M Strategy Flashcards
where to compete
how to compete
a) product-market investment, markets, competitors and product markets
b) customer value proposition, resources & capabilities
functional area strategies and programs
product-market investment decision
scope of business and its dynamics
products offered / not offered
markets served / “
level of vertical integration
example Ikea: well-designed furniture at low prices
customer value proposition
perceived benefit / perceived cost
relevant and meaningful to customer
differentiated from competitor
sustainable over time
resources & capabilities
know how, assets, technology
functional area strategies and programs
=supportive set of strategy imperatives
manufacturing, innovation, brand-building,…strategy
3cs
strategic triangle
customer, company, competitors
marketing = to create a difference between a companys offering and that of its competitors on an attribute important to customers
marketing strategy vs corporate strategy
basic orientation, long-term planning horizon
vs
market-driven process, taking into account constantly changing business environment, need to deliver superior customer value by combining customer-influencing strategies into a coordinated set of market-driven actions
marketing strategy implementation
one of companys several functional strategies
dominant functional strategy
marketing strategy=corporate strategy
essential ingredients for market orientation
market orientation of:
a) organizational culture (layer of values,norms,artifacts)
b) organizational structure (customer aspects, position marketing)
c) organizational processes (cross-functional sharing of market related knowledge and information, stressing customer contact, implement principle of internal custormer)
market orientation
hear voices of customers and adapt to competitive requirements
act in a market driven way
but: watch out to also drive market
market driven vs driving graph
draw graph
market driven company
accepts market structure and behavior as given
market driving company
shape market structure and behavior,….
How to drive markets
shape market structure (deconstruction, construction, functional-modification)
shape market behavior (directly, indirectly)
constraints, preferences of customers/competitors
PEST(LE)
which… developments are relevant for formulating a marketing strategy
scenario funnel?
developments in future are predetermined by present conditions
further look in the future the wider the spectrum of potential developments
several potential scenarios are provided based on trends, disruptive events, decision points
segmentation targeting and positioning process
a) identify, profile distinct groups of buyers and theirs needs and preferences
b) select one or more segments to adress
c) establish and communicate the benefits of the companys offering in selected segments
criteria for defining relevant market
comapnies, products, buyers, needs
variables for market segmentation
criteria: socio-demographic buying behavior based benefits and needs general personality characteristics georgraphic criteria
differences B2B B2C !
targeting strategies
undifferentiated
differentiated
concentrated marketing
positioning
the act of designing the company´s offering and image to occupy a distinct place in the mind of the target market
most successful=perceived as unique by customer
uniqueness, differentiation, similarity (cost)
formulating a positioning strategy
determine category membership
define point-of-parity
define point-of-difference
-x positioning statement
levels of competition matrix
draw
value chain analysis
infrastructure
design x production x distribution/sales
=X profit margin
SWOT + methods
…. combines macro and micronenvironment analysis
compares external OT with internal SW
Ansoff´s product-growth matrix
is concerned with companys innovation orientation:
is it possible to innovate in products or in markets
blue ocean
eliminate reduce increase create factors
red ocean: compete existing market, beat competition, exploit existing demand, make value cost tradeoff
strategic choice of differentiation or low cost
blue ocean: create uncontested market space, make competition irrelevant, create and capture new demand, break value cost tradeoff,
pursuit of differentiation and low cost
=X value innovation
innovation management
an important trend
product life cycle shorter
top three priorities for large majority of companies
can disrupt whole markets, create new ones
can deliver social, ecological value
R&D spending x innovation
innovation ambition matrix
…
innovation
advantages, disadvantages
….
adoption diffusion
decision individual make use bes course action available
communicated through certain channels over time among participants of a social system
Bass model
diffusion model which represents an approach to predict the future market development for innovations
