Marketing Planning and Strategy
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IS IT TIME
TO SAY GAME OVER?
Examines Electronic Arts' (EA) dominance of video games.
Background on EA, the dominant player in the multi-billion dollar
video-game software industry; Financial details; Comments of Chief
Executive Officer Larry Probst; Sales growth; Views of analysts; Reasons
for the industry's success; Plans for expansion; EA's strategy; Possible
sources of revenue, including in-game advertising; Expected increase in
sales from next generation consoles; Competition; Outlook.
AL SCANNING: RADAR FOR SUCCESS.
The article discusses environmental scanning. It is the
internal communication of external information about issues that may
potentially influence an organization's decision-making process. In
essence, environmental scanning is a method for identifying, collecting
and translating information about external influences into useful plans
and decisions. There are many important reasons to do environmental
scanning. Relationship among markets, strategic planning and the
environmental external to an organization is what defines an
organization's success. The focus of environmental scanning is on
strategic thinking and planning. External environments that may impact
an organization can be grouped into categories including social,
regulatory, technological, political, economic and industry. Emergence
of new technologies can impact organizations' overall business and
production processes. Internal information includes
organization-specific information that can be compared to the findings
of external scanning in order to maximize organizational responsiveness.
Managers prefer to receive information that is presented in person
rather than through reading. There are also problems with environmental
scanning related to interpretation of the information that has been
gathered. In addition, an overemphasis on scanning could have negative
effects on an organization.
Effect of Innovation on Market Structure.
Product innovation is endemic among consumer packaged
goods firms and is an integral component of their marketing strategy. As
inno-vations affect markets, there is a pressing need to develop market
response models that can adapt to such changes. The authors' model copes
with the challenges that dynamic environments entail: nonstation-arity,
changes in parameters over time, missing data, and cross-sectional
heterogeneity. They use this approach to model sales response in the
frozen pizza category, in which the introduction of rising-crust pizza
brands represents a major innovation. The model is directly applicable
to other domains in which market structure might be nonstationary, such
as changes in promotion strategy, shifts in the retail environment, and
movements in macroeconomic factors. The authors find that innovation (1)
makes the existing brands appear more similar, as indicated by
increasing cross-brand price elasticities; (2) decreases brand
differentia-tion for the existing brands, as indicated by an increase in
the magnitude of own-brand price elasticities; and (3) increases the
variance of the sales response equations temporarily around the time of
the introduction of the innovation, indicating increased uncertainty in
sales response. The authors discuss the managerial implications by
presenting maps of how clout and vulnerability evolve over time,
assessing the effect of new brands on cannibalization, and considering
the strategic implications of the introduction of a flanker innovation
to facilitate an extant brand's ability to attack an incumbent leader.
markets way to turnaround.
Reports on the five-year marketing plan of J.C. Penney
Co. CEO and Chairman Allen Questrom for the JCPenney department stores
in Dallas, Texas. Problems with the promotional strategy of the company;
Plan of Questrom to centralize merchandising operations; Agreement of
J.C. Penney to sell its Eckerd drugstore chain.
Wal-Mart unite for promo.
Deals with the partnership of New Line Cinema with
Wal-Mart in a sales promotion program for the film "The Notebook."
Partnership of New Line with Kimberly-Clark Corp. for retail exposure;
Promotional activity plans for the program.
Reports on the cross-pollinating marketing alliance
between internet companies Monster and eBay in order to capture more
business. How the alliance will work to draw people who are on eBay's
site into the Monster web site.
Reports on the results of a survey conducted by
researcher Joanne Davis in 2004 regarding effective marketing strategies
in the field of business. Most valued characteristic of agency-client
relationship; Definition of good communication according to respondents;
Way to determine a marketing campaign's efficacy.
buyers with offbeat ideas.
Reports on the approach being used by Ikea to market its
products. Use of nontraditional media in the company's marketing
strategy; Performance of the company's television and print
advertisements; Information on some of advertising campaigns of Ikea.
