MARKETING

STRATEGY
 MARKETING STRATEGY

“Imagination is
more important
than knowledge”

- Einstein 2
Dr. B. Bowonder
 MARKETING STRATEGY

What is strategy?

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 MARKETING STRATEGY

Making the right

moves

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 MARKETING STRATEGY

Moving from the

zone of comfort to
the zone of
opportunity
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 MARKETING STRATEGY

Finding and
exploiting a unique
competitive
position
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 MARKETING STRATEGY

Realizing the
intent

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 MARKETING STRATEGY

Identifying the
battlefield

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 MARKETING STRATEGY

Stretching the
boundaries

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 MARKETING STRATEGY

Creating the
unimaginable

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 MARKETING STRATEGY

Creating the
real options

Dr. B. Bowonder
 MARKETING STRATEGY

Adapting to
turbulent
context
Dr. B. Bowonder
 MARKETING STRATEGY

Becoming a
fast mover

Dr. B. Bowonder
 MARKETING STRATEGY

Strategic Strategic
purpose architecture

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 MARKETING STRATEGY

Strategic
purpose

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 MARKETING STRATEGY

What you are

going to do

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Dr. B. Bowonder
 MARKETING STRATEGY

Business mission

Market scope

Service scope

Basis for
differentiation 17
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 MARKETING STRATEGY

Strategic
Architecture

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 MARKETING STRATEGY

How you are

going to achieve
the intent
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 MARKETING STRATEGY

Customer interface

Core strategy

Strategic resources

Value network
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Dr. B. Bowonder
 MARKETING STRATEGY

Service
marketing
purpose

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Dr. B. Bowonder
 MARKETING STRATEGY

Creating
Dominating
unique
markets
services

Keeping
ahead of the
market

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Dr. B. Bowonder
 MARKETING STRATEGY

Dominating
markets

Number
Enhancing Learning
one is the
brand to say no
right
value
customers
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Dr. B. Bowonder
 MARKETING STRATEGY

Creating
unique
services

Invent Revitalize
Innovate
new Current
continuously
services services
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Dr. B. Bowonder
 MARKETING STRATEGY

Keeping
ahead of
the
market

Sustain Form Redefine

market alliances the
leadership franchise
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Dr. B. Bowonder
 MARKETING STRATEGY

Marketing
Planning in an
uncertain
business
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 MARKETING STRATEGY

Market planning

Scenario Contingency
planning planning

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 MARKETING STRATEGY

Scenario
planning
using
business
models

Business Worst case Best case

as usual scenario scenario
scenario
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Dr. B. Bowonder
 MARKETING STRATEGY

Contingency
planning

Advance
Creating Backup action for
new plans rapid
options
response
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 MARKETING STRATEGY

Marketing
strategy

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 MARKETING STRATEGY

• Market choices
• Value proposition
• Key relationship
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 MARKETING STRATEGY

Positioning and
overall direction in
each market

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 MARKETING STRATEGY

Marketing
programmes

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 MARKETING STRATEGY

Action in the
market place

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 MARKETING STRATEGY

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• Product policies
• Price policies
• Marketing
• Communications
• Distribution
• Service policies 35
Dr. B. Bowonder
 MARKETING STRATEGY

Marketing
information

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 MARKETING STRATEGY

• Information flows
• Market research
• Marketing information
• Systems
• Market sensing
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 MARKETING STRATEGY

Three types of
strategic behaviour

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 MARKETING STRATEGY

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• Rule makers
• Rule takers
• Rule breakers

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 MARKETING STRATEGY

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Strategy is
reinventing
business
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 MARKETING STRATEGY

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Market choice

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 MARKETING STRATEGY

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• Definition
• Segmentation
• Attractiveness
• Position
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 MARKETING STRATEGY

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Value proposition

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• Market mission
• Competitive
differentiation
• Marketing assets
and brand
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 MARKETING STRATEGY

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Key relationships

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 MARKETING STRATEGY

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• Customers
• Competitors
• Collaborators
• Coworkers
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 MARKETING STRATEGY

Market attractiveness

S
Market
position

W
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 MARKETING STRATEGY

Market attractiveness

S Core
Business
Market
position

W
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 MARKETING STRATEGY

Market attractiveness

S Core Preplanned
Business business
Market
position

W
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 MARKETING STRATEGY

Market attractiveness

S Core Preplanned
Business business
Market
position
Illusion
business
W
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 MARKETING STRATEGY

Market attractiveness

S Core Preplanned
Business business
Market
position
Illusion Dead end
business business
W
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 MARKETING STRATEGY

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• Acceptability
• Availability
• Affordability

