Steven P. Schnaars
Marketing Strategy
Steven P. Schnaars
Marketing Strategy
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The essential marketing text for business students and professionals--updated and revised to accommodate rapid changes in the business world. First issued in 1991, Steven Schnaars's text combines a centrist approach to basic theory with real-world business examples. In clear and focused language, Schnaar focuses on the three Cs--customers, competition, and changing market trends.
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The essential marketing text for business students and professionals--updated and revised to accommodate rapid changes in the business world. First issued in 1991, Steven Schnaars's text combines a centrist approach to basic theory with real-world business examples. In clear and focused language, Schnaar focuses on the three Cs--customers, competition, and changing market trends.
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Hinweis: Dieser Artikel kann nur an eine deutsche Lieferadresse ausgeliefert werden.
Produktdetails
- Produktdetails
- Verlag: Simon & Schuster
- Revised
- Seitenzahl: 240
- Erscheinungstermin: November 1997
- Englisch
- Abmessung: 234mm x 156mm x 18mm
- Gewicht: 345g
- ISBN-13: 9780684831916
- ISBN-10: 0684831910
- Artikelnr.: 22310668
- Verlag: Simon & Schuster
- Revised
- Seitenzahl: 240
- Erscheinungstermin: November 1997
- Englisch
- Abmessung: 234mm x 156mm x 18mm
- Gewicht: 345g
- ISBN-13: 9780684831916
- ISBN-10: 0684831910
- Artikelnr.: 22310668
Dr. Steven R Schnaars, Professor and Department Chair in the Department of Marketing at Baruch College, New York City is also the author of Megamistakes ( Free Press) and Managing Imitation Strategies (Free Press). He lives in Huntington, New York.
Chapter 1: MARKETING'S INFLUENCE ON STRATEGIC THINKING
CONSUMER ORIENTATION
The Marketing Concept
Criticisms of the Marketing Concept
Should You Ignore Your Customers?
