营销战略：第一原理和数据分析-英文版全套电子教案教学教程整套全书

©Palmatier1MarketingStrategy:BasedonFirstPrinciplesandDataAnalyticsAllCustomersDifferAllCompetitorsReactAllResourcesareLimitedAllCustomersChangeFirstPrinciples:Thefoundationalconceptsorassumptionsonwhichatheory,system,ormethodisbased(OxfordDictionaries)AgendaOverviewCourseOverviewMarketingStrategyOverviewFirstPrinciplesofMarketingStrategyMP#1:AllCustomersDifferManagingCustomerHeterogeneityMP#2:AllCustomersChangeManagingCustomerDynamicsMP#3:AllCompetitorsReactManagingSustainableCompetitiveAdvantageMP#4:AllResourcesAreLimitedManagingResourceTrade-OffsIntegratingtheFourFirstPrinciplesofMarketingStrategyMarkstratTakeaways2©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.CourseFocus:StrategicallyAnalyzingandSolvingMarketingProblemsTwoKeyLearningObjectives:Understandandeffectivelyusethefundamentalframeworks,processes,andanalysistoolsofmarketingstrategyUsethe“firstprinciples”ofmarketingstrategytosolvebusinessproblemsandimprovebusinessperformance©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.FirstPrinciples:Thefoundationalconceptsorassumptionsonwhichatheory,system,ormethodisbased(OxfordDictionaries)3CourseMaterialsCoursePack(Canvas)SyllabusAssignmentduedatesanddescriptionsHelpsessiondatesReadings(assigned/optional)andassignmentsClassslidesEverythingisorganizedbymoduleMarkstratandMarketingEngineeringSoftwareBook:RobertW.PalmatierandShrihariSridhar,MarketingStrategy:BasedonFirstPrinciplesandDataAnalytics,(PalgraveMcMillian,2017)4©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.CourseContentandDeliverablesLecturesanddiscussion(individual:participation20%)Problem-specificframeworksandprocessesResearchmethodsandanalysistechniquesInclassexercisesExamplesfromyourexperience(helpfultoclass)3MarketingEngineeringassignments(individual:30%)MarkStratcompetitivesimulation(20%)Marketingproject5writtenplan(10%)Presentation(10%)Team-basedfinalexam(10%andprizes)©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.5AgendaOverviewCourseOverviewMarketingStrategyOverviewFirstPrinciplesofMarketingStrategyMP#1:AllCustomersDifferManagingCustomerHeterogeneityMP#2:AllCustomersChangeManagingCustomerDynamicsMP#3:AllCompetitorsReactManagingSustainableCompetitiveAdvantageMP#4:AllResourcesAreLimitedManagingResourceTrade-OffsIntegratingtheFourFirstPrinciplesofMarketingStrategyMarkstratTakeaways6©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.BriefHistoryandofMarketingStrategyStrategyarosefromamilitarycontext:“Theforcesavailablemustbeemployedwithsuchskillthatevenintheabsenceofabsolutesuperiority,relativesuperiorityisattainedatthedecisivepoint”-KarlvonClausewitz,OnWar(1832)Managementscholarsaddedtwoelementstoapplythestrategyconcepttobusiness:theneedtomakethedifferentialadvantagesustainableandtheideathattheobjectiveofanybusinessstrategyistoenhancefirmperformance(60and70s)Marketersarguethatitmustbefromtheperspectiveofthecustomer(90s)Thus,fivekeyelementsarecriticaltomarketingstrategy:LeadstoadifferentialadvantagesovercompetitorsSustainabilityAbilitytoenhancefirmperformanceCustomerperspectiveGuidesdecisionsandactions©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.7Customer-CentricityisKeytoanEffectiveMarketingStrategyCustomerultimatelydeterminesstrategy’ssuccessorfailureTheshiftinfocusfromfirmtocustomerbyincorporatingthecustomer’sperspectiverepresentsanatural,long-termprogressioninstrategyEconomiststendtotakeanindustry-levelperspective,andmanagementscholarsadoptafirm-centricperspective,butcustomerisanevensmallerunitofanalysisHelpsexplainvariationinfirms’performancebyaddressingsmallerandsmallerunitsofanalysis©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.8Marketingstrategyconsistsofdecisionsandactionsfocusedonbuildingasustainabledifferentialadvantage,relativetocompetitors,inthemindsofcustomers,tocreatevalueforstakeholders.Example:Philips(Netherlands)Netherlands-basedtechnologycompanyOverpast125years,PhilipsinnovateditsmarketingstrategymanytimestoremaincompetitiveCompanybuildsastrongpresenceineachmarkettounderstandthelocalmarketandcustomerdesiresInnovatescontinually;created“technologyincubator”todevelopnewtechnologiesCustomer-centricviewsuccess©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.9Exercise:WhatisYourFirm’sMarketingStrategyTake5minutesandanswerthesethreequestions:Whatisyourfirmdoingtobuildarelativeadvantagevs.competitorsinthemindsofyourtargetedcustomers?________________________________________Howisyourfirmbuildingbarrierstocompetitorscopyingthisadvantagetomakeitsustainable?________________________________________Howisyourfirm“selling”thisrelativeadvantage?________________________________________10©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.DifferencesBetweenCorporateStrategyandMarketingStrategy

