Presentation on theme: "January - 2012 Ludhiana Management Association Marketing Strategies in the Present Global Scenario."— Presentation transcript:
January Ludhiana Management Association Marketing Strategies in the Present Global Scenario
Worldwide economic slowdown Double dip recession Europe in financial crisis North America as well and many others…..
World facing worst financial crisis in history, Bank of England Governor says October 2011
(Saturday) Standard & Poor's Ratings Services stripped France of its prized triple-A long-term credit rating knocks Europe's second-largest economy out of the top financial league of the euro zone.
So many companies have been challenged to change in a way for which it has no precedent. What’s worse is…… “decades of orthodox management decision- making practices, organizational designs, and approaches to employee relations provide no real hope that companies will be able to avoid faltering and suffering painful restructurings.”
If you are a forward-looking manager, you should respond to these looming challenges by bringing the same energy to innovative marketing that you now bring to innovative products and services. Read Hamel’s “The Future of Management”
Nor do you likely have “adaptability” DNA. So what problem were managers (and management in general) invented to solve?
How to do things with perfect replicability, at ever-increasing scale and steadily increasing efficiency. So how do we become innovative, adaptable and nimble? Well you probably have to reinvent the entire management model, but you don’t have time for that. You may not be able to change the DNA, but you can spur the performance.
How do you market through this slowdown? Consider three things Be Realistic Intensify Monitoring Look Beyond the Recession
“Strategists, now facing the most profoundly uncertain times in their careers, are creating disaster scenarios that would have been unthinkable until recently and making the preservation of cash integral to their strategies.”
You better get comfortable with the idea that you will need a more demanding process of gathering information, exploring possibilities, and plain old hard thinking. It is back to Bayesian Decision Theory
There are many more contingencies than ever before. Your success depends on your ability to adjust rapidly as this fog lifts. Identify and intensively monitor key indicators suggesting which scenario might unfold.
AMA WebEx seminars They’re free and always available AMA WebEx seminars The McKinsey Quarterly Amazing and incredibly valuable. Also free The McKinsey Quarterly Podcasts Quick & Dirty. Also free Podcasts
The temptation is to gaze, mesmerized, at the unfolding crisis. McKinsey says that this is a big mistake because…
This downturn cannot roll back fundamental market trends Market planners who become fixated on current economic events will not be able to evaluate the effectiveness of current strategies.
In today’s world, in order to achieve a sustainable advantage, companies must seek a series of “unsustainable” advantages. Innovation begins with abandonment of the old and obsolete
Rapid-fire technological change Short product life-cycles Entry of important new rivals Frequent launches of new competitive moves Rapidly evolving customer expectations
Invest aggressively in R&D Initiate fresh actions every few months Develop quick response capabilities Shift resources Adapt competencies Create new competitive capabilities Speed new products to market Use strategic partnerships to develop specialized expertise and capabilities Keep products/services fresh and exciting
Cutting-edge expertise Speed in responding to new developments Collaboration with others Agility Innovativeness Opportunism Resource flexibility First-to-market capabilities
It is not just for Toyota, Crest White Strips, Manchester United, and Apple. Two terms you need to know a lot about Antes Drivers
They will get you in the game, but they will not be enough to be win They are important, but they are provided by all competitors.
Drivers can actually drive customer choice Cause a customer to select one brand over another, or One company over another.
Do you know how effective your current marketing is? You can’t fix what you can’t measure. Fine tune. It may not take too much. What if your customer is dead wrong…because they have been getting bad information?
PGA championships between 2000 and Difference between winning and second place was about $450,000. Average stroke difference was 1.7. That a half stroke per day. Daytona 500 during that same period. First and second was less than.2 seconds
Five main areas to consider Customer Philosophy Integrated Marketing Organization Adequate Marketing Information Strategic Orientation Operational Efficiency
Double-Dip? Believe it. Time to go to the mattresses Essential Principles for winning the war with change in the air Global Forces accompanying change
I said we were coming out of it. I was right But now the landscape has changed again and it may be dramatic
What the Double Dip Recession Will Look Like UK set for double-dip recession, warns BDO The UK economy may be heading for a double-dip by the end of the year Double dip recession: What are the odds?
