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8/7/2019 Marketing 5_6
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Marketing Strategy
Jon Kitto
jkitto@theibam.co.uk
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Key Elements of MissionStatements
Not just the mission as a "wish".
Purpose and values of the organization
Which business the organization wants to be in
(products or services, market) or who are theorganizations primary "clients" (stakeholders)
Which are the responsibilities of the organizationtowards these "clients"
What are the main objectives which support the
company in accomplishing its mission
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Mission vs. Vision
A Mission statement: tells you what thecompany is now. It concentrates on thepresent; it defines the customer(s), critical
processes and it informs you about thedesired level of performance.
A Vision statement: outlines what acompany wants to be. It concentrates on the
future; it is a source of inspiration; itprovides clear decision-making criteria.
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Business
Objectives
MarketingObjectives
Product Price Place PromotionObjectives Objectives Objectives Objectives
Objectives
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The strategic planning gap
10
20
30
40
50
60
70
New strategies gap
Operations gap
(60M) Corporate objective
(45M) Revised forecast
(30M) Initial forecast
Theplanning
gap
Time (years)
Sales
(m)
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Objectives should be ...
... Hierarchical
... Quantitative
... Realistic ... Consistent
... SMART
Specific
Measurable Achievable
Results-oriented
Time-bounded
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Ansoffs Growth Matrix
Markets
Products
Existing
Existing
New
New
MarketPenetration
MarketDevelopment
ProductDevelopment
Diversification
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Product market strategy
Marketpenetration
1
Marketextension
2
Productdevelopment
3
Diversification 4
ProductCurrent New
Current
NewMarket
Product
NewExisting
1 4
162
Existing
New
Market
S
ouce:
Ansoff
RISK
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Porters generic strategies
STRATEGIC ADVANTAGE
STRAT
EGIC
TARGE
T
Uniqueness perceivedby customer
Low costposition
Industry-wide
Segmentonly
FOCUS
DIFFERENTIATIONOVERALL
COSTLEADERSHIP
Source: Porter
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Strategic choice
DEVELOPMENTSTRATEGIES
GENERICSTRATEGIES
Cost leadership Differentiation Focus
ALTERNATIVEDIRECTIONS
Do nothing Withdrawal Consolidation
Market penetration Product development Market development Diversification
ALTERNATIVEMETHODS
Internaldevelopment
Acquisition
Jointdevelopment
Source
:Johns
on&
Scholes
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Approaches to developingsustainable competitive
advantageSuperior product benefit
Perceived advantage
Low-cost operationsLegal advantage
Superior contacts
Superior knowledge
Scale advantages
Offensive advantagesSource: Davidson, 1977
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Barriers to implementation
Culture
Power and politics
Analysis, not action
Resource issues
Skills
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Product Development &Management
Jon Kitto
jkitto@theibam.co.uk
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Anatomy of a Product
Core
Tangible
Augmented
Potential
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The product life-cycle
Introduction Growth Maturity Decline
Profit
Sales
S
alesandprofits(
)
(a) Growth-slump-maturity pattern
Salesvolum
e
Time
(b) Cycle-recycle pattern
Salesvolume
Salesvolume
(c) Scalloped pattern
Time
Time
Initialcycle Recycle
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The Product Life-cycle
I G M D
Salesandpro
fits()
Time
A
BSales
Profits
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Diffusion of Innovation
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Actors & Agents (Victoria University)
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Everett Rogers
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BCGs Growth ShareMatrix
Low
2
4
6
8
10
12
14
16
18
20
High
10x 1x 0.1x
High LowRelative market share
STARS QUESTION MARKS(problem children)
CASH COWS DOGS
Modest+ or -
cash flow
Largenegative
cashflow
Large
positivecashflow
Modest
+ or -cash flow
Optim
um
cash
flow
SOU
RCE:A
daptedfro
m
Hedl
ey(1
977
),p.12
Marke
tgrow
th
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GE multifactor matrix
Business strengths
Indus
try
attract i
veness
Low
Hig
h
Medium
Strong Medium Weak
Inve
stfo
rgrow
th
Harves
t/withd
raw
Mana
gesele
ctive
lyfore
arning
s
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Shell directional policymatrix
Prospects for sector profitability
Busin
essc om
petitiv
ecapabilit
ies
Strong
Weak
Average
Unattractive Average Attractive
Disinvest
Phasedwithdrawal
Phasedwithdrawal
Custodialgrowth
Cashgeneration
Doubleor quit
Tryharder
LeaderGrowthleader
Th B All H ilt
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The Booz Allen HamiltonClassification of New
ProductsNew to the world
New sector development
Additions to existing lines
Improvements and revisions toexisting lines
Repositioning Cost reduction through productmodification
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The Role of NPD
Avoid product obsolescence
Ensure match with environmental conditions
Enable the organisation to compete in new
and
developing sectors
Reduce dependence on vulnerable productsectors
Match the competition
Fill excess capacity
Achieve greater long term growth and profit
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The NPD process
Idea generation
Initial screening
Conceptdevelopment
Business evaluation
Product development
Product launch
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Why Brand?
For differentiation & recognition
To add value to a naked commodity
Easier to promoteHelps market segmentation
Can help boost share price
Easier to integrate - sales promotion,personal selling & packaging
Can help corporate image
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Brand Strategies
Manufacturers Brand Cadburys, Ford, Coca-cola
Multi - Branding (Individual Brand Name) Proctor & Gamble
Tide, Daz, Dreft, Ariel
Price Brand Tesco Value
Private/own Label
Boots, Sainsburys
Generic No Frills Products
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BRAND DEVELOPMENT
INCREASED SALES
COST EFFICIENCIES
VOLUME BUILDING
BRAND SALES GROW
RETAILER CONCENTRATION
VOLUME BUILDING
IMPROVED PRODUCTS
WIDER DISTRIBUTION
NETWORK BUILT UP
INVEST IN
NEW BRANDBUILD AWARENESS
OF ATTRIBUTES
SALES INCENTIVE
PROGRAMME, TRADE
PROMOTION, P.O.S
BRAND RECOGNITION
AND CUSTOMER
DEMAND FOR BRAND
RETAILERS
LIST
BRAND
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Packaging
Contain
Protect
Inform
Differentiate
Environmental considerations
Silent salesperson
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