Chapter 2 Flashcards
(13 cards)
What is a marketing strategy
the bases upon which the firm plans to build a sustainable competitive advantage
Origin and similarities of marketing strategy with war
i. Defeating the enemy (i.e., the competition)
ii. Capture a targeted geography (i.e., market)
Steps in developing a marketing strategy
Planning Phase:
1. Business Mission and Objectives
2. Situation Analysis - SWOT
Implementation Phase:
3. Identify Opportunities - STP
4. Implement Marketing Mix - 4 P
Control Phase:
5. Evaluate Performance by Using Marketing Metrics
Vision/Mission (definition)
= broad statement about the organization’s purpose, what you want to achieve
- the guiding light for SPECIFIC goals the organization wants to achieve
- generally, defined by the CXOs (i.e., top management)
- a lot of companies do not specify their vision/mission on their website. Some do but under different labels – “About Us”, “Who are we?”, “Our purpose”, etc.
SWOT
Evaluation: Strengths & Weaknesses
Environment: Opportunity & Threats
sustainable competitive advantage
(superior customer value, positional advantage) = intersection of what consumers need/want and what makes your firm unique
sources of competitive advantage:
customer, operational (Amazon), locational (Tim’s), product excellence
Identify and evaluate opportunities by using STP
segmentation: divide the market into different homogenous groups (aka segments)
targeting: evaluate which of those segments are attractive enough for you to target
positioning: decide how you would position yourself in the minds of the target segments
Marketing metrics
- financial performance, social responsibility performance (NFP), Past performance (top firms) vs. Competitor’s performance (start up)
Characteristics of a good marketing strategy
Consistent in the following ways:
i. External consistency – Strategic decisions are in line with external factors
ii. Internal consistency – Strategic decisions are in line with internal capabilities
iii. Dynamic consistency – open to learning and changing
Explain portfolio analysis using Boston Consulting Group (BCG) Matrix
2 axis (high-low):
- relative market share
- market growth rate
4 categories: cash cows, starts, question marks, dogs
- question marks: start-ups (growing industry, but you aren’t a big player yet)
- stars turn into cash cows (you can launch a new product)
- divest dogs
Limitations of BCG Matrix
- difficult to measure market share and growth, especially for radically innovative products
- focus on the current business and resource allocation, not future planning
- how to identify a question mark
Product-Market Expansion Grid (PMEG)
- Ansoff’s Matrix
2 axis (new and current):
- products and services
- markets
- framework to identify growth strategies for existing businesses, future-oriented
a) market penetration: low cost, promoting, increase the serving size amount
b) product development: PS adding VR sets, Apple
c) market development: new geographic market
d) diversification
