Success factors of innovative marketing strategies

4,346 views

Published on

The future belongs to those who see the possibilities before they become obvious. This presentation highlights the successfactors of innovative marketing strategies and implements the blue ocean strategy

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
4,346
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
70
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Success factors of innovative marketing strategies

  1. 1. International Marketing Management:Success Factors of Alternative Marketing Strategies Dr. Christine Falkenreck
  2. 2. 1. Strategy-related definitions | 2 Examples | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Agenda 1 Strategy-related D fi i i S l d Definitions and R l d Relevance of the T i f h Topic 2 Example E l 3 Blue O l Ocean S Strategy 4 Success Factors of Al S F f Alternative M k Marketing S Strategies 5 Summary S SMA Solar Technology AG 2 © Dr. Christine Falkenreck
  3. 3. Learning outcomes• Understand nature role and impact of international marketing on nature, company goals• Be able to describe the “Blue Ocean Strategy” as one example of alternative marketing strategies• Understand the importance of product innovations on the success factors of marketing strategies• Understand the issues and decisions involved in building on alternative marketing strategies• Strengthen participants’ abilities to think strategically and formulate a global marketing strategy based on a deep understanding of customer needs and value© Dr. Christine Falkenreck
  4. 4. „Nobody really knows what Nobody strategy is.“ gy The Economist …Do you?© Dr. Christine Falkenreck 4
  5. 5. 1. Strategy-related definitions | 2 Examples | 3. Blue Ocean Strategy| 4. Success Factors| 5. SummaryStrategyMichael T. Porter (1980): Strategy is the creation of a unique and valuable position, involving a different set of activities.Brennan et al. (2007): Policies and key decisions adopted by management that have mayor financial implications, involve substantial resource commitment and are not easily reversible. Marketing Strategies − Market Scope Strategy (Si l M k t Strategy, Multi M k t Strategy, Totall Market Strategy) (Single Market St t M lti Market St t T t M k t St t ) − Market Entry Strategy (First In Strategy, Early Entry Strategy, Laggard Entry Strategy) − Product Strategy (Product Positioning, Repositioning, Product Scope, Design, New Product Strategy) − Promotion Strategy (Promotion Mix Strategy, Media Selection Strategy Advertising Copy Strategy) Strategy Strategy, − Distribution Strategy (Distribution Scope Strategy, Multiple Channel Strategy) − Pricing Strategy (Pricing Strategy for New and Established Products, Price Flexibility Strategy, Price Leadership Strategy) p gy) © Dr. Christine Falkenreck 5
  6. 6. 1. Strategy-related definitions | 2 Examples | 3. Blue Ocean Strategy| 4. Success Factors| 5. SummarySuccess Factors“There are a number of factors that impact thesuccess of a marketing strategy but none are more strategy,important than thoroughly understanding the targetmarket, setting clear and measurable goals and jobjectives.” Kotler et al.,, 2007 To analyze marketing strategy success, one needs to specify variables that measure firm performance and variables that measure international marketing strategy and results. Success is measured as growth in total sales, growth in earnings per share and growth in average share prices. © Dr. Christine Falkenreck 6
  7. 7. 1. Strategy-related definitions | 2. Example| 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Why discussing success factors of alternative marketing strategies? − Marketing is perceived as a cost, not an investment. g p − Company strategies are not defined by those who know and deal with the markets. (remember: “Policies and key decisions adopted by management …“) − Marketers are always asking for more money, but can rarely explain how much incremental business this money will generate (feedback of 72% of the CEOs). − Marketers focus too much on the latest marketing trends such as social media, because they believe they represent the new marketing frontiers– but can rarely demonstrate how these trends will help them generate more business for the company (feedback of 74% CEOs). − Unlike CFOs and Sales Forces, they don’t think enough like businesspeople: they focus too much on the creative, “arty” and “fluffy” side of marketing and not enough on its business science, and rely too much on their ad agencies to come up with the next big idea (feedback of 67% CEOs). © Dr. Christine Falkenreck Verhoef & Leeflang (2009) 7 http://www.fournaisegroup.com/Marketers-Lack-Credibility.asp
  8. 8. 1. Strategy-related definitions | 2. Example| 3. Blue Ocean Strategy| 4. Success Factors| 5. SummaryWhy are we discussing alternative marketing strategies? http://hbr.org 8