Sinking a Fortune Into an Unproven Product
Do you think you have a product or service that will practically sell itself? Trust me - you don't. Think USP
Focus on results, and choose imitation over innovation to create your own twist on a proven, winning technique. Sell benefits…not features Sell benefits…not features
The fear of failure can be powerful At some point you have to “pull the trigger.”pull the trigger Remember that activity is not productivity
Know what your competitors are offering, but do not let it dictate the strategy you use.
or Targeting a Market You Can't Reach or One That Can't Afford You Don’t let fear of losing a “potential customer“ get to you
There are tons of “tips.” I read them all.I read them all But much more importantly. Slash your marketing costs by half or more? reach proven buyers for your service or products?
Curbing the tendency to become obsessed with generating more leads until you have exhausted the ones you already have.
Meet or exceed customer’s expectations Focus on delighting customers Provide solutions to customer’s problems Cultivate relationships, NOT one-time transactions
Portfolio Management & Best Practices Maniacal focus on sales Expanded scope of work Shared sacrifice Strategic partnerships
We engaged the whole company in thinking about selling “We’re going to an industry event and during the breaks, we’re going to introduce ourselves to people because everyone has to start sniffing around,”
When times are good, you can afford to be fussy about they type of work you’ll do. In a recession, not so much. “We expanded our definition of what we would do.”
Compete with big companies by partnering with five other small companies that have complementary skills. The partnerships can allow you to be involved in big projects that require the kind of multidisciplinary thinking that no one firm could manage on its own.
“I never think of the future. It will come soon enough.” Albert Einstein
Is littered with examples of companies that missed important trends. It also shines with examples of companies that saw and acted
“Five crucibles of change will restructure the world economy for the foreseeable future. Companies that understand them will stand the best chance of shaping it.”
where the stresses and tensions will be greatest and thus offer the richest opportunities for companies to innovate and change
Emerging-market countries will contribute more growth than the developed ones. A wave of new middle-class consumers Drive profound innovations in product design, market infrastructure, and value chains.
MDC’s will need to generate pronounced gains in productivity to power continued economic growth. The most dramatic innovations in the Western world are likely to be those that accelerate economic productivity.
Ever-more connected complex flows of capital, goods, information, and people An interlinked network that spans geographies, social groups, and economies Permits large-scale interactions at any moment. This expanding grid is seeding new business models and accelerating the pace of innovation. It also makes destabilizing cycles of volatility more likely.
A collision is shaping up among the rising demand for resources, constrained supplies, and changing social attitudes toward environmental protection. The next decade will see an increased focus on resource productivity, the emergence of substantial clean-tech industries, and regulatory initiatives.
The often contradictory demands of driving economic growth and providing the necessary safety nets to maintain social stability have put governments under extraordinary pressure. Globalization applies additional heat: how will distinctly national entities govern in an increasingly globalized world?
Put your helmets on, but… Corporate cash balances are much higher than a year ago “Think beyond the recession” The double dip will hurt, but it will pass
“Marketing is far too important to be left only to the marketing department.” --David Packard
If the customer doesn't purchase your product or service, nothing else matters... Singapore Airlines, Dell Computer, Apple 10 Best and 10 Worst
Know your market as well as you knowmarket yourself Knowledge is power "Good" research is the key Microsoft, Apple, Nike
A clear intention and a steady aim McDonald's, they don't stray to far from the core... Let the market tell you what to do.
Occupy a position that cannot easily be taken by your opponent. Superpowers, Secondary Powers and The Business Guerrillas Be Invincible
Keep on the offensive to secure freedom of action The right product at the right time creates its own momentum... Gillette
Surprise is the best way to gain psychological dominance and deny the initiative to your opponent. Surprise Secrecy - Don’t appear to be a threat “Surprise” happens now, but is recognized later.
The easiest routes are often the most heavily defended; the longest way around can be the shortest way home. “Flanking” can be a short route to success Starbucks last week
Mass sufficiently superior force at the decisive place and time. Advertising is not a strategy; it is simply a weapon in your arsenal. Concentration = Consistency
Assess accurately where you employ your resources. Do not fight the battles you cannot win, or win those that lose the war Market your mission
The management process unleashes the power of human resources. Increase both human resources and material assets with each victory. Lifetime customer value...
It requires the leader's faith in his or her people and their faith in the leader's ability to win. Bill Gates and Microsoft Sam Walton and Wal-Mart Steve Jobs and Apple
Even the simplest plans are difficult to execute...