Networks Need to Shift Promotion Strategy.
Focuses on the need for a change in the promotional
strategy of television broadcast networks in the U.S. Percentage of the
market share decline experienced yearly by the broadcast networks;
Approach employed by the broadcast networks to offset their revenue
shortfall; Prime examples of television sitcoms that exhibit good
the carmaker to beat.
Reports on the performance of Toyota Motor Co. in the
automobile market in 2003. Expected sales of Tundra Double Cab full-size
pickup truck; Improvement in the sport utility vehicle line of Toyota;
Challenges faced by Toyota in maintaining its marketing momentum.
branding to stem slide.
Reports on the marketing plan of Volkswagen of America
to prevent the decline in the sales of its automobiles. Focus of the
company on lease deals and financing; Television advertising campaign of
the company; Cause of the declining sales of Volkswagen. INSET: VW
this show on the road.
Deals with roadshows as a marketing strategy. Experience
of Yellow Submarine in making a national campaign for COI
Communications; Importance of liaising with local councils and shopping
outlets for planning roadshows; Effectiveness of roadshows as a means of
promoting brand awareness; Comment from Will Mould, director of the
events division for Slice, on the appreciation of people for roadshows.
Brands Need Loyal Fans.
Suggests apparel companies to implement a marketing
strategy similar to that of rock bands. Creation of a fan base which
goes beyond being just customers of apparel; Development of an emotional
connection with users; Importance of understanding the culture the
company is appealing to.
goes for mass, not class.
Reports on the return of Haagen-Dazs to the mass
advertising medium of television with a repositioned, more mass-appeal
message. Plan of advertising agency Goodby, Silverstein & Partners for
the brand; Competitors of Haagen-Dazs in the market; Views advertising
executives on the repositioning of the brand image of Haagen-Dazs.
Assessing the Impact of Negative Marketing Strategies: The
Application of Market Signaling Metrics. Rothe, James T., Ferguson, Jeffrey M., Harvey, Michael, Condemi, Bruce A., Winter 2003.
One important issue to entrepreneurs is whether or not a
great idea or product is the most significant ingredient necessary for
success in today's business environment. A new market metric for
assessing marketing strategies is developed in the paper that allows
marketing managers to better understand the stock markets reaction to
their marketing strategic thrust. This market metric is then applied to
the marketing cast of Boston Chicken, Inc. and an provides the basis for
an assessment of critical marketing components utilized in the initial
success and bankruptcy of Boston Chicken, Inc. This new metric/analysis
provides valuable insights to marketers on how and under what conditions
an organization can grow rapidly and continue to prosper. [ABSTRACT FROM
A Configuration Theory Assessment of Marketing Organization Fit
with Business Strategy and Its Relationship with Marketing Performance. Vorhies, Douglas W., Morgan, Neil A., January 2003.
Theory posits that organizing marketing activities in
ways that fit the implementation requirements of a business's strategy
enhances performance. However, conceptual and methodological problems
make it difficult to empirically assess this proposition in the holistic
way that it is theoretically framed. Drawing on configuration theory
approaches in management, the authors address these problems by
assessing marketing organization fit with business strategy as the
degree to which a business's marketing organization differs from that of
an empirically derived ideal profile that achieves superior performance
by arranging marketing activities in a way that enables the
implementation of a given strategy type. The authors suggest that
marketing organization fit with strategic type is associated with
marketing effectiveness in prospector, defender, and analyzer strategic
types and with marketing efficiency in prospector and defender strategic
types. The study demonstrates the utility of profile deviation
approaches for strategic marketing theory development and testing.
[ABSTRACT FROM AUTHOR]
Strategic Bundling of Products and Prices: A New Synthesis for
Marketing. Tellis, Gerard J., January 2002.
