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29 Cards in this Set
- Front
- Back
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What is strategy?
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Present and Planned Objectives
Planned Resource Deployments Planned Interaction with Market, Competitors and Environment? |
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What are the components of Strategy?
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1. Scope (industries, Segments, Product Lines)
2. Goals (Measurable) 3. Resource Deployments (Budgets, what to use) 4. Identification of Advantage (How to complete) 5. Synergy |
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What are the three levels of strategy?
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1. Corporate
2. Business 3. Operational (of which marketing is one) |
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What is corporate strategy?
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Scope of which business to compete in, and how to allocate resource between those businesses. includes weighing the relative attractiveness of different markets.
What business are we in? |
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What is Business strategy?
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How do we compete within a business? How is sustainable competitive advantage built? What is our scope (segments) within this market?
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What is marketing strategy?
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Marketting is intrinsic to Corp and Business level strategy - but at the operational level marketting strategy is about how to appeal to the segments chose in busienss strategy using the 4 Ps (product, price, placement, and promotion)
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What are the 4 Ps?
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product
price placement promotion |
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What are the options for Corporate growth?
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1. Existing Products/Markets: Market Penetration (Increase market share, increase market size, increase usage)
2. Existing Products/New Markets: Market Development (Geographic, new segments) 3. New Product/Existing market: Product Development: (product lines, new product same market) 4. New Market/Products: Diversification Strategies (Vertical/Forward/backward integration, related industries, unrelated industries) |
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What options are there for analysing portfolios of markets/business?
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1. GE Matrix
2. BCG |
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What is the GE matrix?
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3x3 matrix showing competitive position of business vs attractiveness of market. Each item is pie chart showing size of market vs GE's share in market. Shows invest/divest at top-left and bottom right corners.
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What is the BCG matrix?
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Shows market share vs. market growth rate.
Broken into Stars Cash Cows Dogs Question Marks |
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What are the positioning approach within a market?
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Porter 4 generic stratetic
1. Differentiator 2. Low Cost provider 3. Focused Differentiator (By cost or value) Miles & Snow * Prospector - Growth in new markets * Defender - Fortress and defend existing markets * Analyser - Maintain where existing and expand where oppurtunity based on data * Reactor - No strategy, respond to market |
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What are the 7 domains to test market attractiveness
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Start with two by two matrix. Axes are:
* Market and Industry * Macro and Micro * Macro Market - Market Attractiveness * Macro Industry - Industry Attractiveness * Micro Market - Target Segment Benefits and Attractivenss * Micro Industry - Can we have Sustainable Advantage in industry? IN centre is pie in 3 pieces: * Alignment with company strategy (mission/values) * Company Ability to execute (Crucial Success Factors) * Relationships with supply chain |
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How do you measure industry attractiveness
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Porters 5 Forces
* Competitors (Rivalry() * Customer Buying Power * Suppliers Buying Power * Threat of Substitutes * Threat of new Entrants |
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How do you measure market attractivenss?
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PESTLE and use forecasting techniauqes
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How can you forecast market growth/attractiveness?
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Statistical methods - Derive from known data (lots of assumption)
Observation - Go out and directly measure Surveys - Ask Analogy - Compare to similiar areas Judgment - Guess Market tests - Controlled area (risky, costly) |
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How to test target market benefits and attractiveness?
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Ensure "CUSSing"
Clarity - On target market and needs Unique customer value - Gives benefit others don't Sustaining target - Market is big enough to sustain Scalability - Has oppurtunity to move into new markets |
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How to determine micro-level industry fit? Do we have sustainable advantage?
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Resource Based View of Firm. Looks for unique trade-offs that competitors can't follow as from Porter.
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What are the elemetns of internal company amtch to oppurtunity?
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* Fit to Mission/Aspirations/Risk
* Fit to organisational resources and competencies * Have right relationships and networks to execute |
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What is segmentaiton? Why do it?
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breaking market up into groups of consumers.
Done to provide focus, target resources, and avoid middle-of-the-road trap |
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How to segment
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Generally based on occasion of use/needs-based
Can also be: * Geographic * Psychographic * Beahvioural * Demographics |
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How to choose which segments to target?
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Plot each on graph. One axix shows segment potential across industry, other shows company ability to compete in the segment. Target top-left, divest bottom right.
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What are three common segmentation marketting strategies
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* Niche - Own a corner
* Mass - Grab the volume/market-share * Growth - Aim for high-growth areas |
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What is a brand and brand equity?
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A protect able and distinctive sign that distinguished your product in the eyes of consumers?
Brand equity is the preference consumers have to purchase a product wearing your brand. |
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What are some strategies for entering new markets:
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* Innovate in completely new spaces
* Create new procuts/makrtes * Follow other into newly created markets * explore new markets for existing products |
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What options are there for entering foreign markets
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In order of increasing control, profit share, investment required, and risk:
* Export * Find Distributor * Strategic Alliance * Joint Venture * Direct Investment |
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When is is best to be a pioneer
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* Have cash and capabilities to innovate and stay on top
* Can stomach risk of new market (Or have no options) * Clear advatange over competitors who may enter * Market gives advantage to first mover (set standard) * Technical knowledge or production economies of scale can crowd out later entrants |
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What are the major phases of markets and the generic strategies for each phase?
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* Introduction
** Pioneer ** Follower * Growth ** Standard 2x2+1 Model (New Product x New Market) + Vertical Integration ** Leapfrog (Completely new product, jump a generation ** Flanking (Underserved markets, e.g. underarmount and college sports) ** Frontal (Only for big guns) ** Encirclement (Grab all the outlying markets/towns) * Maturity ** Defensive ** Offensive *** Grow Usage *** Price War *** Use cash cow to find new markets * Declining ** Start by Selective Focus (Reduce market size( ** Move to Harvest Price (Squeeze last $s out) ** Divest ** Look for niches that will last long last end of market |
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What metrics could be attached to a marketting plan?
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Customer awareness
Customer interest Product trial Customer satisfaction Perceptions of product quality Perceptions of service quality Customer value |
