The product life cycle concept Firms need to surpass their competitors in satisfying customers Firms need also to understand and respond to changes in competition, channel and customer’s behaviors. The Synergy Concept The firm that creates marketing tactics that fit together well and coordinates their implementation in the right order will do much better than the firm whose tactics and implementation are confused and disjointed. The Product Life-cycle
Like a living organism, a product goes through a birth stage, growth stage, mature stage and decline stage. Firms should emphasis different marketing strategies and tactics at different stages. Sales Workshop: Choose a partner (min) Choose a product (5 min) Define the stage of the product (10 min) Exposition (2 min each group) What is strategy? Strategy is concerned with making major decisions affecting the long-term direction of the business. BUSINESS DEFINITION: A strategic fundamental is defining the business we are in.
Organizations need to anticipate and adapt to change by peeping in touch with the external competitive environment. Business leaders need to define the range of the organization’s activities and determine the markets in which the organization will compete. Defining the boundaries (limits) of activity and ensuring MAIN COMPETENCIES: The organization must be competitive now and in the future. Therefore, strategic decisions need to define the basis of sustainable competitive advantage(s). What skills and resources are needed in order to prosper within our defined markets and how can they be used to optimize the advantage?
It is considered over the long-term and aims to match organizational capability with desired goals. INTEGRATIVE: Strategy has a wide ranging impact and therefore affects all functional areas inside the organization. Effective strategy is able to coordinate the different functions and activities inside the organization in order to achieve common goals. By taking a Whole-organization’s’ view of the corporation, managers should be better able to target resources, eliminate waste and generate synergy. Synergy occurs when the combined effect of functions/activities is greater than their individual contribution.
Change is inevitable, particularly in the marketing environment. The impact of change is felt all over the world as marketing managers make extensive strategic and tactical decisions. Organizational change tends to follow cyclical patterns that can be compared to a natural system, or the natural kilocycle. Complex natural systems experience a continuous process of change from birth to maturation and throughout their continued development, ultimately acing a crisis of some sort.
Survival depends on the ability of the system to renew (or reinvent) itself, and once again emerge as a living, vibrant system. It has 4 phases: Pl Birth, UP Conservation, UP Creative Destruction, UP Renewal -Phase 1: Birth: This is the stage of exploitation, characterized by rapid growth. Resources are plentiful and readily available, but ecosystem becomes crowded with natural growth. Phase 2: Conservation: This phase is characterized by increased crowding and competition, a need for more efficiency, a Ochs on survival, and the emergence of controlling the system.
Example: An economic recession (Car Industry) Phase 3: Creative Destruction: The system is only partially destroyed in order to be renewed. Survivors are those who are mobile enough to escape (innovate), prepared for the situation, or lucky. Phase 4: Renewal: This phase represents the reconnection of the system. Conditions once again favor fast growth, and the space can be recognized by a large variety of smaller competitors. – THE MARKETING ORGANIZATION KILOCYCLE: We can view the marketing management process as a mutinous system of change and renewal that follow the natural patterns of an organization’s existence.
It has 8 Phases: Pl Entrepreneurial Phase, UP Strategic Growth, UP Conservation/Constraints, UP Crisis/Critical Event, UP Confusion/Environmental Uncertainty, UP Visionary and Charismatic Leadership, UP/UP Renewal/ Creativity/lamination and Choiceness Identification Phase l: Entrepreneurial Phase SO The formative start-up phase is characterized by spontaneous behavior and learning, prosperity and unplanned growth. Planning in shorter term. Eventually, the organization becomes larger and ore structured.
Phase II: Strategic Growth SO The organization grows in size and complexity, and emphasis changes to formal strategic planning and proactive problem solving. SO Phase Ill: Conservation/Constraints SO The marketing organization is more limited because of the increased competition (and possible insufficiency of competitive advantage), lack of resources, and environmental risks. The organization is now vulnerable, and any crisis can put at risk its survival.
A crisis also can break insertions that blocked the organization in Phase 3, providing an opportunity for renewed focus on the core business and/or creative destruction that leads to organizational renewal. Phase V: Confusion / Environmental Uncertainty SO The organization moves from an apparent end of its life cycle into the early stages of the kilocycle’s renewal curve. Confusion and uncertainty overcome and managers are challenged to use creative problem solving and find more innovative solutions. SO Phase VI: Visionary and Charismatic Leadership Management experts say that organizations