Technology-Driven Companies
Faith, Instinct, and Determination
Action Versus Analysis Paralysis
Planning Versus Doing
Strategy's Response
In Defense of the Marketing Concept
Production-Oriented Firms
A COMPETITOR FOCUS
DUAL CONSUMER AND COMPETITOR ORIENTATIONS TOWARD MARKETS
Mini-Case: Gatorade
Mini-Case: Diet Rite Cola Versus Coke and Diet Pepsi
THE POWER OF EXTERNAL EVENTS
Technological Change
Demographic Shifts
Social Changes
Government Deregulation
SPECIAL RESOURCES
MARKETING AS A BOUNDARY-SPANNING FUNCTION
NOTES
Chapter 2: A BRIEF HISTORY OF MARKETING STRATEGY
DEFINITION AND SCOPE OF MARKETING STRATEGY
MILESTONES IN THE HISTORY OF MARKETING STRATEGY
1950s: Budgeting and the Search for Overall Strategy
1960s: The Decade of Long-Range Planning
The Decline of Long-Range Planning
1970s: The Decade of Portfolio Planning
The Decline of Formula Planning
1980s: Porter's Generic Strategies
1990s: Restructuring, Customer Satisfaction, and Speed as Strategy
CURRENT TRENDS IN MARKETING STRATEGY
1. Strategic Thinking: From Elitism to Egalitarianism
2. From Calculation to Creativity
3. From Precision in Planning to Learning and Adaptation
CONNECTIONS WITH THE PAST
NOTES
Chapter 3: ASSESSING COMPETITIVE INTENSITY
ECONOMIC MODELS OF COMPETITION
The Assumptions of Perfect Competition
Monopoly Power Is Rare
Types of Imperfect Competition
FACTORS AFFECTING COMPETITIVE INTENSITY
1. Barriers to Entry
2. Intensity of Rivalry
3. Competition from Substitutes
4. Bargaining Power of Customers
5. Bargaining Power of Suppliers
USES OF COMPETITIVE ANALYSIS
1. Fitting the Current Environment
2. Anticipating Market Changes
3. Picking a Market to Enter
4. Reconfiguring the Rules of Competition
5. Protecting the Status Quo
NOTES
Chapter 4: COMPETING ON COSTS: THE RISE AND FALL OF EXPERIENCE EFFECTS AND
THE GROWTH-SHARE MATRIX
EXPERIENCE EFFECTS
Experience Effects Versus Economies of Scale
Experience Effects Versus Learning Effects
Sources of Experience Effects
THE EXPERIENCE CURVE
The Case of Pocket Calculators
THE RELATIONSHIP BETWEEN COSTS AND PRICES
THE MERITS OF MARKET SHARE AND MARKET GROWTH
THE GROWTH-SHARE MATRIX
The Source and Use of Funds
STRATEGIC PRESCRIPTIONS OF THE GROWTH-SHARE MATRIX
The Path to Success
Three Paths to Failure
CRITICISMS OF THE GROWTH-SHARE MATRIX
1. The Success of Low-Share Firms
2. The Futility of Market Share Gained
3. Success of Low-Growth Markets
4. Should Dogs Be Divested?
5. Harvesting Bread-and-Butter Products
6. Importance of Business "Relatedness"
7. Pursuing Experience Effects Hinders Innovation
8. The Confounding Effects of Shared Experience
9. Lower Prices Versus Market Share: Which Causes Which?
10. Internal Cash Flow
11. A Mechanical Response Instead of a Creative Solution
12. No Consideration of Product Differentiation
13. One Way to Win: An Obsession with Low Costs
THE RETURN OF COST COMPETITIVENESS
NOTES
Chapter 5: GENERIC STRATEGIES
PORTER'S THREE GENERIC STRATEGIES
Low-Cost Low-Price Selling
Product Differentiation
Market Segmentation
Stuck in the Middle
TREACY AND WIERSEMAN'S THREE VALUE DISCIPLINES
Operational Excellence
Customer Intimacy
Product Leadership
The Relationship Between Strategic Choice and Target Market
SHOULD FIRMS PURSUE ONLY ONE GENERIC STRATEGY?
NOTES
Chapter 6: COMPETING ON PRICE
CONDITIONS THAT FAVOR SELLING ON PRICE
When the "Gouge Gap" Is Too Wide
Mini-Case: The Battle Between National Brands and Private Labels
When There is a Shift in the Point of Differentiation
Mini-Case: Hallmark Cards -- A Shift In Buying Behavior Leads to a
Diminution of Competitive Advantage
When Products Become Commodities
When Markets Are Deregulated
When the Low-Price Formula Can Be Applied in a New Arena
Mini-Case: Staples -- The Office-Supply Superstore
HOW TO COMPETE ON PRICE
Ruthless Cost Cuffing Through Reengineering
Stressing Equal Quality at Lower Prices
Specialization and Lower Prices
Copying and Cutting Prices
Letting Prices Dictate Costs
THE EFFECTS OF LOW-COST COMPETITION
NOTES
Chapter 7: DIFFERENTIATION STRATEGIES
BASIS OF DIFFERENTIATION
1. Superior Performance
2. Superior Design and Styling
Mini-Case: Oakley Sunglasses
3. A Product for Every Purpose
4. "On-the-Edge" Product Innovations
5. Luxury Goods and Services
6. Popular Mass-Market Brand Names
7. Exceptional Service
8. Greater Reliability and Durability
9. Convenience
10. Unique Distribution Channels
Price as a Point of Differentiation
THE HISTORY OF PRODUCT DIFFERENTIATION
Monopolistic Competition
Consumers' Preference for Variety
Real Versus Contrived Differences
WHAT TO DIFFERENTIATE
Core Product Features
Incidental Product Features
Product Intangibles
Accounting for Intangibles
REQUIREMENTS FOR SUCCESSFUL DIFFERENTIATION
Support Premium Prices with Sufficient Marketing
Keep the Gouge Gap Reasonable
Embrace Innovation
Keep Copycats at Bay
Protect Against the "Squeeze Play"
NOTES
Chapter 8: SEGMENTATION STRATEGIES
THE DIFFERENCE BETWEEN DIFFERENTIATION AND SEGMENTATION
The Argument for Alternative Strategies
Claims for Complementary Strategies
Reconciling the Relationship Between Differentiation and Segmentation
SEGMENTATION STRATEGIES
1. Go for the Largest Segment
2. Sell Multiple Products in Multiple Segments
3. Sell a Single Product to All (or Most) Segments
4. Focus on a Small Segment
5. Create a New Segment
6. Break Segments Into Even Finer Subsegments
THE BASIS OF SEGMENTATION
A Regional Focus
Demographics
Product Usage
Quality Niches
The Individual Consumer
MARKET RESEARCH AND SEGMENTATION
QUESTIONS ABOUT SEGMENTATION
Are Segments Created or Discovered?
To What Extent Do Segments Overlap?
Are Segments Stable?
Is Countersegmentation a Viable Option?
Is Segmentation for Small Firms Only?