  9. 9. 1. Strategy-related definitions | 2 Examples | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Agenda 1 Strategy-related definitions and Relevance of the Topic 2 Example of a Successful Company l f f l 3 Blue O l Ocean S Strategy 4 Success Factors of Al S F f Alternative M k Marketing S Strategies 5 Summary S SMA Solar Technology AG 9
  10. 10. 1. Strategy-related definitions | 2. Example| 3. Blue Ocean Strategy| 4. Success Factors| 5. SummaryExample: Koenig & Bauer – manufactures 90% of all security presses(Gelddruckmaschinen)http://www.kba.com © Dr. Christine Falkenreck 10
  11. 11. 1. Strategy-related definitions | 2. Examples| 3. Blue Ocean Strategy| 4. Success Factors| 5. SummaryKoenig & Bauer Innovativeness is a key to a leading market position © Dr. Christine Falkenreck 11
  12. 12. 1. Strategy-related definitions | 2. Examples| 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Koenig & Bauer: Being close to the customer Guiding Principles Our customers inspire our policies If you were the marketing manager… Our workforce is our greatest asset Our innovations secure our future - what would be your goal? Our commitment is to quality - what could the marketing department Our duty is to society do to support the objectives? Our Objectives To extend the frontiers of innovation To become the technological leader in key markets To expand our global market position in sheetfed offset, web offset, newspaper and digital offset To offer systems competence through in-house expertise or strategic alliances in house To maintain a consistently high standard of quality in both our products and our services To offer practical solutions to individual production needs To intensify customer care To maintain a high level of staff motivation and qualification To enhance shareholder value To protect the environment by improving press and production ecology To fulfil our social and cultural obligations © Dr. Christine Falkenreck 12
  13. 13. 1. Strategy-related definitions | 2 Examples | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Agenda 1 Strategy-related definitions and Relevance of the Topic 2 Example of a S E l f Successfull C f Company 3 Blue Ocean Strategy l 4 Success Factors of Al S F f Alternative M k Marketing S Strategies 5 Summary S SMA Solar Technology AG 13
  14. 14. 1. Strategy-related definitions | 2 Example | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary “Standard” Marketing Strategy: Planning Roadmap Standard Who you Where you How you will are are going i get th t there Vision and Marketing Marketing g Strategic Critical Mission Objectives Strategy level Basics SWOT Marketing Marketing Planning Goals Plan level STP Action Implementation Plans level Components of Strategic Marketing Planning STP= Segmentation, Targeting, Positioning 14© Dr. Christine Falkenreck
  15. 15. 1. Strategy-related definitions | 2. Examples| 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Alternative M k ti St t i Alt ti Marketing Strategies… • The idea of Blue Ocean strategy is to build new businesses where none existed before. • Start thinking about your processes from customer perspective. © Dr. Christine Falkenreck 15
  16. 16. 1. Strategy-related definitions | 2. Examples | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Why Blue Ocean Strategy? y gy • So-called Blue Ocean industries are more profitable than traditional business fields with head-to-head competitors. • In the Blue Ocean strategy, you must offer your customers a value innovation (i.e. tangible product or service advancements) accompanied by demonstrable savings. y g Think about Ryanair, which is not only flying people, but also providing the whole holiday experience with accommodation and car rentals included. Holiday does not start and end for people when they fly (that is how traditional airlines used to think)… © Dr. Christine Falkenreck 16
  17. 17. 1. Strategy-related definitions | 2. Examples | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary The Blue Ocean Strategy gy • Businesses naturally focus on current customers, a process that invariably leads to g y greater market segmentation analysis. But, real g g y growth lies beyond existing demand. To get to the open water, focus on potential future customers. • Assess your service’s or product’s usefulness, ease, handiness, safety, entertainment value and environmental friendliness in light of how each factor affects the customer upon buying it, bringing it home, using it, ddi to it, keeping it working and eventually, di it adding t it k i ki d t ll disposing of it i f it. • Remember that the customer experience is the process. Apple did not satisfy with just creating new versions of iPhone, they reinvented how people work with portable devices by introducing iPad. That created them new reaches beyond traditional smartphone markets. © Dr. Christine Falkenreck 17
