Anticipate the consideration of strategic choices Force a long range view

Anticipate the consideration of strategic choices

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Anticipate the consideration of strategic choicesForce a long-range viewProvide a management and control system Help cope with changes17Strategic marketing: Introduction
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18EMPIRICAL RESEARCH HAS SHOWN THAT:Firms that use strategic market planning perform better financially (Stratis and Powers, 2001)Firms that have formalized strategic market planning in their business perform better financially (Claycomb, Germain, and Dröge, 2000)Strategic marketing: Introduction
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IT IS IMPORTANT FOR YOU BECAUSEIt provides with knowledge and skills highly appreciated by employers degree MSc Man & job opportunitiesIntertwined with many disciplines in business economicsIt helps you understand what drives business and allows you to manageyour role in the process.19Strategic marketing: Introduction
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20Procter and Gamble - During the Great Depression they pushed Ivory soap. Intel - In 1990-1991 during economic difficulty they pushed out the campaign "Intel Inside".Wal-mart - Walmart launched their "Every Day Low Prices" campaign in 2000-2001. ‘Don't you dare cut your marketing budget. That is one of the first mistakes businesses make during times of economic crisis.‘ (Lake, About.com marketing)Strategic marketing: Introduction
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5 KEY MANAGEMENT TASKS 1. Strategic analysis 2. Innovation 3. Multiple businesses 4. Creating sustainable competitive advantages 5. Developing growth platforms 21 Strategic marketing: Introduction
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1. Strategic analysis Getting information e.g., customers, competitors, trends Filtering information e.g., impactful trends vs. mere fads Converting information into actionable analysis e.g., allocating resources and creating competencies accordingly 22 Strategic marketing: Introduction
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1. Strategic analysis 23 Strategic marketing: Introduction
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24 2. Innovation Key to successfully winning in dynamic markets Multi-dimensional challenges O RGANIZATIONAL CHALLENGE (create context that supports innovation) B RAND PORTFOLIO CHALLENGE (own the innovation) S TRATEGIC CHALLENGE (right mix: incremental to transformational) E XECUTIONAL CHALLENGE (bring it to the market) Strategic marketing: Introduction
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2. Innovation B ETTER MOUSETRAP F ALLACY 25 “People don't want to buy a quarter-inch drill, they want a quarter- inch hole” (T. Levitt, HBS). Strategic marketing: Introduction
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Levitt, T. (2004) Marketing Myopia , Harvard Business Review, Summer 2004, 138-149 26 Strategic marketing: Introduction Avoid Marketing Myopia Define the business in terms of the basic customer need rather than the product”
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27 ‘In the factory, we make cosmetics; in the store, we sell hope Charles Revlon, CEO Revlon Strategic marketing: Introduction
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28 Strategic marketing: Introduction
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3. Multiple businesses Multiple business units defined by channels/countries/product categories Decentralization Pro : accountability, fast response, deep understanding, close to markets Contra : redundancies, lack of synergies, inefficiencies (lack of scale economies), confused brands A GGREGATION MOTIVATION 29 Strategic marketing: Introduction
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3. Multiple businesses
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