AIBS

Amity International Business

School
MBA, Semester 1

Marketing Management
Shalini Gautam
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 AIBS

Blue ocean vs red ocean

strategy

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 Blue Ocean Vs AIBS

Red Ocean Strategy

• Developed by W. Chan Kim and Renee
Mauborgne.
• It describes how companies traditionally work in
"red ocean“ conditions, where businesses
viciously fight against each other for a share of
the marketplace. Instead, according to the blue
ocean strategy, organizations should find a way
to work in a marketplace that is free of
competitors.

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 Red Oceans AIBS

• In Red Oceans, companies try to

outperform rivals to grab bigger slices of
existing demand
• As the space gets increasingly crowded,
profit and growth prospects shrink
• Products become commoditized
• Ever-more-intense competition turns the
water bloody

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 Blue Oceans AIBS

• Create Blue Oceans to avoid mindless

competition — create uncontested market
spaces, where the competition is irrelevant
• In blue oceans, you invent and capture
new demand, and you offer customers a
leap in value while also streamlining your
costs
• Results? Handsome profits, speedy
growth—and brand equity that lasts for
decades while rivals scramble to catch up 5
 Four Actions Framework AIBS

• Raise: What factors should be raised well

above the industry's standard?
• Eliminate: Which factors that the industry
has long competed on should be
eliminated?
• Reduce: Which factors should be reduced
well below the industry's standard?
• Create: Which factors should be created
that the industry has never offered?
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 Ambush Marketing AIBS

• A promotion tactic designed to associate a

company, product, or service with a particular
event, or to attract the attention of people
attending the event, without payment being
made for an official sponsorship.
• For example, a business affiliates itself with a
particular athlete or sports team rather than
paying to become an official Olympics sponsor.
Successful ambush marketing diminishes the
value of an official sponsorship.
• Also called parasitic marketing. 7
AIBS

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AIBS

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 Guerilla Marketing AIBS

• Guerrilla marketing is an advertising

strategy in which low-cost unconventional
means (graffiti, sticker bombing, flash
mobs) are utilized, often in a localized
fashion or large network of individual cells,
to convey or promote a product or an idea

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Images of Guerilla AIBS

Marketing

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 AIBS

Analyzing the macro

environment

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 Demographic AIBS

Environment
• Worldwide Population Growth
• Population Age Mix
• Ethnic & Other Markets
• Education Level
• Household Patterns

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 Economic Environment AIBS

• Income levels
• Income Distribution
• Consumption Patterns

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 Sociocultural Environment AIBS

• High Persistence of core cultural values

• Existence of Subcultures

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 Technological AIBS

Environment
• Accelerating Pace of Change
• Unlimited Opportunities for Innovation
• Increasing R&D Budgets

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 Political-Legal AIBS

Environment
• Increase in Business Legislation
• Growth of Special Interest Groups

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