Marketing Strategy Lecture Notes
Table of Contents
Marketing Strategy Lecture Notes..................................................................1
Lecture 1........................................................................................................................ 2
1.1 Basics: What is Marketing Strategy?.....................................................................2
1.2 Basics: What is Marketing Strategy?.....................................................................3
Lecture 2 The Playing Field............................................................................................5
The Playing Field A – definition of the relevant market...............................................5
The Playing Field B – Market Segmentation................................................................8
Lecture 3 – The Behavior of the Players.......................................................................12
3.1 – Price Leadership (1)......................................................................................... 12
3.2 - Price Leadership (2).......................................................................................... 13
3.3 – Quality Leadership (1)......................................................................................17
3.4 – Quality Leadership (2)......................................................................................17
3.5 - Hybrid Strategies.............................................................................................. 19
3.6 – Time Leadership (1).........................................................................................20
3.7 - Time Leadership (2): Pioneer advantage..........................................................21
3.8 - Time leadership: How to disrupt.......................................................................23
3.9 - The Value Proposition.......................................................................................24
Lecture 4: Marketing Ethics.......................................................................................... 25
4.1 – Deontology and Utilitarianism..........................................................................25
4.2 - Ethics and Morality...........................................................................................26
4.3 - Stakeholder & Shareholder theory....................................................................27
5 The rules of the Game............................................................................................... 27
Lecture 6: Dynamic strategy adaption.........................................................................29
McGrath (2013) paper..............................................................................................29
Dimensions of marketing strategy are subject to change.........................................30
Questions and Exam Preperation.................................................................................30
,Lecture 1
1.1 Basics: What is Marketing Strategy?
What is strategy?
Strategy: strategy is the connection between goals and actions.
Goals:
Goals can be operationalized (clear formulation of goals in absolute
terms)
Goals can be set on different organizational levels (Corporate,
Strategic Business Unit (SBU), Functional Unit which can be
conflicting at times.
Goals serve as a normative reference point
Strategy:
Flexible game plan for achieving long-term goals
Strategies can be implemented on three levels (Corporate, SBU,
Functional Unit)
o Corporate level strategies: focus on fundamental (strategic)
decisions that influence the firm as a whole (synergy between
SBUs take best care of all employees, selection of markets,
and brand identities create a more balanced portfolio of
brands
2
, o SBU level strategies: Seek to gain competitive advantage in
an SBU (which must be in line with corporate strategy)
Netflix: offer unique value through exclusive content (Netflix
originals)
o Functional level strategies: fundamental decisions in areas
such as pricing, promotion, distribution and product. stay
below competitors price, optimize production.
Actions:
Tangible, short-term tasks that can be precisely identified,
monitored, and evaluated
1.2 Basics: What is Marketing Strategy?
What is Marketing?
Marketing is often understood as a “push” tactic, however marketing is
both push and pull with a clear focus on pull (catering to the consumers
needs which creates demand).
Market-Oriented Leadership: This concept means integrating
marketing across the organization to ensure that all business processes
reflect a customer-centric approach.
Marketing also includes the management of a competitive advantage
(CA). Marketing’s primary role at the SBU level is to manage competitive
advantage, differentiating the company’s products from competitors in
ways that create lasting customer value.
The Competitive Advantage Triangle:
3
Table of Contents
Marketing Strategy Lecture Notes..................................................................1
Lecture 1........................................................................................................................ 2
1.1 Basics: What is Marketing Strategy?.....................................................................2
1.2 Basics: What is Marketing Strategy?.....................................................................3
Lecture 2 The Playing Field............................................................................................5
The Playing Field A – definition of the relevant market...............................................5
The Playing Field B – Market Segmentation................................................................8
Lecture 3 – The Behavior of the Players.......................................................................12
3.1 – Price Leadership (1)......................................................................................... 12
3.2 - Price Leadership (2).......................................................................................... 13
3.3 – Quality Leadership (1)......................................................................................17
3.4 – Quality Leadership (2)......................................................................................17
3.5 - Hybrid Strategies.............................................................................................. 19
3.6 – Time Leadership (1).........................................................................................20
3.7 - Time Leadership (2): Pioneer advantage..........................................................21
3.8 - Time leadership: How to disrupt.......................................................................23
3.9 - The Value Proposition.......................................................................................24
Lecture 4: Marketing Ethics.......................................................................................... 25
4.1 – Deontology and Utilitarianism..........................................................................25
4.2 - Ethics and Morality...........................................................................................26
4.3 - Stakeholder & Shareholder theory....................................................................27
5 The rules of the Game............................................................................................... 27
Lecture 6: Dynamic strategy adaption.........................................................................29
McGrath (2013) paper..............................................................................................29
Dimensions of marketing strategy are subject to change.........................................30
Questions and Exam Preperation.................................................................................30
,Lecture 1
1.1 Basics: What is Marketing Strategy?
What is strategy?
Strategy: strategy is the connection between goals and actions.
Goals:
Goals can be operationalized (clear formulation of goals in absolute
terms)
Goals can be set on different organizational levels (Corporate,
Strategic Business Unit (SBU), Functional Unit which can be
conflicting at times.
Goals serve as a normative reference point
Strategy:
Flexible game plan for achieving long-term goals
Strategies can be implemented on three levels (Corporate, SBU,
Functional Unit)
o Corporate level strategies: focus on fundamental (strategic)
decisions that influence the firm as a whole (synergy between
SBUs take best care of all employees, selection of markets,
and brand identities create a more balanced portfolio of
brands
2
, o SBU level strategies: Seek to gain competitive advantage in
an SBU (which must be in line with corporate strategy)
Netflix: offer unique value through exclusive content (Netflix
originals)
o Functional level strategies: fundamental decisions in areas
such as pricing, promotion, distribution and product. stay
below competitors price, optimize production.
Actions:
Tangible, short-term tasks that can be precisely identified,
monitored, and evaluated
1.2 Basics: What is Marketing Strategy?
What is Marketing?
Marketing is often understood as a “push” tactic, however marketing is
both push and pull with a clear focus on pull (catering to the consumers
needs which creates demand).
Market-Oriented Leadership: This concept means integrating
marketing across the organization to ensure that all business processes
reflect a customer-centric approach.
Marketing also includes the management of a competitive advantage
(CA). Marketing’s primary role at the SBU level is to manage competitive
advantage, differentiating the company’s products from competitors in
ways that create lasting customer value.
The Competitive Advantage Triangle:
3
