When Marketing is a Strategy

Upstream and Downstream activities

The problemSituation

Companies struggling to balance between sales and better marketing strategies.

Questions

Upstream activities?

Downstream activities?

How should companies base their marketing strategy?

What if their decision results in loss?

Questions

Choosing competitors?

Competitive advantage?

Customer choices?

Innovation-pace and prospects?

Proof and actionHypothesis

Customers’ opinions are important but not all the time. Example: Apple and ZaraBrand image plays a major role.Customers’ convenience plays a major role in pricing

Alternatives

Instead of selling better products, SELL PRODUCTS BETTER!!!Ex: Hyundai’s selling strategy during the 2008-09.Cialis vs. Viagra

Alternatives

Choosing your competitors: If you place your product in a different place in the store, the sales go up!!!!!

SolutionCHANGE YOUR STRATEGY:TILT

1.Innovation is not always the option. SELL PRODUCTS BETTER!!

2.Downstream TILT: Reducing prices and risks for customers

3.Upstream competitive advantage: Internal to the firm

4.Downstream competitive advantage: External to the firm

Implementation

Challenge1

Hyundai sales dropped drastically during the 2008-09

Challenge2

Laying offs; Delayed purchase of goods; Sales crashed!!!

Plan1

Reduce risk instead of price!

Action1

Launch risk reduction program in Jan 2009.

Result1

Hyundai Sales doubled while industry sales declined 37%

The answer lies in pacing up the Downstream game!It has it’s own set of rules.Master them to your advantage!!!!

Sindhuja Nanduri2013B1A4874H

BITS Pilani, Hyderabad Campus