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1、2. Strategy Basics,Saatchi projecting and directing the larger military movements and operations of a campaign Generalship or the art of conducting a campaign; artifice or finesse generally,Tactics: The science or art of maneuvering in presence of the enemy; purposeful procedure,Definitions: Tactics

2、,Strategy differs materially from tactics; the latter belonging only to the mechanical movement of bodies set in motion by the former,Whats the difference?,Shang chang ru zhan chang,Marketing as Warfare,The 36 Strategies,Not a new idea in China,Bing Fa: Sun Tzu Tei Wang Gung Wu Tzu Sun Bin (And a co

3、uple of hundred others),Not a new idea in China,Know when to fight, and when not to Obtain the wholehearted support of your troops Be prepared to seize favourable opportunities Free yourself from interference by superiors When the time is right, act decisively and swiftly,Sun Tzu: Five Essential Com

4、ponents of Victory,Some Chinese Ideas on Strategy,The highest form of victory is to conquer by strategy The opportunity for victory is provided by the enemy Basic elements combine into unique strategies Keep plans as dark as night, move like a thunderbolt Attack when (& where) the enemy is least pre

5、pared,Sun Tzu:,Some Chinese Ideas on Strategy,Know yourself, Know your enemy. 100 battles, 100 victories,Sun Tzu:,Some Chinese Ideas on Strategy,Strategy starts with a Map,The strategic process consists of: Defining where we are Identifying where we could go Selecting where we want to go Identifying

6、 how to get there Maps help show this simply, and point the way Getting the map right is a great start You can map anything,Strategy starts with a Map,Great brands are slanted in the minds of consumers Giving them unique territory to own advertising helps create enduring advantages for brands,Positi

7、oning is Strategy,The Business Model,An Umbrella or Tent broad enough to cover everything the company wants to do Too often a wish list Based on me-too?thinking,Tactics,Tactics,Strategy,Top Down,Tactics,Strategy,The Military Model,Much more hard-nosed Based on what is likely to succeed Core elements

8、: surprise / focussed force,Strategy,Bottom Up,After Michael Porter,STRATEGIC ADVANTAGE,Cost / Productivity Leadership,Focus / Niche Leadership,Product / Service Leadership,Low Cost Position,Particular Segment(s) Only,Market-wide,Uniqueness Perceived by Customer,Three Generic Business Strategies,PRO

9、-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Cha

10、llenger or Follower,Competition Avoider,Market Expansion Share Protection Pre-emptive Action,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Market Expansion

11、Share Protection Pre-emptive Action,Cover / block competitive moves,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Market Expansion Share Protection Pre-empt

12、ive Action,Head to Head Flanking Strategies Encirclement,Cover / block competitive moves,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Market Expansion Shar

13、e Protection Pre-emptive Action,Head to Head Flanking Strategies Encirclement,Cover / block competitive moves,Follow the leader,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Service Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Co

14、mpetition Avoider,Market Expansion Share Protection Pre-emptive Action,Head to Head Flanking Strategies Encirclement,Market Niche By-Pass Competition,Cover / block competitive moves,Follow the leader,Strategies for Competitive Advantage,PRO-ACTIVE STRATEGIES,Focus / Niche Leadership,Product / Servic

15、e Leadership,Market Leader,REACTIVE STRATEGIES,Challenger or Follower,Competition Avoider,Market Expansion Share Protection Pre-emptive Action,Head to Head Flanking Strategies Encirclement,Market Niche By-Pass Competition,Cover / block competitive moves,Follow the leader,Maintain Status Quo,Strategi

16、es for Competitive Advantage,Leader,Strategies versus the Leader,Competitor,Leader,Strategies versus the Leader,Competitor,Head to Head,Leader,Strategies versus the Leader,Competitor,Head to Head,By-Pass,Leader,Flanking,Strategies versus the Leader,Competitor,Head to Head,By-Pass,Leader,Encircling,S

17、trategies versus the Leader,Competitor,Head to Head,Flanking,By-Pass,Leader,Niching,Strategies versus the Leader,Competitor,Head to Head,Flanking,Encircling,Sources of Volume Sales,Current Uses,Current Users,Current Brand Franchise,Current users, New Uses,New Users, New Uses,How to Grow a Brand,New

18、Users,New Uses,New users, Current Uses,Sources of Volume Sales,Current Uses,Current Users,Current Brand Franchise,Current users, New Uses,New Users, New Uses,How to Grow a Brand,New Users,New Uses,New users, Current Uses,Category Users: less than 50% of potential Brand Users: less than 50%,TARGET,So

19、urces of Volume Sales,Current Uses,Current Users,Current Brand Franchise,Current users, New Uses,New Users, New Uses,How to Grow a Brand,New Users,New Uses,New users, Current Uses,TARGET,Category Users: At or near peak potential Brand Users: more than 50%,Sources of Volume Sales,Current Uses,Current

20、 Users,Current Brand Franchise,Current users, New Uses,New Users, New Uses,How to Grow a Brand,New Users,New Uses,New users, Current Uses,An Impossible Task: Cant go diagonally! Unless theres a major breakthrough in the brand In which case, it should be a new brand,Brand Loyalty & Usage Rate,Loyalty

21、,Indifference,Light usage,Heavy usage,Brand Loyal, Light users,Brand Loyal, Heavy users,Brand Indifferent, Light users,Brand Indifferent, Heavy users,Strategies Built on Brand Behaviour,Brand Loyalty & Usage Rate,Loyalty,Indifference,Light usage,Heavy usage,Brand Loyal, Light users,Brand Loyal, Heav

22、y users,Brand Indifferent, Light users,Brand Indifferent, Heavy users,Strategies Built on Brand Behaviour,Usage extensions: new ways to use product,Brand Loyalty & Usage Rate,Loyalty,Indifference,Light usage,Heavy usage,Brand Loyal, Light users,Brand Loyal, Heavy users,Brand Indifferent, Light users

23、,Brand Indifferent, Heavy users,Strategies Built on Brand Behaviour,Strong comparative approach to switch /defend,Usage extensions: new ways to use product,Brand Loyalty & Usage Rate,Loyalty,Indifference,Light usage,Heavy usage,Brand Loyal, Light users,Brand Loyal, Heavy users,Brand Indifferent, Light users,Brand Indifferent, Heavy users,Strategies Built on Brand Behaviour,Usage extensions: new ways to use product,Seek salient advantage, if segment is large enough,Strong comparative approach to switch/defend,Brand Loyalty

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