Competitive Marketing Strategies Flashcards
The Hierarchy of Objectives
From abstract to specific:
Purpose: “Why does the company exist?”. Meant to unite employees and customers around a common passion. E.g. Disney “Creating happiness”.
Mission: “What we do?”. E.g. Google “Organize the world’s information and make it universally accessible and useful.”
Vision: “What’s our ideal?” E.g. Google “To provide access to the world’s information in one click.”
Values: “What do we believe in?”. E.g. Patagonia “Build the best product, cause no unnecessary harm, use business to protect nature, not bound by convention.”
Mission, vision and values shape the company culture and drive behavior.
Corporate Objetives: quantifiable goals. Growth is the main objective. E.g. Become the market leader of a segment.
* Departamental Objectives: Flow from the corporate objectives. Align their functions with the company’s goals. All objectives must include KPIs that will be used to assess the success. Based on the objectives, the appropriate Marketing Strategy is set, outlined by the marketing plan.
Individual Objectives: “What is expected from employees and what is rewarded?”. A mix between performance and personal development objectives.
What’s the focus on top-line growth
Revenues: how successfully the company generates sales
What’s the focus on Bottom-line growth?
Net income: how efficient is the company in spending resources and managing its operating costs
What are the factors that support the STP and the Marketing Mix (Marketing Strategy)?
Analysis (5 C’s) : the company must analyse its consumer.
- Context
- Customers
- Competition
- Collaborators
- Company
Budgeting and allocation: correct allocation of resources to support the marketing mix activities. Data driven for best results.
Measurement and monitoring: measuring performance after implementing the marketing mix. Keep track of the impact on objectives and take corrective action if it is not going well. Feeds into future budgeting allocation and planning.
Complete:
STP is the …
Marketing Mix is the …
… Plan
… Implementation
Competitive Marketing Strategies: First Mover Advantage.
Strategy by which a player … by …
Gains competitive advantage in a market … being the first to establish itself
Some advantages and disadvantages of First Mover Strategy
Advantages:
- High market share
- Brand loyalty
- Technological leadership
- Economies of scale and experience
- Resource capture
Disadvantages:
- Free-rider effect
- Technological discontinuities
- Missing consumers’ ideal point
- Shifting consumer tastes
Competitive Marketing Strategies: Fast Follower
Strategy by which a player …
… imitates the innovations or strategy of the market leader
Some advantages and disadvantages of Fast Follower Strategy
Advantages:
- Gains from challenges that first movers face and the opportunities that emerge.
- Comparatively quick and efficient strategy.
Disadvantages:
- Incompatible with market leadership - lacking innovation
- Implications for brand and price considerations.
Competitive Marketing Strategies: Market Coverage
Strategy by which a player … by …
closes off opportunities to competitors … closing gaps in the market
In the Market Coverage strategy, there’s the concept of Fighter-brand, which is
Low-value brand within a portfolio, designed to compete against low-price competitio, while protecting the firm’s premium-price offerings.
Some advantages and disadvantages of Fighter-brand strategy
Advantages:
- Captures the low-end of the market
Disadvantages:
- If not executed properly, it can lead to cannibalization, financial losses, management distraction
Competitive Marketing Strategies: Framing the game
Strategy by which a player … also know as …
positions itself relative to a specific competitor … “underdog”
Some advantages and disadvantages of Framing the game strategy
Advantages:
- Gains the affect of consumers and allows a small player to fight against large competitors
Disadvantages:
- Growth limits and authenticity in the long-run
What is the Marketing Mix?
If STP is the plan, Marketing Mix is the implementation.
It is the transformation of the STP into something tangible.
7 P’s:
- Price
- Product
- Place
- Promotion
- People
- Process
- Physical evidence
