Description
It explains different strategic orientations, organization based strategy, competitive based strategy, environmental based strategy, contingency strategy, value based strategy, military base strategy, Strategy principles.
MARKETING STRATEGIES
HOW DO FIRMS SELECT STRATEGIES ?
– “We would serve our customers better than competitors by delivering value products and services in a way that is ethical and beneficial to the current and future society and environment.”
• Choice and combination of strategies are limitless.
SCHULMAN INC
STRATEGY FROM SCHULMAN
Art of coordinating the means (money , men & materials) to achieve the ends (profit, customer satisfaction & company growth) as defined by company objectives and policies.
LEVELS OF STRATEGY
• Corporate Strategy
– Fulfillment of company policy with minimum resources.
• Mid Level Strategy
– New/Existing Market , New/Existing Product
• Low Level Strategy (Tactics)
– Discounts – Distribution – Training etc
STRATEGIC ORIENTATIONS
• • • • • • Organization Based Strategies Competitive Based Strategies Environmental Based Strategies Contingency Strategies Value Based Strategies Military Based Strategies
ORGANIZATION BASED
• Prospector
– adaptive capability, R & D focus, seek new opportunities, innovators eg: Apple
• Defender
– conservative, non adaptive, operationally efficient, cost control, desire for stability, eg : steel industry
• Reactor
– lack ability to track changes, status quo culture, eg: power products in India
• Analyzers
– combination of prospector and defender, niche area operators, stable demand seekers, eg : arms companies
COMPETITIVE BASED
• Cost Leadership
– Operational efficiency – eg : south Korean auto parts makers v/s Japan
• Differentiation
– In areas that matters to consumers
• Focus
– Use cost leadership or differentiation in a defined segment. – Eg : Swedish suppliers taking away business from Canadians in UK newsprint market
ENVIRONMENT BASED
• Independent Strategies
– Build goodwill eg: Coke digging bore wells – No credit to resellers
• Co-operative Strategies
– Lobbying – Trade Associations
• Strategic Maneuvering
– Spread the Risk : BINGOOOO
CONTINGENCY BASED
• Opposite to Environment Based • Emphasis on Adaptability to
– Market Environment – Organization Structure – Performance Objectives
VALUE BASED
• Strategy based on providing economic value to the customer
– Decrease life cycle cost – Increase value by functional design – Increase intangibles in the product offering
MILITARY BASED
• The Art of War in Marketing “ Marketing is a battle of mind against mind, manager
against competing manager, marketing strategy against competitor’s strategy. It is essentially a conflict of human wills, and its strategies must therefore, meet and counter unpredictable human responses”
- Norton Paley
MARKETING & MILITARY
• Marketing Strategy
– Strategia ( Greek) means “To Lead an Army”
• Marketing Strategy Objectives
– Lessen Resistance – Dislocation of the competition
• Physical • Psychological
– Concentration on opportunities
• Segmentation, targeting , positioning • Alternative market objectives
MILITARY STRATEGY & MARKETING APPROACH
• • • • Direct Attack Indirect Attack Envelopment Attack Guerilla Attack
DIRECT ATTACK
• Direct Attack
Entrenched Defender (IBM)
– Costly – Foolhardy – Size Matters
Attacker (Xerox, GE)
INDIRECT ATTACK
XEROX Large & Medium Copiers (market expansion) Small Copier Market (point of entry)
• Hit the defender where he is weak • Can find attack gaps in any of the 4Ps • Success Stories Galore
– Honeywell – Apple – German & Japanese Auto Makers
Japanese Companies (Cannon, Sharp, Ricoh)
ENVELOPMENT ATTACK
Defender
• • • •
Two stage Strategy Indirect Attack Expand the Market Seiko (Japan) enters US with digital watches • Offers 400 models later.
Attacker
ENVELOPMENT ATTACK IN ACTION
Smirnoff +$1
Heublien Smirnoff
Relska (Smirnoff -$1)
Seagram Wolfschmidt
Popov - $1
GUERILLA ATTACK
• Small intermittent attacks in different markets • Suitable for small companies taking on big companies
– – – – Selective Price Cuts Supply Interferences Promotional bursts Legal actions
WAR & BUSINESS
• The object of war is a better state of peace.
– Liddell Hart (military historian)
• The object of business is to create a customer.
– Peter Drucker ( management guru)
STRATEGY PRINCIPLES
• • • • •
Speed Indirect Approach Concentration Alternative Objectives Unbalancing Competition
?
India
I wanna make a movie
Borrow & make a regular movie
5 crores
B Grade Stuff Regional Movie
Formula
Off Beat TV Rights
Multiplex
Single Screen
Overseas DVD Pirated
Gold
Silver
Platinum
Regular
noon
evening
night
doc_236571985.ppt
It explains different strategic orientations, organization based strategy, competitive based strategy, environmental based strategy, contingency strategy, value based strategy, military base strategy, Strategy principles.
