Strategic Marketing

Summary of Lecture – 2

Marketing and Competitive Space

Today firms compete in a situation of strong competition. In global markets firms are
facing fast changing political, social and technological changes There is no company which can
rely only on its own resources, knowledge and skills. Global managerial economics demands
ramified, widespread and strongly interrelated organization networks and alliances. These
complex structures favor managerial capabilities and outsourcing relations with co-makers and
external partners (competitive alliances). The corporate culture therefore evolves into cross-
cultural management, designed to overcome the physical limits of competition (marketspace
management) and the local environment. In global markets, a network corporate culture makes it
possible to create organizations with uniform structures, stimulated and checked by a system of
communications networks (Internet, Intranet, Extranet), and it presumes different levels of
performance evaluation, which envisage an estimate of the strategic harmonization (chairman
leadership) and of operating harmonization (management leadership).

 Markets and Strategies

 Interlined Markets and strategies
o Thinking outside the competitive box
 The array of challenges
o Disruptive innovation
o Commoditization threats
o Creating new market space
o Fast-changing markets
 Matching needs with product benefits
 Defining and analyzing product markets
o Determining product-market boundaries and structure
 Product-market structure
 Guidelines for definition
 Forming product-markets
o Purpose of analysis
o Changing composition of market
o Extent of market complexity
 Illustrative product-market structure
 Describing and analyzing end users
o Identifying and describing buyers
o How buyers make choices
o Environment influences
o Building customer profiles
 Analyzing competition
o Defining the competitive arena
 Industry analysis
 Analysis of the value-added chain
 Competitive forces
o Key competitor analysis
 Describing and evaluating the competitors
o Anticipating competitors’ actions
 Estimating competitors’ future strategies
 Identifying new competitors
 Market Size estimation
o Market potential
o Sales forecast
o Market share
o Evaluating market opportunity
 Developing a strategic vision about the future
o Phases of competitions
o Anticipating the future

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