things i should have learned in marketing: jeopardy edition should

Things I Things I should have have learned in Marketing: learned in Marketing:

Jeopardy edition Jeopardy edition

• serve as a guide for what the serve as a guide for what the organization wants to accomplish.organization wants to accomplish.

• be “market-oriented” rather than be “market-oriented” rather than “product-oriented”.“product-oriented”.

• be neither too narrow, nor too broad.be neither too narrow, nor too broad.• fit with the market environment.fit with the market environment.• be motivating.be motivating.

What is a mission What is a mission Statement??

Should be specificShould be specific MeasurableMeasurable Have a Time lineHave a Time line

What is an objective?What is an objective?

An SBU with a high relative market An SBU with a high relative market share in a market that has stopped share in a market that has stopped growinggrowing

What is a Cash CowWhat is a Cash Cow

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Figure 2-2:

Growth-Share Matrix

I should Divest or Harvest I should Divest or Harvest

What is when my SBU is a DOG?What is when my SBU is a DOG?

This is the riskiest of the generic This is the riskiest of the generic growth strategiesgrowth strategies

What is diversification?What is diversification?

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Figure 2-3:

Product / Market Expansion Grid

Dividing up a heterogeneous market Dividing up a heterogeneous market into multiple user groupsinto multiple user groups

What is What is segmenting??

The group of consumers that you are The group of consumers that you are trying to sell your products totrying to sell your products to

What is your target market?What is your target market?

Creating the perception in the mind Creating the perception in the mind of the consumers that your product is of the consumers that your product is the ideal product for themthe ideal product for them

What is product positioning?What is product positioning?

The variables that the marketer The variables that the marketer controls, sometimes known as the controls, sometimes known as the 4ps4ps

What is the marketing mix?What is the marketing mix?

This element of the marketing mix This element of the marketing mix deals with communicationdeals with communication

What is promotion?What is promotion?

Branding and Packaging issues are Branding and Packaging issues are part of this element of the Marketing part of this element of the Marketing mixmix

What is Product?What is Product?

Distribution and logistics are part of Distribution and logistics are part of this element of the marketing mixthis element of the marketing mix

What is Place?What is Place?

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Figure 2-6:

Managing the Marketing Effort

An advantage over competitors An advantage over competitors gained by offering consumers gained by offering consumers greater greater value than competitors offervalue than competitors offer

What is What is competitive advantage??

Would have accepted core Would have accepted core competencycompetency

The process of identifying key The process of identifying key competitors; assessing their competitors; assessing their objectives, strategies, strengths and objectives, strategies, strengths and weaknesses, and reaction patterns; weaknesses, and reaction patterns; and selecting which competitors to and selecting which competitors to attack or avoid.attack or avoid.

What is competitive analysisWhat is competitive analysis

Concentrating on competitors so Concentrating on competitors so much that you ignore other issuesmuch that you ignore other issues

What is competitor Myopia?What is competitor Myopia?

Using other companies to establish Using other companies to establish industry standardsindustry standards

What is benchmarking? What is benchmarking?

Those companies that compete in Those companies that compete in the same way in the same industrythe same way in the same industry

What is a strategic group?What is a strategic group?

Good or bad competitorsGood or bad competitors

The generic strategy of Creating a The generic strategy of Creating a highly differentiated product line highly differentiated product line and marketing programand marketing program

What is differentiationWhat is differentiation

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Basic Winning Competitive Basic Winning Competitive Strategies: PorterStrategies: Porter• Overall cost leadershipOverall cost leadership

Lowest production and Lowest production and distribution costs distribution costs

• DifferentiationDifferentiation Creating a highly Creating a highly

differentiated product line differentiated product line and marketing program and marketing program

• FocusFocus Effort is focused on serving Effort is focused on serving

a few market segments a few market segments

Competitive StrategiesCompetitive Strategies

The value discipline of superior value The value discipline of superior value via price and conveniencevia price and convenience

What is operational excellence?What is operational excellence?