Bundling is pervasive in today's markets. However, the
bundling literature contains inconsistencies in the use of terms and
ambiguity about basic principles underlying the phenomenon. The
literature also lacks an encompassing classification of the various
strategies, clear rules to evaluate the legality of each strategy, and a
unifying framework to indicate when each is optimal. Based on a review
of the marketing, economics, and law literature, this article develops a
new synthesis of the field of bundling, which provides three important
benefits. First, the article clearly and consistently defines bundling
terms and identifies two key dimensions that enable a comprehensive
classification of bundling strategies. Second, it formulates clear rules
for evaluating the legality of each of these strategies. Third, it
proposes a framework of 12 propositions that suggest which bundling
strategy is optimal in various contexts. The synthesis provides managers
with a framework with which to understand and choose bundling
strategies. It also provides researchers with promising avenues for
further research. [ABSTRACT FROM AUTHOR]
The Effects of Ingredient Branding Strategies on Host Brand
Extendibility. Desai, Kalpesh Kaushik, Keller, Kevin Lane, January 2002.
A decision of increasing importance is how ingredient
attributes that make up a product should be labeled or branded, if at
all. The authors conduct a laboratory experiment to consider how
ingredient branding affects consumer acceptance of a novel line
extension (or one that has not been introduced before) as well as the
ability of the brand to leverage that ingredient to introduce future
category extensions. The authors study two particular types of novel
line extensions or brand expansions: (1) slot-filler expansions, in
which the level of one existing product attribute changes (e.g., a scent
in Tide detergent that is new to the laundry detergent category) and (2)
new attribute expansions, in which an entirely new attribute or
characteristic is added to the product (e.g., cough relief liquid added
to Life Savers candy). The authors examine two types of ingredient
branding strategies by branding the target attribute ingredient for the
brand expansion with either a new name as a self-branded ingredient
(e.g., Tide with its own EverFresh scented bath soap) or an established,
well-respected name as a cobranded ingredient (e.g., Tide with Irish
Spring scented bath soap). The results indicate that with slot-filler
expansions, a cobranded ingredient facilitates initial expansion
acceptance, but a self-branded ingredient leads to more favorable
subsequent category extension evaluations. With more dissimilar new
attribute expansions, however, a cobranded ingredient leads to more
favorable evaluations of both the initial expansion and the subsequent
category extension. The authors offer interpretation, implications, and
limitations of the findings, as well as directions for further research.
[ABSTRACT FROM AUTHOR]
Segmentation as a Business Strategy Does Work. Marketing Research, Summer 2001.
Comments on an article written by Larry Gibson in the
2001 spring issue of `Marketing Research' which demonstrates that market
segmentation is not essential to strategic marketing. Ways to view the
marketplace; Significance of segmentation and the analysis of segments
to the strategic market planning process; Agreement on the issue of
Customer retention: a potentially potent marketing management
strategy. Journal of Strategic Marketing, March 2001.
The traditional marketing approach advocates the
marketing mix principles and the quest for market share dominance
through mass marketing techniques and a focus on new customer
acquisition. This approach has guided managers for decades in planning
and implementing their marketing strategies. However, several authors
have drawn attention to the inadequacies of the traditional marketing
approach, which led to the birth of relationship marketing (RM). RM
advocates supplier-customer interaction and maintaining long-term
relationships with a focus on customer retention. Customer retention, in
the traditional marketing approach, is however seen as the 'end' rather
than the means to delivering long-term profitability to firms. This
paper discusses key issues pertaining to customer retention management,
namely its definition, forms of measure, benefits and potential
strategies for application. It uses examples from a variety of contexts.
It is proposed that customer retention should be part of the strategic
marketing planning process. Customer retention, we envisage, is a
potentially potent marketing management strategy. Further research is
also recommended. [ABSTRACT FROM AUTHOR]
Market orientation, innovation and competitive strategies in
industrial firms. Vazquez, Rodolfo, Santos, Maria Leticia, Alvarez, Luis Ignacio, March 2001.
