week8lecture7studentslidesstrategicmarketing

1、strategy formulationmarket, industry and competitor analysiscustomer segments and behavioural analysescompany position analysisand s.w.o.tproduct range and performance analysispeststrategic analysisgeneric strategy (porter)growth strategy (ansoff)strategic optionsobjectivesobjective 1objective 2obje

2、ctive 3product range and performance analysise.g.:1.positioning maps2.product life-cycles (plc)3.diffusion of innovation4.boston consulting group matrix (bcg)mens clothing retailer positioningprice +age +2. product life-cycle (plc)products deemed to go through a life-cycle: introduction, growth, mat

3、urity, declinestark, j. (2011) product lifecycle management, london, springer-verlag.not always according to standard model (does it account for market share?)impacts on how to use marketing mix tools:e.g. advertise for awareness; e.g. sales promotion to induce purchase; e.g. pr to build opinioncan

4、vary for each product e.g. fad, fashion, extended life-cycleproduct life-cyclelevitt, t. (1965) “exploit the product life cycle”, harvard business review, vol. 43 (november), pp. 81-94.day, g. (1981) “the product lifecycle: analysis and applications issues”, journal of marketing, vol. 45, pp. 60-67.

5、a fad/fashion?maturityan extended life-cyclematurityan extended life-cyclematurityan extended life-cycle3. diffusion of innovationbased on how an innovation or new product/service diffuses through a marketsimilar to plc model (customers not products) not everyone is equally interested in new thingsy

6、ou may aim to target your new product at the innovators and not the laggardsmahajan, v. and muller, e. (1979) “innovation diffusion and new product growth models in marketing”, journal of marketing, vol. 43 no. 4, pp. 55-68. evans, m. (1989) “consumer behaviour towards fashion”, european journal of

7、marketing, vol. 23 no. 7, pp. 7-16.“trickle-down”mccracken, g. (1985) the trickle-down theory rehabilitated: the psychology of fashion, lexington, ma.“trickle-up”trickle-sidewayssee: canniford, r. (2011) “how to manage consumer tribes”, journal of strategic marketing, 19(7), pp. 591-606.trickle down

8、time andflagship storesindependent retail outletsmass market retail outlets (e.g. sports direct; debenhams)sales volumessales volumessales volumesproduct a: stealthproduct b: greenproduct c: baremorphmorphretail distributionby volumeintroductiongrowthmaturityinnovatorsearly adoptersearly majority la

9、te majoritycost focus?segments?parallel diffusionmidgley and wills (1979) “fashion marketing”, lateral marketing thoughts, mcb publications, bradford, p. 131.sportswear brandsfashion brandstimeprofessional level sports /research & developmentcatwalk inspiredindependent retailersindependent retai

10、lershigh street levelshigh street levelsmass marketmass marketinnovators/introductionearly adopters/growthearly majority/maturitylate majority/maturitytime4. boston consulting group matrix (bcg)the growth/share matrixdeveloped in the 1970sresource allocationto position sbus/product portfolioassist d

11、ecision-makingallocate organisational resourcesboston consulting group matrix (bcg)y-axisx-axisplc (growth but not share) to bcgy-axisx-axisintroductiondeclinematuritygrowthboston consulting group matrix (bcg)y-axisx-axisapple ipodapple iphone 6apple iwatchhypothetical new product launchrelative sha

12、re ratioapple headspacegenerally require investment to become stars and keep up with the growing market. the name question mark indicates the decision managers need to make in order to develop the product/sbu into a star or withdraw it from the market.apple iwatchthese need high investment in order

13、to maintain market position/growth by keeping competitors at bay. stars are likely to generate cash but they require a lot of investment to maintain their position.apple iphone 6products which generate considerable amounts of cash as they are in a position with high market share in a market which se

14、es little growth. furthermore, little cash is invested in these products as there are limits to the expansion of the market. consequently cash is generated which can be used to fund the development of questions marks.apple ipodtypically generate little profit or a loss due to a low market share in a

15、 market which sees little growth.?strategy prescriptionbuild or harvest: cease or minimise investment, maybe raise priceharvest or divest: cease production or sell off to withdraw resourcesbuild: invest heavily to increase volume or sharehold: invest just enough to keep current share and/or profitsp

16、roduct portfolio: a basis for product marketing strategy?analysis of:positioning; p.l.c;diffusion of an innovation; market share and market growth.bcg: limitationsfocuses on market share and market growth rates only other factors such as profitability are sometimes more important.many low growth mar