Basic Competitive Strategies: Basic Competitive Strategies: Value DisciplinesValue Disciplines• Operational excellenceOperational excellence

Superior value via price and convenienceSuperior value via price and convenience

• Customer Customer intimacy Superior value by means of building strong Superior value by means of building strong

relationships with buyers and satisfying relationships with buyers and satisfying needs needs

• Product Product leadership Superior value via product innovationSuperior value via product innovation

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Figure 18-3:

Hypothetical Market Structure

Product proliferationProduct proliferation

What is a market leader What is a market leader strategy designed to protect strategy designed to protect

market share? market share? Expanding the total demandExpanding the total demand

• Finding new usersFinding new users• Discovering and promoting new product Discovering and promoting new product

usesuses• Encouraging greater product usageEncouraging greater product usage

Protecting market shareProtecting market share• Many considerations considerations• Continuous innovationContinuous innovation

Expanding market shareExpanding market share• Profitability rises with market shareProfitability rises with market share

Option 1:Option 1: challenge the market leader challenge the market leader• High-risk but high-gainHigh-risk but high-gain• Sustainable competitive advantage over Sustainable competitive advantage over

the leader is key to successthe leader is key to success Option 2:Option 2: challenge firms of the same size, challenge firms of the same size,

smaller size or challenge regional or local smaller size or challenge regional or local firmsfirms

Full frontal vs. indirect attacksFull frontal vs. indirect attacks

What are market challenger What are market challenger strategies?strategies?

Content to not rock the boat and to Content to not rock the boat and to rely on “me too” productsrely on “me too” products

Follow the market leaderFollow the market leader• Focus is on improving profit instead of Focus is on improving profit instead of

market sharemarket share• Many advantages:Many advantages:

Learn from the market leader’s Learn from the market leader’s experienceexperience

Copy or improve on the leader’s Copy or improve on the leader’s offeringsofferings

Strong profitabilityStrong profitability

Wants to be the dullest story in Wants to be the dullest story in AmericaAmerica

Who is the Dial Corporation?Who is the Dial Corporation?

Targets small lucrative marketsTargets small lucrative markets

What is a market nicher?What is a market nicher?

Serving market niches means Serving market niches means targeting subsegmentstargeting subsegments

Good strategy for small firms Good strategy for small firms with limited resourceswith limited resources

Offers high marginsOffers high margins Specialization is keySpecialization is key

•By market, customer, product, By market, customer, product, or marketing mix linesor marketing mix lines

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Game playing industryGame playing industry

a.a. NintendoNintendoa.a. Wii hyperlink Wii hyperlink

b.b. MicrosoftMicrosofta.a. Xbox 360Xbox 360

c.c. SonySonya.a. Play StationPlay Station

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Threat of New EntryThreat of New Entry the existence of barriers to entry the existence of barriers to entry economies of product differences economies of product differences brand equity brand equity switching costs switching costs capital requirements capital requirements access to distribution access to distribution absolute cost advantages absolute cost advantages learning curve advantages learning curve advantages expected retaliation expected retaliation government policies government policies

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Competitive RivalryCompetitive Rivalry number of competitors number of competitors rate of industry growth rate of industry growth intermittent industry overcapacity intermittent industry overcapacity exit barriers exit barriers diversity of competitors diversity of competitors informational complexity and informational complexity and

asymmetry asymmetry brand equity brand equity fixed cost allocation per value added fixed cost allocation per value added level of advertising expense level of advertising expense

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Supplier PowerSupplier Power

supplier switching costs relative to supplier switching costs relative to firm switching costs firm switching costs

degree of differentiation of inputs degree of differentiation of inputs presence of substitute inputs presence of substitute inputs supplier concentration to firm supplier concentration to firm

concentration ratio concentration ratio threat of forward integration by threat of forward integration by

suppliers relative to the threat of suppliers relative to the threat of backward integration by firms backward integration by firms

cost of inputs relative to selling cost of inputs relative to selling price of the product price of the product

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Buyer PowerBuyer Power

buyer concentration to firm buyer concentration to firm concentration ratio concentration ratio

bargaining leverage bargaining leverage buyer volume buyer volume buyer switching costs relative to firm buyer switching costs relative to firm

switching costs switching costs buyer information availability buyer information availability ability to backward integrate ability to backward integrate availability of existing substitute availability of existing substitute

products products buyer price sensitivity buyer price sensitivity price of total purchase price of total purchase

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Threat of SubstitutionThreat of Substitution buyer propensity to substitute buyer propensity to substitute relative price performance of relative price performance of

substitutes substitutes buyer switching costs buyer switching costs perceived level of product perceived level of product

differentiation differentiation