Corporate resources Corporate Marketing Strategies Business 1 Business 2 Corporate Advantage adds value to multiple businesses 15.834 Marketing Strategy
Corporate Marketing Strategies Business 1 Corporate Resources Business 2 Corporate Advantage adds value to multiple businesses. 15.834 Mar keti ng Strate g y
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
II Finding Profit Opportunities What is Marketing Strategy? Finding Profit Opportunities Creating Competitive Advantage Challenging Competitive Advantage Creating Corporate Advantage Lobsters Disney C omputer games Browsers 15.834 Mar keting Strateg y
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 sepa arate signal from noise 15.834 Marketing Strategy
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 noi s e 15.834 Mar keting Strateg y
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) 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) 15.834 Mar keting Strateg y
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
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 Mar keting Strateg y