17、kets are still attractive (niche markets for example)there are many successful low market share firms (i.e. niche strategy)bcg: limitations1.how is the market (for share assessment) defined?2.too inward facing, ignores some external factors such as competitors activity.3.focused on cash flow, neglec

18、ts profitability, roi.market definitionmarket definitionhence further analysis of company positiondirectional policy matrix (shell/dpm), org.e/mckinsey matrix (last week)on balance.supporters claim: dpm is more complete than b.c.g. matrix (factors other than just growth and share) more prescriptive

19、in terms of strategy developmentcritics argue: it is more cumbersomescope for political bias subjectivity in scoring1b. market, industry and competitor analysis2. customer segments and behavioural analyses4. company position analysisand s.w.o.t3. product range and performance analysis1a. peststrateg

20、ic analysisgeneric strategy (porter)growth strategy (ansoff)strategic optionsobjectivesobjective 1objective 2objective 3ansoffs matrix (1957, in harvard business review)ansoffs matrix (1957, in hbr)market penetration: aim is to increase sales of existing products in current markets. an aggressive ma

21、rketing drive via competitive pricing, sales promotion or advertising can expand the share of an existing market. low risk as dealing with familiar customer and products and a good starting point to the planned growthansoffs matrix (1957, in hbr)market development: aims to find new markets for exist

22、ing products. could involve new geographic markets, adding distribution channels or finding new market segments. e.g. sports clothing as fashion items targeted at new set of retailersansoffs matrix (1957, in hbr)product development: firms must update their product portfolio to remain competitive. id

23、eally a balanced portfolio should exist with established products generating funds for product developmentansoffs matrix (1957, in hbr)diversification: involves moving beyond existing areas of operation and activity, seeking involvement in unfamiliar activities. it can be related or unrelated.now c2

24、1st more sophisticated than ansoffs 1950s marketing strategies are now more complex than ansoffs four potential decision variablese.g.: product extension1950s1990stodaynow c21st more sophisticated than ansoffs 1950s marketing strategies are now more complex than ansoffs four potential decision varia

25、blese.g.: brand extensionnow c21st more sophisticated than ansoffs 1950s marketing strategies are now more complex than ansoffs four potential decision variablese.g.: product innovationin a retail context.product assortmentexistingrelatednewexistingmarket penetrationproduct extensionproduct developm

26、entrelatedmarket developmentmarket extensiondiversificationnewinternationalisation customer marketscf. kristensen, l. (1983) “strategic planning in retail”, european journal of marketing, 17(2) , pp. 43-59.“strategic planning is an effort to organise this variety, not an answer to solving it” (krist

27、ensen, 1983, p. 43).verdict on portfolio modelspossible benefits:1.aid strategic analysis 2.assist resource allocation3.pinpoint priority product markets4.prescribe strategies5.force the facing-up to marginal product markets i would encourage you to read:patterson, a., quinn, l. and baron, s. (2012)

28、 “the power of intuitive thinking: a devalued heuristic of strategic marketing”, journal of strategic marketing, vol. 20 no. 7, pp. 35-44.ardley, b and quinn, l. (2014) “practitioner accounts and knowledge production: an analysis of three marketing discourses”, marketing theory, vol. 14, no. 1, pp.

29、97-118.verdict on portfolio modelspossible benefits:1.aids strategic analysis2.assists resource allocation3.pinpoints priority product markets4.prescribes strategies5.forces facing-up to marginal product markets6.overall, they enrich management decision-making.7.and the formulation of your strategic

30、 objectives!1b. market, industry and competitor analysis2. customer segments and behavioural analyses4. company position analysisand s.w.o.t3. product range and performance analysis1a. peststrategic analysisgeneric strategy (porter)growth strategy (ansoff)strategic optionsobjectivesobjective 1object

31、ive 2objective 3common mistakes when formulating strategy1.ignorance about markets, based on the false assumption that the information is not available2.competing on price rather than developing a unique selling proposition (usp)3.pitching prices too low, leaving inadequate margins for the cost of a

32、dvertising or sales promotion4.expanding sales of the least profitable product or services5.launching new products or services with inadequate prior research of the marketfurther reading: dibb, s. and simkin, l. (2012) “leadership teams rediscover market analysis in seeking competitive advantage and

33、 growth during economic uncertainty”, journal of strategic marketing, vol. 20 no. 1, pp. 45-54. distinguishing between strategic and tactical decisionsimportancestrategic decisions are more important than tactical oneslevel at which conductedstrategic decisions are usually made by top managementtime horizonstrategies are long term, tactics short termregularitystrategy is continuous and irregular, tactics are periodic and fixed time, e.g. annual budget/plannature of problemstrategic problems often unstructured and uniqu