MARKETING SEMINAR

2005

DEVELOPMENT OF ECONOM IC STRATEGY

OPPORTUNITIES & RISKSId en ti f ica tion

In qu iryA sse ssm e n t o f R isk

ENVIRONM ENTALCONDITIONS-TRENDSG e og ra p hy , D e m o grap h y, Cu ltu re ,

E con om y, T e chn o lo gy P o lit ic , L eg a l

CHOICE OFPRODUCTS & M ARKETS

E con om ic S tra te gyP rod u ct/Cu sto m e r /P rom otion /P la ce /P r ice

CORPORATERESOURCES

S tren g ths & W e akn essesIn crea s in g Ca pa b i li ty

DISTINCTIVECOM PETENCE

F u nc tio na l, F ina nc ia l,O rga n iza tion a lR e pu ta tio n , H isto ry

RESEARCH & DEVELOPMENT

• RESEARCH

Search Planning New Knowledge Non Public Knowledge Future Implementations

• DEVELOPMENT

Implementation Direction Product/Process Improvement Business Objective

INFO RM ATIO N SO URCESS e con d a ry

P rim a ry

INFO RM ATIO N CO LLECTIO NT e lep ho ne

M a ilIn te rv iew

APPRO AC HD e sc rip tiveP ro spe c tive

C a su a l (Q ua lita tive -Q u a n tita tive )

ANALYSIS AND RECO M M ENDATIO NSD a ta

In fo rm ationA n a ys is -In te llig e n ce

O BJECTIVESV a lue B rid g es

MARKETING RESEARCH

PM 3.11 Contents of a marketing plan

SECTION PURPOSE

Executive summary Presents a quick overview of the plan for quick managementreview

Current marketing situation The marketing audit that presents background data on themarket, product, competition and distribution

SWOT analysis Identifies the company’s main strengths and weaknessesand the main opportunities and threats facing the product

Objectives and issues Defines the company’s objectives in the areas of sale,market share and profits, and the issues that will affectthese objectives

Marketing strategy Presents the broad marketing approach that will be used toachieve the plan’s objectives

Action programmes Specifies what will be done, who will do it, when it will be done and what it will cost

Budgets A project profit and loss statement that forecasts thefinancial outcomes from the plan

Controls Indicates how the progress of the plan will be monitored

The innovation time of scientists at Ramat Negev is headed by Yoel DeMalach, Dean of Brackish Water Agricultures.

Picture 8.2: Second GenerationPicture 8.1: First Generation

Picture 8.3: Third Generation

Figure 8 : Generations of Products

SELECTED CORE COMPETENCIES/PRODUCTS

NIKE• R&D Technology • Product-Design• Distribution• Brand Name

BENETTON• Product-Design•Production• Distribution•Brand Name

DELTA GALIL• Product-Design• Production• Logistics

TEVA• Research & Development • Vertical Integration• Distribution• Finance

Persuade to Buy

Match Customer’s Requirements

PRODUCTS STRATEGY Ansoff Matrix

Market Penetration

Product

Development

Market

Development

Diversification

Present Future

Present

Future

MARKETS

PRODUCTS

PRODUCTS STRATEGY-B.C.G

Star

Problem

Children

Cow Dog

High

Low

OF

GROWTH

Large Small

MARKET SHARE

RATE

116

PRICE STRATEGY

CUSTOMER’S VALUE APPROACH

COMPETITION APPROACH

Discrimination Historical Price

COST APPROACH

BenefitBreak-even Cost Plus

Ultimate Luxury Shopping Convenience Me Too

Survival Profit Maximization Market share Quality Leadership Leadership

MARKETING OBJECTIVES

PHYSICAL VALUE BRIDGE

D irec t M arke tin g

S u b con trac to r

A g en t/B roker

D is trib u to rW h o loesa le r

R eta ile r

P ro lon g a tiono f th e F irm

INTERM EDIAIRIES

C lass icS p ec ia lised

M u lti P u rp ose

V ertica l

H orizon ta l

H yb rid e

STRUCTURE

M EETINGLOCAT IONS

GLOBALIZATION DRIVERS

Market DriversCommon customer needs Global customers Global channels Transferable marketing

Competitive DriversFollowing another company’s path in local (Benetton and Gap in US) and international markets (Nokia)

Cost DriversEconomies of scale, scope, sourcing

Technology DriverInternet, cell phone,

Government Drivers

Trade policy

Source: Yip G. 1992 Total Global Strategy Englewoods Cliffs, NJ Prentice Hall

ENTRY STRATEGIES

Exports

Sourcing

Licensing

Joint Venture .

Equity

Ownership Alliances

      Domestic

      International

      Multi-domestic, Multi National

      Global

      Transnational

INTERNATIONAL STRATEGIES

PORTER’S DIAMOND

Factor Demand

Conditions Conditions

Chance Firm Strategy

Structure &

Rivalry

Related &

Supporting Government

Industries