MKTG6003 Lecture Notes - Lecture 5: Cost Leadership, Experience Curve Effects, Sales Promotion
4 Sep 2018
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Document Summary
Strategy considerations: focus, differentiation, cost leadership, market coverage, price premium and quality, agile adapter, disrupter, sales promotion leader, multi-focused (2 segments), blue. Potential strengths: greater profits more budget: cost leadership (experience curve, brands/products with strong fit to cb needs, more products, more market coverage. Ales pro(cid:373)otio(cid:374) (cid:862)lead(cid:863) i(cid:373)age: greater analysis + understanding, greater competitor awareness. Natural: continuous minor trial and error, darwinian theory, no deep thought or analytical basis. Strategic: usually targets major changes, based on strengths, knowledge and commitment. Studied/analytical: natural = natural selection, minor ongoing adaptation to changes in the environment = evolution (fit to changes) Therefore, most markets = stable: most competitors = predictable, many firms adapt/evolve in similar ways. Strategic competitors = less predictable, more dangerous, but can be unwilling to act as major changes also have major risks. That is, likelihood of a strategy change: competitor current marketing strategy, key resources/capabilities (our weaknesses, competitor predicted marketing strategy.
