Download - 20925-C07-DS-MktStr
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Marketing Strategy
Durgadevi Saraf Institute of
Management Studies
C 07/C 08
Tuesday September 25, 2012
nitin mukadam
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Discussion
How has
technologychanged the role
of branding?
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PLC & Marketing Mix
Introductory Stage
Growth Stage
Shake-out (competitive turbulence) stage Mature Stage
Decline stage
Limitations of PLC approach: marketforces not recognized, consumer andcompetition behavior not predictable
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New Products what is new?
New to the world products
New company / marketer
New product lines (variants) Improvements / revisions
Re-positioning (Dettol soap, Cadburys)
Low-cost variants The Booz Matrix: US-centric
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Booz New Product Matrix
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Pioneer Strategy
First choice of segment / positioning
Define the rules of the game
Distribution set-up first-on-shelf Economies of scale and experience
High support of early adopters
Possible positive network effects Pre-empting scarce resources
But, pioneers risks - uncertainties
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Follower Strategies
Learning from pioneers mistakes
Product design and performance
Communication / positioning Marketing process
Technology jump
No category-building expenses Ready distribution processes
Ready talent pool
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Success factors
Resources to cross critical mass
Scale of operations
Product quality Range of offerings
Ability to sustain high promotion costs
Rapidly responsive to customers Now, ability to buy-out
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Penetration / Niche Strategies
Penetration
Rapidly hit large scale heavy promo
Count on economies of scale Niche
Focus on high-margin segments
Build aspirations Fund expansions
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Strategies for Growth Markets
Focus on gaining market share because itis easy to get more share
But, factors to keep in mind:
Positive network effects
Role of technology
Markets evolving competitive structure Propensity for fragmentation
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Strategies for Growth Markets
Take advantage of less price-drivencompetition
Maintain technology leadership
Maintain market share leadership
Customer retention: Improve loyalty,simplify repeat purchase, increaseswitching cost
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Other strategies for retention
Fortress or Position defense strategy
Continuously strengthen position
Develop flanker brands / strategies Confront competitor directly use muscle
Market expansions force competitor to
spread resources thin Strategic withdrawal
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Market Follower strategies
Take away customers or address newcustomers?
Flanking, Encirclement & Guerrilla attacks
Attack & take over weaker competitors
Frontal attack with superior value butbeware of price wars
Leapfrog strategy
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Discussion:
Growth strategies in a vibrant and growingmarket are like a chess game every movegets a counter-move.
Now, the role of analytics
And the factor of customer-driven marketsshould you worry about competition orcustomers?