  18. 18. 1. Strategy-related definitions | 2. Examples | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Blue Ocean vs. Red Ocean Strategy Blue Ocean Strategy Red Ocean Strategy •Create uncontested market •Compete in existing market space space p •Make the competition irrelevant Make •Beat the competition •Create and capture new •Exploit existing demand demand •Break the value-cost trade off value cost •Make the value-cost trade off •Align the whole system of a •Align the whole system of a firm‘s activities with its strategic firm‘s activities with its strategic choice of differention and low choice of differention or low cost cost © Dr. Christine Falkenreck 18
  19. 19. 1. Strategy-related definitions | 2. Example | 3. Blue Ocean Strategy| 4. Success Factors| 5. SummaryExample: Automobiles:What kind of strategic logic is needed to guide the creation of blue oceans?Identification of key strategic elements At the end of the nineteenth century, the automobile industry was small and unattractive. unattractive More than 500 automakers in America competed in turning out handmade luxury cars that cost around $1,500 and were enormously unpopular with all but $1 500 the very rich. Anticar activists tore up roads, ringed parked cars with barbed wire, and organized boycotts of cardriving businessmen and politicians. Woodrow Wilson caught the spirit of the times when he said in 1906 that “nothing g p g has spread socialistic feeling more than the automobile.” 19 © Dr. Christine Falkenreck
  20. 20. 1. Strategy-related definitions | 2. Example | 3. Blue Ocean Strategy| 4. Success Factors| 5. SummaryAutomobiles:Identification of key strategic elements Incumbent: company is already active in the field.harvard business review • october 2004 *The blue oceans made by incumbents were usually within their core businesses. 20
  21. 21. 1. Strategy-related definitions | 2. Example | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary GM car for every purse and purpose Alfred Sloan explained his famous market segment strategy of "a car for every purse and purpose" in the 1924 annual report to a purpose shareholders. Sloan divided the U.S. vehicle market into segments by price range. Each GM brand’s products was to be focused on one g p segment, with Chevrolet at the low end of the market and Cadillac at the high end. With rival Ford Motor Company sticking to a single model in a single segment (the low-end Model T), GM soon overtook Ford as the sales leader in the U.S. market. If your not thinking segments, you’re not thinking. To think fy g g y g segments means you have to think about what drives customers, customer groups, future customers and the choices that are or might be available to them. Ted Levitt, Marketing Imagination © Dr. Christine Falkenreck 21
  22. 22. 1. Strategy-related definitions | 2. Example | 3. Blue Ocean Strategy| 4. Success Factors| 5. SummaryWhy not focus on competition? Of course competition matters. p But by focusing on competition, scholars, companies, and consultants have ignored two very important— and, far more lucrative—aspects of strategy: One is g y p p gy to find and develop markets where there is little or no competition—blue oceans—and the other is to exploit and protect blue oceans. These challenges are very different from those to which strategists have devoted most of their attention. Kim & Mauborgne (2005) © Dr. Christine Falkenreck 22
  23. 23. 1. Strategy-related definitions | 2. Example | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Four Action Framework to find and develop markets where there is little or no competition—blue oceans Which of the factors that the industry takes Eliminate for granted should be eliminated? Which factors should be reduced well Reduce below the industry‘s standard? Raise Which factors should be raised well above the industry‘s standard? Which factors should be created that the Create industry has never offered? Kim & Mauborgne (2005) © Dr. Christine Falkenreck 23
  24. 24. 1. Strategy-related definitions | 2. Example | 3. Blue Ocean Strategy| 4. Success Factors| 5. SummaryFour Action Framework: the IKEA Idea : Providing Exceptional Customer Experiences Personel to mount furniture at the customer‘s home, high Eliminate price furniture of different brands Reduce Costs for presentation of furniture, costs for sales people Choice and variation of own brand furniture, multi-language advertisments (Berlin:German-Turkish) ( ) Raise Market segmentation, focus on a certain target group: raise awareness for „value for money“ furniture, where money can be safed by involving the customer in the service The IKEA Philosophy: Unique sets of furniture, exclusively designed for IKEA, self transportation, storage room is sales Create room, room restaurants and entertaining kindergarden for customer‘s children, „IKEA Family“ customer club © Dr. Christine Falkenreck 24
