ARH Exam 2

marketing strategy
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Terms in this set (29)
marketing strategy
- process of planning, implementation, and control
- incredibly rich and diverse field that studies the ways in which value is created, distributed, and contested in markets
- it's dynamic
Implementation (marketing strategy)
where and how we bring in tactics
marketing strategy vs. corporate strategy
marketing = specific to a particular business (brand meanings, segmentation, markets share, shareholder value, etc.)

corporate = high level view of the business (core values, vision, mission, general direction, competitive position) it's firm centric
5 C's
1. Company
- mission, vision
- resources
- organizational structure
- distribution, promotion, pricing
- financial performance

2. Customers
- frameworks for assessing them and their journey's
- consumers motivation models
-expectancy disconfirmation
- Decision making models
- influences on decision-making

3. Context
- PESTEL (political, economic, social, technological, environmental, legal)

4. Collaborators
-(suppliers distributors, customers, alliances), people that we rely on to move our products forward.

- Cluster = group of businesses that are industry rivals that share similar characteristics like products, target markets, price points, quality levels, and points of differentiation

5. Competitors (identifying rivals)
- Brand Competitors (DIRECT): Market products with similar features and benefits to the same customers at similar prices

- Product Competitors (DIRECT): Compete in the same product class but different in features, benefits, and price

Ex: Chevy Equinox, Jeep Compass

- Generic Competitors (INDIRECT): Market very different products that solve the same problem/satisfy the same need

- Total Budget Competitors (INDIRECT): Compete for limited financial resources of the same customers

Ex: Rental cars, motorcycles, bikes, public transportation
E=P
Satisfaction
E>P
Dissatisfaction
E<P
Delight/surprise
Positioning to choose the right strategy
good for stable environments, tightly interlocked resource relationships, mundane resources, long-term view, advantage from prices or differentiation
- Mundane Resource Ex = 7/11
Leverage to choose the right strategy
good for moderately dynamic environments, moderately linked resource relationships, strategic resources, medium-term view, advantage from ownership of resources
Assume to choose the right strategy
change is incremental and predictable, resources are strategic if: valuable, rare, inimitable, non-substitutable
Opportunity to choose the right strategygood for dynamic environmentsOceans- Competition is the core of corporate strategy - Prevailing news in economics of industries was that a firms conduct and performance was driven by market structures - Economic views tend to assume structures as a given and then look at how markets change within those structures - Zero-sum thinking (think chess board - you only have so many moves, and they're all you've got)Reconstructionism & Environmental DeterminismReconstructionism suggests that the boundaries of a market can be reshaped by the actions and belief of industry playersBlue Oceans- Going into a known market and being completely different from competitors - Discovered because you watch competitors or get there first - Uncontested market spaces where the competitor is irrelevant - Competition is irrelevant because you're creating and capturing new demand through offerings that deliver a leap in value for customers - The holy grail of uncontested market spaces - Based on metaphors of imagination - Driven by customer value not tech innovations - Unit of analysis is the strategic move (set of managerial actions and decisions) Ex: Cirque de Soleil - Circus where they got rid of the animals - Animals and trainers were expensive, people were starting to question whether it was appropriate - The shift away from animals allowed for a market positioning that could attract new customer segmentsRed Ocean Strategy- Compete in existing market place - Beat the competition - Exploit existing demand - Make the value-cost tradeoff - Alight the whole system of a firms activities with its strategic choiceBlue Ocean Strategy- Create uncontested market space - Make the competition irrelevant - Create and capture new demand - Break the value-cost trade offPolicy Choices- actions across operations (use nonunion workers, locate plants in rural areas, encourage workers to fly coach)Asset Choices- tangible resources the company deploys (manufacturing facilities, communication systems)Governance Choices- how a company arranges decision making rights over the other two (should we own or lease machinery? Who decides?)Flexible Consequencesresponds quiclky when the underlying choice changes (increase price immediately lowers volume)Rigid Consequencesresponds slowlyExecution Trapdecision-making can't take place entirely at the top of a company with the rest of its workers acting as "choiceless doers." Rather, "Those at the top of the company make the broader, more abstract choices involving larger, long-term investments7 P's1. Place 2. Process 3. Product 4. People 5. Physical Evidence 6. Promotion 7. Price 8. PlaceChoice Cascadea tool that assists managers in portraying how a project meets corporate and customer goals in a systematic and organised wayInput Measuresfor sales force efforts - # of cold calls per week - #of sales calls per day - % of sales for with new product knowledge trainingIntermediate Process Measuresfor advertising efforts - Awareness - Interest - Liking -Product quality perceptionsOutput Measures- volume -market-based -profit -"soft" measuresIndirect vs Direct Competitor Ex.College - Need = Education Direct - Brand = ASU, Creighton - Product = online school, trade school, community college Indirect - Generic = Books, CD's apprenticeship - Total budget = new cars, vacation, investmentsComparing RivalsMarket Leader: Gillette Market Challenger: Schick Market Follower: Bicc Market Niche: Nair