U- Curve Concept - Stuck in the Middle
Coherence between profitability and market share (according to Porter)
ROI (in %)
Return on Investment
Market segment Relative
Market niche market share
Concentration on covering market niches Overall market coverage
through cost leadership or quality leadership through cost leadership or quality leadership
(differentiation)
Critical range
„Stuck in the middle“
performanceS- Curve Concept
Representation of performance efficiency of competing technologies
performance limit technology 2
performance limit technology 1
current status of
technology 1 and 2
time
S- Curve Concept - Life Cycle
Representation of the life cycle of technology in the course of time
Basic technology
Pace setting time
technology
growth maturity age phases
development phase
Life cycle of a technology
MARKETING STRATEGY / CONCEPT
Strategic marketing / concepts
Differentiation - Strategic Marketing
Position of the strategic marketing between strategic management and marketing management
Conception Phases of Marketing Situation Analysis
Enter your subheadline here 1
2 Marketing Objectives
Marketing Control 7
Implementation / 6 Customer 3 Marketing Strategy
Realization
Marketing Instruments/ 5 4 SBU-Planning
Marketing-Mix (Strategic Business Units)
Marketing - Communication Policy
Ten-step model of marketing communication
Measure effect Step 10
Apply communication measures Step 9
Pre- test, Control of effect, return result to step 7, to apply improvements Step 8 Return result at 5-9
Plan separate communication measures Step 7 Improvements
and corrections
Budgeting and media selection (selecting advertising media) Step 6
Step 5 Develop communication strategy
Step 4 Define communication targets and target groups
Step 3 Derive marketing targets
Step 2 Agree on company objectives
Step 1 Situation analysis and prognosis for the company
Four Codes of Brand Communication
Communication model that implies that there are three more codes next to language responsible for concrete
meaning
Meaning
Language History Symbols Sensorics
Style Tell stories Protagonists Sensorial experience
Rhetoric Show episodes Figures Stimulation of senses
Wording
Places of action Noises / colors
Shapes / haptics
Only the interaction of these four Codes makes the brand communication sustainably successful
Core Competences / Product Pyramid
Core competences as a base of the product pyramid, which are not easily adapted by other companies and
therefore improve the benefit of the end product
End product
Core product
BASE Core competences
valuable rare difficult to not sub- are
immitate stitutable strength-
ened the
more they
are used
Marketing Strategy - Influencial Factors
Influencial factors
Organizational Marketing Attitude to
objectives and Strategy change and risk
resources
Market structure
Competitor and opportunities
strategies
Marketing Strategy
Marketing as market-oriented business management / business strategy
Procurement Strategy
Research and Business Production Strategy
Development Strategy Strategy Quality Strategy
Human Resources Strategy
Elements of Marketing Concept
Connection between the separate elements and their logical process structure
Wishes, requirements Marketing Offer of products
and demands Concept and services
Elements
Markets Customer benefit and
customer satisfaction
Exchange, transactions and relations
Market Areal Strategy
Determination of geographic coverage
Market areal strategies
Local Regional National Inter- Multi- Global
national national
Process of geographic expansion
Market Simulation Strategies - Stuck in the Middle
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Performance II: Preference strategy
high
IV: Advantage
strategy Outpacing strategy
Outpacing „Stuck-in-the-Middle“
strategy
high
low Price
Security I: Over reaching strategy
distance
III: Price /
Amount strategy
low
Marketing Strategy - Strategic Triangle
Integrated marketing strategies include the strategic triangle of company, customer and competitor
Customer
Competitve advantage
Own Competition
Company
Marketing Strategy - Strategic Pentagon
According to Ohmae 1992
Customer
Government Currency
Strategic
Pentagon
Company Competitor
Innovation - Demand Pull and Technology Push
Interplay between both strategies
Company Market
Media Strategy - Dimensions
Analysis and visualization of the six most important parameter of media strategy
Percentage of the
reached target group
Range
Design of advertising Impact Contacts Frequency of addressing the
(for instance: color) and their target persons
placement
Dominance Intensity The number of applied media
(Media mix)
Size, formats, advertising and
spot lengths
Repetition
Frequency and timely intervals
of the contacts
Marketing Strategies
Strategies according to individualization degree and customer relation
Level of individualization of a product Individual Marketing
Customized Marketing Customer individual
market development
high Individualization
of product
Mass-Marketing Relationship Marketing
low Standardized Individualization of
market development customer relationship
low high Individualization degree
of customer relationship
Strategic Marketing
Questions and Characteristics for Strategic Marketing
Where? How? When?
In which market is the What is the central When will the company
company active? orientation of the become active on
marketing strategy? the market?