NOTES
Chapter 9: COMPETITIVE DYNAMICS
COMPETITION BETWEEN PRICE POINTS
Venical Differentiation 112
1. Drawing Customers Up-Market with Higher Quality
Mini-Case: Gillette's Sensor Razor Versus the Low-Priced Disposables
2. Luring Customers Down-Market with Lower Prices
3. Pushing Products Up-Market
4. Pushing Products Down-Market
Mini-Case: The American Express Card
Collisions in Vertically Integrated Markets
Intensity of Rivalry in Venically Differentiated Markets
INCREASING PRODUCT VALUE
COMPETITION BETWEEN DIFFERENTIATORS
Horizontal Differentiation
Shifting Points of Differentiation
Mini-Case: Nike Versus Reebok
COMPETITION BETWEEN LOW-COST PRODUCERS
A Succession of Low-Cost Producers
Mini-Case: Microwave Ovens -- A Succession of Low-Cost Producers
Price Shifting
Everyday Low Prices Versus High-Low Promotional Pricing
COMPETITION BETWEEN SEGMENTERS AND MASS MARKETERS
When a Segment Grows Larger and More Attractive
Mini-Case: Brian Maxwell's PowerBars
When Segmenters Steal Share from Market Leaders
Mini-Case: Specialty Coffees Versus Folgers and Maxwell House
Mini-Case: Microbreweries Versus Anheuser-Busch and Miller
Within-Segment Competition
NOTES
Chapter 10: MARKET-SHARE STRATEGIES
GAINING MARKET SHARE
When to Gain Share
How to Gain Share
HOLDING SHARE
How to Hold Share
HARVESTING STRATEGIES
Sustained Harvesting
Severe Harvesting
How to Harvest
ABANDONMENT
Poor Market Position
A Poor Fit with the Firm's Other Products
NOTES
Chapter 11: THE EVOLUTION OF PRODUCTS, MARKETS, AND NEW TECHNOLOGIES
TYPES OF INNOVATIONS
Incremental Innovations
New-to-the-World Innovations
THEORIES OF PRODUCT EVOLUTION
The "Great Men" Theory
Gradualism
Punctuated Equilibria
PATTERNS OF PRODUCT EVOLUTION
Macro Then Micro
Accumulation of Micro Leads to Macro
Micro Runs Out If No Macro
THE PRODUCT LIFE CYCLE
NOTES
CONSUMER ORIENTATION
The Marketing Concept
Criticisms of the Marketing Concept
Should You Ignore Your Customers?
Technology-Driven Companies
Faith, Instinct, and Determination
Action Versus Analysis Paralysis
Planning Versus Doing
Strategy's Response
In Defense of the Marketing Concept
Production-Oriented Firms
A COMPETITOR FOCUS
DUAL CONSUMER AND COMPETITOR ORIENTATIONS TOWARD MARKETS
Mini-Case: Gatorade
Mini-Case: Diet Rite Cola Versus Coke and Diet Pepsi
THE POWER OF EXTERNAL EVENTS
Technological Change
Demographic Shifts
Social Changes
Government Deregulation
SPECIAL RESOURCES
MARKETING AS A BOUNDARY-SPANNING FUNCTION
NOTES
Chapter 2: A BRIEF HISTORY OF MARKETING STRATEGY
DEFINITION AND SCOPE OF MARKETING STRATEGY
MILESTONES IN THE HISTORY OF MARKETING STRATEGY
1950s: Budgeting and the Search for Overall Strategy
1960s: The Decade of Long-Range Planning
The Decline of Long-Range Planning
1970s: The Decade of Portfolio Planning
The Decline of Formula Planning
1980s: Porter's Generic Strategies
1990s: Restructuring, Customer Satisfaction, and Speed as Strategy
CURRENT TRENDS IN MARKETING STRATEGY
1. Strategic Thinking: From Elitism to Egalitarianism
2. From Calculation to Creativity
3. From Precision in Planning to Learning and Adaptation
CONNECTIONS WITH THE PAST
NOTES
Chapter 3: ASSESSING COMPETITIVE INTENSITY
ECONOMIC MODELS OF COMPETITION
The Assumptions of Perfect Competition
Monopoly Power Is Rare
Types of Imperfect Competition
FACTORS AFFECTING COMPETITIVE INTENSITY
1. Barriers to Entry
2. Intensity of Rivalry
3. Competition from Substitutes
4. Bargaining Power of Customers
5. Bargaining Power of Suppliers
USES OF COMPETITIVE ANALYSIS
1. Fitting the Current Environment
2. Anticipating Market Changes
3. Picking a Market to Enter
4. Reconfiguring the Rules of Competition
5. Protecting the Status Quo
NOTES
Chapter 4: COMPETING ON COSTS: THE RISE AND FALL OF EXPERIENCE EFFECTS AND
THE GROWTH-SHARE MATRIX
EXPERIENCE EFFECTS
Experience Effects Versus Economies of Scale
Experience Effects Versus Learning Effects
Sources of Experience Effects
THE EXPERIENCE CURVE
The Case of Pocket Calculators
THE RELATIONSHIP BETWEEN COSTS AND PRICES
THE MERITS OF MARKET SHARE AND MARKET GROWTH
THE GROWTH-SHARE MATRIX
The Source and Use of Funds
STRATEGIC PRESCRIPTIONS OF THE GROWTH-SHARE MATRIX
The Path to Success
Three Paths to Failure
CRITICISMS OF THE GROWTH-SHARE MATRIX
1. The Success of Low-Share Firms
2. The Futility of Market Share Gained
3. Success of Low-Growth Markets
4. Should Dogs Be Divested?
5. Harvesting Bread-and-Butter Products
6. Importance of Business "Relatedness"
7. Pursuing Experience Effects Hinders Innovation
8. The Confounding Effects of Shared Experience
9. Lower Prices Versus Market Share: Which Causes Which?
10. Internal Cash Flow
11. A Mechanical Response Instead of a Creative Solution
12. No Consideration of Product Differentiation
13. One Way to Win: An Obsession with Low Costs
THE RETURN OF COST COMPETITIVENESS
NOTES
Chapter 5: GENERIC STRATEGIES
PORTER'S THREE GENERIC STRATEGIES
Low-Cost Low-Price Selling
Product Differentiation
Market Segmentation
Stuck in the Middle
TREACY AND WIERSEMAN'S THREE VALUE DISCIPLINES
Operational Excellence
Customer Intimacy
Product Leadership
The Relationship Between Strategic Choice and Target Market
SHOULD FIRMS PURSUE ONLY ONE GENERIC STRATEGY?
