Marketing Strategies in a Challenging Environment nimn

Marketing Strategies in a
Challenging Environment

Presentation at

2011 NIMN MCTP

Introduction

L. Obileye/NIMN MCTP - 2011

Content

1. First Things First
2. What is Strategy?
3. Doing Things Differently
4. Conclusion


First things first…
• Two things are inevitable in the world.
• These are Change and Competition!
• What is the relationship between Change and
Competition?


Parable of the Weed!


Change vs. Competition 1

change |tʃeɪn(d)ʒ| competition |kɒmpɪˈtɪʃ(əә)n|
• Verb • Noun
• Make or become different • activity or condition of
competing

Competitors perpetually crowd each other out.



• Verb • Noun
competing

The fittest survive and prosper until they displace their competitors
or outgrow their resources



• Verb • Noun
competing

Strategists can accelerate effects of competition and rate
of change!


“
If every business could grow
indefinitely, the total market would
grow to an infinite size
on a finite earth

”
- Bruce D. Henderson


“
Competitors that make their living in
the same way cannot coexist!

”

- Bruce D. Henderson
(Quoting Gause’s Principle)


Power of 3
• Three critical things are at the heart of any business.
They are:
– People
– Process &
– Strategy
• The best people backed by the best process and the
best strategy will fail if there is no proper execution.


What is Strategy?


Strategy is about the choices we make


What is Strategy?
• It is a plan of action
• Designed to achieve a major or overall aim
• Often contrasted with tactics
• Involves researching consumer behaviour
(present and future)
• Provides a road map to the future (the best routes
to take you there)

Strategy without execution is a marketing slogan!


“
The essence of strategy formulation
is coping with competition.

”

- Michael E. Porter


Threats of
New
Entrants

Bargaining Forces Bargaining
Power of Governing Power of
Suppliers Customers
Competition

Threat of
Substitutes

Forces Governing Competition
by Michael Porter

Products

Existing New
Products Products
Existing

Sectors
Market Product
Clients/

Penetration Development
Clients/Sectors

Strategy Strategy
New Clients/
Sectors

Market
Diversification
Development
Strategy
Strategy

Products and Markets Growth Strategies
(adapted from Ansoff, 1965)


Strategy as QED

• Q – improve Quality
• E – Expand access
• D – increase Demand


QED – Improve Quality
• Improving quality is a product development strategy:
– Requires innovation
– Higher quality
– Advanced technology
– Superior service offering
– Important element of Michael Porter’s 4 generic business
strategy focusing on product differentiation


QED - Expanding Access
• Expanding access is about new customers and their
unmet demands using:
– market penetration and/or
– market development strategies


QED - Increasing Demand
• Increasing Demand is about:
– repeat sales and
– relationship management for existing customers


Doing Things Differently: Lessons
From Entertainment Industry


“What we did then was to repackage the Kwam 1 brand and made it
marketable to the corporate world, the educated people. The result was
that more shows came in and everybody made more money”
– Dayo Olomu (The Punch Saturday, 25 Apr 2009)


Olomu & Success

‘When I met Sir Richard Branson and Barry Gibbons in
2002, I asked them what the secret of their success was.
I was writing for Ovation then. ..he (Gibbons) looked into
my eyes and said it was the ability to think differently
from the others…..He also said, “Look at what Sir
Branson has done. You don’t have to really invent
anything. But you can still look at an existing business
and find how you can do it differently.”


Olomu & Success

‘….I met Richard Branson two weeks after,
during the launching of a Virgin Atlantic route
and I asked him the same question (secret of
his success) and he said it was the ability to do
things differently from others’


“
I went to LASU for self development

”
- Pasuma


‘Ohun’

In a quest for discovering new talents in Fuji music, popular
musician and Fuji star Wasiu Alabi better known as Pasuma
has started a new reality TV show!

‘Ohun’
“Over the years, I have wondered if someone
will ever think of doing a Fuji talent show, and
rather than wait more, I have taken up the
responsibility to contribute my own quota to
the growth of Fuji music. I am optimistic Ohun
will open doors for more Fuji talent shows and
the more credible shows like ours, the better it
is for the industry.”
- Pasuma (The Punch, 23rd Feb. 2011)


Conclusion


5 Skills of Strategic Marketer
1. Ability to understand the dynamics of competitive
behaviour
2. Ability to predict effect of strategic action on
competitive equilibrium
3. Ability to commit resources to new uses
4. Ability to predict risk and return
5. Willingness to act (execution)


Creating Apostles
• No matter the size of your sales force, the
number of people not working for you who can
use word of mouth for or against you is a
hundred times more.
• We must develop strategies to create willing
(and unwilling) apostles out of this giant “sales
force”


Importance of the Mundane
• How do we answer the telephone?
• How do our drivers drive?
• How do we train our marketers?
• What does our database tell us about our customers?
• Do our customers have confidence in our products?
• How do we define loyal customers?
• How do we divide our marketing effort between
customer retention and development?


Service-Profit Chain
• The service-profit chain establishes relationships between
profitability, customer loyalty and employee satisfaction.
• The links in the chain are as follows:
– Profit and growth are stimulated primarily by customer loyalty
– Loyalty is a direct result of customer satisfaction
– Satisfaction is largely influenced by the value of services
provided to customers
– Value is created by satisfied, loyal, and productive employees
– Employee satisfaction, in turn, results primarily from high-quality
support services and policies that enable employees to deliver
results to customers


Starve Your Competitor of Air
– Be the first to the market
– Look for ways to enhance and improve your product/
service
– Create a w-o-w experience, cut costs, save time, or
improve efficiencies
– Get your customers/competitors to talk about your product
(sell yourself)
– See the big picture
– Get better information
– Become a pillar of integrity


“
Ideas are useless unless used. The
proof of their value is their
implementation

- Theodore Levitt
”

Contributions & Discussion


Thank you for your attention!


Marketing Strategies in a Challenging Environment nimn

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