Marketing Strategy

Rock1027

SunTzusFiveThingsRule1Session1-2Fall2018.pdf

Home >Business & Finance homework help >Marketing homework help >Marketing Strategy

MARKETING STRATEGY SESSION 1-2 with Dr. Brent Smith

AGENDA

¢ Course Overview

¢ Dr. Smith’s Marketing Essentials � Orientations to the Marketplace � Rule #1 � Five Creatures Lesson

¢ Resource Based View

¢ Sun Tzu’s Five Things

¢ Market Share

Sessio n 1-2

pyright D r. B

rent Sm ith -A

ll R ights R

eserved.

ABOUT DR. SMITH PROFESSOR OF MARKETING

S e

ssio n

1-2 ©

C o

p yrig

h t D

r. B re

n t S

m ith

- A

ll R ig

h ts R

e se

rv e

d .

¢ Research & Teaching

� Marketing Strategy

� International Marketing

� Marketing Analytics

� Cross-Cultural Relationships

� Marketing Ethics

� Business Education

¢ International Retailing

¢ Sales and Sales Management

¢ Personal Values (Cultural and Ethical)

¢ Lonely Consumers

¢ Fear of Missing Out

Academic Interests Topics of Interest

MARKETING STRATEGY COURSE OVERVIEW

¢ Format � Lecture

¢ Some key points presented + some key questions asked to class ¢ Assumption that students have reviewed material in advance

� Participation via discussion (20% of grade) ¢ Driven by students ¢ Quality contributions very important ¢ Post links to articles and videos relevant to class concepts ¢ Volunteer to present relevant news article or opinion at start of class

� Homework (3) (30% of grade) ¢ Presented and completed online via course website ¢ Reflection of ability to apply concepts

� Examinations (1) (50% of grade) ¢ Completed online within Blackboard ¢ Objective questions, essays, and challenge questions ¢ Evaluation of ability to demonstrate comprehension of key concepts ¢ NB: “Open canvas” approach

Sessio n 1-2

pyright D r. B

rent Sm ith -A

ll R ights R

eserved.

TIPS FOR SUCCESS IN THIS COURSE

S e

s s io

n 1-2

o p

y rig

h t D

r. B re

n t S

m it

h -

A ll R

ig h

t s R

e s e

rv e

d .

¢ Come to class prepared.

Catching up is not a winning plan.

¢ Need help or clarification?

Ask questions right away.

¢ Aim to ask quality questions.

“I understand __, but not ___.”

¢ Make quality comments in class.

� Do not stay quiet.

� Do not repeat others’ answers.

� Do not regurgitate question into a

clever answer.

� Do link topic(s) to issue(s).

� Do connect content to current

events and personal experience.

¢ Maintain regular reading habits

� Assigned readings

� Other sources

¢ BBC, CNN, …

¢ Be organized (esp. for exams)

� Appropriate headings

� Thesis, details, conclusion

� Clear “So what?” statements

� Linkage of topic(s) to issue(s)

DR. SMITH’S MARKETING ESSENTIALS

Sessio n 1-2

pyright D r. B

rent Sm ith -A

ll R ights R

eserved.

¢ Paradigm

¢ Marketing mix

¢ Dimensions of business environment

¢ Value

¢ Value proposition

¢ Competency

¢ Competitive advantage

¢ Sustainable competitive advantage

DR. SMITH’S MARKETING ESSENTIALS

S e

ssio n

1-2 ©

C o

p y

rig h

t D r. B

re n

t S m

ith -

A ll R

ig h

ts R e

se rv

e d

¢ Paradigm

¢ Marketing mix

¢ Orientations to marketplace

¢ Dimensions of business environment

¢ Value

¢ Value proposition

¢ Competency

¢ Competitive advantage

¢ Sustainable competitive advantage

¢ Way of thinking.

¢ 4Ps: Inputs that marketers determine.

¢ Application of marketing mix.

¢ Economic; competitive; sociocultural; technological; political/legal/regulatory These forces affect – enable and disable – industry (players).

¢ What something is worth to someone.

¢ Essence of market offering (Why buy X?)

¢ What firm does/has well.

¢ What firm does/has better than rivals.

¢ Competitive advantages that are durable and relatively inimitable.

YIN AND YANG

Sessio n 1-2

pyright D r. B

rent Sm ith -A

ll R ights R

eserved.

Useful concepts

¢ Factors

¢ Forces

¢ Leading / Following

¢ Prompting / Responding

¢ Initiating / Imitating

¢ Competing / Cooperating

DR. SMITH’S ORIENTATIONS TO THE MARKETPLACE MAKING SENSE OF 4PS (1960S) AND 4CS (1990S)

Company Orientation (4 Ps) Consumer Orientation (4Cs)

¢ How companies view the market.

¢ How companies want to do things.

¢ How companies set agenda/priorities.

¢ Product (representation)

¢ Price (revenue)

¢ Promotion (engagement)

¢ Place of Distribution (efficiency)

¢ How consumers view the market.

¢ How consumers want things done.

¢ How consumers set agenda/priorities.

¢ Customer (representation)

¢ Cost (value/risk)

¢ Communication (relationship)

¢ Convenience (utility)

Session 1-2 ©

ith -A ll R

ights R eserved.

ORIENTATIONS TO THE MARKETPLACE

¢ SIVA (1990s / 2000s) � An alternative approach to developing corporate agenda/priorities

pyright D r. B

rent Sm ith -A

ll R ights R

eserved.