NOTES
Chapter 6: COMPETING ON PRICE
CONDITIONS THAT FAVOR SELLING ON PRICE
When the "Gouge Gap" Is Too Wide
Mini-Case: The Battle Between National Brands and Private Labels
When There is a Shift in the Point of Differentiation
Mini-Case: Hallmark Cards -- A Shift In Buying Behavior Leads to a
Diminution of Competitive Advantage
When Products Become Commodities
When Markets Are Deregulated
When the Low-Price Formula Can Be Applied in a New Arena
Mini-Case: Staples -- The Office-Supply Superstore
HOW TO COMPETE ON PRICE
Ruthless Cost Cuffing Through Reengineering
Stressing Equal Quality at Lower Prices
Specialization and Lower Prices
Copying and Cutting Prices
Letting Prices Dictate Costs
THE EFFECTS OF LOW-COST COMPETITION
NOTES
Chapter 7: DIFFERENTIATION STRATEGIES
BASIS OF DIFFERENTIATION
1. Superior Performance
2. Superior Design and Styling
Mini-Case: Oakley Sunglasses
3. A Product for Every Purpose
4. "On-the-Edge" Product Innovations
5. Luxury Goods and Services
6. Popular Mass-Market Brand Names
7. Exceptional Service
8. Greater Reliability and Durability
9. Convenience
10. Unique Distribution Channels
Price as a Point of Differentiation
THE HISTORY OF PRODUCT DIFFERENTIATION
Monopolistic Competition
Consumers' Preference for Variety
Real Versus Contrived Differences
WHAT TO DIFFERENTIATE
Core Product Features
Incidental Product Features
Product Intangibles
Accounting for Intangibles
REQUIREMENTS FOR SUCCESSFUL DIFFERENTIATION
Support Premium Prices with Sufficient Marketing
Keep the Gouge Gap Reasonable
Embrace Innovation
Keep Copycats at Bay
Protect Against the "Squeeze Play"
NOTES
Chapter 8: SEGMENTATION STRATEGIES
THE DIFFERENCE BETWEEN DIFFERENTIATION AND SEGMENTATION
The Argument for Alternative Strategies
Claims for Complementary Strategies
Reconciling the Relationship Between Differentiation and Segmentation
SEGMENTATION STRATEGIES
1. Go for the Largest Segment
2. Sell Multiple Products in Multiple Segments
3. Sell a Single Product to All (or Most) Segments
4. Focus on a Small Segment
5. Create a New Segment
6. Break Segments Into Even Finer Subsegments
THE BASIS OF SEGMENTATION
A Regional Focus
Demographics
Product Usage
Quality Niches
The Individual Consumer
MARKET RESEARCH AND SEGMENTATION
QUESTIONS ABOUT SEGMENTATION
Are Segments Created or Discovered?
To What Extent Do Segments Overlap?
Are Segments Stable?
Is Countersegmentation a Viable Option?
Is Segmentation for Small Firms Only?
NOTES
Chapter 9: COMPETITIVE DYNAMICS
COMPETITION BETWEEN PRICE POINTS
Venical Differentiation 112
1. Drawing Customers Up-Market with Higher Quality
Mini-Case: Gillette's Sensor Razor Versus the Low-Priced Disposables
2. Luring Customers Down-Market with Lower Prices
3. Pushing Products Up-Market
4. Pushing Products Down-Market
Mini-Case: The American Express Card
Collisions in Vertically Integrated Markets
Intensity of Rivalry in Venically Differentiated Markets
INCREASING PRODUCT VALUE
COMPETITION BETWEEN DIFFERENTIATORS
Horizontal Differentiation
Shifting Points of Differentiation
Mini-Case: Nike Versus Reebok
COMPETITION BETWEEN LOW-COST PRODUCERS
A Succession of Low-Cost Producers
Mini-Case: Microwave Ovens -- A Succession of Low-Cost Producers
Price Shifting
Everyday Low Prices Versus High-Low Promotional Pricing
COMPETITION BETWEEN SEGMENTERS AND MASS MARKETERS
When a Segment Grows Larger and More Attractive
Mini-Case: Brian Maxwell's PowerBars
When Segmenters Steal Share from Market Leaders
Mini-Case: Specialty Coffees Versus Folgers and Maxwell House
Mini-Case: Microbreweries Versus Anheuser-Busch and Miller
Within-Segment Competition
NOTES
Chapter 10: MARKET-SHARE STRATEGIES
GAINING MARKET SHARE
When to Gain Share
How to Gain Share
HOLDING SHARE
How to Hold Share
HARVESTING STRATEGIES
Sustained Harvesting
Severe Harvesting
How to Harvest
ABANDONMENT
Poor Market Position
A Poor Fit with the Firm's Other Products
NOTES
Chapter 11: THE EVOLUTION OF PRODUCTS, MARKETS, AND NEW TECHNOLOGIES
TYPES OF INNOVATIONS
Incremental Innovations
New-to-the-World Innovations
THEORIES OF PRODUCT EVOLUTION
The "Great Men" Theory
Gradualism
Punctuated Equilibria
PATTERNS OF PRODUCT EVOLUTION
Macro Then Micro
Accumulation of Micro Leads to Macro
Micro Runs Out If No Macro
THE PRODUCT LIFE CYCLE
NOTES
Chapter 1: MARKETING'S INFLUENCE ON STRATEGIC THINKING
CONSUMER ORIENTATION
The Marketing Concept
Criticisms of the Marketing Concept
Should You Ignore Your Customers?
