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BOOK REVIEW

Ch. 8 onwards

Subject:

Marketing strategies

Chapter 8


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Ch. 8 Reassure The Streamliners

Who are streamliners?

People or organizations who go for automations,want a hassle free life, established routine, etc..

They need to have that feeling of security fromproducts and services they use

They strive to minimize risk

Prefer suppliers who are leading companies in

their field Look for solutions which can be implemented with

the least of their own effort

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Marketing strategies used for streamliners

1. Delivers dependability

2. Make routines routine

3. Lead the way

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Most important to streamliners

Coke example introduction of new coke facesuncounted protests reintroduces old coke naming

it Classic Coke Streamliners dont like surprises

Change must be introduced with care and subtlety

Charles Schwabs example steer streamline-minded

customers through pretty dramatic changes $250million of annual net profit at stake fortunatelythey succeeded

Brand building is another priority for the company

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Ads made for streamliners stress on peace of mindand empathy with the customer

Quick Service Restaurants (QSR) streamliners look

to these restaurants for speed, low cost &dependability (consistency)

Wendys - Most variety in menu

Taco Bell cheapest

McDonalds fastest & most consistent McDonalds followed the strategy of availability to

attract the streamliners Introduced new system ofMade For You

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2. Make routines routine

If the first strategy with streamliners is making sure

your operations run dependably and consistently, the

second is getting your customers to behave

consistently and predictably ExxonMobil Example introduction of Mobil speed

passes

Streamliners appreciate even modest saving in time

and energy

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3. Lead the way

Streamliners are comforted by the fact that theirsuppliers are market leaders

So one way to diminish their anxiety is to team up

with companies who are synonymous with reliability& service and will be in business tomorrow & dayafter

Example NIKE must ensure that their running shoes

are perceived as the leading brand Siebel exampleUSAs fastest growing tech firm

Siebels cofounder Pat House: Everything we do aims

to send the message that were a global leader

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Chapter 9 Case in Point - EMC

EMC Corporation is an American multinational thatsells data storage products and services which areused to build Web-based computing systems.

EMC has a lock on a business, that until recently, noone else much cared about: electronic memory, ordata storage

It faces competition from companies like IBM, HP,

Sun, etc.. When it comes to storage systems customers dont

really trust overnight success stories need suppliersto be a market leader and at least 5 to 10 years old.

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The company has gone through 5 major businessreinventions and 5 product generations in just 10years.

At EMC, people are nothing less than serial disruptersof their own business model and technology yetsomehow they manage to do it seamlessly that theirstreamline customers barely notice it.

As CEO Mike Ruettgers says we believe the oldadage that if you fix a problem in design, it takes one

unit of effort. If you fix it in manufacturing, it takes

ten units. If you have to fix it in the field, its a

hundred units

EMS manages customer service as an investmentcenter, not as a profit center.

Nearly all systems must work 24x7.Chapter 9


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EMC caters to two kind of customers:

The dot-com internet companies

Global 2000 (2000 biggest companies in the world)

Given the complexity, Ruettgers says, the global 2000

must put even more effort into change than the dot-

coms.

EMCs customer satisfaction rate is 99.4%

Ruettgers says: EMSs customers can rest assured:

Whatever happens, EMC will be expertly leading the

charge. It will be there for them, discussing theirproblems, holding their hands, and helping to find

solutions. And as long as there are streamliners, that

will be the formula for finding and keeping them.

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Chapter:10 Free Up the Delegators

What is delegation?

Delegation is the process of getting some of the work

done by the sub-ordinates or trusting someone who

can perform the work efficiently. Example- Palm Inc.

Who is delegator?

A delegator is a person who delegates some of hiswork by providing authority so that he/she can focus

on more important areas.

Chapter 10


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Market strategies aimed at winning

delegators

1. Choose for the customer.

2. Enthrall your customers with what you do best.

3. Run the whole show.4. Take the pain out of innovation.

Chapter 10


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Choose for the Customer

Delegated persons 4 activities are as follows:

Sourcing

Negotiating

Bundling and pre-packaging solutions

Managing delivery of the goods to the customers

Ex: Carnival Cruise Lines , AOL

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Enthrall your customers with what you

do best

Business must focus on what it does best and what is

essential for its success.

Example: Paychex Inc.

Principles reflected by companies success are:

i. Focus on doing one thing supremely well.

ii. Nurture trust.

iii. Build a niche and lock customers in.iv. Exercise caution in innovating.

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Run the whole show

Delegators have to determine the spread between

what they plan to charge & what they are willing to

pay.

