Transcript Marketing Management - BYU Marriott School

Marketing Management
Strategy II
Paul Dishman, Ph.D.
Department of Business Management
Marriott School of Management
Brigham Young University
Lecture 5
Marketing Management
Strategy Lecture
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Terms
Traditional Approach to Strategy
Two Views of Competitive Analysis
Dynamic Model of Competitive
Strategies
Paul Dishman, Ph.D.
Marketing Management
Coming to Terms
• Goal (something you strive for- but can never measure)
– Objective (attainable, S*M*A*R*T)
• Strategy (plan to achieve objective)
–Tactic (operation, program required to execute strategy)
» Action Plan (tasks, assignments, CPM)
• Resource Analysis (all resources required to
achieve the objective)
–Budget (monetary resources)
Paul Dishman, Ph.D.
Marketing Management
Situational Analysis (SWOT)
• Internal
– Strengths
– Weaknesses
• External
– Opportunities
Strategic Planning:
– Threats The most profitable match of
company strengths with opportunities
presented by the marketplace which
would provide long-term advantage.
Paul Dishman, Ph.D.
Marketing Management
Situational Analysis (SWOT)
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Market share gain
Market entry
Intellectual property
Financial
Management team
Owners, founders
Products/services
Manufacturing
Strategic fit
Paul Dishman, Ph.D.
Marketing Management
Situational Analysis (SWOT)
Criteria
Strengths
Gain
Mkt Share
- ext. current
prod. line
- entry into
Mkt 6
Intellectual
Property
Product
Leverage
Weaknesses
Opportunities
Threats
- Prod1 CAGR>250%
- Prod2 CAGR>54%
- Prod3 emerging
- major competitors
- 4 patents
- unclear if SW
- 3 pending
patents okay
- 9 2B submt’d - need license for
- clear tech
1/2 of roadmap
roadmap
- some leveraging
with our R&D
- 2 possible
infringement
suits
- prods extend - EDP is not our
our Mkts
primary focus
1&2
- Prod2 requires
cust support
we don’t have
- can take Prod1
into our Gamma
with extra FAB’s
- time to mkt
- no resources
to leverage
- no prod. history
- may have over
designed prods
Paul Dishman, Ph.D.
Marketing Management
Strategic Planning Approaches
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Mission Statement Orientation
Business Portfolio Analysis
Strategic Business-Planning Grid
Product Market Expansion Strategies
Customer Marketing Mix
Paul Dishman, Ph.D.
Marketing Management
Mission Statement Orientation
• “Invisible Hand”
• Market, not technology- or productorientation
• Capture vision
• Provide direction in decision making
Paul Dishman, Ph.D.
Marketing Management
Production vs. Market Orientation
Company
Production
Market
cosmetics
lifestyle, status
expression
theme parks,
film
fantasy,
entertainment
credit cards
exchange value
copiers,
faxes
document
management
Paul Dishman, Ph.D.
Marketing Management
Vision Components
IAYF:
“information at your fingertips”
SONY
“personal, portable entertainment”
“within an arm’s reach
of every person in the world”
“become $100 billion company”
Paul Dishman, Ph.D.
Marketing Management
Business Units as Portfolio
• Financial Approach (IRR, ROI)
• Market Relation Approach
– Growth-Share Matrix
• Business Planning Approach
• Issues
Paul Dishman, Ph.D.
Marketing Management
Growth-Share Matrix
(Boston Consulting Group)
Relative Market Share
High
Low
High
Market
Growth
Rate
Star
Cash
Cow
???
Question
Mark
Dog
Low
Paul Dishman, Ph.D.
Marketing Management
Growth-Share Matrix
(Boston Consulting Group)
Relative Market Share
High
Low
High
Market
Growth
Rate
Star
Cash
Cow
???
Question
Mark
Dog
Low
Paul Dishman, Ph.D.
Marketing Management
Growth-Share Matrix Strategies
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Build
Hold
Harvest
Divest
Paul Dishman, Ph.D.
Marketing Management
Business Planning Grid
(GE)
• 1: Industry Attractiveness Index
(vertical)
– Market Size
– Market Growth Rate
– Industry Profit Margin
– Amount of Competition
– Seasonality, Cyclicality of Demand
– Industry Cost Structure
Paul Dishman, Ph.D.
Marketing Management
Business Planning Grid
(GE)
• 2: Business Strength (horizontal)
– Company’s relative market share
– Price competitiveness
– Product quality
– Customer and market knowledge
– Sales effectiveness
– Other advantages
Paul Dishman, Ph.D.
Marketing Management
Business Planning Grid
(GE)
Business Strength
Strong Ave. Weak
Industry
Attractiveness
High
Medium
Low
Paul Dishman, Ph.D.
Marketing Management
Issues with Portfolio Approaches
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75% of Fortune 500 use portfolio approach
Investment in implementation
Good at current assessment
Need additional tools for future planning
Avoid “attractiveness trap”
Provided leverage for custom approaches
Paul Dishman, Ph.D.
Marketing Management
Company Orientation
Customer-centered
NO
NO
Competitioncentered
YES
Product
Orientation
Competitive
Intelligence
Competitor
Orientation
YES
Customer
Orientation
Market
Research
Market
Orientation
Paul Dishman, Ph.D.