Marketing Strategy Structural Concepts.

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Presentation transcript:

Marketing Strategy Structural Concepts

Case Study Amul

McKinsey – 7 S Model Structure Strategy Systems Shared Values Skills Style Staff

Structure of Market Share PIMS Profit Impact of Market Strategy Variables associated with Profitability Market Share

Market Share and Profitability

V – Shaped relationship Profitability (%) Market Share (%)

Optimal Market Share Profitability (%) Market Share (%)

Fallout of Higher Market share Anti Trust actions Cost of gaining / maintaining share Incorrect Mix to gain share High Share = Higher profitability Unit costs reduce with share Superior Quality costs offset by premium pricing

Strategies to Gain Share Developing new products Improve (relative) Product quality Increase Marketing Spends Reducing Prices not resulting in share gains !

Marketing Strategy B2B Markets

B2B vs B2C Input for Profit delivery Measurable Value Customise Product plus Shorter, Direct Channels Personal Consumption Perceived value Standard (TG) Product / Service Indirect Channels

Who is the B2B Customer ? Owner Designer User Purchaser Concept of DMU

Marketing Mix Elements Branding Across Touch Points Consistent Messaging People impact Testimonials to Support Advertising & Activity Support

Marketing Mix Elements Product / Service Core and Augmented Cost Saving Revenue Enhancing Pricing Price for Value Brand Premium Payment terms

Marketing Mix Elements Promotions Trade Shows Trade Magazines Events Internet Direct mailers Place Sales People

Marketing Strategy Elements Industry Analysis Porter framework Internal Analysis SWOT ; BCG Porter Value Chain Product Life Cycle McKinsey 7S Structure PIMS concept