Competitive Marketing Strategies Flashcards
Hierarchy of objectives
Each organization consists of several parts that need to somehow come together:
- Helps to highlight the interdependence and prioritization of the firm’s various goals
- Outlines specific objectives that an organization pursues, from the more abstract to the most specific
- Aligns focuses and motivates employees
Purpose
Why do we exist? Describes the company’s reason for being.
Purpose is meant to be aspirational. Meant to bring people together to work towards a common goal.
- Aspirational: Sharing a dream
- Builds community and unites people around a common passion
- Consumers tend to be more loyal to purpose-driven brands
Mission - Vision - Values
Mission = What do we do?
Closely related to purpose. Create a coherent structure, that is consistent and mutually reinforcing
Vision = What is our ideal reality?
If we were to succeed, what would the world look like?
Values = What do we believe in?
Values guide actions and shape behaviours
Corporate objectives
Quantifiable expressions of the company’s corporate goals. Objectives are created by senior management & set the basis for the departmental goals.
Departmental objectives
Each function aligns with the corporate goals and develops an actionable plan
All objectives must include key performance indicators to assess successful completion
Based on the objectives, the appropriate marketing strategy is set
Individual objectives
- Tied to corporate & departmental objectives
- Typically set annually with the employee’s manager
- Mix between performance and personal development objectives
- Influence annual bonus and promotions
Important because they communicate to the employee what is expected from them and how they will be rewarded for achieving this.
STP
At the heart of the marketing strategy: STP = the plan
Segmentation: Long term approach to the marketplace
Targeting: Choosing which groups to serve
Positioning: Aligning with unique value to offer
A strategic, theoretical decision set that impacts the implementation options
Marketing mix
= the implementation, transforming theory into practical steps
The implementation is guided by the STP decisions
Analysis: The 5 C’s
Internal and external factors
The 5 C’s:
- Context
- Customers
- Competition
- Collaborators
- Company
Budgeting and allocation
- Correct allocation of resources to support the marketing mix activities
- Prioritization of goals
- Data-driven for best results
Prioritize the ones driving revenue. Looking at historical data is good to make better decisions in the future.
Measuring and Monitoring
- Measuring and keeping track of performance
- Evaluating performance against goals
- Taking corrective action
- Feeds into future budget allocation and planning
First mover advantage
Strategy by which a player gains competivtive advantage in market by being the first to establish.
Potential rewards:
- ease of recall
- brand loyality
- technological leadership
- economies of scale and experience
- resource capture
Disadvantages:
- free-rider effects
- technological discontinuities
- missung consumer’s ideal point
- shifting consumer tastes
Imitation - fast follower
Strategy by which a player imitates the innovations or strategy of the market leader
Potential rewards:
- gains from the challenges and opportunities of the first mover
- comparativly quick and efficient strategy
Disadvantages:
- incompatible with market leadership - lacking innovation
- implications for brand and price considerations
Framing the game
Strategy by which a player (typically small or new) positions itself relative to a specific competitor. Also known as underdog positioning strategy.
Potential rewards:
- gains the affect of consumers
- allows a small player to fight against large competitors
Disadvantages:
- growth limits
- authenticity problems in the long run
People identify with the underdog
Market coverage
Strategy by which a playser closes off opportunities to competitors by closing gaps in the market. Usually done by launching line extensions or new brands.