Market orientation promotes the satisfaction of market
needs with a higher degree of excellence than competitors. However, its
potential effects on the companies' innovation strategy are discussed.
The question is whether or not market orientation, due to an excessive
customer focus, leads mainly to the development of incremental
innovations and, consequently, to reactive innovation strategies. To
obtain further insight into this topic, a market orientation measurement
scale is first developed, taking into account the instrument proposed in
the last decade. Then, the scale psychometric properties are evaluated.
Once it proves to be a solid instrument of measurement, the relationship
between market orientation and the following variables is analysed:
firms' commitment to the innovation activities, effective innovation
rates, degree of innovativeness of the new products developed, firms'
competitive strategy and companies' performance. The study supports the
beneficial effects of market orientation on the innovation strategy,
providing empirical evidence in a research field where contributions of
this nature are very scarce.In addition, the convenience of
incorporating market orientation into industrial firms' management is
reinforced. [ABSTRACT FROM AUTHOR]
The Effects of Strategy Type on the Market
Orientation-Performance Relationship. Matsuno, Ken, Mentzer, John T., October 2000.
Prior research has been equivocal on the role that
competitive environment plays in moderating the relationship between
market orientation and a firm's business performance, even though such a
moderating effect is conceptually quite plausible (Slater and Narver
1994). In this article, the authors empirically examine the role of
business strategy type as an alternative, potential moderator of the
market orientation-performance relationship. By using an improved
version of Kohli and Jaworski's market orientation scale (Jaworski and
Kohli 1993; Kohli, Jaworski, and Kumar 1993), the authors find evidence
that supports the moderating effects of business strategy type on the
strength of the relationship between market orientation and business
performance. The authors also offer implications and future research
questions based on the findings. [ABSTRACT FROM AUTHOR]
Customization as a business strategy-a barrier to customer
integration in product development? Tollin, Karin, July 2002.
Although it is evident that product development (PD)
within most companies does not take place in a vacuum, little is known
about the influence that other core company processes may have on the
way PD activities are carried out. In the study presented in this paper,
we focus on an analysis of the relationship between marketing strategies
and the way customers are integrated in PD. An exploratory analysis of
three medium sized companies acting in the interior design and the
software industries (IT), represent the empirical base. The result of
the analysis shows that customization as an overall business strategy
may act as a barrier to customer integration in PD, due to the nature of
companies' strategies for innovation and for customer relationship
management, respectively. Additionally, motivation and capabilities are
identified and discussed as two core constructs related to, and
antecedents for, customer integration in PD. [ABSTRACT FROM AUTHOR]
'One brand, three ways to shop': situational variables and
multichannel consumer behaviour. Blakemore, Michael, April 2002.
To counter the growth in online retailing, high street
retailers are increasingly adopting multichannel distribution
strategies, seeking to target individual consumers via both physical and
electronic channels as multiple routes to purchase. In order to develop
successful marketing strategies within this environment, however, an
understanding of consumer selection between available purchase channels
is clearly needed. This paper explores the issue of shopping mode
selection from an environmental psychology perspective, applying a
traditional Belkian analysis of situational variables in a longitudinal
study of consumer channel selection decisions. Preliminary findings from
an empirical study of consumers of a leading UK fashion retailer are
reported which reveal significant differences in the prevalence of
different Belkian variables between shopping modes, suggesting a major
role for situational influence during the channel selection process.
[ABSTRACT FROM AUTHOR]
Building value-based branding strategies. Doyle, Peter, December 2001.