Concentration of company's Conscious selection of markets Determination of market-entry
activities on particularly attractive and promising and definition of future strategies with long-term time, taking into consideration the previous
markets orientation development and production efforts
Marketing Orientations
Orientation of the company on the turnover market
Starting Point Medium Objectives “ Produce as much as you
can. ”
Products/ Performance Expansion / rationalization of Profit from increased
production and procurement volume “ Write off what you‘ve
Products/ Performance produced. ”
Production orientation (seller‘s market)
Customer wishes “ Produce what you can
Sales-political instruments Profit from related volume write off. ”
Sales orientation (saturation tendency)
Market- Bundle of Profit from long-term satisfaction
research marketing of customers
measures
Market orientation (buyer‘s market)
Cost Leadership
The strategy of a company to reach sustainable competitive advantage be low costs is differentiated in 8
methods
Economies of scale Economies of scope Experience effects
Economies of learning Product design
Input-Costs Process design
Capacity utilization
Cost leadership Residual effects of
operational effectiveness
Differentiation Strategy
The strategy of a company to differentiate themselves positively from the competition from the customer’s
point of view is separated in 6 different methods
Price Image Support
Design Quality Not differentiated
Differentiation Strategy
Market Field Strategies according to Ansoff
Ansoff-matrix with the representation of product-market-strategies
Markets
Products/ Existing New
Performance
Market penetration Market development
Existing
Market presence Internationalisation
Market suppression Market segmentation
Product development Diversification
Product innovation Vertical diversification
New Product differentiation Horizontal diversification
Lateral diversification
Market Area Strategies
Basic principles for market areas / market development
International Strategies
Multinational market
International market
World market
National Strategies
Local market
Regional market
Cross regional market
National market
Marketing - STP-Strategies T P
Strategies of market davelopment
S
Segmenting Targeting Positioning
Market segmetation, Segment evaluation, Positioning versus differentiation.
segmentation criteria to target market determination Establishment of a competition
divide the markets and target group position in each target segment.
into clearly defined determination. Selection of Selection and communication of
customer groups the most attractive market a concept
segments
Degree of competitionCompetition StrategiesOverall market Strategy of aggressive
cost leadership
Differentiation into basic principles
Strategy of quality
leadership
Sub-market Strategy of selective Strategy of selective
Quality leadership cost leadership
Performance advantage Cost advantage
Competitive advantage
Degree of competitionCompetition StrategiesOverall market Cost leadership
• price/costs
Differentiation into basic strategies • standard product
Differentiation strategy
• performance/quality
• uniqueness
Sub-market Differentiation focus Cost focus
• specific need • limited need
• relatively price-inelastic • price elastic
Performance advantage Cost advantage
Competitive advantage
Competition Strategies
Matrix to differentiate basic concepts of competition strategies
Strategic Singularity from customers Cost advantage
advantage perspective
Extensive
Strategic cost leadership
target object
Industry-wide differentiation
Limitation to one segment Focusing
Market Field Strategies according to Ansoff
Ansoff-matrix
Product
Market Existing New
Product development
Existing Market penetration
Diversification
New Market development
Norm Strategies - McKinsey/GE
Enter your subheadline here
Market-low medium high Fight for the market leadership Maximum investments Invest
attractiveness Specializing in few strength Develop
Focus on strengths Concentratiion on maintaining
Overcoming weaknesses existing strengths
Strengthening of poorly performing
Retreat when missing signs for areas
continuous growth
Search for low risk expansion Defending of position High investments in attractive Devest
possibilities segment Develop
Concentration of investments of
Minimizing of investments attractive and low risk areas Defense against competitors
Rationalizing of internal processes Increasing productivity
Sales with increasing profits Defense of position in most Realization of profit Selective action
Reduction of fixed costs profitable area Concentration on most attractive Profit priority
No investments
Improvement of product line segments Competitive
low Minimizing investments Defense of existing strengths strength
medium high
Norm Strategies - McKinsey/GE
Matrix of norm strategies (threefold division of axis )
High Investment or retreat Investment Keep
Medium market leadership
Market attractiveness Absorption and Transition
Low gradual divestment Growth
Divestment Absorption and gradual Absorption
divestment
High
Low Medium
Relative competitive advantages
Market Growth
Representation of market sizes, like market potential, market volume and market growth in the course of time
Amount / Value Market Potential Sales Volume Provider A
Sales Volume Provider B
6 Sales Volume Provider C
Sales Volume Provider D
5
Market Volume
4
Time
3
Period 2 Period 3 Period 4
2
1
0
Period 1
Outpacing-Strategie
Increase in profitability by maximizing quality (high customer benefit) and cost reduction
high Cost reduction
Quality/ Target of
Customer benefit outpacing
Innovator
Offer differentiation
low Follower cheap
expensive
Price / Costs
Innovation Strategies - Innovation Pentagram
A tool of innovation management
Business system: Motive: Which motives
With what kind of target the innovation?
business system Advantage: What kind of
is the innovation advantages does the
innovation provide?
implemented?
