Dr. Kellilynn Frias
Rawls College of Business, Texas Tech University
Porter, Michael, HBR NovemberDecember 1996
What is Strategy?
What is Strategy?
Strategy is the creation of a unique valuable position, involving a
different set of activities.
people wish to maximize their utility. The firms
objective is profit max. Firms info is perfect &
costless. Firms resources are capital, labor, &
land Q=f(L,C). Resource characteristics are
homo & perfectly mobile. Role of MGT is to
PRICING STRATEGY: SIX APPROACHES: (1): MR=MC derived
from neoclassical economics Price theory equations. P =
Profit TR = Total Revenue TC = Total Cost d = first derivative Q
= quantity of product MC= marginal cost of producing 1 more
unit MR = Marginal Re
MARKET ORIENTATION STRATEGY CENTRAL PREMISE: To
achieve competitive advantage & thereby, superior financial
performance, firms should: 1. Systematically gather
information on present & potential customers & competitors.
2. Use such information in a coordi
In Search of a Winning Strategy
This case was prepared by Nina Paavola, Research Associate, under the supervision of Amitava Chattopadhyay, the
LOral Chaired Professor of Marketing-Innovation and Creativity at INSEAD, and Douglas C. Mi
For the exclusive use of j. morales, 2015.
Pedigree Growth Strategy (A)
Julie Smith tossed the ball for her dog, Toby, a three-year-old Golden Retriever. Toby
bounded off and grabbed the ball with an athletic leap. Smith did not cheer a
Making the brand a
dogs best friend
Marketing Excellence 2 | About The Marketing Society
About The Marketing Society
INSPIRING BOLDER MARKETING LEADERSHIP
The Marketing Society is a not-for-profit organisation owned by its me
6 Approaches to Pricing Strat.: 1) MR=MC: price theory profit eq. -> P = TR TC; 1st derive. dP/dQ = dTR/dQ
dTC/dQ = MR-MC; set to zero: MR-MC=0; MR=MC; sub. Price for MR: Price= MC ->tell you how much to produce; keep
producing until the cost of selling
Positioning: designing a companys offering & image to occupy a distinctive place in the minds of the target mkt = clarify brands
essence = good; Brand Substitution Test: measure of the effectiveness of the positioning; Decide on Position: 1) choose frame
Market Orientation: for of knowledge-based strategy (how you use info about a mkt place); focuses on developing informational
resources; a firm that is MO has higher-order resource (a firm competence) portfolio of things they do well = core; MO provides i
The Preparation Step
the first in a series of sequential actions
that comprise the "science" of selling
The way you apply these sequential
actions is the "art" of selling
The preparation step involves finding
You never get a second chance to
make a first impression
How can you get a prospect to heed what
you are saying?
Just because you meet, is your prospect
necessarily ready and anxious to talk about
what you wan
Chapter 2 Quiz
1.Dells Idea Storm was based off of what online distribution of tasks to consumers?
a. Social media
c. Web 2.0 applications
d. Trade resellers
2. Who is considered a trade reseller?
DEVELOPING PRODUCT STRATEGY: How does marketing
industrial goods differ from marketing consumer goods? (9
differences & 3 similarities): 1.) Different in that industrial
goods is derived: the demand from the industrial good is
derived from the consumer (d