Marketing professionals oversimplify the problem of
building successful brands. As companies such as Xerox and Procter &
Gamble have learned, brands can have strong consumer franchises yet
still not generate value for investors. Brands that create shareholder
value have to meet four requirements: (1) a strong consumer proposition,
(2) be effectively integrated with the firm's other value-creating
assets, (3) be positioned in a sufficiently attractive market and (4) be
managed in order to maximize the value of the brand's long-term cash
flow.This paper shows that, when managers attend to all four
determinants, they can enhance brand values and develop more effective
marketing strategies. [ABSTRACT FROM AUTHOR]
Generic marketing strategies for small and medium-sized
enterprises - conceptual framework and examples from Asia. Khai Sheang Lee, Guan Hua Lim, Soo Jiuan Tan, Chow Hou Wee, June 2001.
Although the existing literature discusses strategies
available to small and medium-sized enterprises (SMEs), they do not
address the plight faced by SMEs, namely resource limitations in their
strategy formulation. Drawing on deductive logic, this paper identifies
and conceptualizes three marketing strategies which are generic to SMEs
and which specifically take into consideration the competitive reactions
of bigger incumbent firms. These three generic marketing strategies are
substitution, free riding and strategic deterrence. Successful
substitution calls for the SME to offer differentiated yet substitutable
products to that of an incumbent so as to force accommodation by the
latter. Free riding allows the SME to enter a served market segment
without having to incur market development expenses. Finally, strategic
deterrence aims to deter a bigger incumbent firm from embarking on
aggressive counteractions against the SME. This can be achieved by the
formation of strategic alliances and/or incurring sunk costs in order to
signal the SME's commitments to stay in the market credibly. Examples
from Asian SMEs are given to illustrate the three generic strategies.
[ABSTRACT FROM AUTHOR]
Strategic Interdependence in Organizations: Deconglomeration and
Marketing Strategy. Varadarajan, P. Rajan, Jayachandran, Satish, White, J. Chris, January 2001.
Although strategy exists at multiple levels in a firm
(corporate, business, and functional), there is a dearth of research in
marketing literature that focuses on the dependency among strategy at
different levels. The authors address this issue by examining the
relationship between deconglomeration and marketing strategy.
Deconglomeration refers to the divestiture behavior of a conglomerate
firm and the transformation of its business portfolio from one that is
largely composed of several unrelated businesses to one composed of
fewer and related businesses. Drawing on multiple theoretical
perspectives, the authors propose a conceptual model delineating the
environmental and organizational drivers of deconglomeration and its
outcomes for marketing. The authors suggest that after deconglomeration,
(1) a firm can be expected to be more competitor and customer oriented,
(2) multimarket contact with competing firms and seller concentration
will increase, (3) businesses retained by the firm will be more
innovative and place greater emphasis on advertising compared with sales
promotion, and (4) the firm's culture may become more externally
oriented. Furthermore, the locus of decision making for marketing
strategy may shift more toward senior management levels. In summary,
changes in a firm's corporate strategy could lead to significant changes
in the marketing strategy of its business units. [ABSTRACT FROM AUTHOR]
Value-based marketing. Doyle, Peter, December 2000.
Examines the marketing contribution in the creation of
value and the shareholder value analysis to the development of marketing
strategies. Determinants of shareholder value; Creation of marketing
assets; Significance of marketing assets to determine shareholder value.
Strategic Marketing Planning for Radically New Products. Cooper, Lee G., January 2000.
In this article, the author outlines an approach to
marketing planning for radically new products, disruptive or
discontinuous innovations that change the dimensionality of the consumer
decision. The planning process begins with an extensive situation
analysis. The factors identified in the situation analysis are woven
into the economic webs surrounding the new product. The webs are mapped
into Bayesian networks that can be updated as events unfold and used to
simulate the impact that changes in assumptions underlying the web have
on the prospects for the new product. The author illustrates this method
using a historical case regarding the introduction of videotape
recorders by Sony and JVC and a contemporary case of the introduction of
electric vehicles. The author provides a complete, numerical example
pertaining to a software development project in the Appendix. [ABSTRACT
© 2004 Prentice-Hall, Inc., A Pearson Education