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 MARKETING STRATEGY

Sources of competitive
advantage
Low cost Differentiation

Brand

Competitive
scope

Narrow 53
Dr. B. Bowonder
 MARKETING STRATEGY

Sources of competitive
advantage
Low cost Differentiation

Brand
Cost/price
leadership
Competitive
scope

Narrow 54
Dr. B. Bowonder
 MARKETING STRATEGY

Sources of competitive
advantage
Low cost Differentiation

Brand
Cost/price Differenti
leadership ation
Competitive
scope

Narrow 55
Dr. B. Bowonder
 MARKETING STRATEGY

Sources of competitive
advantage
Low cost Differentiation

Brand
Cost/price Differenti
leadership ation
Competitive
scope
Focus
Narrow 56
Dr. B. Bowonder
 MARKETING STRATEGY

Sources of competitive
advantage
Low cost Differentiation

Brand
Cost/price Differenti
leadership ation
Competitive
scope
Focus Focus
Narrow 57
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 MARKETING STRATEGY

Competitive
differentiation

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 MARKETING STRATEGY

Product

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 MARKETING STRATEGY

• Features
• Design
• Performance
• Price
• Quality
• Packaging 60
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 MARKETING STRATEGY

Services

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 MARKETING STRATEGY

• Delivery
• Finance
• After sales service
• Availability
• Maintenance
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 MARKETING STRATEGY

Intangibles

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 MARKETING STRATEGY

• Brand image
• Reputation
• Corporate image
• Cognitive dissonance
• Brand dissonance
identity
• Value perceptions 64
Dr. B. Bowonder
 MARKETING STRATEGY

Relationship
marketing

Transaction
marketing
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Dr. B. Bowonder
 MARKETING STRATEGY

Type of relationship
Long term Transactional
Close
relationship Relationship Relationship
seekers exploiters

Competitive
scope
Loyal Arms length
Distant buyers transactions
relationship 66
Dr. B. Bowonder
 MARKETING STRATEGY

Competition
profile

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Dr. B. Bowonder
 MARKETING STRATEGY

Competitor
• Goals
• Strategy
• Assumptions
• Capabilities
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Dr. B. Bowonder
 MARKETING STRATEGY

Market
planning

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Dr. B. Bowonder
 MARKETING STRATEGY

Market

Communica Product
tions policy policy

Distribution Pricing
policy policy
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Dr. B. Bowonder
 MARKETING STRATEGY

BCG model

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 MARKETING STRATEGY

High

Market
attractive
ness

Low

High Low
Business strength 72
Dr. B. Bowonder
 MARKETING STRATEGY

High Problem
Star
child
Market
attractive-
ness
Cash cow Dog
Low

High Low
Business strength 73
Dr. B. Bowonder
 MARKETING STRATEGY

Star
Cash gen ++
Cash use ---

Net cash -
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Dr. B. Bowonder
 MARKETING STRATEGY

High Problem
Star
child
Market
attractive-
ness
Cash cow Dog
Low

High Low
Business strength
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Dr. B. Bowonder
 MARKETING STRATEGY

Problem child
Cash gen ++
Cash use ---

Net cash -
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Dr. B. Bowonder
 MARKETING STRATEGY

High Problem
Star
child
Market
attractive-
ness
Cash cow Dog
Low

High Low
Business strength
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Dr. B. Bowonder
 MARKETING STRATEGY

Cash cow
Cash gen +++
Cash use --

Net cash +
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Dr. B. Bowonder
 MARKETING STRATEGY

High Problem
Star
child
Market
attractive-
ness
Cash cow Dog
Low

High Low
Business strength
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Dr. B. Bowonder
 MARKETING STRATEGY

Dog
Cash gen ++
Cash use --

Net cash 0
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Dr. B. Bowonder
 MARKETING STRATEGY

Best R&D
scenario

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Dr. B. Bowonder
 MARKETING STRATEGY

High Problem
Star
child
Market
growth

Cash cow Dog

Low

High Low
Market share
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Dr. B. Bowonder
 MARKETING STRATEGY

Worst R&D
scenario

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 MARKETING STRATEGY

High Problem
Star
child
Market
growth

Cash cow Dog

Low

High Low
Market share
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Dr. B. Bowonder
 MARKETING STRATEGY

Leader HIGH GROWTH

•New users
•New applications (R&D)
•Price reduction
•Product development
•Improved marked coverage
•Process improvements (R&D)
•Maintain production capacity
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Dr. B. Bowonder
 MARKETING STRATEGY

Follower HIGH GROWTH

•New applications (R&D)

•Strategic alliances
•Process R&D
•Investment
•New users
•Marketing
•Service network 86
Dr. B. Bowonder
 MARKETING STRATEGY

Leader LOW GROWTH

•Quality
•Cost
•Performance
•Distribution
•Vertical integration
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Dr. B. Bowonder
 MARKETING STRATEGY

Follower LOW GROWTH

•Customization
•New applications (R&D)
•Aggressive marketing
•Divest

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Dr. B. Bowonder
 MARKETING STRATEGY

“Competition is
ruthless”

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Dr. B. Bowonder
 MARKETING STRATEGY

Service
marketing
strategy
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Dr. B. Bowonder
 MARKETING STRATEGY