Technology-Driven Companies
Faith, Instinct, and Determination
Action Versus Analysis Paralysis
Planning Versus Doing
Strategy's Response
In Defense of the Marketing Concept
Production-Oriented Firms
A COMPETITOR FOCUS
DUAL CONSUMER AND COMPETITOR ORIENTATIONS TOWARD MARKETS
Mini-Case: Gatorade
Mini-Case: Diet Rite Cola Versus Coke and Diet Pepsi
THE POWER OF EXTERNAL EVENTS
Technological Change
Demographic Shifts
Social Changes
Government Deregulation
SPECIAL RESOURCES
MARKETING AS A BOUNDARY-SPANNING FUNCTION
NOTES
Chapter 2: A BRIEF HISTORY OF MARKETING STRATEGY
DEFINITION AND SCOPE OF MARKETING STRATEGY
MILESTONES IN THE HISTORY OF MARKETING STRATEGY
1950s: Budgeting and the Search for Overall Strategy
1960s: The Decade of Long-Range Planning
The Decline of Long-Range Planning
1970s: The Decade of Portfolio Planning
The Decline of Formula Planning
1980s: Porter's Generic Strategies
1990s: Restructuring, Customer Satisfaction, and Speed as Strategy
CURRENT TRENDS IN MARKETING STRATEGY
1. Strategic Thinking: From Elitism to Egalitarianism
2. From Calculation to Creativity
3. From Precision in Planning to Learning and Adaptation
CONNECTIONS WITH THE PAST
NOTES
Chapter 3: ASSESSING COMPETITIVE INTENSITY
ECONOMIC MODELS OF COMPETITION
The Assumptions of Perfect Competition
Monopoly Power Is Rare
Types of Imperfect Competition
FACTORS AFFECTING COMPETITIVE INTENSITY
1. Barriers to Entry
2. Intensity of Rivalry
3. Competition from Substitutes
4. Bargaining Power of Customers
5. Bargaining Power of Suppliers
USES OF COMPETITIVE ANALYSIS
1. Fitting the Current Environment
2. Anticipating Market Changes
3. Picking a Market to Enter
4. Reconfiguring the Rules of Competition
5. Protecting the Status Quo
NOTES
Chapter 4: COMPETING ON COSTS: THE RISE AND FALL OF EXPERIENCE EFFECTS AND
THE GROWTH-SHARE MATRIX
EXPERIENCE EFFECTS
Experience Effects Versus Economies of Scale
Experience Effects Versus Learning Effects
Sources of Experience Effects
THE EXPERIENCE CURVE
The Case of Pocket Calculators
THE RELATIONSHIP BETWEEN COSTS AND PRICES
THE MERITS OF MARKET SHARE AND MARKET GROWTH
THE GROWTH-SHARE MATRIX
The Source and Use of Funds
STRATEGIC PRESCRIPTIONS OF THE GROWTH-SHARE MATRIX
The Path to Success
Three Paths to Failure
CRITICISMS OF THE GROWTH-SHARE MATRIX
1. The Success of Low-Share Firms
2. The Futility of Market Share Gained
3. Success of Low-Growth Markets
4. Should Dogs Be Divested?
5. Harvesting Bread-and-Butter Products
6. Importance of Business "Relatedness"
7. Pursuing Experience Effects Hinders Innovation
8. The Confounding Effects of Shared Experience
9. Lower Prices Versus Market Share: Which Causes Which?
10. Internal Cash Flow
11. A Mechanical Response Instead of a Creative Solution
12. No Consideration of Product Differentiation
13. One Way to Win: An Obsession with Low Costs
THE RETURN OF COST COMPETITIVENESS
NOTES
Chapter 5: GENERIC STRATEGIES
PORTER'S THREE GENERIC STRATEGIES
Low-Cost Low-Price Selling
Product Differentiation
Market Segmentation
Stuck in the Middle
TREACY AND WIERSEMAN'S THREE VALUE DISCIPLINES
Operational Excellence
Customer Intimacy
Product Leadership
The Relationship Between Strategic Choice and Target Market
SHOULD FIRMS PURSUE ONLY ONE GENERIC STRATEGY?
