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15.834 Marketing Strategy Cases and lectures Letter of Complaint Objectives Identify, evaluate, and develop marketing strategies Evaluate a firm’s opportunities Anticipate competitive dynamics Evaluate the sustainability of competitive advantages Target Audience Consultants Investment Analysts Entrepreneurs Product Managers I What Is Marketing Strategy? What is Marketing Strategy? Finding Profit Opportunities Creating Competitive Advantage Challenging Competitive Advantage Creating Corporate Advantage Question: How can a firm earn sustained, superior returns? 1. Create value 2. Capture value 3. Continue to do this A Marketing Strategy is an integrated set of choices about how we will create and capture value, over long periods of time. A good marketing strategy meets three tests External consistency Internal consistency Dynamic consistency External fit: Finding Profit Opportunities Value Creation: Some Definitions Value created: Customer willingness to pay - supplier opportunity cost Value created by a firm = Value created by all - Value created by all others A player is your competitor if - customers value your product less when they have hers as well - suppliers value your business less when they have hers as well A player is your complementor if - customers value your product more when they have his as well - suppliers value your business more when they have his as well Internal Fit: Creating Competitive Advantage Dynamic Fit: Challenging Competitive Advantage II Finding Profit Opportunities What is Marketing Strategy? Finding Profit Opportunities Creating Competitive Advantage Challenging Competitive Advantage Creating Corporate Advantage to decide on entry/exit to assess the effect of a major change to position your firm to succeed in a given environment to shape the environment Some Complementary Approaches Classical Economics (Supply and Demand) “Old” Industrial Organization Economics (5 forces) Non cooperative Game Theory (Oligopoly equ
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