a good marketing strategy meets three tests 1. External consistency 2. Internal consistency 3. Dynamic consistency 15.834 Marketing Strategy
A good marketing strategy meets three tests 1. External consistency 2. Internal consistency 3. Dynamic consistency 15.834 Mar keti ng Strate g y
External fit: Finding Profit Opportunities Technol uppliers Competitors←→/ Marketing→→← Complementors Strate Customers End user preferences The Environment shapes, and is shaped by, Marketing Strategy 15.834 Marketing Strategy
External fit: Finding Profit Opportunities Technology Suppliers Marketing Strategy Custo m e r s Competitors C omplementors End User Preferences The Environment shapes, and is shaped by, Marketing S trategy. 15.834 Mar keti ng Strate g y
Value creation Some definitions Value created: Customer willingness to pay supplier opportunity cost Value created by a firm value created by all value created by all others a player is your competitor if customers value your product less when they have hers as well suppliers value your business less when they have hers as well a player is your complementor if customers value your product more when they have his as well suppliers value your business more when they have his as well 15.834 Marketing Strategy
Value Creation: Some Definitions Value created: Customer willingness to pay - supplier opportunity cost Value created by a firm = Value created by all - Value created by all others A player is your competitor if - customers value your product less when they have hers as well - suppliers value your business less when they have hers as well A player is your complementor if - customers value your product more when they have his as well - suppliers value your business more when they have his as well 15.834 Mar keti ng Strate g y
Internal Fit: Creating Competitive Advantage Supplier Opportunity Cost Firm resources Competitor Resources Marketing Strategy Resource investments Customer Willingness to Pay Good marketing strategies are based on resource advantages and the latter are created by speed or gambles; often in areas where resources are not priced out directly or in the cover of competitor ignorance 15.834 Marketing Strategy
Internal Fit: Creating Competitive Advantage Supplier Opportunity Cost Marketing Strategy Resource Investments Firm Resources Competitor Resources Customer Willingness to Pay Good marketing strategies are based on resource advantages and the latter are created by speed or gambles; often in areas where resources are not priced out directly or in the cover of competitor ignorance. 15.834 Marketing Strategy
Dynamic Fit: Challenging competitive Advantage New Technologies, New Suppliers New resources New Marketing Strategies New Needs New customers Upset the industry and resource fits of established competitors 15.834 Marketing Strategy
Dynamic Fit: Challenging Competitive Advantage New Technologies, New Suppliers New Marketing Strategies New Resources New Needs, New Customers Upset the industry and resource fits of established competitors. 15.834 Marketing Strategy