lecture 7.11 msap
TRANSCRIPT
-
8/6/2019 Lecture 7.11 MSAP
1/38
Starting Soon
ar e ng ra egy
And Planning.
Seminar 7
John Hendrickson1School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
2/38
Jaworski, Kohli and Sahay (2000) MarketDriven Vs Driving Markets Journal of theAcademy of marketing Science, V28, pp 45
54.
John Hendrickson2School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
3/38
Being market driven is good
Learn about market developments and adapt yourofferings
Enhance customer value within the constraints of theexisting market structure and the behaviour of theexisting market players
Learn understand and res ond to the erce tions andbehaviours of all the players in the market
market regulators (if any) as the market evolves overtime
John Hendrickson3School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
4/38
Driving the market is better
Either changing the composition and / or roles of theplayers in the market
r c ang ng t e e av ours o t e p ayers n t e mar etOr doing both
It is a matter of degree, dependent upon how many
changes you make, and their magnitudeBeing first with the idea is not important, but making aquantum impact on market behaviour is.
o a ora on w o er p ayers can e more e ec vethan solo strategies
e purpose s o mprove cus omer va ue an or eperformance of the organisation
John Hendrickson4School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
5/38
A combination of driving the marketand being
e.g. the dual strategy of simultaneously protecting acash generating business based on old technology;
while building a new line of business with newtechnology
John Hendrickson5School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
6/38
Driving markets is about identifying causes, not just .
O erational
EffectivenessEffect
StrategyCause
Marketing PlanningCompetitor ConsumerBehaviour Behavior
John Hendrickson6School of Marketing
Hendrickson (2007)
-
8/6/2019 Lecture 7.11 MSAP
7/38
Driving the market by changing the players..
1. Deconstruction eliminating players in the industryvalue chain
The purpose is usually to improve delivered value tothe customer and / or do it at a lower cost.
(remember Porter on Operational Effectiveness in L3?)
e. . Dell com uters eliminated their retail channel andchanged the behaviour of customers, who wereprepared to trade off in store service for lower prices
e.g. Shell Australia eliminated their franchisees 1993 to1995 in order to set u their retail business for eventualsale to Coles Myer
John Hendrickson7School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
8/38
Driving the market by changing the players..
1. Deconstruction continued
You can eliminate com etitors or su liers in our
markets by joint ventures, hostile takeovers,partnerships, mergers, and acquisitions.
e.g. Price waterhouse and Coopers Lybrand merged.BP took over Amoco. Ampol took over Golden Fleece,then Caltex took over Ampol.
Microsoft took over Visio and added it to the Officesuite of programs.otoro a purc ase reesca e t en woun t up.
John Hendrickson8School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
9/38
Driving the market by changing the players..
2. Construction building a new or modified set ofplayers.
e.g. Shell encouraged Woolworths to enter the petrolmarket so that Coles had to follow, then Shell enabledColes to enter the market, but at a premium price.
This enabled Shell to im lement their strate ofretreating to the refinery gate and concentrating onbecoming the lowest cost producer in a mature market.
This was a strategy of de-integration, see Harrigan andPorter L6.
John Hendrickson9School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
10/38
Driving the market by changing the players..
3. Functional modification changing the functionsperformed by players in the market.
Forward or backward integration of individual firms orgroups of firms.
A group de-integrating their manufacturing processes
and then erformin s ecialised manufacture for eachother at lower costs.
to integrated supply logistics management, fromsu lier to lineside in se uence ust in time.
John Hendrickson10School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
11/38
Driving the market by shaping player behaviour
This involves proactively changing how players in themarket behave.
Markets can be shaped when needs are either obviousor latent.
Latent needs are not obvious to less perceptive players
or to customers. This ives us an o ortunit tosurprise our competitors and delight our customers.
latent, because consumers are unable to articulate whatthe need.
John Hendrickson11School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
12/38
Shaping player behaviour directly
Build customer constraintse.g. IKEA control customer movement in store
Remove customer constraintse.g. e-bay
Build competitor constraints
e. . De Beers now controls the world diamond marketRemove competitor constraints
vs Optus/Elders in rural broadband servicesmarket
John Hendrickson12School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
13/38
Shaping player behaviour indirectly
Create new customer preferencese.g. e a m o crea e a new mar e w cMicrosoft then addressed in collaboration with HP.
Reverse existing customer preferencese.g. the Body Shop shifted focus from glamour to
ea t y v ng
Create new competitor preferencese.g. you could publicly state your strong intention todominate a declining market, thereby encouraging your
competitors to exit gracefully.(see Harrigan and Porter)
Reverse existing competitor preferencese.g. Coles every day low prices made Woolworthsabandon the fresh food people slogan and join them
John Hendrickson13School of Marketing
for a while. (They have changed back now)
-
8/6/2019 Lecture 7.11 MSAP
14/38
Do you have to be big to drive your market?
Big firms have resources and a strong brand. Thatprobably helps.
Small firms like start ups have no pre conceived notionof what works in the market so presumably would bewilling to try something different, and they dont have to
worry about the impact on their existing industryinvestments, because they dont have any.
John Hendrickson14School of Marketing
D i i k t i b l d h t
-
8/6/2019 Lecture 7.11 MSAP
15/38
Driving markets requires a balanced approach to
right brainGame Theory
analysis
creativityGame Theory
control
improviseGame Theory
proactivereactive Game Theory
EmergentPlanned Game Theory
John Hendrickson15School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
16/38
Intermission
John Hendrickson16School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
17/38
A marketing planning process
John Hendrickson17School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
18/38
Wood Chapter 7. Outcomes:
John Hendrickson18School of Marketing
But first let us revise the concepts of
-
8/6/2019 Lecture 7.11 MSAP
19/38
But first, let us revise the concepts of
Marketing is about positioning yourself as oneof the parties involved in an exchange, with theo ect ve o creat ng va ue or ot part es
The conce t of value varies accordin to theposition you take:
are you the consumer or the supplier?
John Hendrickson19School of Marketing
Value the consumer perspective
-
8/6/2019 Lecture 7.11 MSAP
20/38
Value the consumer perspective
Value can be expressed as:The gap between the total price paid and the perceivedlevel of benefits gained.
The actual monetar cost The time taken to finalise the purchase The learnin cost
The return on investment of effort The cost of switchin
John Hendrickson20School of Marketing
Customer value
-
8/6/2019 Lecture 7.11 MSAP
21/38
Customer value..
Product
us omer
Value
ene ts
Customer
Product
benefits
Brand
benefitsPrice
Price
Service
benefits
ServiceNon price Non price
John Hendrickson21School of Marketing
benefits ene scosts cos s
-
8/6/2019 Lecture 7.11 MSAP
22/38
Value The suppliers perspective
Value = Price - Cost
i.e. Value can be altered by manipulating either
Cost for the supplier is more than just the price of
E.g. the opportunity cost of what the capitalcou earn t was emp oye e sew ere
John Hendrickson22School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
23/38
John Hendrickson23School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
24/38
John Hendrickson24School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
25/38
John Hendrickson25School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
26/38
John Hendrickson26School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
27/38
John Hendrickson27School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
28/38
John Hendrickson28School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
29/38
John Hendrickson29School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
30/38
John Hendrickson30School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
31/38
John Hendrickson31School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
32/38
John Hendrickson32School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
33/38
John Hendrickson33School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
34/38
John Hendrickson34School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
35/38
John Hendrickson35School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
36/38
John Hendrickson36School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
37/38
John Hendrickson37School of Marketing
-
8/6/2019 Lecture 7.11 MSAP
38/38
The School of Marketing
John Hendrickson38School of Marketing