Competitive Marketing Strategies Flashcards
(28 cards)
The Hierarchy of Objectives
Helps highlight the inter-dependence and prioritization of the firm’s various goals.
From Abstract to Specific.
Purpose
Describes the company’s reason for being. It creates unity around a common, shared passion.
Mission
What do we do?
Vision
What’s our ideal reality?
Values
What do we believe in?
Corporate Objectives
Quantifiable expressions of the corporate goal. They can address various parts of the business.
Top-Line Growth
Common corporate objective.
Defines how well the company generates revenue.
Bottom Line Growth
Common corporate objective.
Defined how efficient the company is at allocating resources and controlling costs.
Departmental Objectives
Defined through the alignment of each function with the corporate objectives.
Each objective must be accompanied by KPIs for measurement.
Marketing Strategy
Set according to the departmental marketing objectives. Outlined in the Marketing Plan.
Individual Objectives
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.
Marketing Strategy Formation
STP => Marketing Mix => Analysis + Budgeting & Allocation + Measurement & Monitoring
STP
Long-term approach to the marketplace. A theoretical and strategic decision set that impacts implementation options (Marketing Mix).
Marketing Mix
Implementation guided by STP decisions:
-Product
-Place
-Price
-Promotion
+ (IF service)
-People
-Process
-Physical Evidence
Analysis
The 5 C’s
- Context
- Customers
- Competition
- Collaborators
- Company (resources & capabilities)
Budgeting & Allocation
Allocation of resources to support the marketing mix. This involves prioritizing goals and following a data-driven approach.
Measurement & Monitoring
This involves evaluating performance against goals and taking corrective actions when needed.
First-Move Advantage
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.
Imitation / Fast Follower
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.
Framing the Game / Underdog
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.
Market Coverage / Fighter Brand
Strategy by which a player closes off
opportunities to competitors by closing gaps in the market.
Fighter Brand (Defined)
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.
Altius Fighter Brand
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.
The Fighter Strategy
- 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)
