斯隆管理学院04年营销策略02

1、15.834 Marketing StrategyCases and lecturesLetter of ComplaintObjectivesIdentify, evaluate, and develop marketing strategiesEvaluate a firms opportunitiesAnticipate competitive dynamicsEvaluate the sustainability of competitive advantagesTarget AudienceConsultantsInvestment AnalystsEntrepreneursProd

2、uct ManagersI What Is Marketing Strategy?What is Marketing Strategy?Finding Profit OpportunitiesCreating Competitive AdvantageChallenging Competitive AdvantageCreating Corporate AdvantageQuestion:How can a firm earn sustained, superior returns?1. Create value2. Capture value3. Continue to do thisA M

3、arketing Strategy is an integrated set of choices about how we will create and capture value, over long periods of time.A good marketing strategy meets three testsExternal consistencyInternal consistencyDynamic consistencyExternal fit: Finding Profit OpportunitiesMarketingStrategyTechnologySuppliers

4、CustomersCompetitorsComplementorsEnd User PreferencesThe Environment shapes, and is shaped by, Marketing Strategy.Value Creation: Some DefinitionsValue created:Customer willingness to pay- supplier opportunity costValue created by a firm= Value created by all- Value created by all othersA player is

5、your competitor if- customers value your product less when they have hers as well- suppliers value your business less when they have hers as wellA player is your complementor if- customers value your product more when they have his as well- suppliers value your business more when they have his as we

6、llInternal Fit: Creating Competitive AdvantageSupplier Opportunity CostMarketingStrategyFirm ResourcesCompetitor ResourcesResource InvestmentsCustomer Willingness to PayGood marketing strategies are based on resource advantages and the latter are created by speed or gambles; often in areas where res

7、ources are not priced out directly or in the cover of competitor ignorance.Dynamic Fit: Challenging Competitive AdvantageUpset the industry and resource fits of established competitors.New Technologies, New SuppliersNew ResourcesNew Marketing StrategiesNew Needs, New CustomersCorporate Advantage add

8、s value to multiple businesses.Corporate ResourcesCorporate Marketing StrategiesBusiness 1Business 2II Finding Profit OpportunitiesWhat is Marketing Strategy?Finding Profit OpportunitiesCreating Competitive AdvantageChallenging Competitive AdvantageCreating Corporate AdvantageLobstersDisneyComputer

9、gamesBrowsersto decide on entry/exitto assess the effect of a major changeto position your firm to succeed in a given environmentto shape the environmentTo craft an effective marketing strategy, you must take account of the environmentBut the environment is enormously complexYou need structured ways

10、 of thinking about it to capture the richness but separate signal from noiseSome Complementary ApproachesClassical Economics (Supply and Demand)“Old Industrial Organization Economics (5 forces)Non cooperative Game Theory (Oligopoly equilibrium)Cooperative Game Theory (Value net)From Supply/Demand to

11、 5 ForcesWhat determines the long run supply/demand balance? (entry/exit barriers)What determines the effect of a temporary imbalance on profitability? (price wars/bargaining powers)We need to know the determinants of the position and shape of the 2 curves.Using the 5 ForcesIdentify long-run industr

12、y profitabilityIdentify pressures on profitsIdentify ways to alter industry structureIdentify attractive positionsFrom 5 Forces to Non Cooperative Game TheoryIf you are so smart why arent others?What would you pay to get into an attractive industry?We need to know what the entry barriers are, and wh

13、o will get over them.Game TheoryRBVUsing Non-Cooperative Game TheoryForecast industry evolutionDecide on entry/exitIdentify critical competitorsDecide which game you want to playHorizontal Trading Relationships: Forecasting Industry Evolution with Increasing ReturnsIncreasing returns are the tendenc

14、y for that which is ahead to get further ahead, and for that which loses advantage to lose further advantagesmall differences in initial conditions can cause large differences in long-run outcomesex: Network effects can dwarf product effects. “Better products can lose out to products that “fit bette

15、r.For Vertical Trading Relationships: From Non-Cooperative to Cooperative Game TheoryWhich game do we all want to play?How can we avoid killing each other?In the long run we would expect the most efficient industry structure -that which creates most value in total. Splitting the pie is another quest

16、ion.Cooperative Game Theory and Marketing StrategyProduct designAllocation of manufacturing tasksSeller efforts at information supplyBuyer efforts at information acquisitionExpected value creation is largest when the following are chosen optimallyIII Creating Competitive AdvantageWhat is Marketing S

17、trategy?Finding Profit OpportunitiesCreating Competitive AdvantageChallenging Competitive AdvantageCreating Corporate AdvantageCT ScannersAspertameFlight SafetyWal-MartMarks and SpencerTodays OverviewIndustry, firm, corporate effectsGeneric strategiesDisaggregating value creationResources and inimit

18、abilityFirms perform very differently. The variance decomposes roughly like thisIndustry effects(i)15%SBU effects(fi)37.5%Corporate effects(f)2.5%Noise45%Ways to Create More Value Than the Industry AverageDifferentiation: wtp , soc (Goldman)Cost Leader: wtp , soc (Enterprise)Dual Advantage: wtp , so

19、c (McDonalds)ValuewtpsocTwo Simple, But Critical, Pointsyour strategy should be based on the strengths that differentiate you from competitors, your resources.to decide on a strategy, you therefore need to identify those resources.It may not be necessary to worry about creating more, or new, resourc

20、es.What Are We Good At?Diagnosis: Disaggregating Value Creationwtp= u1a1+ u2a2soc = c1i1+ c2i2u varies by target segment measured by market researcha given by product design measured by market researchc varies by details of procurement measured from accounting datai given by production process desig