MARKETING STRATEGIES
HOW DO FIRMS SELECT STRATEGIES ?
– “We would serve our customers better than competitors by delivering value products and services in a way that is ethical and beneficial to the current and future society and environment.”
• Choice and combination of strategies are limitless.
SCHULMAN INC
STRATEGY FROM SCHULMAN
Art of coordinating the means (money , men & materials) to achieve the ends (profit, customer satisfaction & company growth) as defined by company objectives and policies.
LEVELS OF STRATEGY
• Corporate Strategy
– Fulfillment of company policy with minimum resources.
• Mid Level Strategy
– New/Existing Market , New/Existing Product
• Low Level Strategy (Tactics)
– Discounts – Distribution – Training etc
STRATEGIC ORIENTATIONS
• • • • • • Organization Based Strategies Competitive Based Strategies Environmental Based Strategies Contingency Strategies Value Based Strategies Military Based Strategies
ORGANIZATION BASED
• Prospector
– adaptive capability, R & D focus, seek new opportunities, innovators eg: Apple
• Defender
– conservative, non adaptive, operationally efficient, cost control, desire for stability, eg : steel industry
• Reactor
– lack ability to track changes, status quo culture, eg: power products in India
• Analyzers
– combination of prospector and defender, niche area operators, stable demand seekers, eg : arms companies
COMPETITIVE BASED
• Cost Leadership
– Operational efficiency – eg : south Korean auto parts makers v/s Japan
• Differentiation
– In areas that matters to consumers
• Focus
– Use cost leadership or differentiation in a defined segment. – Eg : Swedish suppliers taking away business from Canadians in UK newsprint market
ENVIRONMENT BASED
• Independent Strategies
– Build goodwill eg: Coke digging bore wells – No credit to resellers
• Co-operative Strategies
– Lobbying – Trade Associations
• Strategic Maneuvering
– Spread the Risk : BINGOOOO
CONTINGENCY BASED
• Opposite to Environment Based • Emphasis on Adaptability to
– Market Environment – Organization Structure – Performance Objectives
VALUE BASED
• Strategy based on providing economic value to the customer
– Decrease life cycle cost – Increase value by functional design – Increase intangibles in the product offering
MILITARY BASED
• The Art of War in Marketing “ Marketing is a battle of mind against mind, manager
against competing manager, marketing strategy against competitor’s strategy. It is essentially a conflict of human wills, and its strategies must therefore, meet and counter unpredictable human responses”
- Norton Paley
MARKETING & MILITARY
• Marketing Strategy
– Strategia ( Greek) means “To Lead an Army”
• Marketing Strategy Objectives
– Lessen Resistance – Dislocation of the competition
• Physical • Psychological
– Concentration on opportunities
• Segmentation, targeting , positioning • Alternative market objectives
MILITARY STRATEGY & MARKETING APPROACH
• • • • Direct Attack Indirect Attack Envelopment Attack Guerilla Attack
DIRECT ATTACK
• Direct Attack
Entrenched Defender (IBM)
– Costly – Foolhardy – Size Matters
Attacker (Xerox, GE)
INDIRECT ATTACK
XEROX Large & Medium Copiers (market expansion) Small Copier Market (point of entry)
• Hit the defender where he is weak • Can find attack gaps in any of the 4Ps • Success Stories Galore
– Honeywell – Apple – German & Japanese Auto Makers
Japanese Companies (Cannon, Sharp, Ricoh)
ENVELOPMENT ATTACK
Defender
• • • •
Two stage Strategy Indirect Attack Expand the Market Seiko (Japan) enters US with digital watches • Offers 400 models later.
Attacker
ENVELOPMENT ATTACK IN ACTION
Smirnoff +$1
Heublien Smirnoff
Relska (Smirnoff -$1)
Seagram Wolfschmidt
Popov - $1
GUERILLA ATTACK
• Small intermittent attacks in different markets • Suitable for small companies taking on big companies
– – – – Selective Price Cuts Supply Interferences Promotional bursts Legal actions
WAR & BUSINESS
• The object of war is a better state of peace.
– Liddell Hart (military historian)
• The object of business is to create a customer.
– Peter Drucker ( management guru)
STRATEGY PRINCIPLES
• • • • •
Speed Indirect Approach Concentration Alternative Objectives Unbalancing Competition
?
India
I wanna make a movie
Borrow & make a regular movie
5 crores
B Grade Stuff Regional Movie
Formula
Off Beat TV Rights
Multiplex
Single Screen
Overseas DVD Pirated
Gold
Silver
Platinum
Regular
noon
evening
night
doc_236571985.ppt