NOTES
Chapter 6: COMPETING ON PRICE
CONDITIONS THAT FAVOR SELLING ON PRICE
When the "Gouge Gap" Is Too Wide
Mini-Case: The Battle Between National Brands and Private Labels
When There is a Shift in the Point of Differentiation
Mini-Case: Hallmark Cards -- A Shift In Buying Behavior Leads to a
Diminution of Competitive Advantage
When Products Become Commodities
When Markets Are Deregulated
When the Low-Price Formula Can Be Applied in a New Arena
Mini-Case: Staples -- The Office-Supply Superstore
HOW TO COMPETE ON PRICE
Ruthless Cost Cuffing Through Reengineering
Stressing Equal Quality at Lower Prices
Specialization and Lower Prices
Copying and Cutting Prices
Letting Prices Dictate Costs
THE EFFECTS OF LOW-COST COMPETITION
NOTES
Chapter 7: DIFFERENTIATION STRATEGIES
BASIS OF DIFFERENTIATION
1. Superior Performance
2. Superior Design and Styling
Mini-Case: Oakley Sunglasses
3. A Product for Every Purpose
4. "On-the-Edge" Product Innovations
5. Luxury Goods and Services
6. Popular Mass-Market Brand Names
7. Exceptional Service
8. Greater Reliability and Durability
9. Convenience
10. Unique Distribution Channels
Price as a Point of Differentiation
THE HISTORY OF PRODUCT DIFFERENTIATION
Monopolistic Competition
Consumers' Preference for Variety
Real Versus Contrived Differences
WHAT TO DIFFERENTIATE
Core Product Features
Incidental Product Features
Product Intangibles
Accounting for Intangibles
REQUIREMENTS FOR SUCCESSFUL DIFFERENTIATION
Support Premium Prices with Sufficient Marketing
Keep the Gouge Gap Reasonable
Embrace Innovation
Keep Copycats at Bay
Protect Against the "Squeeze Play"
NOTES
Chapter 8: SEGMENTATION STRATEGIES
THE DIFFERENCE BETWEEN DIFFERENTIATION AND SEGMENTATION
The Argument for Alternative Strategies
Claims for Complementary Strategies
Reconciling the Relationship Between Differentiation and Segmentation
SEGMENTATION STRATEGIES
1. Go for the Largest Segment
2. Sell Multiple Products in Multiple Segments
3. Sell a Single Product to All (or Most) Segments
4. Focus on a Small Segment
5. Create a New Segment
6. Break Segments Into Even Finer Subsegments
THE BASIS OF SEGMENTATION
A Regional Focus
Demographics
Product Usage
Quality Niches
The Individual Consumer
MARKET RESEARCH AND SEGMENTATION
QUESTIONS ABOUT SEGMENTATION
Are Segments Created or Discovered?
To What Extent Do Segments Overlap?
Are Segments Stable?
Is Countersegmentation a Viable Option?
Is Segmentation for Small Firms Only?
NOTES
Chapter 9: COMPETITIVE DYNAMICS
COMPETITION BETWEEN PRICE POINTS
Venical Differentiation 112
1. Drawing Customers Up-Market with Higher Quality
Mini-Case: Gillette's Sensor Razor Versus the Low-Priced Disposables
2. Luring Customers Down-Market with Lower Prices
3. Pushing Products Up-Market
4. Pushing Products Down-Market
Mini-Case: The American Express Card
Collisions in Vertically Integrated Markets
Intensity of Rivalry in Venically Differentiated Markets
INCREASING PRODUCT VALUE
COMPETITION BETWEEN DIFFERENTIATORS
Horizontal Differentiation
Shifting Points of Differentiation
Mini-Case: Nike Versus Reebok
COMPETITION BETWEEN LOW-COST PRODUCERS
A Succession of Low-Cost Producers
Mini-Case: Microwave Ovens -- A Succession of Low-Cost Producers
Price Shifting
Everyday Low Prices Versus High-Low Promotional Pricing
COMPETITION BETWEEN SEGMENTERS AND MASS MARKETERS
When a Segment Grows Larger and More Attractive
Mini-Case: Brian Maxwell's PowerBars
When Segmenters Steal Share from Market Leaders
Mini-Case: Specialty Coffees Versus Folgers and Maxwell House
Mini-Case: Microbreweries Versus Anheuser-Busch and Miller
Within-Segment Competition
NOTES
Chapter 10: MARKET-SHARE STRATEGIES
GAINING MARKET SHARE
When to Gain Share
How to Gain Share
HOLDING SHARE
How to Hold Share
HARVESTING STRATEGIES
Sustained Harvesting
Severe Harvesting
How to Harvest
ABANDONMENT
Poor Market Position
A Poor Fit with the Firm's Other Products
NOTES
Chapter 11: THE EVOLUTION OF PRODUCTS, MARKETS, AND NEW TECHNOLOGIES
TYPES OF INNOVATIONS
Incremental Innovations
New-to-the-World Innovations
THEORIES OF PRODUCT EVOLUTION
The "Great Men" Theory
Gradualism
Punctuated Equilibria
PATTERNS OF PRODUCT EVOLUTION
Macro Then Micro
Accumulation of Micro Leads to Macro
Micro Runs Out If No Macro
THE PRODUCT LIFE CYCLE
NOTES
CONSUMER ORIENTATION
The Marketing Concept
Criticisms of the Marketing Concept
Should You Ignore Your Customers?
