Professional Documents
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Things I Should Have Learned in Marketing
Things I Should Have Learned in Marketing
learned in Marketing:
Jeopardy edition
• serve as a guide for what the
organization wants to accomplish.
• be “market-oriented” rather than
“product-oriented”.
• be neither too narrow, nor too broad.
• fit with the market environment.
• be motivating.
What is a mission Statement?
Should be specific
Measurable
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The value discipline of superior value
via price and convenience
What is operational excellence?
Basic Competitive Strategies:
Value Disciplines
• Operational excellence
Superior value via price and convenience
• Customer intimacy
Superior value by means of building strong
relationships with buyers and satisfying
needs
• Product leadership
Superior value via product innovation
Figure 18-3:
Hypothetical
Market Structure
Product proliferation
What is a market leader
strategy designed to protect
market share?
Expanding the total demand
• Finding new users
• Discovering and promoting new product
uses
• Encouraging greater product usage
Protecting market share
• Many considerations
• Continuous innovation
Expanding market share
• Profitability rises with market share
Option 1: challenge the market leader
• High-risk but high-gain
• Sustainable competitive advantage over
the leader is key to success
Option 2: challenge firms of the same
size, smaller size or challenge regional or
local firms
Full frontal vs. indirect attacks
What are market challenger
strategies?
Content to not rock the boat and to
rely on “me too” products
Follow the market leader
• Focus is on improving profit instead of
market share
• Many advantages:
Learn from the market leader’s
experience
Copy or improve on the leader’s
offerings
Strong profitability
Wants to be the dullest story in
America
Who is the Dial Corporation?
Targets small lucrative markets
What is a market nicher?
Serving market niches means
targeting subsegments
Good strategy for small firms
with limited resources
Offers high margins
Specialization is key
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Threat of New Entry
the existence of barriers to entry
economies of product differences
brand equity
switching costs
capital requirements
access to distribution
absolute cost advantages
learning curve advantages
expected retaliation
government policies
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Competitive Rivalry
number of competitors
rate of industry growth
exit barriers
diversity of competitors
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Supplier Power
supplier switching costs relative to
firm switching costs
degree of differentiation of inputs
presence of substitute inputs
supplier concentration to firm
concentration ratio
threat of forward integration by
suppliers relative to the threat of
backward integration by firms
cost of inputs relative to selling
price of the product
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Buyer Power
buyer concentration to firm
concentration ratio
bargaining leverage
buyer volume
buyer switching costs relative to firm
switching costs
buyer information availability
ability to backward integrate
availability of existing substitute
products
buyer price sensitivity
price of total purchase
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Threat of Substitution
buyer propensity to substitute
relative price performance of
substitutes
buyer switching costs
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