©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.11HROperationsR&DMarketingStrategyCorporateStrategyDecisionsandactionsfocusedonbuildingasustainabledifferentialadvantage,relativetocompetitors,inthemindsofcustomers,tocreatevalueforstakeholders.Theoverallscopeanddirectionofafirmandthewayinwhichitsvariousbusinessoperationsworktogethertoachieveparticulargoals.Bothcorporateandmarketingstrategyinfluencehumanresources,operations,andR&D.LegalTax&FinanceSales&MarketingWhyisMarketingStrategyKeytoLong-TermFinancialPerformance?Largeamountofresearchdocumentsitsimpactonfinancialperformance,butmanypeopledon’trealizethescopeofinfluencesonsalesandprofitsGrowmarketsize(newproductsandservices,lowerprices)Growshare(betterproductsandservicesthancompetition,higherloyaltytoretain,and/orstealcustomerswithacquisitionstrategies)Betterpricesandmargins(improveloyalty,brandimage,relationships,products,targetingofhighmargincustomers)Reducecosts(WOM,brand,relationships,retainwithloyalty)©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.12MarketDemand1,000,000Firm’sMarketShare10%Firm’sAverageSellingPrice$5Firm’sSalesRevenue$500,000=xxFirm’sSalesRevenue$500,000Firm’sGrossMargin20%Firm’sProfit$30,000=x-Firm’sG&AExpenses$20,000Firm’sSales&MarketingExpenses$50,000-ExampleofChainRatios:Apple(US)©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.13LaunchofApple’siPhonecatalyzedexplosivegrowthofsmartphonemarketMarketgrewfrom109millionunitsthan486millionin5yearsiPhone’smarketshareincreasedfrom3.3%to18.4%.ApplemaintainspremiumpriceYeariPhoneSalesRevenue(millions)CellPhoneMarketSizeinUnits(millions)iPhoneMarketShare(%)iPhone

UnitPrice($)2007$1,841.40=109.21x3%x$558.002008$6,749.22=126.51x9%x$591.002009$14,934.00=163.14x15%x$600.002010$28,426.00=285.23x16%x$610.002011$55,341.20=486.34x18%x$620.00AgendaOverviewCourseOverviewMarketingStrategyOverviewFirstPrinciplesofMarketingStrategyMP#1:AllCustomersDifferManagingCustomerHeterogeneityMP#2:AllCustomersChangeManagingCustomerDynamicsMP#3:AllCompetitorsReactManagingSustainableCompetitiveAdvantageMP#4:AllResourcesAreLimitedManagingResourceTrade-OffsIntegratingtheFourFirstPrinciplesofMarketingStrategyMarkstratTakeaways14©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.WhyaFirstPrinciplesApproachtoMarketingStrategy?Managersarebeingoverwhelmedwithmoreandmoreanalysistools,processes,andresearchtechniques,buthardtoknowwhentoapplyeachoneWhynotjustuse“case”examples?HardtofindacaseexampleforeverymarketingproblemOftenwhatworksfor“casefirm”willnotworkforyourfirmbecause:DifferentcustomersDifferentstageofproductorindustrylifecycleDifferentcompetitivesituationDifferentresourcesThus,akeyrequirementformakinggoodmarketingdecisionsistoidentifyunderlyingfactorsonwhichthedecisionsdepend©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.15FirstPrinciplesapproacharguesthatmarketingstrategyisthepursuitofsolutionstofourfundamentalmarketingproblemsandorganizesallframeworks,processes,andanalysestosolvetheseproblems.MarketingPrinciples:AligningKeyMarketingDecisionswiththeFirstPrinciplesofMarketingStrategy