Technology-Driven Companies
Faith, Instinct, and Determination
Action Versus Analysis Paralysis
Planning Versus Doing
Strategy's Response
In Defense of the Marketing Concept
Production-Oriented Firms
A COMPETITOR FOCUS
DUAL CONSUMER AND COMPETITOR ORIENTATIONS TOWARD MARKETS
Mini-Case: Gatorade
Mini-Case: Diet Rite Cola Versus Coke and Diet Pepsi
THE POWER OF EXTERNAL EVENTS
Technological Change
Demographic Shifts
Social Changes
Government Deregulation
SPECIAL RESOURCES
MARKETING AS A BOUNDARY-SPANNING FUNCTION
NOTES
Chapter 2: A BRIEF HISTORY OF MARKETING STRATEGY
DEFINITION AND SCOPE OF MARKETING STRATEGY
MILESTONES IN THE HISTORY OF MARKETING STRATEGY
1950s: Budgeting and the Search for Overall Strategy
1960s: The Decade of Long-Range Planning
The Decline of Long-Range Planning
1970s: The Decade of Portfolio Planning
The Decline of Formula Planning
1980s: Porter's Generic Strategies
1990s: Restructuring, Customer Satisfaction, and Speed as Strategy
CURRENT TRENDS IN MARKETING STRATEGY
1. Strategic Thinking: From Elitism to Egalitarianism
2. From Calculation to Creativity
3. From Precision in Planning to Learning and Adaptation
CONNECTIONS WITH THE PAST
NOTES
Chapter 3: ASSESSING COMPETITIVE INTENSITY
ECONOMIC MODELS OF COMPETITION
The Assumptions of Perfect Competition
Monopoly Power Is Rare
Types of Imperfect Competition
FACTORS AFFECTING COMPETITIVE INTENSITY
1. Barriers to Entry
2. Intensity of Rivalry
3. Competition from Substitutes
4. Bargaining Power of Customers
5. Bargaining Power of Suppliers
USES OF COMPETITIVE ANALYSIS
1. Fitting the Current Environment
2. Anticipating Market Changes
3. Picking a Market to Enter
4. Reconfiguring the Rules of Competition
5. Protecting the Status Quo
NOTES
Chapter 4: COMPETING ON COSTS: THE RISE AND FALL OF EXPERIENCE EFFECTS AND
THE GROWTH-SHARE MATRIX
EXPERIENCE EFFECTS
Experience Effects Versus Economies of Scale
Experience Effects Versus Learning Effects
Sources of Experience Effects
THE EXPERIENCE CURVE
The Case of Pocket Calculators
THE RELATIONSHIP BETWEEN COSTS AND PRICES
THE MERITS OF MARKET SHARE AND MARKET GROWTH
THE GROWTH-SHARE MATRIX
The Source and Use of Funds
STRATEGIC PRESCRIPTIONS OF THE GROWTH-SHARE MATRIX
The Path to Success
Three Paths to Failure
CRITICISMS OF THE GROWTH-SHARE MATRIX
1. The Success of Low-Share Firms
2. The Futility of Market Share Gained
3. Success of Low-Growth Markets
4. Should Dogs Be Divested?
5. Harvesting Bread-and-Butter Products
6. Importance of Business "Relatedness"
7. Pursuing Experience Effects Hinders Innovation
8. The Confounding Effects of Shared Experience
9. Lower Prices Versus Market Share: Which Causes Which?
10. Internal Cash Flow
11. A Mechanical Response Instead of a Creative Solution
12. No Consideration of Product Differentiation
13. One Way to Win: An Obsession with Low Costs
THE RETURN OF COST COMPETITIVENESS
NOTES
Chapter 5: GENERIC STRATEGIES
PORTER'S THREE GENERIC STRATEGIES
Low-Cost Low-Price Selling
Product Differentiation
Market Segmentation
Stuck in the Middle
TREACY AND WIERSEMAN'S THREE VALUE DISCIPLINES
Operational Excellence
Customer Intimacy
Product Leadership
The Relationship Between Strategic Choice and Target Market
SHOULD FIRMS PURSUE ONLY ONE GENERIC STRATEGY?
