Corporate Resources Corporate Marketing Strategies Business 1 Business 2 Corporate Advantage adds value to multiple businesses 15.834 Marketing Strategy
15.834 Marketing Strategy Corporate Advantage adds value to multiple businesses. Corporate Resources Corporate Marketing Strategies Business 1 Business 2
II Finding Profit Opportunities What is Marketing Strategy? Finding Profit Opportunities Creating Competitive Advantage Challenging Competitive Advantage Creating Corporate Advantage Lobsters Disney Computer games Browsers 15.834 Marketing Strategy
15.834 Marketing Strategy II Finding Profit Opportunities What is Marketing Strategy? Finding Profit Opportunities Creating Competitive Advantage Challenging Competitive Advantage Creating Corporate Advantage Lobsters Disney Computer games Browsers
To craft an effective marketing strategy, you must take account of the environment to decide on entry/exit to assess the effect of a major change to position your firm to succeed in a given environment to shape the environment But the environment is enormously complex You need structured ways of thinking about it to capture the richness but separate signal from noise 15.834 Marketing Strategy
15.834 Marketing Strategy • to decide on entry/exit • to assess the effect of a major change • to position your firm to succeed in a given environment • to shape the environment To craft an effective marketing strategy, you must take account of the environment But the environment is enormously complex You need structured ways of thinking about it – to capture the richness – but separate signal from noise
Some Complementary approaches Classical Economics(Supply and demand cOld" Industrial Organization Economics(5 forces Non cooperative Game Theory (Oligopoly equilibrium) Cooperative game Theory value net 15.834 Marketing Strategy
15.834 Marketing Strategy Some Complementary Approaches • Classical Economics (Supply and Demand) • “Old” Industrial Organization Economics (5 forces) • Non cooperative Game Theory (Oligopoly equilibrium) • Cooperative Game Theory (Value net)
From Supply/Demand to 5 Forces What determines the long run supply/demand balance (entry/exit barriers) What determines the effect of a temporary imbalance on profitability?(price wars/bargaining powers) We need to know the determinants of the position and shape of the 2 curves 15.834 Marketing Strategy
15.834 Marketing Strategy From Supply/Demand to 5 Forces • What determines the long run supply/demand balance? (entry/exit barriers) • What determines the effect of a temporary imbalance on profitability? (price wars/bargaining powers) We need to know the determinants of the position and shape of the 2 curves