Example: Hays PLCManufactures can go for digital strategy.

Example: Infosys Technologies

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Take the pain out of Innovation

Companies are focused on research & development.

Providing the accessibility of R & D to other

companies by providing them equity stake.

Example : Millenium Pharmaceuticals

Chapter 10


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Chapter 11


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Chapter 12

Team Up with the

Collaborators

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What is Collaborators?

Lets look at it with the help of an business event held inyear 2000 or Y2K.

The companies and govt scrambled to prevent theoutdated computer code from crippling in their info

system. Company like IBM spend 600 million dollars for

addressing themselves from Y2K problem.

For some companies it was a disruption while for some

it was an opportunity. Customers were referred as COLLABORATORS as they

were seeking to team up with suppliers.

Chapter 12


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Contd..

Eg- IBM as total solution provider. Provides products

but also value added services which helps to remove

complexity.

Eg-Du Pont CEO Chad Halliday wanted his companyto change from fuel based company to knowledge

intensive business which is willing to take on complex

projects.

Fruitful teaming between Suppliers and Collaborators

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Fred Wiersema 4 Marketing Strategies

All the strategies aim at turning complexity into

opportunity and in appropriate circumstances, are

exploited by the new market leaders in their

teamwork with the collaborators. The 4 strategies are-

Get Customers Up and Running

Help Customers Break New Ground Become the Customers Trusted Companion

Interlock Your Operations and Fortunes

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Get Customers Up and Running

The first winning strategy from suppliers perspective

is to get the clients with whom they are collaborating

up and running.

Any company that has installed ERP OR CRM knowsthat software component is minor concern but most

daunting tasks includes..

Egs- Oracle software giant knows teaming up with

customers is good business

SAP, R/3 software, not offering consulting support

early, now provides Lego- block approach

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Help Customers Break New Ground

Focus on solutions that address specific

circumstances of individual clients who are eager to

break new grounds.

Customer taps expertise, supplier may becomesubstitute.

Suppliers redesign their selling and marketing

process and develop consulting skills.

Eg-IBM business innovation services division

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Become the Customers Trusted

Companion

Focus on providing ongoing coaching and value

adding services to collaborators

Root of success is in forming trust,respect and close

reltns with clients. Eg- Charles Schwab, the investment company.

Provided Advisor Source and merge with US Trust for

his collaborative clients

Personal advice and trust cement reltnsps with

customer and gain long lasting patronage

Chapter 12

l k d


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Interlock Your Operations and

Fortunes

When your customer dominates his market,

enjoy the good fortunes. Keystone Foods and JR

Simplot in fruitful collaboration with McD.

When the customer and suppliers intrests are sointricately entwined, the taem building reaches

new dimensions.

Primary emphasis on changes to the physical andstartegic interlocking of suppliers and customers.

Egs- Walmart and P&G, Toyota.

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Chapter13: Case in Point-UPS

United Parcel Service

UPSs METAMORPHOSIS

New E-commerce Venture

Tuned with Changing Nature of World

Empowered employees to take initiatives & risk in theservice of Customers.

Chapter 13


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Customer Relationship

Drivers route was no longer carved in stones.

If a customers called for pickup after the truck had

been there, the driver would double back.

Drivers could suggest new route Patterns.

Always look forward to Next day Delivery-if any

customer needed

Chapter 13


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Upgraduation of Technology

Spend Huge amount money on Technical Changes

Internet growing

DIAD(Delivery information acquisition device)

Tracking Information

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UPS Setup a web portal to help their clients as

www.ec.ups.com

They Provide basic information about Internet and E-Commerce on their website

1997,UPS launched special ONLINE TOOL forinteraction with clients

Chapter 13
http://www.ec.ups.com/http://www.ec.ups.com/


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UPS serves 98% of all US business in 1997

Handling E-commerce

They always take care of everything--inbound orders,

warehousing, picking & packing, shipping, returns,

customer care,invoicing,paymentsthe whole nineyards

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UPS sells is not shipping but solution.

Its rate arent the lowest in the business

They Hired anthropologists to study Consumer

Behaviour

Listen to costomer,their problems, and always find

out the solutions

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AT THE END


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Chapter 14: Take and Keep Lead

What's Missing?

Listening Skills

A Commitment to the Truth

Leadership

Focus

Chapter 14


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Types of Managers

Motivated by Market Leaders

Keen to learn from Market leaders

Perform Strongly and Aggressively

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Securing market leadership

Motivation & performance will peak only when

channeled toward shared ambitions and clear goals

You need to know where you stand

Pertinent insights of market leaders

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Thank You

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