  25. 25. 1. Strategy-related definitions | 2. Example | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary © Dr. Christine Falkenreck 25
  26. 26. 1. Strategy-related definitions | 2. Example | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Ein weiterer „blue ocean“: Ikea Business © Dr. Christine Falkenreck 26
  27. 27. 1. Strategy-related definitions | 2 Example | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Agenda 1 Strategy-related definitions and Relevance of the Topic 2 Example of a S E l f Successfull C f Company 3 Blue Ocean Strategy l 4 Success Factors of Alternative Marketing Strategies f l k 5 Summary S SMA Solar Technology AG 27
  28. 28. 1. Strategy-related Definitions | 2. Examples | 3. Blue Ocean Strategy| 4. Success Factors and Limitations| 5. Summary Generally: Make t t i M k strategic marketing a core competency k ti t Be prepared to work together with you colleauges on … 1. focus and invest resources and competencies to win in a few attractive and clearly defined markets 2. view business in terms of opportunities in value-based market segments to obtain optimal response 3. 3 provide a superior offering t the market segments based on a id i ff i to th k t t b d defensible competitive advantage 4. implement plans exceedingly well by anticipating and eliminating barriers to organizational growth and change Kotler, P., Berger, R. & Bickhoff, N. (2010) © Dr. Christine Falkenreck 28
  29. 29. 1. Strategy-related Definitions | 2. Example | 3. Blue Ocean Strategy| 4. Success Factors and Limitations| 5. Summary Success factors of Alternative Marketing Strategies S f t f Alt ti M k ti St t i Head-to-Head Competition Blue Ocean Creation Industry Focuses on rivals within its Looks across alternative industry industries Strategic group Competitive position within Looks across strategic strategy groups within industry Buyer group Better serving the buyer group Redefines the industry buyer g p group Scope of product or Maximizing the value of product Looks across to service offering and service offerings within the complementary product and bounds of its industry service offerings Functional-emotional Improving price performance Rethinking the functional- orientation within the functional-emotional emotional orientation of the orientation of its industry industry Time Adapting to external trends as Participates in shaping they occur external trends over time Kim & Mauborgne (2005) © Dr. Christine Falkenreck 29
  30. 30. 1. Strategy-related Definitions | 2. Examples | 3. Blue Ocean Strategy| 4. Success Factors and Limitations| 5. Summary1. Find the Customer Value in your Target Segment Unique offering q g Protected advantageg – Patented innovation/trade secrets Success based on uniqueness – Innovative products – Customer service (operations and technical) Differentiated offering Marketing advantage – Value pricing – Unique selling propositions Success based on – Integrated communication Value – Creative distribution and logistics – Brand equity Kotler, P., Berger, R. & Bickhoff, N. (2010) © Dr. Christine Falkenreck 30
  31. 31. 1. Strategy-related Definitions | 2. Examples | 3. Blue Ocean Strategy| 4. Success Factors and Limitations| 5. Summary 2. Bear in mind that innovativeness is the key driver to company success – be a partner to CFOs and heads of business development • be measurable, not only creative: prove the generation of business growth 3. Set clear measurable goals (marketing controlling) • What are the goals of the new strategy? • What are the new targets and milestones? • Who is responsible for what? 4. Evaluate the possibility of strategic marketing partnerships p y g gp p • Co-Branding • Ingredient Branding • Franchise 5. Look across alternative industries (market research) • find and develop markets where t e e is little o no co pet t o d a d de e op a ets e e there s tt e or o competition —blue oceans © Dr. Christine Falkenreck 31
  32. 32. 1. Strategy-related Definitions | 2. Examples | 3. Blue Ocean Strategy| 4. Success Factors and Limitations| 5. Summary Here are some reflective questions that you may ask: • Are your organization’s market boundaries clear to you? • Do you understand where your customer’s market boundaries are? • Are you seeing the big picture? • Do you understand where demand for services and products in your target customer groups come from? • Are you able to work together as a team towards a common g y g goal or does internal hurdles slow you down? • Is providing exceptional customer experiences built into your marketing strategy? The road to success is always under construction. Unkown © Dr. Christine Falkenreck 32
