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Learn how to be market-oriented, fit with the market environment, and create motivating objectives with this comprehensive guide. Discover the importance of mission statements, objectives, and the marketing mix in achieving marketing success. Explore competitive analysis, differentiation, and strategic group tactics to gain a competitive advantage.
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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.
Should be specific • Measurable • Have a Time line
An SBU with a high relative market share in a market that has stopped growing
Figure 2-2: Growth-Share Matrix
Figure 2-3: Product / Market Expansion Grid
Dividing up a heterogeneous market into multiple user groups
The group of consumers that you are trying to sell your products to
Creating the perception in the mind of the consumers that your product is the ideal product for them
The variables that the marketer controls, sometimes known as the 4ps
Branding and Packaging issues are part of this element of the Marketing mix
Distribution and logistics are part of this element of the marketing mix
Figure 2-6: Managing the Marketing Effort
An advantage over competitors gained by offering consumers greater value than competitors offer
What is competitiveadvantage? • Would have accepted core competency
The process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.
Concentrating on competitors so much that you ignore other issues
Those companies that compete in the same way in the same industry
What is a strategic group? • Good or bad competitors
The generic strategy of Creating a highly differentiated product line and marketing program
Competitive Strategies • 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
The value discipline of superior value via price and convenience
What is operational excellence? • Basic Competitive Strategies: Value Disciplines • Operational excellence • Superior value via price and convenience • Customer intimacy • Superior value by means of building strong relationships with buyers and satisfying needs • Product leadership • Superior value via product innovation
Figure 18-3: Hypothetical Market Structure
What is a market leader strategy designed to protect market share? • Expanding the total demand • Finding new users • Discovering and promoting new product uses • Encouraging greater product usage • Protecting market share • Manyconsiderations • Continuous innovation • Expanding market share • Profitability rises with market share
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
Content to not rock the boat and to rely on “me too” products
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