Solution → Product → Customer

Information → Promotion → Communication

Value → Price → Cost

Access → Place → Convenience

Sessio n 1-2

UNDERSTAND INDUSTRY AND MARKET(S)

¢ Strategists must understand orientations to the marketplace (4Ps, 4Cs, SIVA)

¢ Additionally, they should also understand how basic value can be defined,

operationalized, and differentiated.

¢ Utility provides one basis for creating basic value for end customers

� Place utility

Ex: Location, retail channel (e.g., website, kiosk, supermarket),…

� Time utility

Ex: Hour, season, moment, duration of order fulfillment,…

� Form utility

Ex: Product design, features, method of service engagement,…

� Information utility

Ex: Source, message, emotional/rational cues,…

� Experiential utility

Ex: Satisfaction, delight, community, pride,…

S e

s s io

n 1

-2

o p

y r ig

h t D

r . B

r e

n t S

m it

h -

A ll R

ig h

t s R

e s e

r v

e d

DR. SMITH’S RULE #1 AN ESSENTIAL AUDIT

Never make it difficult for the customer

a) … to buy the product

b) … to understand the product

c) … to use the product

d) … to recommend the product

e) … et cetera

Questions

¢ Have you observed any (un)successful applications of this rule?

¢ Based on your experiences, in what situations/places should this rule be applied?

Sessio n 1-2

pyright D r. B

rent Sm ith -A

ll R ights R

eserved.

DR. SMITH’S FIVE CREATURES LESSON (SMITH, 2010) AN APPLICATION OF YIN AND YANG

pyright D r. B

rent Sm ith -A

ll R ights R

eserved.

“Every morning in Africa, a gazelle wakes up, it knows it must outrun the fastest lion or it will be killed. Every morning in Africa, a lion wakes up. It knows it must run faster than the slowest gazelle, or it will starve. It doesn't matter whether you're the lion or a gazelle-when the sun comes up, you'd better be running.”

-- Christopher McDougal

Sessio n 1-2

DR. SMITH’S FIVE CREATURES LESSON (SMITH, 2010) AN APPLICATION OF YIN AND YANG

¢ Gazelle

¢ Lion

¢ Hyena

¢ Vulture

¢ Worm

¢ What do you see?

¢ How does it work?

¢ What can you learn from it?

p yright D

r. B rent Sm

ith -A ll R

ights R eserved.

The Cast The Questions

-- Christopher McDougal

Sessio n 1-2

DR. SMITH’S FIVE CREATURES LESSON (SMITH, 2010) AN APPLICATION OF YIN AND YANG

o p

yrig h

t D r. B

ren t Sm

ith -A

ll R ig

h ts R

eserved .

1. Gazelle

2. Lion

3. Hyena

4. Vulture

5. Worm

1. Target Market (Gourmet Coffee)

2. Early Mover (Starbucks)

3. Early Mover (Dunkin Donuts)

4. Late Mover (Independent Café)

5. Late Mover (Vending Machine)

The Creatures The Industry Analogs

Sessio n

1-2

DR. SMITH’S FIVE CREATURES LESSON (SMITH, 2010) INSIGHTS AND APPLICATIONS RE: COMPETITION

¢ Many paradigms (e.g., military, game, or sport metaphors) inform our conventional ideas about how industry and competition should work.

Re: Five Creatures Lesson ¢ Some industries develop systems for success, defined differentially:

� by sequence of participant engagement � by roles and rules for engagement

¢ Perceived strengths can become weaknesses and vice versa ¢ Thus, opportunities and threats can vary as a function of strengths (weaknesses)

Re: Competition ¢ Vital to an industry’s health ¢ Should not necessarily drive rivals to destroy one another ¢ Can allow for rivals to cooperate and thrive together

� common goals � differentiated approaches � exploitation of different resource bases and sensibilities

pyright D r. B

rent Sm ith -A

ll R ights R

eserved. Sessio

n 1-2

SUN TZU AND DR. SMITH

¢ _______________________

Therefore measure in terms of five things. Use these assessments to make comparisons and thus find out what the conditions are. Having determined this, only then should you mobilize your forces.

• Way • Weather • Terrain • Leadership • Discipline

This paradigm can serve as a complement to: Porter’s Five Forces Model of Industry Attractiveness and SWOT Analysis.

Sessio n 1-2

pyright D r. B

rent Sm ith -A

ll R ights R

eserved.

Sun Tzu Dr. Smith’s Analogs

MARKET SHARE ¢ Share of a market can be expressed in terms of units or revenues. Relative share

reflects how one company’s share compares to another company share. Typically,

the share of the largest competitor is used as the basis or denominator for

calculating relative share (Below: Relative share for Company B = 9/32 or 25/89.

S e

s s io

n 1

- 2

o p

y r ig

h t D

r . B

r e

n t S

m it

h -

A ll R

ig h

t s R

e s e

r v

e d

Company Unit Sold Mkt Shr Rel Mkt Shr Revenue Mkt Shr Rel Mkt Shr A 89 32% 100% 400 30% 90%

B 25 9% 28% 112 8% 25%

C 66 24% 74% 320 24% 72%

D 87 31% 98% 445 34% 100%

E 12 4% 13% 50 4% 11%

Total 279 100% 1327 100% Average 55.80 265.40

Concentration 3-Firm 87% 88%

4-Firm 96% 96%

ATTN: STATE CLEARLY WHETHER SHARE IS BASED ON UNITS SOLD OR REVENUES.