsed but in different POS than premium balls
• targets can be kept separate in both the physical and communications channels