marketing strategy ilan bijaoui 2006 [email protected]
TRANSCRIPT
FIVE P’S FOR STRATEGYHenry Mintzberg
PLAN-PLOY
Intended Course of Actions
Purpose
PATTERN
Consistency in Behavior
Realized
POSITION
Match Organization &
Environment
Egg McMuffin P change
PERSPECTIVE
Way of Perceiving the World
Mc Donald: quality,service, cleanliness & value
Candle night dining P change
Strategos: Art of the Army General
STRATEGY FOR CHANGEJames Brian Quinn
Goals-Objectives
What & When
Strategic Goals-Viability
Policies
Rules or Guidelines
Programmes
How, Sequences of Actions
Resources-Goals
Strategic Decisions
True Goals
A Strategy is a Pattern/Plan that Integrates an Organization’s Major Goals, Policies and Actions Sequences to a Cohesive whole
CRITERIA FOR EFFECTIVE STRATEGY-Quinn
Clear Objectives
Understood, Attainable
Initiative
Maintained
Concentration
Decisive
Flexibility Coordination
Committed
Leadership
Surprise
Speed, Secrecy
Intelligence
Secure Resources
Bases
Secure Operating
Points
THE CONCEPT OF CORPORATE STRATEGYKenneth R. Andrews
Formulation Implementation
Corporate
Strategy
Pattern
Opportunity & Risk
Resources
Values
Responsibility
Structure/ Relationship
Processes/Behaviour
Top Leadership
DEVELOPMENT OF ECONOM IC STRATEGY
OPPORTUNITIES & R ISKSId 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, C u 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/C u 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 C a 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
THE CORE COMPETENCE OF THE CORPORATION CK Perahalad G/ Hamel
COMPETENCIES
CORE PRODUCTS
BUSINESS UNITS
END PRODUCTS
NEC STRATEGYComputing & Communication Convergence
From Mainframe to Processing Components
Semiconductors
Alliances
END PRODUCTS
From Mechanical to Digital Communication
New Markets
SELECTED CORE COMPETENCIES/PRODUCTS
SONY• Miniaturization
CP: Elect. Components
EP: Television
3M• Sticky Tape
Magnetic tape, photographic film, coated abrasives
CANON
Comp.: Optics, Precision Mech.fine Chemicals
CP:Laser printer engine
EP: Laser Printer
HONDA
CP: Engines
EP: Scooters, Cars
CORE COMPETENCY IDENTIFICATION
IDENTIFY• Access to wide variety of
markets• Contribution to perceived
customer benefits• Difficult to imitate• Outsourcing and Core
Competency (GE-GTE-Motorola TV Color)
STRATEGIC ARCHITECTURE
• How long could preserve technology
• How central is the core competence for customers
• Future opportunities in other core competencies
PM 4.4 Natural and technological environments
NATURAL ENVIRONMENT
Energy costs Geography
TECHNOLOGICAL ENVIRONMENT
Raw materials Pollution
R&D spending, Patent protection, New development, Internet, Telecom.
Regulatory
Economic
PM 4.3 Demographic and economic environments
ECONOMIC ENVIRONMENT
Age
DEMOGRAPHIC ENVIRONMENT
PopulationFamily Education
GDP Interest Inflation , Unemployment Wages, Energy availability
PM 6.5 Family and lifestyle
Activities
LIFESTYLE DIMENSIONS
Interests Demographics
FAMILY LIFE-CYCLE STAGES
OlderMiddle-agedYoung
Opinions
PM 4.5 Political and cultural environments
POLITICAL ENVIRONMENT
CULTURAL ENVIRONMENT
Antitrust, Environment, Tax, Incentives, Foreign trade, Stability
Career expectations, consumer activism, Lifestyle
THE STRUCTURING OF ORGANIZATIONSH. Mintzberg
Strategic Apex
Operating Core
Middle
LineSupport Staff
Techno Structure
Ideology
THE STRUCTURING OF ORGANIZATIONSH. Mintzberg
Basic Parts
Operating Core
Producing
Strategy Apex
Manager
Middle line
Between Apex and Operating
Techno structure
Analysts
Support staff
Internal services
Ideology
Coordinating Mechanisms
Mutual Adjustment
Coordination between operator
Direct SupervisionStandardization of Work Process
Programs Assembly Instructions
Standardization of Outputs
Standardization of Skills
Body of knowledge
Standardization of Norms
Set of beliefs
Configurations
Entrepreneurial
Direct supervision
Apex + Operating core
Machine
Highly specialized Larger Middle Line
Techno structure + Support Staff
Professional
Standardization of skills Operating core
Horizontal structure (hospitals universities)
Diversified
Standardization of Outputs. Independent entities Middle Line Balkanize
Innovation
Mutual Adjustment-dominated by experts Adhocracy Projects structure Fuse experts
Missionary
S. of Norms
Ideology: sharing of values and beliefs
Mass of non specialized members
THE STRATEGIST H. Mintsberg Frame of the Job
Perspectives Positions Agenda
Issues Scheduling Values
Style
Experience Knowledge
Competencies Model
Inside
OutsideWithin
Core in Context
MANAGING LEVELS
Action
People
Information ControllingSystem, StructureDirectiveCommunicating
Leading Individual Group Unit Linking Gate Keeper
Doing Inside
Doing Outside
Conceiving
MARKETING DEFINITIONThe American Marketing Association
The Process of Planning & Executing
The Conception, Pricing, Promotion & Distribution of Ideas, Goods & Services
To Create Exchange, that Satisfy Individuals & Organizational
Goals
Kotler: Marketing managers seek to influence the level, the timing, and composition of demand to meet the organization’s objectives
Peter Drucker: The aim of marketing is to know and understand the customer so well that the product fits him and sells
MARKETING’S ROLES & GOALS
Corporate
Business Unit
Products/markets
Corporate strategy
Strategic Marketing
Marketing Management
Roles Goals
Market Share
Growth
Profitability
Customer, Competitive Perspective
MARKETING STRATEGY –THREE C’s
Customers
Competition Corporation
Where to Compete? How to Compete?