©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.16ManagingcustomerheterogeneityAllcustomersdifferFirstPrinciplesofMarketingStrategyKeyMarketingDecisionsManagingcustomerdynamicsAllcustomerschangeManagingsustainablecompetitiveadvantageAllcompetitorsreactManagingresourcetradeoffsAllresourcesarelimitedMarketingPrinciple(#1)MarketingPrinciple(#2)MarketingPrinciple(#3)MarketingPrinciple(#4)FirstPrinciples:Thefoundationalconceptsorassumptionsonwhichatheory,system,ormethodisbased(OxfordDictionaries)AgendaOverviewCourseOverviewMarketingStrategyOverviewFirstPrinciplesofMarketingStrategyMP#1:AllCustomersDifferManagingCustomerHeterogeneityMP#2:AllCustomersChangeManagingCustomerDynamicsMP#3:AllCompetitorsReactManagingSustainableCompetitiveAdvantageMP#4:AllResourcesAreLimitedManagingResourceTrade-OffsIntegratingtheFourFirstPrinciplesofMarketingStrategyMarkstratTakeaways17©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.FirstPrinciple#1:AllCustomersDifferFormostproductsandservicescustomersvarywidelyondesires/needsOver9000mutualfundoptions,Grocerystorescarry60,000+SKUsEvenfor“commodities”(e.g.,coffee,water)Thus,firmsaretargetingsmaller&smallersegmentsMassmarketing→nichemarketing→1-to-1marketingCompetitiveraceasfirmstargetsmallersegmentsRetail(Searsvs.Eurosport),cars(ModelTvs.today)Why?Matchesinherentcustomerdesires(real,perceived)FasterresponsetocustomertrendsandchangesTechnologyenabled(moreeconomicaltotarget/customize)Onlylimitedbytradeoffinefficiency(cost)versusbenefitofbettermatchtoneed(solution)18©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.Example:Godiva(Belgium)AddressedMP#1bydevelopingdifferentproductsfordifferentconsumers3reasonspeoplebuychocolate1.Togifttoothers2.Tosharewithagroup3.ToeatbythemselvesExpandedproductlinetomeetalltheseneeds(individuallywrappedcandiesforcandydishes,fonduebasketsforsharingwithagroup,packagedcandybarsforpeopletoeatthemselves)Saleshaveincreasedbymorethan10%peryearformanyyears©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.19Input-OutputFrameworkforManagingCustomerHeterogeneityThreekeyinputstotheframeworkarerequiredtoconductsegmentation,targeting,andpositioningofpotentialcustomersThesecondandthirdinputsaresimilar,butonefocusesonthefocalcompanyandtheotherinvolvesthecompany’scompetitorsTheinputstomanagingcustomerheterogeneityentailthe3C’sofsituationanalysis:Customers,Company,andCompetitorsInturn,theframeworkgeneratesoutputs,whichthenprovidetheinputsforsubsequentFirstPrinciples©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.20MarketingPrinciple#1:AllCustomersDiffer

ManagingCustomerHeterogeneity

©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.21ManagingCustomerHeterogeneityApproaches&ProcessesSegmenting,targeting,andpositioning(STP)Perceptual/positionalmapsCustomer-centricviewAnalysesFactoranalysisClusteranalysisGEmatrixDiscriminantanalysisClassificationInputs(3Cs)Outputs(STP)AllPotentialCustomersNeedsDemographicsSize,growth,perceptionsYourCompanyStrengthsandweaknessesOpportunitiesandthreatsYourCompetitorsStrengthsandweaknessesOpportunitiesandthreatsIndustrySegmentationCustomersegmentsNeeds,demographics,andopportunityofeachsegmentTargetSegmentDetailedneeds,demographics,andvalueoftargetsegment(s)DiscriminantfunctionRelativeperceptionsPositioningStatementWho(targetsegments)Whatneeds/benefitsWhy(relativeadvantage&support)FirstPrinciple#2:AllCustomersChangeCustomer’sdesires/needsformostproductsandserviceschangeovertimeorduetospecificeventsConsumerneedschange:cars(Buick),clothes,food,financialservices,andhealthcareasconsumersageTriggerevents:marriage,kids,jobchange,finances,move,graduation,acquisition,newmanagers,legalchangesIndustries/marketschange:experiencecurve,diffusion,competitiveresponses,overproductionCustomer'sneedsvarynotonlyduetoinherentdifferencesinpeople(heterogeneity)butalsoaspeopleandmarketschange(dynamics)Thus,segmentationandtargetingneedstoaccountforlifecyclechanges/customerdynamics©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.22Input-OutputFrameworkforManagingCustomerDynamicsWhereasMP#1focusesonthemarketasawhole,MP#2narrowsthescopetothefirm’sexistingcustomers,challengingthefirmtounderstandhowitscustomerschangeovertimeTherearethreecategoriesofinputsformanagingcustomerdynamics:YourcustomersPastmarketingprogramsLostcustomersTheseinputsinturnproducethreecategoriesofoutputs:SegmentationofCustomersAERPositioningStatementsAERStrategies©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.23MarketingPrinciple#2:AllCustomersChange