21、n measured from accounting dataRealized Vale per Potential Customer = F(m,s) (wtp soc) m s= F(m,s) u(a(i) c(i) m s F = Fraction buyingm = Seller Marketing costsS = Buyer search costsYou create value when you do what no one else can doIn most cases other players can pick segments (u), product designs

22、 (a), suppliers (c), and inputs (i) from the same menu as you can.Most differences are in the a(i) and F(m) functions.Reasons for Competitive AdvantageWhy would it be cheaper for P&G to launch a new product?Reputation with retailersLeverage brand namesWhy would it be cheaper for P&G to design a new

23、product?Established set of routinesAlready have designed similar productsWhy would P&G have lower manufacturing costs?They have a patentThey can gain economics of scope in transportResourcesWhy competitors cant/wont get themUnique and owned by youpatentUnique and cant be soldSmith and JonesNot clear

24、 how to create itcultureNot clear what it isgood at XPreemptive first mover advantagesawarenessDynamic return to scaleexperienceFrom Leveraging to Building Competitive AdvantageIf several identical competitors have symmetric information, the expected return to investments in resources is zero (ex an

25、te).Resources are created in three waysbased on existing resource asymmetriesas results of lucky outcomesby taking advantage of slow or sleeping competitorsProductive Social NetworksHard toUnderstandPlanImitategrowComplex ResourcesNot enough to be good at one thingComponents + coordinationResources

26、that cannot be purchased directlyIf the value is vand competitors bid p1, p2, etc., the winning bidder will not make money.If the bids are valued at p1 + e1, p2 + e2, etc. and the es are random variables, the winner may do quite well.Ex machines vs. brand awarenessIV Challenging Competitive Advantag

27、eWhat is Marketing Strategy?Finding Profit OpportunitiesCreating Competitive AdvantageChallenging Competitive AdvantageCreating Corporate AdvantageSouthwest AirHead SkiComplaintsSASTV NetworksBrokerageA start-up needs to use its initial resources to build a new set of resources thatcan be leverageda

28、re sustainableResources of start-upsSmall social networksIdeasManagement skillsTodays OverviewWays to AttackTimes to AttackVulnerability of IncumbentsThe Two Principal Ways to Challenge Competitive Advantage AreResource ImitationResource SubstitutionImitation of Leader Resourceswont make you a by wi

29、nneroften requires mass and size to succeedoccasionally you can imitate in a new nicheis always an optionDevelopment of Substitute Resourcesin either case you would like to do this in such a way that it is hard for the leader or third parties to imitate youthe problem is that you need ideasoffer cus

30、tomer a different set of attributesuse new technology to produce current attributesTurbulence in the Environment -Needs, Customers, Suppliers, Technology -may open the Door for Attack by Upsetting the Resource-Strategy-Environment Fit of LeadersThe key is toread the change better than otherstake adv

31、antage of it fasteracquire new resources cheaplyCompetitive Advantages tend to be long, but not infinitely, livedExcess profits may have a half life of 10 yearsApparently strong leaders often develop serious weaknesses.Ceterus Paribus, One would prefer Resources that have more flexible Applicationsc

32、an select best usemay be able to put to more usesrobust to changes in environmentIn practice, many resources can only create value under a narrow set of circumstances.Such resources are cheaper to createfewer competitors have a chance to develop such resources less competitioncommitment and preempti

33、on requires narrownessWhen the environment changes, some resources turn into handicapsExplicit contractsImplicit contractsCultureReputationBrand namesLeader may be fat and lazyNO ONE IS IMMUNE FROM ATTACK IT IS A QUESTION OF TIMINGV Creating Corporate AdvantageWhat is Marketing Strategy?Finding Prof

34、it OpportunitiesCreating Competitive AdvantageChallenging Competitive AdvantageCreating Corporate AdvantageCostcoNewellTodays OverviewBasic questions and factsValue and diversityCosts of making it happenWhat does corporate strategy mean for marketing strategyQuestionsWhat is the appropriate scope of

35、 this firm?How does the corporation create value through its multi-market activities?How should the company be organized to make this happen?Stylized FactsThere are very few single product firms.Firms that are very diversified have lower average returns on capital.Most companies share very general r

36、esources: legal, control systems, capital budgeting systems, etc.More specific resources are rarely shared across industries.More diversified companies most often participate in “simple industriesA given resource confers different levels of advantage in different markets.BestSecond4th3rd5thSome reso

37、urces confer relatively large advantages in relatively few markets.Others confer smaller advantages in more markets.There are administrative costs associated with sharing or transferring of resources.The size of headquarters reflect part of these costs.If the resource confers small advantages, it ha

38、s to be cheap to transfer.Corporate Marketing Strategyumbrella branding, logosother reputation with buyerslogistics -sharing truckscross-selling -sharing sales forcesinformation about customersprocess skills, e.g. npd.In most large companies, there is significant corporate involvement in marketing s

39、trategyMaking It Happenwhat each resource ishow it is benefiting each businesshow the application is implementedIt is important to be very clear aboutVI Marketing Strategy -Course Wrap UpWhat is Marketing Strategy?Finding Profit OpportunitiesCreating Competitive AdvantageChallenging Competitive Adva

40、ntageCreating Corporate AdvantageWe are here!Marketing Strategy -1960s StyleIdentifying customer needsDesigning products to satisfy needsChoose 4 Ps for monopoly advantageMarketing Strategy -2000+Identifying needs and resourcesDesigning products to create valueChoose efficient selling formatsImportant Concepts and FrameworksResource-Based AnalysisDiagnosis through costs and market researchLeverage!Creation in the cover of darkSustainabilitySubstitu