Transcript Things I should have learned in marketing

Things I should have
learned in Marketing:
Jeopardy edition
• serve as a guide for what the
organization wants to accomplish.
• be “market-oriented” rather than
“product-oriented”.
• be neither too narrow, nor too broad.
• fit with the market environment.
• be motivating.
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What is a mission Statement?
Should be specific
 Measurable
 Have a Time line
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What is an objective?
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An SBU with a high relative market
share in a market that has stopped
growing
What is a Cash Cow
Figure 2-2:
Growth-Share Matrix
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I should Divest or Harvest
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What is when my SBU is a DOG?
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This is the riskiest of the generic
growth strategies
What is diversification?
Figure 2-3:
Product / Market
Expansion Grid
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Dividing up a heterogeneous market
into multiple user groups
What is segmenting?
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The group of consumers that you are
trying to sell your products to
What is your target market?
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Creating the perception in the mind
of the consumers that your product
is the ideal product for them
What is product positioning?
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The variables that the marketer
controls, sometimes known as the
4ps
What is the marketing mix?
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This element of the marketing mix
deals with communication
What is promotion?
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Branding and Packaging issues are
part of this element of the Marketing
mix
What is Product?
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Distribution and logistics are part of
this element of the marketing mix
What is Place?
Figure 2-6:
Managing the
Marketing Effort
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An advantage over competitors
gained by offering consumers greater
value than competitors offer
What is competitive advantage?
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Would have accepted core
competency
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The process of identifying key
competitors; assessing their
objectives, strategies, strengths and
weaknesses, and reaction patterns;
and selecting which competitors to
attack or avoid.
What is competitive analysis
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Concentrating on competitors so
much that you ignore other issues
What is competitor Myopia?
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Using other companies to establish
industry standards
What is benchmarking?
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Those companies that compete in the
same way in the same industry
What is a strategic group?
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Good or bad competitors
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The generic strategy of Creating a
highly differentiated product line
and marketing program
What is differentiation
Competitive Strategies
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Basic Winning Competitive
Strategies: Porter
• Overall cost leadership
 Lowest production and
distribution costs
• Differentiation
 Creating a highly
differentiated product line
and marketing program
• Focus
 Effort is focused on serving
a few market segments
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The value discipline of superior value
via price and convenience
What is operational excellence?
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Basic Competitive Strategies:
Value Disciplines
• Operational excellence
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Superior value via price and convenience
• Customer intimacy
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Superior value by means of building strong
relationships with buyers and satisfying
needs
• Product leadership
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Superior value via product innovation
Figure 18-3:
Hypothetical
Market Structure
Product proliferation
What is a market leader
strategy designed to protect
market share?
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Expanding the total demand
• Finding new users
• Discovering and promoting new product
uses
• Encouraging greater product usage
Protecting market share
• Many considerations
• Continuous innovation
Expanding market share
• Profitability rises with market share
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Option 1: challenge the market leader
• High-risk but high-gain
• Sustainable competitive advantage over
the leader is key to success
Option 2: challenge firms of the same
size, smaller size or challenge regional or
local firms
Full frontal vs. indirect attacks
What are market challenger
strategies?
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Content to not rock the boat and to
rely on “me too” products
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Follow the market leader
• Focus is on improving profit instead of
market share
• Many advantages:
 Learn from the market leader’s
experience
 Copy or improve on the leader’s
offerings
 Strong profitability
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Wants to be the dullest story in
America
Who is the Dial Corporation?
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Targets small lucrative markets
What is a market nicher?
Serving market niches means
targeting subsegments
 Good strategy for small firms
with limited resources
 Offers high margins
 Specialization is key
•By market, customer, product,
or marketing mix lines
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Game playing industry
Nintendo
a.
a. Wii hyperlink
Microsoft
b.
a. Xbox 360
Sony
c.
a. Play Station
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Threat of New Entry
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the existence of barriers to entry
economies of product differences
brand equity
switching costs
capital requirements
access to distribution
absolute cost advantages
learning curve advantages
expected retaliation
government policies
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Competitive Rivalry
number of competitors
 rate of industry growth
 intermittent industry overcapacity
 exit barriers
 diversity of competitors
 informational complexity and
asymmetry
 brand equity
 fixed cost allocation per value
added
 level of advertising expense
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Supplier Power
supplier switching costs relative to
firm switching costs
 degree of differentiation of inputs
 presence of substitute inputs
 supplier concentration to firm
concentration ratio
 threat of forward integration by
suppliers relative to the threat of
backward integration by firms
 cost of inputs relative to selling
price of the product
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Buyer Power
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buyer concentration to firm
concentration ratio
bargaining leverage
buyer volume
buyer switching costs relative to firm
switching costs
buyer information availability
ability to backward integrate
availability of existing substitute
products
buyer price sensitivity
price of total purchase
Threat of Substitution
buyer propensity to substitute
 relative price performance of
substitutes
 buyer switching costs
 perceived level of product
differentiation
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