  33. 33. 1. Strategy-related definitions | 2 Examples | 3. Blue Ocean Strategy| 4. Success Factors| 5. Summary Agenda 1 Strategy-related definitions and Relevance of the Topic 2 Example of a S E l f Successfull C f Company 3 Blue Ocean Strategy l 4 Success Factors of Alternative Marketing Strategies f l k 5 Summary S SMA Solar Technology AG 33
  34. 34. 1. Strategy-related Definitions | 2. Examples | 3. Blue Ocean Strategy| 4. Success Factors and Limitations| 5. Summary Was sind für Sie Erfolgsfaktoren alternativer Marketing Strategien? − nah am Kunden sein und das „große Ganze“ im Blick behalten − Stellenwert von Produktinnovation kennen: Für welche neuen Produkteigenschaften ist der (zukünftige) Kunde bereit zu zahlen? − Neue Geschäftsideen für neue Märkte − Gute Kontakte zu anderen Unternehmensbereichen und möglichen Partnern (Stichwort Co-Branding, Franchise) pflegen. − Marketing-Controlling : Quantifizierbare Marketingziele „ Verkaufsumsatz pro Produkt und Marktsegment während der Laufzeit des Planes“ Planes − Marktsegmentierung und Marktforschung − „internes Marketing“ als Beitrag zur Mitarbeitermotivation und Mitarbeiterinformation – und zum Überwinden von „internen Aktzeptanzhürden“ „ p Die Suche nach „Blue Oceans“ – neuen Märkten mit Entwicklungspotenzial und wenig Wettbewerb – schafft neue Möglichkeiten, das Unternehmen im Möglichkeiten Markt zu positionieren, Marktanteile auszubauen und Raum für Innovationen zu schaffen. Dadurch wird ein Unternehmen unabhängig vom (Preis) Wettbewerb. © Dr. Christine Falkenreck 34
  35. 35. 1. Strategy-related Definitions | 2. Examples | 3. Blue Ocean Strategy| 4. Success Factors and Limitations| 5. Summary Mintzbergs Grundthesen zur Formulierung erfolgreicher Strategien Stichwort „Gras Roots Strategy“ • Es gibt nicht den Weg der S Strategieformulierung. Es kann nicht von f vornherein festgelegt werden, wie und wo Strategien entstehen. • Der Prozess der Strategieformulierung darf nicht überkontrolliert werden. Es ist wichtiger, Vielfalt im Unternehmen entstehen zu lassen – als eine unnatürliche Konsistenz von Handlungsansätzen im Unternehmen zu erzwingen. g • Es müssen Freiräume geschaffen werden, in denen sich Strategien eigendynamisch entwickeln können. • breites Feld kreativer Potenziale, Ressourcen zur Steigerung der Lernfähigkeit. Mitarbeiter sind heute in Netzwerken organisiert und schaffen übergreifenden Austausch. Erfolgreiche Unternehmen organisieren sich anders, definieren ihre Verantwortung übergreifend (Corporate Governance, Corporate Citizenship) und aktivieren ihre Mitarbeiter anders als früher.Mintzberg, Ahlstrand, & Lampel (2001) 35
  36. 36. Literature• Brennan, R. Canning, L. & McDowell, R. (2007): Business-to-Business Marketing, Sage• W.Chan Kim & Renée Mauborgne (2005): Blue Ocean Strategy – How to Create Uncontested Market Space and Make the Competition Irrelevant• P. C. Verhoef & P. S.H. Leeflang ( g (2009): Understanding the Marketing ) g g Department’s Influence Within the Firm, Journal of Marketing, Vol. 73• H. Mintzberg,B. Ahlstrand, & J.Lampel (2001): Strategy Safari: A Guided Tour Through The Wilds of Strategic Mangament, Free Press, NY• Kotler, P., Berger, R. & Bickhoff, N. (2010): The Quintessence of Strategic Management, Springer• M T P t (1980): C M.T. Porter (1980) Competitive Strategy: Techniques for Analysing Industries titi St t T h i f A l i I d ti and Competitors Electronical resources http://www.ikea.com/ms/de_DE/about_ikea/the_ikea_way/our_business_idea/index.html http://history.gmheritagecenter.com/wiki/index.php/1924,_%22A_Car_for_Every_Purse_and_Purpose%22 http://history gmheritagecenter com/wiki/index php/1924 %22A Car for Every Purse and Purpose%22 http://hbr.org http://www.fournaisegroup.com/Marketers-Lack-Credibility.asp 36
  37. 37. The future belongs to thosewho see possibilities before they become obvious. Unknown 37
  38. 38. Beispiel: Vernetzung strategischer und operativer Marketing- und Vertriebsplan Auszug aus der Marketingstrategie: -Erschließung des Absatzmarktes in Fernost - Ausbau der Dienstleistungen Auszug aus der strategischen Marketing- Auszug aus der operativen und Vertriebsplanung Marketing- und Vertriebsplanung Ziele: Aktivitäten: Budgets: Ziele: Aktivitäten Budgets: -Mittelfristige -Definition eines - erfolgreicher -Planung und Etablierung in Marktentwick- -25 Mio EUR Markteintritt in -7 Mio EUR Umsetzung des Japan und lungskonzeptes Japan und Markteintritts in Südkorea unter Südkorea bis Japan und fünfgrößten Jahresende, Südkorea Anbietern am Marktanteil Markt > 5% - Steigerung des - Umsetzung Anteils an - Entwicklung - Steigerung - 6 Mio EUR der ersten Dienstleistungen neuier - 21 Mio EUR des Geschäfts- am Geschäfts- Dienstleistung konzepte im Gesamtumsatz konzepte im santeils auf Dienstleistungs auf 40% i 5 f in Dienstleistungs- Di l i 25% bis 2 % bi bereich Jahren bereich Jahresende Zunehmende Detaillierung und Kurzfristigkeit 38

×