ManagingCustomerDynamics

©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.24ManagingCustomerDynamicsApproaches&ProcessesLifecycleapproachDynamicsegmentationapproachAcquisition,expansion,retention(AER)modelLostcustomerapproachAnalysesCustomerlifetimevalue(CLV)HiddenMarkovmodel(HMM)ChoicemodelsFactor,cluster,discriminantanalysesInputs(CRMdata)Outputs(AER)YourCustomersIndividualcustomers’sales,margins,costsBehaviors/needsovertime/eventsPastMarketingProgramsSourceofcustomersPastprogramstargetedatspecificcustomersLostCustomersCauseofdefectionCharacteristicsoflostcustomersSegmentationofCustomersCustomerpersonasNeedsandCLVofpersonasWhyandhowtheymigrateAERPositioningStatementsHowbesttopositionthefirmineachpersona/AERstageAERStrategiesWhatmarketingstrategiesworkbestforeachpersona/AERstageFirstPrinciple#3:AllCompetitorsReactCompetitorsarealwayscopyingsuccessfulstrategiesandinnovatingnewonesOnlyonefirmremainsfromtheoriginalDow30firms(GE)GivenenoughmoneyandtimemoststrategiescanbecopiedThus,companiesneedtobuilda“barrier”tobeingcopied,givingthemtimetoadapttoinnovationbyothersThesebarriersaretermedsustainablecompetitiveadvantage(SCA)andarecriticaltolong-termsuperiorfinancialperformanceSCAsmustmeet3conditions:CustomerscareCompanydoes“it”betterthancompetitorsHardtoduplicate

©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.25“Businesshasonlytwobasicfunctions:marketingandinnovation”-DruckerSourcesofSCA:BuildingbrandsandrelationshipsAwareness,image,status,meaning,reciprocitydebtsUnconsciouspsychologicalbarriersInnovativeofferingsProducts,services,andexperience(value)Patents,tradesecrets,habits,switchingcostsCosts,scale,location,firstmoverWhatarethesecompanies’SCAs?Coca-Cola,Nordstrom,Quicken,JCPenneyWhichsourcesofSCAaregrowinginimportance?©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.26Example:GeneralElectric(US)HistoryshowsfewfirmscanmaintainaleadershippositionforeverOftheoriginalDow30companies,onlyoneremains:GeneralElectric(GE)GEhasrepositioneditselfduringmultipledrastic,company-wideinitiativestostaycompetitiveFrom1929-2013,theDowJonestopfirmswerereplaced56timesduetotheirfailuretorespondtomarketchangesandcompetitivethreats©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.27Input-OutputFrameworkforManagingSustainableCompetitiveAdvantageMP#3buildsandmaintainsstrongbarrierstowithstandcompetitiveattacksThreemaininputsforSCAframework:PositioningStatementsAERStrategiesFutureTrendsThisleadstotwooutputsforSCA:SCAsBORStrategiesBOR(Brand-Offering-Relationship)equitiescombineintocustomerequity©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.28MarketingPrinciple#3:AllCompetitorsReact

