Competitive Marketing Strategies

Question 1

The Hierarchy of Objectives

Answer 1

Helps highlight the inter-dependence and prioritization of the firm’s various goals.
From Abstract to Specific.

Question 2

Purpose

Answer 2

Describes the company’s reason for being. It creates unity around a common, shared passion.

Question 3

Mission

Answer 3

What do we do?

Question 4

Vision

Answer 4

What’s our ideal reality?

Question 5

Values

Answer 5

What do we believe in?

Question 6

Corporate Objectives

Answer 6

Quantifiable expressions of the corporate goal. They can address various parts of the business.

Question 7

Top-Line Growth

Answer 7

Common corporate objective.
Defines how well the company generates revenue.

Question 8

Bottom Line Growth

Answer 8

Common corporate objective.
Defined how efficient the company is at allocating resources and controlling costs.

Question 9

Departmental Objectives

Answer 9

Defined through the alignment of each function with the corporate objectives.
Each objective must be accompanied by KPIs for measurement.

Question 10

Marketing Strategy

Answer 10

Set according to the departmental marketing objectives. Outlined in the Marketing Plan.

Question 11

Individual Objectives

Answer 11

Tied to corporate and departmental objectives, tailored to each individual.
Typically set with the direct manager and involves a mix of performance and personal development objectives.

Question 12

Marketing Strategy Formation

Answer 12

STP => Marketing Mix => Analysis + Budgeting & Allocation + Measurement & Monitoring

Question 13

STP

Answer 13

Long-term approach to the marketplace. A theoretical and strategic decision set that impacts implementation options (Marketing Mix).

Question 14

Marketing Mix

Answer 14

Implementation guided by STP decisions:
-Product
-Place
-Price
-Promotion
+ (IF service)
-People
-Process
-Physical Evidence

Question 15

Analysis

Answer 15

The 5 C’s
- Context
- Customers
- Competition
- Collaborators
- Company (resources & capabilities)

Question 16

Budgeting & Allocation

Answer 16

Allocation of resources to support the marketing mix. This involves prioritizing goals and following a data-driven approach.

Question 17

Measurement & Monitoring

Answer 17

This involves evaluating performance against goals and taking corrective actions when needed.

Question 18

First-Move Advantage

Answer 18

Rewards: Ease of recall, brand loyalty, technological leadership, economies
of scale and experience, and resource capture.
Disadvantages: Free-rider effects, technological discontinuities, missing
consumers’ ideal point, shifting consumer tastes.

Question 19

Imitation / Fast Follower

Answer 19

Rewards: Gains from the challenges that first movers face and the opportunities that emerge. Comparatively quick & efficient strategy.
Disadvantages: Incompatible with market leadership; lacking innovation; Implications for brand and price considerations.

Question 20

Framing the Game / Underdog

Answer 20

Rewards: Gains from the affect of consumers and allows a small player to fight against larger competitors.
Disadvantages: Growth limits & authenticity in the long-run.

Question 21

Market Coverage / Fighter Brand

Answer 21

Strategy by which a player closes off
opportunities to competitors by closing gaps in the market.

Question 22

Fighter Brand (Defined)

Answer 22

Low-value brand within a portfolio, designed to compete against low-price competition, while protecting the firm’s premium-price offerings.
Rewards: Capture the low-end of the market.
Disadvantages: If not executed properly, it can lead to cannibalization, financial losses, management distraction.

Question 23

Altius Fighter Brand

Answer 23

Elevate, endorsed by Altius.
If Altius decides to include an endorsement, it is possible to give the additional slack to the retailer, making it push its products more => Brand name can be used to sell at a higher price.

Question 24

The Fighter Strategy

Answer 24

• Lowering the total value of the product in the eyes of the customer, not just the price.
• Maintain a clear differentiation compared to the premium product in the portfolio.
• The degree of cannibalization will depend on the distinct customer needs and the ability to keep the brands separate (Channels & Brand Perceptions)
• Profit margins & volume expectations should be sustainable in the long-term (Not a short-term promotion that would go away)

Question 25

Different Brand Architectures

Answer 25

Endorsed ≠ Free-Standing
=> Trade-off between efficiency and contamination risk management

Question 26

Buffers for Downward Extension Risks

Answer 26

• Distribution and promotion channels split
• Customer needs and priorities

Question 27

Entry-Point Brands

Answer 27

Transition customers from entry product to more premium ones (upselling).

Question 28

Retail Margins

Answer 28

The difference between the cost of goods sold (COGS) and the retail price of a product. The COGS is the wholesale price of the product that the retailer pays to the manufacturer or distributor. The retail price is the price that the retailer charges to the consumer. The difference between these two prices is the retailer’s profit margin.