Sesh Sukhdeo - Business Success

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Sesh Sukhdeo - Business Success

  1. 1. Understanding Success
  2. 2. Keys to Growth • Understand why you have been successful • Build on strengths and core competencies and shore up weaknesses • Build a marketing strategy for each product that reflects the appropriate generic strategy, plus – the stage the it is at in its life cycle and – all in the context of its place in the portfolio of products
  3. 3. Generic Marketing Strategies COMMODITY SUPPLIER OUTSTANDING SUCCESS MARKET TRADER NICHE PLAYER Broad market Focused market Low price Low differentiation High differentiation High price
  4. 4. Strategy Imperatives Selling on low price Maintaining cost leadership Continually driving down costs
  5. 5. Generic Marketing Strategies COMMODITY SUPPLIER OUTSTANDING SUCCESS MARKET TRADER NICHE PLAYER Broad market Focused market Low price Low differentiation High differentiation High price
  6. 6. Generic Marketing Strategies COMMODITY SUPPLIER OUTSTANDING SUCCESS MARKET TRADER NICHE PLAYER Broad market Focused market Low price Low differentiation High differentiation High price
  7. 7. When you’ve got single digit market share – and you’re competing with the big boys – you either differentiate or die
  8. 8. Niche Player • Selling a differentiated product/service to a well-targeted, narrow market segment • Emphasising non-price elements of the marketing mix • Focusing on customers or products rather than methods of production • Stressing the inherent advantages of the product/service over its
  9. 9. Selling on high differentiation Understanding basis of differential advantage Reinforcing & building differential advantage Building the brand Often involves continual innovation Strategy Imperatives
  10. 10. The Pricing Range Pricing Range Variable cost per unit ‘Too-low’ price Average cost per unit Value to the customer ‘Going-rate’ price ‘Too-high’ price
  11. 11. Going rate pricing - matching prices in market place Skimming - charging higher price because people will buy anyway Penetration - charging lower than going-rate to gain market share quickly because people will try product or switch Pricing options at launchPricing options at launch
  12. 12. Customer Loyalty LadderCustomer Loyalty Ladder Prospect Customer Regular Customer Supporter Advocate Increasing Loyalty
  13. 13. Dimensions of Differentiation Emotions Aesthetics Functional Core
  14. 14. Successful Strategy • Strategy should emphasise something that makes your firm as unique as possible and delivers as much value as possible to the customer • The best chance of doing this comes from differentiation with the aim of dominating your market and to do this effectively and quickly • Then to continue to innovate based upon your differential advantage
  15. 15. Sustaining Competitive Advantage • Reputation – often encapsulated in the brand, but communicated through relationships • The way the organisation innovates – again and again • The organisation’s strategic assets – particularly the ones that can’t be copied or competitors do not have access to
  16. 16. Finally…. • Strategy should be clear and focused • Supported by - a culture that aims high - a structure that is flexible & responsive • A good strategy is important but effective strategy execution is vital (and often ignored)

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