ManagingSustainableCompetitiveAdvantage

©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.29ManagingSustainableCompetitiveAdvantageApproaches&ProcessesSCABrand,offering,relationshipequitystackAERstrategyandBORequitygridsBrandandrelationshipmgt.InnovationprocessesAnalysesFieldexperimentsConjointanalysisMultivariateregressionChoicemodelsInputs(MP#1&MP#2)Outputs(SCA,BOR)PositioningStatementsTarget(externalcustomers)AER(internalpersonas)AERStrategiesWhatstrategiesworkbestforeachpersona/AERstageFutureTrendsTechnologytrendsRegulatorytrendsSocioeconomictrendsSCAsExistingSCAs,whyyouwinnowFutureSCAs,howyouwillwininfutureBORStrategiesBrandstrategiesOffering/innovationstrategiesRelationshipmarketingstrategiesFirstPrinciple#4:AllResourcesAreLimitedMostmarketingdecisionsrequiretradeoffsacrossmultipleobjectiveswhereresourcesareconstrainedandofteninterdependentAdvertisingvs.salespeoplevs.discountsvs.channelco-opsvs.R&Dvs.onlineMany“messages”aremutuallyexclusive(highstatusandlowprice)or(highperformanceandeconomical)Short-termvs.long-termtradeoffsThus,needtobalancemarketingresourcesacross:Customers(STP)Acquisition,Expansion,andRetentionstages(AER)Brand,Offering,Relationships(BOR)Marketingmixelements(4to7Ps)©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.30Input-OutputFrameworkforManagingResourceTrade-OffsTherearethreemaininputstotheframeworkformanagingresourcetrade-offs:PositioningstatementsAERstrategiesBORstrategiesTherearetwomainoutputsfromtheframeworkformanagingresourcetrade-offs:MarketingmetricsPlansandbudgetsAsmarketsegmentschange,duetochangesincustomersorthecompetitivelandscape,themetricsandresourceallocationdecisionsneedtobeadaptedcontinuallytoo©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.31MarketingPrinciple#4:AllResourcesAreLimited

ManagingResourceTrade-Offs

©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.32ManagingResourceTrade-OffsApproaches&ProcessesHeuristicapproachAttributionapproachAnalysesAnchoring-adjustmentsResponsemodelsExperimentalmodelsInputs(MPs1,2,&3)PositioningStatementsWho,what,andwhy,overallandforeachpersona,acrossAERstagesAERStrategiesWhatstrategiesworkbestforeachpersonaacrossAERstagesBORStrategiesBrandOffering/innovationRelationshipmarketingPlansandBudgetsBudgetsizeBudgetallocationTimehorizonMarketingMetricsMarketingmetricsFinancialmetricsOutputs(Metrics&Plans)AgendaOverviewCourseOverviewMarketingStrategyOverviewFirstPrinciplesofMarketingStrategyMP#1:AllCustomersDifferManagingCustomerHeterogeneityMP#2:AllCustomersChangeManagingCustomerDynamicsMP#3:AllCompetitorsReactManagingSustainableCompetitiveAdvantageMP#4:AllResourcesAreLimitedManagingResourceTrade-OffsIntegratingtheFourFirstPrinciplesofMarketingStrategyMarkstratTakeaways33©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.NaturalTemporalOrderingoftheFirstPrinciplesofMarketingStrategyThesolutiontothefourprinciplesishierarchical:SolvingsomeprinciplesrequiresknowledgeofthesolutiontootherprinciplesAfirmshouldembracethenotionthatthesesolutionsmustaddressbothstaticanddynamicheterogeneitySustainableofferingsthatstandthetestoftimerequirearecognitionthatthefirmcannotsolvealltheFirstPrinciplessimultaneously,becauseoftheircomplexandinterrelatednature.Instead,firmsneedaniterativeapproachtointegratetheprinciples©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.34IntegratingtheFirstPrinciplesofMarketing

©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.35ManagingSustainableCompetitiveAdvantageSCAsBORequitystackBrand/relationshipmgt.InnovationprocessesConjoint/choicemodelsManagingResourceTrade-OffsHeuristicapproachAttributionapproachResponsemodelsExperimentalmodelsAERpositioningandstrategiesBORmarketingstrategiesManagingCustomerDynamicsLifecyclesAERbathtubsLostcustomerCLVanalysis