VALUE CHAIN
ENHANCEMENT

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Dr. B. Bowonder
 MARKETING STRATEGY

m-commerce

Equipment Networks Software Services

Carrier-
class
tr
Infras solutions B2C
ucture
Consumers
Enabling
Content
software
Components Wireless and
&
Portals
services
Enterprise Mobile
Devices -class
B2W workers
solutions

Business to
workforce

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Dr. B. Bowonder
 MARKETING STRATEGY

Equipment Networks Software Services

m-commerce
Carrier-
1 class
tr
Infras solutions
ucture B2C Consumers
Enabling
Content
software
Components Wireless and
&
Portals
services
Enterprise B2W Mobile
Devices -class workers
solutions

Business to
workforce

1. COMPONENTS
Antenna, Signal Processors
(DSPs), integrated Circuits
(ASICs), Analog-Digital Converters,
LCD Screens, Keypads, Batteries,
Global Positioning Systems,
Bluetooth Components, Scanners 93
Dr. B. Bowonder
 MARKETING STRATEGY

Equipment Networks Software Services

m-commerce
2 Carrier-
class
tr
Infras solutions
ucture B2C Consumers
Enabling
Content
software
Components Wireless and
&
3 Portals
services
Enterprise B2W Mobile
Devices -class workers
solutions

Business to
workforce

2. Infrastructure
Cell Towers, Base Stations, Routers
and Switches
3. Devices
Phones, SmartPhones, Pagers, PDAs
and Pocket PCs, Laptops, Telemetric
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Devices, Telematic Installations
Dr. B. Bowonder
 MARKETING STRATEGY

Equipment Networks Software Services

m-commerce
Carrier-
4
class
tr
Infras solutions
ucture B2C Consumers
Enabling
Content
software
Components Wireless and
&
Portals
services
Enterprise B2W Mobile
Devices -class workers
solutions

Business to
workforce

4. Wireless Carriers
National PCS/Cellar,
Regional Carriers, Data-
only Carriers, Paging
Networks
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Dr. B. Bowonder
 MARKETING STRATEGY

Equipment Networks Software Services

m-commerce
5 Carrier-
class
tr
Infras solutions
ucture B2C Consumers
Enabling
Content
software
Components Wireless and
&
Portals
services
Enterprise B2W Mobile
Devices -class workers
solutions

Business to
workforce
5. Enabling Software & Services
Operating Systems, Gateways,
Personal Information, Management
Systems, Synchronization Tools,
Security Software, Location-based
services, Caching/Compression.
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Payment Systems, Voice Systems Dr. B. Bowonder
 MARKETING STRATEGY

Equipment Networks Software Services

m-commerce
Carrier-
class
tr
Infras solutions
ucture B2C Consumers
Enabling 6 Content
software
Components Wireless and
&
Portals
services
Enterprise B2W Mobile
Devices -class workers
solutions

Business to
workforce

6. End-to-End Solutions
Software Products,
Application Hosting, M-
commerce Services,
Engineering and
Professional Services 97
Dr. B. Bowonder
 MARKETING STRATEGY

Equipment Networks Software Services

m-commerce
Carrier- 7
class
tr
Infras solutions
ucture B2C Consumers
Enabling
Content
software
Components Wireless and
&
Portals
services
Enterprise B2W Mobile
Devices -class workers
solutions

Business to
workforce

7. Content and Portals

WISPs, Portals,
M-commerce
platforms, Voice
Portals 98
Dr. B. Bowonder
 MARKETING STRATEGY

EXTENDING
CURRENT
SERVICES
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Dr. B. Bowonder
 MARKETING STRATEGY

Second-
party
endorsem
New features ents
and Service
technologies guarantees

Current
service
offering
Co- Revitalizing
Branding the people

New access
channels
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Dr. B. Bowonder
 MARKETING STRATEGY

Degree of
High risk and
return

Differentiating New to the

services world

New to the
company
Expected
services New platforms

Line extensions e
p
ty Degree of risk
Core Resposition
u ct and return
offering ings/improv o d
ements pr
Cost e w
reductions N
Low

Low High
Newness to company 101
Dr. B. Bowonder
 MARKETING STRATEGY

What can we
learn?

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 MARKETING STRATEGY

No winning
strategy lasts
forever
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Dr. B. Bowonder
 MARKETING STRATEGY

Understand the
customer
buying motives

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Dr. B. Bowonder
 MARKETING STRATEGY

Benchmark
with your
competitors
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Dr. B. Bowonder
 MARKETING STRATEGY

Prepare options
and contingency
plans
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Dr. B. Bowonder
 MARKETING STRATEGY

Get personal
commitment

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Dr. B. Bowonder
 MARKETING STRATEGY

Develop long-
term alliances
with critical
customers
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Dr. B. Bowonder
 MARKETING STRATEGY

“In a war there is

no second prize for
the runner-up”

- Gen. Bradley109
Dr. B. Bowonder
 MARKETING STRATEGY

THANK YOU

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Dr. B. Bowonder