NOTES
Chapter 6: COMPETING ON PRICE
CONDITIONS THAT FAVOR SELLING ON PRICE
When the "Gouge Gap" Is Too Wide
Mini-Case: The Battle Between National Brands and Private Labels
When There is a Shift in the Point of Differentiation
Mini-Case: Hallmark Cards -- A Shift In Buying Behavior Leads to a
Diminution of Competitive Advantage
When Products Become Commodities
When Markets Are Deregulated
When the Low-Price Formula Can Be Applied in a New Arena
Mini-Case: Staples -- The Office-Supply Superstore
HOW TO COMPETE ON PRICE
Ruthless Cost Cuffing Through Reengineering
Stressing Equal Quality at Lower Prices
Specialization and Lower Prices
Copying and Cutting Prices
Letting Prices Dictate Costs
THE EFFECTS OF LOW-COST COMPETITION
NOTES
Chapter 7: DIFFERENTIATION STRATEGIES
BASIS OF DIFFERENTIATION
1. Superior Performance
2. Superior Design and Styling
Mini-Case: Oakley Sunglasses
3. A Product for Every Purpose
4. "On-the-Edge" Product Innovations
5. Luxury Goods and Services
6. Popular Mass-Market Brand Names
7. Exceptional Service
8. Greater Reliability and Durability
9. Convenience
10. Unique Distribution Channels
Price as a Point of Differentiation
THE HISTORY OF PRODUCT DIFFERENTIATION
Monopolistic Competition
Consumers' Preference for Variety
Real Versus Contrived Differences
WHAT TO DIFFERENTIATE
Core Product Features
Incidental Product Features
Product Intangibles
Accounting for Intangibles
REQUIREMENTS FOR SUCCESSFUL DIFFERENTIATION
Support Premium Prices with Sufficient Marketing
Keep the Gouge Gap Reasonable
Embrace Innovation
Keep Copycats at Bay
Protect Against the "Squeeze Play"
NOTES
Chapter 8: SEGMENTATION STRATEGIES
THE DIFFERENCE BETWEEN DIFFERENTIATION AND SEGMENTATION
The Argument for Alternative Strategies
Claims for Complementary Strategies
Reconciling the Relationship Between Differentiation and Segmentation
SEGMENTATION STRATEGIES
1. Go for the Largest Segment
2. Sell Multiple Products in Multiple Segments
3. Sell a Single Product to All (or Most) Segments
4. Focus on a Small Segment
5. Create a New Segment
6. Break Segments Into Even Finer Subsegments
THE BASIS OF SEGMENTATION
A Regional Focus
Demographics
Product Usage
Quality Niches
The Individual Consumer
MARKET RESEARCH AND SEGMENTATION
QUESTIONS ABOUT SEGMENTATION
Are Segments Created or Discovered?
To What Extent Do Segments Overlap?
Are Segments Stable?
Is Countersegmentation a Viable Option?
Is Segmentation for Small Firms Only?
NOTES
Chapter 9: COMPETITIVE DYNAMICS
COMPETITION BETWEEN PRICE POINTS
Venical Differentiation 112
1. Drawing Customers Up-Market with Higher Quality
Mini-Case: Gillette's Sensor Razor Versus the Low-Priced Disposables
2. Luring Customers Down-Market with Lower Prices
3. Pushing Products Up-Market
4. Pushing Products Down-Market
Mini-Case: The American Express Card
Collisions in Vertically Integrated Markets
Intensity of Rivalry in Venically Differentiated Markets
INCREASING PRODUCT VALUE
COMPETITION BETWEEN DIFFERENTIATORS
Horizontal Differentiation
Shifting Points of Differentiation
Mini-Case: Nike Versus Reebok
COMPETITION BETWEEN LOW-COST PRODUCERS
A Succession of Low-Cost Producers
Mini-Case: Microwave Ovens -- A Succession of Low-Cost Producers
Price Shifting
Everyday Low Prices Versus High-Low Promotional Pricing
COMPETITION BETWEEN SEGMENTERS AND MASS MARKETERS
When a Segment Grows Larger and More Attractive
Mini-Case: Brian Maxwell's PowerBars
When Segmenters Steal Share from Market Leaders
Mini-Case: Specialty Coffees Versus Folgers and Maxwell House
Mini-Case: Microbreweries Versus Anheuser-Busch and Miller
Within-Segment Competition
NOTES
Chapter 10: MARKET-SHARE STRATEGIES
GAINING MARKET SHARE
When to Gain Share
How to Gain Share
HOLDING SHARE
How to Hold Share
HARVESTING STRATEGIES
Sustained Harvesting
Severe Harvesting
How to Harvest
ABANDONMENT
Poor Market Position
A Poor Fit with the Firm's Other Products
NOTES
Chapter 11: THE EVOLUTION OF PRODUCTS, MARKETS, AND NEW TECHNOLOGIES
TYPES OF INNOVATIONS
Incremental Innovations
New-to-the-World Innovations
THEORIES OF PRODUCT EVOLUTION
The "Great Men" Theory
Gradualism
Punctuated Equilibria
PATTERNS OF PRODUCT EVOLUTION
Macro Then Micro
Accumulation of Micro Leads to Macro
Micro Runs Out If No Macro
THE PRODUCT LIFE CYCLE
NOTES