1. Imperatives for Market-Driven Strategy 2. Markets and Competitive Space 3. Strategic Market Segmentation 4. Strategic Customer Relationship Management 5. Capabilities for Learning about Customers and Markets 6. Market Targeting and Strategic Positioning 7. Strategic Relationships 8. Innovation and New Product Strategy 9. Strategic Brand Management 10. Value Chain Strategy 11. Pricing Strategy 12. Promotion, Advertising and Sales Promotion Strategies 13. Sales Force, Internet, and Direct Marketing Strategies 14. Designing Market-Driven Organizations 15. Marketing Strategy Implementation And Control Strategic Marketing
Strategic Plans Lose Favor Slump Showed Bosses Value of Flexibility, Quick Decisions
By JOANN S. LUBLIN and DANA MATTIOLI
During the recession, as business forecasts based on seemingly plausible swings in sales smacked up against reality, executives discovered that strategic planning doesn't always work.
Some business leaders came away convinced that the new priority was to be able to shift course on the fly. Office Depot Inc., for example, began updating its annual budget every month, starting in early 2009. Other companies started to factor more extreme scenarios into their thinking. A few even set up "situation rooms,'' where staffers glued to computer screens monitored developments affecting sales and finances.
Coke Bottle Is Part Plant But It Feels and Functions Like a Regular Plastic Container
By CHRIS HERRING
Coca-Cola Co., under fire from environmentalists for using plastic bottles, has introduced a new packaging material made partly from plants. The container has "the same weight, the same feel, the same chemistry, and functions exactly the same way" as a regular plastic bottle, a Coke spokeswoman says.
Coke isn't the only beverage concern trying to reduce its carbon footprint. Rival PepsiCo Inc. has introduced a compostable bag made from plants for its SunChips snacks. But Coke is the world's biggest drink maker, and Coke Chairman and Chief Executive Muhtar Kent calls the new container, which uses material derived from sugar cane, "the first generation of the bottle of the future."
Coke touted its "plantbottle" at the Climate Change Summit in Copenhagen last month, and it plans another push next month at the Winter Olympics in Vancouver, where all the sodas and water it provides will be packaged in the plantbottle. "Preliminary research" shows the new container leaves a smaller carbon footprint than regular plastic bottles, Coke says.
Markets are increasingly complex, turbulent, and interrelated.
Importance of a broad view of the market.
Essential to develop a vision about how the market is likely to change in the future.
Continuous Monitoring is Necessary to:
Find promising opportunities
Identify shifts in value requirements
Understand competitors’ positioning
Guide targeting and positioning
OPPORTUNITIES OUTSIDE THE COMPETITIVE BOX The Competitive Box Traditional Competitors New Types of Competition New Business Models New Customers New Customers Conventional Value Propositions Existing Customer Base New Customer Base(s)
Forces of change create both market opportunities and threats
Inherent danger in faulty market sensing
Markets Impact Strategies
DEFINING AND ANALYZING PRODUCT-MARKETS Determine the Boundaries and Structure of the Product-Market Form the Product-Market Describe and Analyze End-Users Analyze Competition Forecast Market Size and Rate of Change
Helen and Charlie’s - older couples whose children have left home
Gov. Palin’s “_________________” moms
From Mass Markets to Micro Markets OLD NEW CONSUMERS Passively receive Empowered media users whatever TV control and shape content networks thanks to TiVo, iPod and broadcast Internet ASPIRATIONS To keep up with To standout from the the crowd crowd TV CHOICE Three networks Hundreds of channels plus maybe a plus video on demand PBS station MAGAZINES Age of the big Age of the special interest glossies: Time , magazine for every age Life , Newsweek and affinity group ADS Everyone hums Talking to a group of the Alka-Seltzer one, ads go ever jingle narrower BRANDS Rise of the big, Niche brands, product ubiquitous brands extensions and mass from Coca-Cola customization mean many to Tide product variations Source: Anthony Bianco, “The Vanishing Mass Market”, Business Week , July 12 2004, 58-62
Purchase Behavior Characteristics of People/ Organizations Use Situation Buyers’ Needs/ Preferences Segmentation Variables
Illustrative Segmentation Variables Characteristics of people/ organizations Consumer Markets Industrial/ Organizational Markets Age, gender, income, family size, lifecycle stage, geographic location, lifestyle Type of industry, size, geographic location, corporate culture, stage of development, producer/ intermediary Use situation Occasion, importance of purchase, prior experience with product, user status Application, purchasing Procedure (new task, modified rebuy, straight rebuy Buyers’ needs/ preferences Brand loyalty status, brand preference, benefits sought, quality, proneness to make a deal Performance requirements, brand preferences, desired features, service requirements Purchase behavior Size of purchase, frequency of purchase Volume, frequency of purchase
Illustrative Example: Gasoline Buyers Road Warriors True Blues Generation F3 (Fuel, Food & Fast) Homebodies Price Shoppers Higher-income, middle-aged men, drive 25-50000 miles a year… buy premium with a credit card … purchase sandwiches and drinks from the convenience store… will sometimes use carwash 16% of buyers Men and women with moderate to high incomes, loyal to a brand and sometimes a particular station … frequently buy premium, pay in cash 16% of buyers Upwardly mobile men and women - half under 25 years of age - constantly on the go … drive a lot snack heavily from the convenience store 27% of buyers Usually housewives who shuttle children around during the day and use whatever gas station is based on town or on route of travel 21% of buyers Not loyal to brand or station and rarely buy premium … frequently on tight budgets. 20% of buyers
Strategic Analysis of Market Segments Customer Analysis Positioning Analysis Financial and Market Attractiveness Competitor Analysis
Segmentation “Fit” for Implementation Segment Attractiveness and Internal Compatibility Internal Compatibility Market Segment Attractiveness High Low High Low Attractive segments that match with company capabilities Attractive segments but with poor match with company capabilities Unattractive segments that do not match with company capabilities Unattractive segments but with match to company capabilities