Marketing Strategy 1

Strategy

Strategy

The ultimate choice you make to reach the goal

Tactics

The individual steps, the recipe to accomplish the choice you made.

4 c’s

Whenever you have a business problem, always start with the ______

4 c’s

Company

Customers

Competitors

Channels

Company

1. You need to know yourself before making decisions

   1. Category Growth and Market Share Potential

   2. Brand / Price Power

   3. Supply Chain considerations (Prioritize

   4. Strategic Potential and Fit

   5. Financial Performance

Customers

1. If you don't understand the consumer, it is impossible to succeed in business.

   1. Core Target

   2. Demographic

   3. Psychographics

   4. Ethnographic

   5. Purchase Behavior (It's about what they do)

   6. Media Usage

Competitors

1. You need to anticipate what the competitor will do.

   1. How can you out maneuver? Threats?

Channels

1. These are external partners, ways that we distribute our products and also help us make the product

2. How can you help customer grow? How will your decisions impact their store?

STP

Create Value (How)

Segmenting

Who COULD I do business with?
Groupings that act in similar ways

Targeting

Who SHOULD I do business with?

Position

(Differentiate) what do we want to stand for in the consumers mind? What are we going to say to consumers?

McKinsey’s 7 S model

1. strategy

2. structure

3. systems

4. skills

5. staff

6. style

7. shared value

CRM

Customer acquisition -> Customer Retention -> Profits

Brand P&L

Gross sales - Trade

Net Sales - (Product costs, overhead, transportation, warehousing)

Gross Margin - (Ads and Promotion, market research)

Contribution Margin - G&A

Operating Income

GM%

Gross Margin / Net Sales

PCM%

Contribution margin / Sales

Business Objective

1. Fundamental Entity

2. Strategic competitive advantage

3. Business Objective / Goal Creation

Purchase sequence

1. The market (size)

2. aware

3. Perception of you and competition

4. Consideration Set (being top of mind)

5. Purchased

6. Satisfaction

7. Loyal/repeat

customers aren’t buying..

1. Define the problem

2. Collect data

3. Identify possible causal factors

   1. Who, what, where, why, how

   2. Cause and effect diagrams

4. Identify the root cause

   1. What is the real reason the problem occurred

   2. Why does the causal factor exist

5. Recommend and implement solutions

   1. Prevention options?

   2. How will the solution be implements?

   3. Who will be responsible for it?

   4. What are the risks of implementing the solution?

out

garbage in, garbage _____.

Buyers

who is purchasing and negotiating

users

the people who will be using/consuming the product

deciders

who is making the decisions, giving the final okay before you buy

influencers

the ones who persuade to make the purchase

gatekeepers

people who let the deal go through other people, all about access.

RETENTION

If you are bound by time or if profitability is the goal…

anchor

let your business objective _______ you in making strategic decisions

Porter’s 5 forces

• Competitive Rivalry.

• Supplier Power.

• Buyer Power.

• Threat of Substitution.

• Threat of New Entry.

Rules to understand Competition

1. spot

2. swot

3. plot

4. take you shot

Levels of competition

1. form competition - other brands selling your product

2. category competition - competition among category

3. generic competition - any type of category that can compete

4. budget competition - what is taking up your money (share of wallet & share of stomach)

Assessing competitors

1. What is their current strategy (4p's)

2. What are their strengths and weaknesses (SWOT)

3. How do you match up against them? (compare us to them)

4. Expected future strategies (if we do this, what will our competition do?)

5. What are their objective?

spot

to win we must properly identify and assess our competition

marketing myopia

when we get too close to one competitor because it will make you lose out on other competitors. WIDEN YOUR VIEW. Look deep.

plot

1. find the competitive "white space"

   1. Find main category variable (plot on the y axis)

   2. Find another variable that matters and plot on the x axis

   3. Physically put the competitors on the graph

   4. Look for gaps, that is where you should put your new product or brand. It opens up ways for innovation. Similar to Gap Analysis.

   5. See spatial recognition and see if we own an are

customer needs

Sweet spot is between _______ _____ and company's capabilities (blue ocean strategy)

Strategic competitive advantage

Elements of channel design

Direct Distribution: few or little intermediaries between the manufacturer and the customer.

Channel Breadth: how many distributive outlets at which the product is available

Channel Depth: how much the distributor controls of the channel.

Basic utilities of a channel

1. Product

   1. Product assortment: home depot

   2. Product Inventory: costco selling in bulk

   3. Product Selection: exclusivity

2. Place: short distance

3. Time: having the product when the consumer wants it

acquisition activity

free trials, coupons, samples, informational advertising, packaging shows the benefits of purchasing

Retention activity

something that persuades current customers to continue to purchase and purchase more.

Customer loyalty programs, product development, retention deals for current customers. (retargeting)

SMART goals

1. Significant / specific

2. Measurable

3. Achievable

4. Relevant

5. Time-bound

attributes of a core competency

They are a skill set that uniquely distinguishes one company from another.

max of 3

come from a deep understanding of who your company is

strategic asset

a resource that is supported by the core competency

The Funnels Framework

1. Internal/external analysis

2. swot

3. strategic competitive advantage

4. key issues - implications

5. Objectives

6. goals

7. strategies & tactics

8. measures

Internal / external analysis

4 c’s analysis: company, competitor, channel, customer

SWOT

internal strengths and weaknesses, external opportunities and threats.

What can we leverage to combat a threat? what can we invest to capitalize on opportunities?

Good idea to match the strengths in context of the opportunities to identify strategic competitive advantage

Should not have any actions words. DO not throw strategies in the findings

Strategic competitive advantage

what is our sustainable “Super strength”??

needs to be sustained for 3 or more years (patents)

Key Issues - Implications

1. Key Issues:

   1.  the most important "takeaways: from the situation assessment

   2. A synthesis across different components

   3. A shortlist of items the business must address in the near future

   4. Ask this "If I address these 3-4 issues, will it solve what is keeping management up at night?"

2. Implications […Therefore we must]:

   1. SO WHAT!? against the findings in key issue

   2. Action oriented responses to each key issue

   3. Not quantified at this state - leave that for the Goals section

Objective

1.  the overarching statement of purpose and focus

   1. Business Objective (in the funnels framework): the statement of purpose that helps the organization focus. It governs the thoughts and sets the organization focus. It governs the thoughts and sets the context for addressing the most critical strategic issues for the business (Your mission statement).

      1. Show how your strategy aligns with the company's mission statement. Let the board know that you care about what they care about and how your strategy will align. You do not write this, you are aligning yourself with this.

Goals

1. desired outcomes

   1. Goals are WHAT Success looks like. The measurable ends we want to achieve. Mutually exclusive.

   1. Financial goals

   2. Market place goals

   3. Organizational goals

   4. People goals

Strategy and Tactics

1. Key CHOICES to achieve goals

   1. Strategy: the CHOICES made to achieve our goals. Usually not mutually exclusive.(one goal can have many supporting strategies. Some strategies can support multiple goals)

   2. Business Objective (Christy Nordham)

   3. Marketing Objective

      1. Acquire or Obtain????

   4. Source of Volume

      1. STP & 4P's

Measures

1.  Intermittent guideposts that measures your performance

   1. Mini goals that measure the big goals.

      1. Was this person talked to? (This is a lot of the things I do at Goldfish)

   2.  branches off and gives us more info