Timing: When are we Revenue model: How is the
applying these measures? revenue generated?
Marketing Concepts - Dimensions
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Internationalization Strategies Integration advantage 3 4
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marketing marketing
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low high
Differentiation advantage
MARKETING PLANNING / OBJECTIVES
Marketing Management - Process
Representation of the ideal type process of marketing management
Analysis phase Marketing situation analysis
Four classic phases Planning phase Determination of market segments and marketing targets
Implementation phase Definition of marketing strategy
Control phase Determination of marketing budget
Determination of marketing measures
Implementation of marketing measures
Control of marketing results
Marketing-Planning - Process
Marketing as a process divided into the five steps of market analysis, marketing objective, strategy, marketing
instruments and success control
Market analysis Where are you?
(actual-condition) What is the initial situation?
Marketing targets Where do you want to be?
(establish objectives)
Marketing strategy How will you reach your objectives?
Marketing instruments Which instruments will be used?
Success control Analysis of the difference between target and result
Marketing Targets Non-economic marketing targets
Economic and non-economic objectives of a business Connecting to mental processes of buyer
(purchase behavior)
Economic marketing targets
customer retention
Close connection to general economic customer satisfaction
company objectives
name recognition
revenue / profitability attitude (image / sympathie)
profit contribution / Return-on-Investment
repurchase rate
growth (revenue/sales/profit) level of distribution
rationalizing effects of knowledge
capacities strength of purchase intention
security (risk distribution)
market position /market share
Goal criteria − SMART
The 5 criteria that define a goal so that it can be used in project management
Specific Measurable Attainable Realistic Time-bound
Objectives have to A goal achievement It should be The objective needs Goal requires a
be specific and should be attractive for the to be achievable in determined time-
positively measurable. project team to a realistic way. frame.
described. reach the goal.
Marketing Objectives - Target Pyramid
Placeholder for own Subheadline
Corporate Retention of economic and legal independency, increasing
objectives development of flexibility
Marketing Financial Increase in sales, improvement of
objectives target company image
Price Communication Distribution Preparation of contract conclusions
policy target target target
PR- objectives Exhibition objectives Advertisement Managing customer data, raise purchase interest,
objectives increasing popularity of brand
Marketing objctives / Hierarchical levels of objectives
Hierarchical system of objectives
Object of the company
Company objective
Function targets
Marketing targets
are function targets
Instrumental target
Levels of objectives and
marketing instruments
CR-Marketing - Target Hierarchy Company related
sub goals
Operative and strategic main goals and sub goals - Positioning on the market
- Employee loyalty
Corporate - Employee motivation
objectives - Innovation
Profit/ROI
Customer related
Marketing overall targets sub goals
Costs / Productivity / - Customer contribution margin
Revenue / Sales - Customer loyalty
- Customer satisfaction
- Perceived performance quality
Conventional Marketing Targets
Targets for successful business
Increasing market shares Increasing revenues Improving contribution margin
Popularity Price segment
Image Revenue
Customer reach Distribution
Customer satisfaction
Customer loyalty
Marketing-Plan Strategy Implementation
Process to create a marketing plan (Marketing Mix)
• Product and pricing policy
Objectives and Indicators • Communication and distribution policy
• Strategic and operational objectives
Financial objectives
Market-and customer-related objectives
1. Analysis 3. Strategy 4. Mix 5. Control
Strategic Analysis 2. Target
• Market and environment analysis
• Customer and competitor analysis Strategy Selection and Combination Success Control (progress and results)
• Competitive strategies • Effectiveness of marketing tools
• Portfolio strategies • Performance of the people involved
• Positioning strategies • Profitability of the chosen products, markets and
• Innovation strategies
(customer success estimation)
MARKETING-MANAGEMENT
Marketing Management Cycle
4 phases model / marketing cycle
Procurement, evaluation and
interpretation of market data
Management Determination of
Cycle marketing objectives
Success control of target Development of
achievement (target-actual- marketing strategy
comparison)
Planning and
implementation of
marketing measures
Marketing Management Cycle
4 phases model / marketing cycle
Situation analysis
Customer and competitor
behavior, environment trends,
resources, where do we stand?
Controlling Targets
Reference objects (products, Competences, orientation, target
customers, branches, etc.), early
detection systems (environment segments, revenue,
market share, DB, image
development)
Strategies
Organization Management Product – market innovation,
Development and process cycle
organization, primarily and cooperation, acquisition,
secondary organization, key competition strategy, brand
processes, qualification Budget
Fundraising, allotment,
Mix methods, function and overall
Product, communication, budget
distribution, price