marketing week 5 6
TRANSCRIPT
Key Elements of Mission Statements
Not just the mission as a "wish".Purpose and values of the organization Which business the organization wants to be in (products or services, market) or who are the organizations primary "clients" (stakeholders) Which are the responsibilities of the organization towards these "clients" What are the main objectives which support the company in accomplishing its mission
Mission vs. Vision
A Mission statement: tells you what the company is now. It concentrates on the present; it defines the customer(s), critical processes and it informs you about the desired level of performance. A Vision statement: outlines what a company wants to be. It concentrates on the future; it is a source of inspiration; it provides clear decision-making criteria.
BusinessObjectives
Marketing Objectives
Product Price Place PromotionObjectives Objectives Objectives Objectives
Objectives
The strategic planning gap
10
20
30
40
50
60
70
New strategies gap
Operations gap
(£60M) Corporate objective
(£45M) Revised forecast
(£30M) Initial forecast
The plannin
g gap
Time (years)
Sale
s(£
m)
Objectives should be ...
... Hierarchical ... Quantitative ... Realistic ... Consistent
... SMART Specific Measurable Achievable Results-oriented Time-bounded
Ansoff’s Growth Matrix
Markets
Products
Existing
Existing
New
New
MarketPenetration
MarketDevelopment
ProductDevelopment
Diversification
Product market strategy
Marketpenetration
1
Marketextension
2
Product development
3
Diversification4
ProductCurrent New
Current
New
Market
ProductNewExisting
1 4
162
Existing
NewMarket
Souce
: A
nso
ff
RISK
Porter’s generic strategies
STRATEGIC ADVANTAGE
STR
ATEG
IC T
AR
GET
Uniqueness perceived
by customer
Low costposition
Industry-wide
Segmentonly
FOCUS
DIFFERENTIATIONOVERALL
COSTLEADERSHIP
Source: Porter
Strategic choice
DEVELOPMENT
STRATEGIES
GENERIC STRATEGIES
• Cost leadership• Differentiation• Focus
ALTERNATIVEDIRECTIONS
• Do nothing• Withdrawal• Consolidation• Market penetration• Product development• Market development• Diversification
ALTERNATIVE METHODS
• Internal development• Acquisition• Joint development
Sourc
e:
Johnso
n &
Sch
ole
s
Approaches to developing sustainable competitive advantage
Superior product benefitPerceived advantageLow-cost operationsLegal advantageSuperior contactsSuperior knowledgeScale advantagesOffensive advantages
Source: Davidson, 1977
Barriers to implementation
CulturePower and politicsAnalysis, not actionResource issuesSkills
Anatomy of a Product
Core
Tangible
Augmented
Potential
The product life-cycle
Introduction Growth Maturity Decline
Profit
Sales
Sale
s an
d p
rofits
(£
)
(a) Growth-slump-maturity pattern
Sale
s volu
me
Time
(b) Cycle-recycle pattern
Sale
s volu
me
Sale
s volu
me
(c) Scalloped pattern
Time
Time
Initial cycle Recycle
The Product Life-cycle
I G M D
Sale
s an
d p
rofits
(£
)
Time
A
B
Sales
Profits
Diffusion of Innovation
Actors & Agents (Victoria University)
Everett Rogers
BCG’s Growth Share Matrix
Low
2
4
6
8
10
12
14
16
1820
High
10x 1x 0.1x
High LowRelative market share
STARS QUESTION MARKS (problem children)
CASH COWS DOGS
Modest+ or -cash flow
Largenegativecashflow
Largepositivecashflow
Modest+ or -cash flow
Optimum
cash
flow
SO
UR
CE:
Adapte
d f
rom
Hed
l ey (
1977
) , p
. 1
2
Mark
et
gro
wth
GE multifactor matrixBusiness strengths
Ind
ustr
y a
ttra
cti
ven
ess
Low
Hig
hM
ediu
m
Strong Medium Weak
Invest
for g
rowth
Harvest
/with
draw
Manage sele
ctively fo
r earn
ings
Shell directional policy matrix
Prospects for sector profitability
Bu
sin
ess’
com
peti
tive c
ap
ab
ilit
ies
Str
ong
Weak
Avera
ge
Unattractive Average Attractive
Disinvest
Phasedwithdrawal
Phasedwithdrawal
Custodialgrowth
Cashgeneration
Doubleor quit
Tryharder
LeaderGrowthleader
The Booz Allen Hamilton Classification of New Products
New to the world New sector development Additions to existing lines Improvements and revisions to existing lines Repositioning Cost reduction through product modification
The Role of NPD Avoid product obsolescence Ensure match with environmental conditions Enable the organisation to compete in new and
developing sectors Reduce dependence on vulnerable product sectors Match the competition Fill excess capacity Achieve greater long term growth and profit
The NPD process
Idea generation
Initial screening
Concept development
Business evaluation
Product development
Product launch
Why Brand?
For differentiation & recognitionTo add value to a naked commodityEasier to promoteHelps market segmentationCan help boost share priceEasier to integrate - sales promotion, personal selling & packagingCan help corporate image
Brand Strategies
Manufacturers Brand Cadbury’s, Ford, Coca-cola
Multi - Branding (Individual Brand Name) Proctor & Gamble
Tide, Daz, Dreft, Ariel
Price Brand Tesco ‘Value’
Private/own Label Boots, Sainsbury’s
Generic ‘No Frills’ Products
BRAND DEVELOPMENTINCREASED SALESCOST EFFICIENCIESVOLUME BUILDING
BRAND SALES GROWRETAILER CONCENTRATIONVOLUME BUILDINGIMPROVED PRODUCTS
WIDER DISTRIBUTIONNETWORK BUILT UP
INVEST IN NEW BRAND
BUILD AWARENESSOF ATTRIBUTES
SALES INCENTIVEPROGRAMME, TRADEPROMOTION, P.O.S
BRAND RECOGNITIONAND CUSTOMERDEMAND FOR BRAND
RETAILERSLIST
BRAND
Packaging
ContainProtectInformDifferentiateEnvironmental considerations‘Silent salesperson’