The Buy-Sell Hierarchy

The Buy-Sell Hierarchy

Understanding Customer Relationships

Whatever your industry, you want your customers to look to you – and not your competitors – to meet their needs. For this to happen, you first need to think about the relationships that you have with your customers.

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Porter's Value Chain

Porter's Value Chain

Understanding How Value is Created Within Organizations

How does your organization create value?

How do you change business inputs into business outputs in such a way that they have a greater value than the original cost of creating those outputs?

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The McKinsey 7S Framework

How do you go about analyzing how well your organization is positioned to achieve its intended objective? This is a question that has been asked for many years, and there are many different answers


The McKinsey 7S Framework

Ensuring That All Parts of Your Organization Work in Harmony

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The Sales Funnel

The Sales Funnel

Keeping Control of Your Sales Pipeline

With the idea of the Sales Funnel, we use the metaphor of a funnel (wide at the top, narrow at the bottom) to monitor the sales process.

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بازاریابی سناریوی فرضی چیست

بازاریابی سناریوی

بازاریابی سناریوی فرضی، ترکیبی هوشمندانه از تکنیک‌های بازاریابی سنتی به همراه ابزارهای پیچیده پیش‌بینی‌کننده، به منظور تعیین استراتژی‌ها و تکنیک‌های بازاریابی برای محصولات احتمالی جدید است.


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Devising and implementing strategy

Devising and implementing strategy
A strategy is a long-term plan for the whole organisation. Igor Ansoff defined corporate strategy as 'The positioning and relating of the firm/organisation to its environment in a way which will assure its continued success and make it sure from surprises.

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بازاریابی عصبی

بازاریابی عصبی

هدف بازاریابی عصبی انتقال بهتر پیام‌های بازاریابی به دیگران و افزایش احتمال خرید توسط مخاطب است. در نتیجه بودجه بازاریابی و تبلیغات کاهش می‌یابد.  

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Ten steps in strategy formulation

10 steps in strategy formulation

There are several ways a strategy can be designed for a company. However some methods are better than the others. Here are 10 steps which guide you in deciding the strategy of your company.

Strategy Formulation

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What is the Strategy Clock

The strategy clock is one of the less well-known strategy tools
What is the Strategy Clock?

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Is there anything to neural marketing research

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Occasionally we have had reviewers or readers of our textbooks ask why we don’t have anything on neural research in our marketing research chapter. One reason is just the tradeoff — as there are a wide range of marketing research methods that are more common in practice. A second reason is that we are not yet convinced of the validity of the research — at least the way it is typically applied by marketing research organization (which typically differs from academic research). We do realize that much of the academic research in this area uses more sophisticated techniques than you see in commercial research. We are not yet convinced that we learn something from this research that actually helps managers develop better marketing strategies.

Apparently we are not alone — and this article by Matt Wall, an fMRI researcher no less, supports what we have been thinking. It doesn’t appear that this technology is ready for prime time yet. To learn more, check outWhat Are Neuromarketers Really Selling” (Slate, July 16, 2013). What do you think? Are we missing some evidence to the contrary?

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The Marketing Mix and 4 Ps

The Marketing Mix and 4 Ps

Understanding How to Position Your Market Offering

What is marketing?

The definition that many marketers learn as they start out in the industry is:

Putting the right product in the right place, at the right price, at the right time.

It's simple! You just need to create a product that a particular group of people want, put it on sale some place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Then you've got it made!

4p marketing 297x300 4P Marketing Mix

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The Five Competitive Forces That Shape Strategy

The Five Competitive Forces That Shape Strategy

by Michael E. Porter

In essence, the job of the strategist is to understand and cope with competition. Often, however, managers define competition too narrowly, as if it occurred only among today’s direct competitors. Yet competition for profits goes beyond established industry rivals to include four other competitive forces as well: customers, suppliers, potential entrants, and substitute products. The extended rivalry that results from all five forces defines an industry’s structure and shapes the nature of competitive interaction within an industry.

