Strategic relationships

Suppliers

End-User
Customers

Intermediate
Customers

Strategic
Relationships

Joint
Ventures
Strategic
Alliances

External
Partners

Competitors
Internal
Partners

The Rationale for Inter organizational

Relationships
Value-enhancing
opportunities

Skills and
resource
gaps

Rationale for
Forming Strategic
Relationships

Competitive
strategy

Environmental
complexity

Mapping the Path to Market

Leadership
Market-Oriented
Culture and
Process

Organizational
Change

Relationship
Strategies
Positioning
with Distinctive
Competencies

Superior
Customer
Value
Proposition

Strategic Brand Management

Brand Identity Strategy
BRAND
EQUITY MANAGEMENT

Identity Implementation

Brand Strategy Over Time

STRATEGIC BRAND
ANALYSIS

Managing the Brand Portfolio

Leveraging the Brand

Tracking Brand Performance

Performance
Objectives

Select Method(s) for

Evaluation

Identify Problem
Products

Decide How to
Resolve the
Problem

Analyzing Brand Performance

Product life cycle
analysis

Financial
analysis

Product
performance
analysis

Analyzing Brand
Performance

Research
studies

Standardized
information
services

Brand
positioning
analysis

BRAND EQUITY
Company/Customer Value of
Brand Name and
Symbol of
a Product

Determined by the brands

set of
assets (and liabilities)

Strategies for Improving Product Performance

Product
improvement
Cost
reduction

Add
new
product(s)

Product line
Strategy

Alter
marketing
strategy

Eliminate
specific
product(s)

Price in the POSITIONING STRATEGY

Target
market and
objectives

Product
strategy

Positioning Strategy

Pricing
strategy

Promotion
strategy

Value-Chain
strategy

Roles of Pricing

Signal to the
Buyer
Marketing
Program
Considerations

Instrument of
Competition

Improving Financial
Performance

PRICING STRATEGY for New and Existing Products

Set Pricing
Objectives
Analyze the
Pricing Situation

Select Pricing
Strategy

Determine Specific
Prices and Policies

Selecting The Pricing Strategy

Analysis of the pricing situation provides essential information for selecting the
pricing strategy .
Management needs to determine
Extent of Pricing Flexibility
Price Positioning & Visibility

Extent of Pricing Flexibility

Demand

Demand & Cost Factors determine the

extent of Price Flexibility .
Choice of Pricing strategy is influenced by
Competitor's Strategy , both present &
Demand-Cost
Competition
Gap
future and managements price
objectives.
The price Gap between demand and cost
may narrow or wide.
A narrow gap simplifies the decision .
A wide gap provides a greater range of
Costs
feasible pricing options.

Pricing
Objectives

Price Positioning & Visibility

A relatively low market entry price may be used
to increase sales and quick market position ,
called penetration .
A high price selected as entry price to generate
large margins , called Skimming
Factors affecting choice of a pricing approach for a
new product cost & Life span of a new product
Estimated responsiveness to buyers to
alternative native price.
Assessment of competitive reaction

Decision should made to measure how visible price will be

in the promotion of the new product .

- Use of low entry price requires active promotion of the price

- Use of High Price relative to cost , often assumes passive role in
the marketing mix

Illustrative Pricing Strategies

Role of Price

High Active Strategy:

High Passive Strategy:

Essential to gain the margins
necessary to serve small target
markets & Produce high quality
products

Marketed by featuring non-price

factors rather than using high active
strategies.

Low

Emphasize a high price in promotional

activities to convey buyer for superior &
expensive brand value
Used on a very limited basis to
symbolically position products .
Less subject to retaliation by competitors
if differentiated properly .

High

Active

Passive

High Active
Strategy

High Passive
Strategy

Low Active Strategy

Low Passive
Strategy

Determination of the prices depends internal and external

factors. Pricing goals represents internal policy. Also, price policy
should be aligned on several other factors.

Forms of organizational relationships

Supplier
relationships

Internal
partnerships

Firm

Customer
relationships

Lateral
partnerships

Illustrative Interorganizational Relationships

Strategic Alliance
Supplier/
Manufacturer
Collaboration

M
M

JV
Joint Venture

W
R
EU

Distribution
Channel
Relationship

Managing Interorganizational relationships

Managing
Managing
Inter-Organizational
Inter-Organizational
Relationships
Relationships

Planning, implementing, and

controlling an organizations

communications to its customers

And other target audiences.

Composition of Promotion Strategy

Interactive/Internet
Marketing
Direct
Marketing

Advertising
Promotion
Components

Personal
Selling

Sales
Promotion
Public
Relations

PROMOTION STRATEGY- DESIGNING

MARKET TARGETING AND POSITIONING
STRATEGIES
COMMUNICATION
OBJECTIVES
ROLE OF PROMOTION
COMPONENTS
Advertising

Sales Promotion

Public Relations

Personal Selling

Direct Marketing

Interactive/ Internet
Marketing

PROMOTION
BUDGET
Coordination
with Product,
Distribution,
and Price
Strategies
INTEGRATE AND IMPLEMENT PROMOTION COMPONENT

PROMOTION COMPONENT
STRATEGIES
STRATEGIES

EVALUATE EFFECTIVENESS OF PROMOTION

STRATEGY

Communications Objectives

Need
Recognition

Customer
Retention

Finding
Buyers

Decision to
Purchase

Brand
Building

Evaluation
of
Alternatives

Factors Guiding the Role Assigned to Each Component

Market Target(s)
Desired Positioning
Role of Promotion in Positioning

Product Characteristics
Stage of Life Cycle
Situation Specific Factors

Determining the Promotion Budget

Objective and Task

All You Can Afford

Budgeting Approaches

Follow the
Competition

Percent of Sales

Factors Affecting Promotion Strategy

Advertising/ sales
promotion driven

Large
Low

Balanced

Number and dispersion of buyers

Buyers information needs
Size and importance of purchase

Small
Distribution
Channel

Low
No

Product Complexity

Post-purchase contact required

Personal selling driven

Small
High
Large

Direct
High
Yes

ADVERTISING STRATEGY

Setting Objectives
and Budgeting

Program
Implementation
and Measuring
Effectiveness

Role of the
Advertising
Agency

Creative Strategy

Media/Scheduling
Decisions

Advertising Strategy

Target Audience

Advertising Objectives

Advertising Budget

Creative Strategy

Advertising Media and Programming

Schedules
Evaluate the Effectiveness of the Strategy

Advertising Objectives

Expose communication to target

audience
Create awareness

Change attitude(s)

Increase Sales

Generate profits

Relative access to
the target
audience

Favorable zone

Unfavorable zone
Relative cost of reaching
the target group(s)

Role of the Advertising Agency

Target Audience

Advertising Objectives

Advertising Budget

Creative Strategy

Advertising Agency
Advertising Media and
Programming

Evaluate the Effectiveness of the Strategy

MEASURING ADVERTISING
EFFECTIVENESS
Rating
Services
Test
Marketing

Controlled
Tests

Sales and
Expense Analysis

MEASURING
ADVERTISING
EFFECTIVENESS
Recall
Tests