Marketing, Planning, Intended Strategy and Business Planning Flashcards
Marketing
knowing customers and their problems,
innovating solutions to these problems and
communicating and delivering them to a carefully defined target market
more effectively than your competitors.
In a manner that maintains or improves the customer’s and society’s well-being
3 Basic Laws of Marketing
Art of selling to restrict competition
The art of buying is to stimulate competition
There is no mathematical relationship between cost and price
Models
Buyer Seller Model
What drives transactions:
Need: should be matched by benefits, not features
Authority
Money
Enthusiasm
Customer Relationships
Marketing is the whole business as seen from the customer’s pov, not a separate business function from the business
Profit is the reward for creating a satisfied customer
Gap Analysis
compares performance if we follow the plan to the performance if we do nothing
Business Hierarchy
Corporate Worldview: considers the entirety of the environment outside the company environment
Business View: reviews the processes inside the business
Functional/ Internal View: more internal view of the company would only consider the company itself, with anything else occuring as either an inout or an output.
Value Chain
A chain of activities for a firm operating in a specific industry
Products pass through all chain activities in order, and the product gains some value at each activity.
The chain of activities gives the products more added value than the sum of the independent activities value.
Role of Marketing Management
Corporate Level: What Businesses Should We Be In- The destination toward which the business is moving
Assessment of demand analysis and market trends
Critical success factors
Resource allocation across the business portfolio
Business Level: How should we compete- translates the corporate strategy in the direction to more actionable goals
Customer analysis
Competitor analysis
Strengths and weaknesses
Marketing segmentation
Positioning and targeting
Delivering superior customer value
Product Level: How could we implement the corporate and business level strategy?
Selection of customers
New product development
Product/pricing/distribution/promotion
Business Planning
Where are we now - audit/analysis
Where do we go- objectives
How do we organise our resources to get there - strategy
Marketing Planning
Objective: fed by the mission and corporate obejctives
- product plan
promotion
service
distributions
Pricing
Marketing Audit: Internal
Pareto: 80% of problems can be traced back to 20% of the casues
SWOT
McKinseys 7 S: Strategy, structure, systems, style staff, skills
Marketing mix: Product, PLace, Price, Promotion
Portfolio Analysis: Relative market share/market growth
-stars, question mark, cash cows, dogs
GE matrix: Business strength/market attractiveness
- Invest, Manage selectively for earnings, harvest/withdraw
Abell and Hammond: Market attractiveness/ competitive position
-High/medium/low attractiveness
External
PESTEL: POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL ENVIRONMENTAL LEGISLATION
Knowing your market: total market, size, growth and trends
3C Model: COMPETITORS CUSTOMERS COMPANY – strategy is where customers and company overlap
Competition: knowing the competitors
Size, market share coverage, reputation, production capabilities, marketing methods, diversification, culture
Porters 5 Forces: Threat of rivalry, bargaining power, threat of substitution, barriers to entry
Roadmapping
Market Business
- Porter 5 forces
- SWOT
- PESTEL
Product Service System
- Technology Intelligence
Technology resources
- Technology intelligence
- Portfolio (BCG)
- Valuation
- Balanced Scorecard
Outcome: profit gap
Objectives: Where do we want to go
Gap analysis
Marketing planning
Drivers of change
Drivers of Change
Competition
Sophistication of customers
Environmental issues
Legislation
Demographics
New tech
Limits to growth
Creating Strategic Advantage
How to compete
- competitive strategy
- Porter’s 3 generic strategies:
Michael Porter’s Three Generic Strategies are fundamental concepts in strategic management that organizations can use to gain a sustainable competitive advantage within their industry. These strategies focus on how companies can position themselves relative to their competitors. Here they are:
-
Cost Leadership Strategy:
- The cost leadership strategy aims to become the lowest-cost producer in an industry while maintaining acceptable quality.
- Companies employing this strategy focus on reducing costs through economies of scale, efficient production processes, technology investments, and tight cost control.
- By offering products or services at lower prices than competitors, firms can attract price-sensitive customers and gain market share.
- Successful implementation of this strategy requires continuous efforts to drive down costs and achieve operational efficiency without sacrificing quality.
-
Differentiation Strategy:
- The differentiation strategy involves offering products or services that are perceived as unique or distinctive by customers.
- Companies pursuing differentiation focus on creating value through product innovation, superior quality, brand image, customer service, or unique features.
- By differentiating their offerings, firms can command premium prices, build customer loyalty, and reduce sensitivity to price competition.
- Successful differentiation requires a deep understanding of customer needs and preferences, continuous innovation, and effective branding and marketing efforts to communicate the unique value proposition to customers.
-
Focus Strategy:
- The focus strategy involves concentrating on a narrow segment or niche market within an industry.
- Companies adopting this strategy target specific customer segments, geographic markets, or product categories where they can serve customers’ needs more effectively than broader competitors.
- The focus can be based on cost leadership (focused cost leadership) or differentiation (focused differentiation) within the chosen segment.
- By focusing on a niche, firms can tailor their products or services to the specific needs of the target market, build strong relationships with customers, and achieve higher profitability.
- Successful implementation of the focus strategy requires a deep understanding of the target market, effective positioning, and the ability to deliver superior value to the chosen segment compared to broader competitors.
Organizations can choose one of these generic strategies or a combination of them, depending on their resources, capabilities, and market dynamics, to create a sustainable competitive advantage and achieve long-term success.
- Organisational position
Direction of growth
- Ansoff
Method of growth
- Acquisition or organic growth