When to Compete?
Business Environment
Differentiate itself positively from its competitors, using its relative corporate strengths to better satisfy customer’s needs in a given environmental setting
GILETTE’S MACH3 MARKET STRATEGY
• Where (Market): All USA• How (Means): Premium Product 35% more expensive than
SensorExcel• When (Timing): before Mr Zein (CEO) retires • Competition: Atra, SensorExcel, Shick• Customer: MUS$ 750 in research, 35 patents Global
product • Philip Morris and Miller Beer (Corporate strength)• TI and digital watches (Competition strength)• Goodyear: focus on tire (strategic decision)
FUTURE OF STRATEGIC MARKETING
• Market Share• Deregulation• Acquisitions, mergers Columbia, Coca Cola• Channel Structure• Overseas companies• Fragmentation of Markets: : cars – segments • Early entrants• Customer’s requests: Quality and Price not
enough• Demographic Shifts
STRATEGIC MARKET PLAN-MARKETING PLAN
A Strategic Market Plan is a plan of all aspects of an organization’s strategy in the market place
A Marketing Plan deals with the delineation of target segments and the four P’s
Source: Abell D F Hammond J. Strategic Market Planning Englewood Cliffs NJ Prentice Hall 1979. p9
STRATEGIC MARKETING -MARKETING MANAGEMENT
Strategic Marketing
The business to be in
Marketing Management
Stresses running a business
Time
Orientation
Decision process
Nature of job
Leadership
Orientation
Long Range
Inductive-Intuitive
Bottom up
Creativity
Proactive
Opportunistic
Throw constraints
Current
Deductive analytical
Top down
Experience maturity
Reactive
Deterministic
Optimize within constraints
Source: Subhash C. Jain Marketing Planning & Strategy South Western College Publishing 2000
DEFINITION OF COMPETITION
• Natural Competition: Evolution by Adaptation
• Strategic Competition: Understand competitive interaction, predict consequences, available resources, predict risk and return, make the commitment
SOURCES OF COMPETITION
• Customer Need• Existing Industry• New Industry• Product line• Type of the Firm
COMPETITIVE INTELLIGENCE
• Defensive Intelligence: protect business• Passive Intelligence: Ad hoc information for a
specific purpose• Offensive Intelligence: identify new opportunities• Sources: Public (advertising, publications,
speeches)Trade Professionals(Customers, Patents), Government, Investors
FORCES DRIVING INDUSTRY COMPETITION
Potential
Entrants
Suppliers Industry Buyers
Competitors
Substitutes
Threats
Threats
Bargaining Power Bargaining Power
PM 12.6 Market challenger strategies
ATTACK STRATEGIES
BypassFlanking
Guerrilla
Encirclement
Frontal
HOW TO DEFINE A MARKET?
• Product characteristics• Needs characteristics (Use)• Private/Owner brand• Regional sales• Boundaries: technology (material, energy);
customer function, customer group (category)
DEFINING MARKET BOUNDARIES Personal Financial Transactions
Customer Groups: Airports, StoresGas stations, saving associations, banks
Customer Functions: cash, deposit,bill, check, transactions
Technologies: ATM, System, Teller
Source: Abell D F Hammond J. Strategic Market Planning Englewood Cliffs NJ Prentice Hall 1979. p9
MARKET ORIENTED DEFINITIONS
Product OrientedMarket Oriented
Revlon CosmeticsLifestyle, Self-expression
Walt DisneyMovies, Parks Fantasies Entertainment
XeroxOffice MachinesBusiness more Productive
Nike Sportive shoesSportive Leisure
SEGMENTATION
Category• Private• Professional/Industry• Public
Impact Factors:• Geography• Demography, Cycle• Culture, Life style • Economy
Behavior:• Benefit• User• Usage• Brand loyalty
PM 10.4 Positioning strategies
POSITIONING STRATEGIES UsersAgainst competition
Brands Activities
PersonalitiesOrigin
Usage
Benefits
Product attributes
Product class
Not competition
BCG STRATEGY IMPLICATIONS
InvestmentEarningCash FlowStrategy
StarsCapacity expansion
Low to High
Negative CF
Increase Mkt Share
Cash CowsCapacity maintenance
HighPositive CF
Maintain share
Question Marks
High R&DNegative to low
Negative CF
Share or withdraw
DogsDeplete capacity
High to low
Positive CF
Withdraw
GENERAL ELECTRIC GRIDIndustry Attractiveness
Low
Medium
High
Business Strength
Strong Average Weak
Question marks
Profit Producers
Winners
Losers