ManagingCustomerHeterogeneitySTPPerceptualmapsCustomercentricityClusteranalysisSCAsnowandinthefuturePlans,budgets,andmetricsPositioningstatementAllCustomersDifferAllCompetitorsReactAllCustomersChangeAllResourcesAreLimitedMP#1MP#3MP#2MP#4HistoricalMarketingFrameworkIsitWorthit?DoesMarketingMatter?TheBottomLine:MarketingandFirmPerformanceImprovesstockpriceandreducescashflowneedsCustomersatisfactiondrivesstockprice(highvs.low,3xhigherstockpricein10years),butcustomercomplaintsmattermoreMarketingcapabilitieslargerimpactthanR&Doroperationalcapabilitiessince“lessvulnerabletocompetitivethreat”Brands,innovation,andrelationshipsalldrivefinancialperformanceMarketingisespeciallykeyforIPOsuccessTheNewIntelligentEnterprise(executivesfrom3000leadingfirms,notmarketers)Top5issues:innovating,growingrevenue,reducingcosts,profitablyacquiringandretainingcustomers,fasterandmoreadaptableHighperformers3xmorelikelytouse“bigdata”andanalyticsShortageinmanagersthatusedataandanalysistosolvebusinessproblemsHighperformersstoredatacentrallybutdistributesuseandanalysis©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.36AgendaOverviewCourseOverviewMarketingStrategyOverviewFirstPrinciplesofMarketingStrategyMP#1:AllCustomersDifferManagingCustomerHeterogeneityMP#2:AllCustomersChangeManagingCustomerDynamicsMP#3:AllCompetitorsReactManagingSustainableCompetitiveAdvantageMP#4:AllResourcesAreLimitedManagingResourceTrade-OffsIntegratingtheFourFirstPrinciplesofMarketingStrategyMarkstratTakeaways37©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.MarkstratSimulationMarkstratsimulationsoftwareisaninteractivelearningtoolthatrequiresreal-timedecisionsItcanbeusedtounderstandthefourFirstPrinciplesofmarketingstrategyandhowtheyfittogetherThedecisionsthateachteammakesmapontothefourFirstPrinciplesofmarketingstrategy,relatedtomanyofthetoolsandanalysesdescribedhereinInadditiontoparticipatinginasimulatedenvironmentthatencompassesmanyaspectsofthefourFirstPrinciplesofmarketingstrategy,thesoftwareoffersarangeofreportsandanalysistoolsConjointSurveysExperiments©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.38Markstrat:AToolforPracticingtheFirstPrincipleApproachtoMarketingStrategy

©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.39MP#1:Targetproductstomeettheneedsofdifferentcustomersegmentsandmanagecustomerheterogeneity.MP#2:Adjuststrategiesovertimetoadapttochangingcustomerneeds.MP#3:Introducenewproductstocreateasustainablecompetitiveadvantage(SCA)asabarriertootherteamsattackingyourposition.MP#4:Managelimitedresourcesbymakingresourcetrade-offsamongmarketingmixcategoriesandbrands.HighperformanceLowpriceAdvertisingR&DSalesAdvertisingR&DSalesHighpriceLowperformanceHighperformanceLowpriceHighpriceLowperformanceHighEarnersSaversShoppersSaversPossibleDesignCharacteristicsProductBProductALowpriceSmalldisplayFastprocessorModerndesignProductDesignsMarkStratSuccessDependsonApplyingFirstPrinciplesofMarketingManagingcustomerheterogeneity(STP)SegmentationisdoneinSonites,whileVoditesisjustdevelopingYoumustpicktargetsegment(s)Youmustpositionproducts(advertising,channels,andR&D)ManagingcustomersdynamicsCustomersegment“needs”changeeveryweek(year)Managingsustainablecompetitiveadvantage(BOR)Youseecompetitors’actionsandtheywillreacttoyouractionsBuildSCAwithbrands,productinnovation,andsalespeople/channels(targetingandpositioning)ManagingresourcesYoumustmaketradeoffsacrosssegmentsandproductsYoumustmakespendingtradeoffsacrossmarketingmix©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.40EachFirmCanCompeteinTwoProductCategoriesYoucanmarketupto5brandsineachcategoryatagiventimeIndependentNotsubstitutesNotcomplementsSonitesVodites©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.41SonitesAreAlreadyBeingMarketed,EachisCharacterizedby6AttributesNumberofFeatures

10–20DesignIndex3–10BatteryLife24–96Hours(H)DisplaySize

4–40Inches(“)ProcessingPower5–100Gigaflops(Gflops)BaseCostMinimum$10$©Palmatier,2017,MarketingStrategy,Palgrave.ISBN:9781137526236.42Resolution20–100lines/mmEnergyEfficiency10–100biocomputations/WhCarbonFootprint5–50KgConnectivity

Index3–10NumberofApps5–100BaseCostMinimum$10VoditesAreinaNewMarketandHaveNoSales$©Palmatier,2017,MarketingS