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2.Strategy
BasicsSaatchi&SaatchiTraining2.Strategy
BasicsSaatchi&SDefinitions:StrategyStratagem:AnartificeortrickdesignedtooutwitandsurprisetheenemyAdeviceorschemeforgainingadvantageStrategy:Theartofamander-in-chief;projectinganddirectingthelargermilitarymovementsandoperationsofacampaignGeneralshiportheartofconductingacampaign;artificeorfinessegenerallyDefinitions:StrategyTactics:Thescienceorartofmaneuveringinpresenceoftheenemy;purposefulprocedureDefinitions:TacticsDefinitions:TacticsStrategydiffersmateriallyfromtactics;thelatterbelongingonlytothemechanicalmovementofbodiessetinmotionbytheformerWhat’sthedifference?What’sthedifference?ShangchangruzhanchangMarketingasWarfareShangchangruzhanchangMarkeThe36StrategiesNotanewideainChinaThe36StrategiesNotanewideBingFa:SunTzuTeiWangGungWuTzuSunBin(Andacoupleofhundredothers)NotanewideainChinaBingFa:NotanewideainChinKnowwhentofight,andwhennottoObtainthewholeheartedsupportofyourtroopsBepreparedtoseizefavourableopportunitiesFreeyourselffrominterferencebysuperiorsWhenthetimeisright,actdecisivelyandswiftlySunTzu:FiveEssentialponentsofVictorySomeChineseIdeasonStrategyKnowwhentofight,andwhennThehighestformofvictoryistoconquerbystrategyTheopportunityforvictoryisprovidedbytheenemyBasicelementsbineintouniquestrategiesKeepplansasdarkasnight,movelikeathunderboltAttackwhen(&where)theenemyisleastpreparedSunTzu:SomeChineseIdeasonStrategyThehighestformofvictoryisKnowyourself,Knowyourenemy.1battles,1victoriesSunTzu:SomeChineseIdeasonStrategyKnowyourself,KnowyourenemyStrategystartswithaMapBrandBBrandCBrandDBrandEWherewearenowWherewewanttobeStrategystartswithaMapBranThestrategicprocessconsistsof:DefiningwhereweareIdentifyingwherewecouldgoSelectingwherewewanttogoIdentifyinghowtogetthereMapshelpshowthissimply,andpointthewayGettingthemaprightisagreatstartYoucanmapanythingStrategystartswithaMapThestrategicprocessconsistsGreatbrandsareslantedinthemindsofconsumersGivingthemuniqueterritorytoown&defend:eitherrationaloremotionalLeadershipisperceptual;advertisinghelpscreateenduringadvantagesforbrandsBrandBBrandCBrandDBrandEWherewearenowWherewewanttobePositioningisStrategyGreatbrandsareslantedinTheBusinessModelAnUmbrellaorTentbroadenoughtocovereverythingthepanywantstodoToooftenawishlistBasedonme-too?thinkingTacticsTacticsStrategyTopDownTacticsStrategyTheBusinessModelAnUmbrelTheMilitaryModelMuchmorehard-nosedBasedonwhatislikelytosucceedCoreelements:surprise/focussedforceTacticStrategyStrategyBottomUpTheMilitaryModelMuchmorehaAfterMichaelPorterSTRATEGICADVANTAGECost/ProductivityLeadershipFocus/NicheLeadershipProduct/ServiceLeadershipLowCostPositionParticularSegment(s)OnlyMarket-wideUniquenessPerceivedbyCustomerThreeGenericBusinessStrategiesAfterMichaelPorterSTRATEPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionCover/blockpetitivemovesStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementCover/blockpetitivemovesStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementCover/blockpetitivemovesFollowtheleaderStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementMarketNicheBy-PasspetitionCover/blockpetitivemovesFollowtheleaderStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementMarketNicheBy-PasspetitionCover/blockpetitivemovesFollowtheleaderMaintainStatusQuoStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NLeaderStrategiesversustheLeaderpetitorLeaderStrategiesversustheLeLeaderStrategiesversustheLeaderpetitorHeadtoHeadLeaderStrategiesversustheLeBy-PassLeaderStrategiesversustheLeaderpetitorHeadtoHeadBy-PassLeaderStrategiesversuBy-PassLeaderFlankingStrategiesversustheLeaderpetitorHeadtoHeadBy-PassLeaderFlankingStrategBy-PassLeaderEncirclingStrategiesversustheLeaderpetitorHeadtoHeadFlankingBy-PassLeaderEncirclingStratBy-PassLeaderNichingStrategiesversustheLeaderpetitorHeadtoHeadFlankingEncirclingBy-PassLeaderNichingStrategiSourcesofVolumeSalesCurrentUsesCurrentUsersCurrentBrandFranchiseCurrentusers,NewUsesNewUsers,NewUsesHowtoGrowaBrandNewUsersNewUsesNewusers,CurrentUsesSourcesofVolumeSalesCurrentSourcesofVolumeSalesCurrentUsesCurrentUsersCurrentBrandFranchiseCurrentusers,NewUsesNewUsers,NewUsesHowtoGrowaBrandNewUsersNewUsesNewusers,CurrentUsesCategoryUsers:lessthan5%ofpotentialBrandUsers:lessthan5%TARGETSourcesofVolumeSalesCurrentSourcesofVolumeSalesCurrentUsesCurrentUsersCurrentBrandFranchiseCurrentusers,NewUsesNewUsers,NewUsesHowtoGrowaBrandNewUsersNewUsesNewusers,CurrentUsesTARGETCategoryUsers:AtornearpeakpotentialBrandUsers:morethan5%SourcesofVolumeSalesCurrentSourcesofVolumeSalesCurrentUsesCurrentUsersCurrentBrandFranchiseCurrentusers,NewUsesNewUsers,NewUsesHowtoGrowaBrandNewUsersNewUsesNewusers,CurrentUsesAnImpossibleTask:Can‘tgodiagonally!Unlessthere‘samajorbreakthroughinthebrandInwhichcase,itshouldbeanewbrandSourcesofVolumeSalesCurrentBrandLoyalty&UsageRateLoyaltyIndifferenceLightusageHeavyusageBrandLoyal,LightusersBrandLoyal,HeavyusersBrandIndifferent,LightusersBrandIndifferent,HeavyusersStrategiesBuiltonBrandBehaviourBrandLoyalty&UsageRateBrandLoyalty&UsageRateLoyaltyIndifferenceLightusageHeavyusageBrandLoyal,LightusersBrandLoyal,HeavyusersBrandIndifferent,LightusersBrandIndifferent,HeavyusersStrategiesBuiltonBrandBehaviourUsageetensions:newwaystouseproductBrandLoyalty&UsageRateBrandLoyalty&UsageRateLoyaltyIndifferenceLightusageHeavyusageBrandLoyal,LightusersBrandLoyal,HeavyusersBrandIndifferent,LightusersBrandIndifferent,HeavyusersStrategiesBuiltonBrandBehaviourStrongparativeapproachtoswitch/defendUsageetensions:newwaystouseproductBrandLoyalty&UsageRateBrandLoyalty&UsageRateLoyaltyIndifferenceLightusageHeavyusageBrandLoyal,LightusersBrandLoyal,HeavyusersBrandIndifferent,LightusersBrandIndifferent,HeavyusersStrategiesBuiltonBrandBehaviourUsageetensions:newwaystouseproductSeeksalientadvantage,ifsegmentislargeenoughStrongparativeapproachtoswitch/defendBrandLoyalty&UsageRateBrandLoyalty&UsageRateLoyaltyIndifferenceLightusageHeavyusageBrandLoyal,LightusersBrandLoyal,HeavyusersBrandIndifferent,LightusersBrandIndifferent,HeavyusersStrategiesBuiltonBrandBehaviourUsageetensions:newwaystouseproductSeeksalientadvantage,ifsegmentislargeenoughSeeksalientadvantage,innovate/de-moditiseStrongparativeapproachtoswitch/defendBrandLoyalty&UsageRateSummaryMarketingislikewarfare,usesmilitaryideastowinAnObjectiveiswhereyouwanttobeAStrategyissimplyaplantogetyouthereTacticsarewhatyouusetogetthereInmarketingthetacticcandrivethestrategyStrategystartswithamapKnowyourgoal-berealisticKnowyourposition(andyourstrengths)Knowyourenemy(anticipatetheirmoves)ThinkoutwhatyouneedtodoSummaryMarketingislikewarfa2.Strategy
BasicsSaatchi&SaatchiTraining2.Strategy
BasicsSaatchi&SDefinitions:StrategyStratagem:AnartificeortrickdesignedtooutwitandsurprisetheenemyAdeviceorschemeforgainingadvantageStrategy:Theartofamander-in-chief;projectinganddirectingthelargermilitarymovementsandoperationsofacampaignGeneralshiportheartofconductingacampaign;artificeorfinessegenerallyDefinitions:StrategyTactics:Thescienceorartofmaneuveringinpresenceoftheenemy;purposefulprocedureDefinitions:TacticsDefinitions:TacticsStrategydiffersmateriallyfromtactics;thelatterbelongingonlytothemechanicalmovementofbodiessetinmotionbytheformerWhat’sthedifference?What’sthedifference?ShangchangruzhanchangMarketingasWarfareShangchangruzhanchangMarkeThe36StrategiesNotanewideainChinaThe36StrategiesNotanewideBingFa:SunTzuTeiWangGungWuTzuSunBin(Andacoupleofhundredothers)NotanewideainChinaBingFa:NotanewideainChinKnowwhentofight,andwhennottoObtainthewholeheartedsupportofyourtroopsBepreparedtoseizefavourableopportunitiesFreeyourselffrominterferencebysuperiorsWhenthetimeisright,actdecisivelyandswiftlySunTzu:FiveEssentialponentsofVictorySomeChineseIdeasonStrategyKnowwhentofight,andwhennThehighestformofvictoryistoconquerbystrategyTheopportunityforvictoryisprovidedbytheenemyBasicelementsbineintouniquestrategiesKeepplansasdarkasnight,movelikeathunderboltAttackwhen(&where)theenemyisleastpreparedSunTzu:SomeChineseIdeasonStrategyThehighestformofvictoryisKnowyourself,Knowyourenemy.1battles,1victoriesSunTzu:SomeChineseIdeasonStrategyKnowyourself,KnowyourenemyStrategystartswithaMapBrandBBrandCBrandDBrandEWherewearenowWherewewanttobeStrategystartswithaMapBranThestrategicprocessconsistsof:DefiningwhereweareIdentifyingwherewecouldgoSelectingwherewewanttogoIdentifyinghowtogetthereMapshelpshowthissimply,andpointthewayGettingthemaprightisagreatstartYoucanmapanythingStrategystartswithaMapThestrategicprocessconsistsGreatbrandsareslantedinthemindsofconsumersGivingthemuniqueterritorytoown&defend:eitherrationaloremotionalLeadershipisperceptual;advertisinghelpscreateenduringadvantagesforbrandsBrandBBrandCBrandDBrandEWherewearenowWherewewanttobePositioningisStrategyGreatbrandsareslantedinTheBusinessModelAnUmbrellaorTentbroadenoughtocovereverythingthepanywantstodoToooftenawishlistBasedonme-too?thinkingTacticsTacticsStrategyTopDownTacticsStrategyTheBusinessModelAnUmbrelTheMilitaryModelMuchmorehard-nosedBasedonwhatislikelytosucceedCoreelements:surprise/focussedforceTacticStrategyStrategyBottomUpTheMilitaryModelMuchmorehaAfterMichaelPorterSTRATEGICADVANTAGECost/ProductivityLeadershipFocus/NicheLeadershipProduct/ServiceLeadershipLowCostPositionParticularSegment(s)OnlyMarket-wideUniquenessPerceivedbyCustomerThreeGenericBusinessStrategiesAfterMichaelPorterSTRATEPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionCover/blockpetitivemovesStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementCover/blockpetitivemovesStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementCover/blockpetitivemovesFollowtheleaderStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementMarketNicheBy-PasspetitionCover/blockpetitivemovesFollowtheleaderStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerpetitionAvoiderMarketEpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementMarketNicheBy-PasspetitionCover/blockpetitivemovesFollowtheleaderMaintainStatusQuoStrategiesforpetitiveAdvantagePRO-ACTIVESTRATEGIESFocus/NLeaderStrategiesversustheLeaderpetitorLeaderStrategiesversustheLeLeaderStrategiesversustheLeaderpetitorHeadtoHeadLeaderStrategiesversustheLeBy-PassLeaderStrategiesversustheLeaderpetitorHeadtoHeadBy-PassLeaderStrategiesversuBy-PassLeaderFlankingStrategiesversustheLeaderpetitorHeadtoHeadBy-PassLeaderFlankingStrategBy-PassLeaderEncirclingStrategiesversustheLeaderpetitorHeadtoHeadFlankingBy-PassLeaderEncirclingStratBy-PassLeaderNichingStrategiesversustheLeaderpetitorHeadtoHeadFlankingEncirclingBy-PassLeaderNichingStrategiSourcesofVolumeSalesCurrentUsesCurrentUsersCurrentBrandFranchiseCurrentusers,NewUsesNewUsers,NewUsesHowtoGrowaBrandNewUsersNewUsesNewusers,CurrentUsesSourcesofVolumeSalesCurrentSourcesofVolumeSalesCurrentUsesCurrentUsersCurrentBrandFranchiseCurrentusers,NewUsesNewUsers,NewUsesHowtoGrowaBrandNewUsersNewUsesNewusers,CurrentUsesCategoryUsers:lessthan5%ofpotentialBrandUsers:lessthan5%TARGETSourcesofVolumeSalesCurrentSourcesofVolumeSalesCurrentUsesCurrentUsersCurrentBrandFranchiseCurrentusers,NewUsesNewUsers,NewUsesHowtoGrowaBrandNewUsersNewUsesNewusers,CurrentUsesTARGETCategoryUsers:AtornearpeakpotentialBrandUsers:morethan5%SourcesofVolumeSalesCurrentSourcesofVolumeSalesCurrentUsesCurrentUsersCurrentBrandFranchiseCurrentusers,NewUsesNewUsers,NewUsesHowtoGrowaBrandNewUsersNewUsesNewusers,CurrentUsesAnImpossibleTask:Can‘tgodiagonally!Unlessthere‘samajorbreakthroughinthebrandInwhichcase,itshouldbeanewbrandSourcesofVolumeSalesCurrentBrandLoyalty&UsageRateLoyaltyIndifferenceLightusageHeavyusageBrandLoyal,LightusersBrandLoyal,HeavyusersBrandIndifferent,LightusersBrandIndifferent,HeavyusersStrategiesBuiltonBrandBehaviourBrand
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