As different from one another as industries might appear on the surface, the underlying drivers of profitability are the same. The global auto industry, for instance, appears to have nothing in common with the worldwide market for art masterpieces or the heavily regulated health-care delivery industry in Europe. But to understand industry competition and profitability in each of those three cases, one must analyze the industry’s underlying structure in terms of the five forces. (See the exhibit “The Five Forces That Shape Industry Competition.”)

Threat of entry

New entrants to an industry bring new capacity and a desire to gain market share that puts pressure on prices, costs, and the rate of investment necessary to compete. Particularly when new entrants are diversifying from other markets, they can leverage existing capabilities and cash flows to shake up competition, as Pepsi did when it entered the bottled water industry, Microsoft did when it began to offer internet browsers, and Apple did when it entered the music distribution business.



Porter Five Forces

The power of suppliers

Powerful suppliers capture more of the value for themselves by charging higher prices, limiting quality or services, or shifting costs to industry participants. Powerful suppliers, including suppliers of labor, can squeeze profitability out of an industry that is unable to pass on cost increases in its own prices. Microsoft, for instance, has contributed to the erosion of profitability among personal computer makers by raising prices on operating systems. PC makers, competing fiercely for customers who can easily switch among them, have limited freedom to raise their prices accordingly.

The power of buyers

Powerful customers the flip side of powerful suppliers can capture more value by forcing down prices, demanding better quality or more service (thereby driving up costs), and generally playing industry participants off against one another, all at the expense of industry profitability. Buyers are powerful if they have negotiating leverage relative to industry participants, especially if they are price sensitive, using their clout primarily to pressure price reductions.

The threat of substitutes

A substitute performs the same or a similar function as an industry’s product by a different means. Video-conferencing is a substitute for travel. Plastic is a substitute for aluminum. E-mail is a substitute for express mail. Sometimes, the threat of substitution is downstream or indirect, when a substitute replaces a buyer industry’s product. For example, lawn-care products and services are threatened when multifamily homes in urban areas substitute for single-family homes in the suburbs. Software sold to agents is threatened when airline and travel websites substitute for travel agents.

Rivalry among existing competitors

Rivalry among existing competitors takes many familiar forms, including price discounting, new product introductions, advertising campaigns, and service improvements. High rivalry limits the profitability of an industry. The degree to which rivalry drives down an industry’s profit potential depends, first, on the intensity with which companies compete and, second, on the basis on which they compete.

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PEST Analysis

PEST Analysis

A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors:

  • Political
  • Economic
  • Social
  • Technological

The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macro environmental factors.

Political Factors

Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:

  • tax policy
  • employment laws
  • environmental regulations
  • trade restrictions and tariffs
  • political stability

Economic Factors

Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macro economy:

  • economic growth
  • interest rates
  • exchange rates
  • inflation rate

Social Factors

Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include:

  • health consciousness
  • population growth rate
  • age distribution
  • career attitudes
  • emphasis on safety

Technological Factors

Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:

  • R&D activity
  • automation
  • technology incentives
  • rate of technological change

SWOT Analysis

SWOT Analysis

A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation requiring a decision. It involves monitoring the marketing environment internal and external to the company. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from the Fortune 500 companies.

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Strengths

A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage Examples of such strengths include:

  • patents
  • strong brand names
  • good reputation among customers
  • cost advantages from proprietary know-how
  • exclusive access to high grade natural resources
  • favorable access to distribution networks

Weaknesses

The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

  • lack of patent protection
  • a weak brand name
  • poor reputation among customers
  • high cost structure
  • lack of access to the best natural resources
  • lack of access to key distribution channels

Opportunities

The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:

  • an unfulfilled customer need
  • arrival of new technologies
  • loosening of regulations
  • removal of international trade barriers

Threats

Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

  • shifts in consumer tastes away from the firm's products
  • emergence of substitute products
  • new regulations
  • increased trade barriers

 

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