Growth

1. Understanding Success

2. Keys to Growth
• Understand why you have been
successful
• Build on strengths and core competencies
and shore up weaknesses
• Build a marketing strategy for each
product that reflects the appropriate
generic strategy, plus
– the stage the it is at in its life cycle and
– all in the context of its place in the
portfolio of products

3. Generic Marketing Strategies
COMMODITY
SUPPLIER
OUTSTANDING
SUCCESS
MARKET
TRADER
NICHE
PLAYER
Broad market
Focused market
Low price
Low differentiation High differentiation
High price

4. Strategy Imperatives
Selling on low price
Maintaining cost leadership
Continually driving down costs

5. Generic Marketing Strategies
COMMODITY
SUPPLIER
OUTSTANDING
SUCCESS
MARKET
TRADER
NICHE
PLAYER
Broad market
Focused market
Low price
Low differentiation High differentiation
High price

6. Generic Marketing Strategies
COMMODITY
SUPPLIER
OUTSTANDING
SUCCESS
MARKET
TRADER
NICHE
PLAYER
Broad market
Focused market
Low price
Low differentiation High differentiation
High price

7. When you’ve got single digit market share – and
you’re competing with the big boys – you either
differentiate or die

8. Niche Player
• Selling a differentiated product/service
to a well-targeted, narrow market
segment
• Emphasising non-price elements of the
marketing mix
• Focusing on customers or products
rather than methods of production
• Stressing the inherent advantages
of the product/service over its

9. Selling on high differentiation
Understanding basis of differential advantage
Reinforcing & building differential advantage
Building the brand
Often involves
continual innovation
Strategy Imperatives

10. The Pricing Range
Pricing Range
Variable
cost per
unit
‘Too-low’
price
Average
cost per
unit
Value to the
customer
‘Going-rate’
price
‘Too-high’
price

11. Going rate pricing - matching prices in
market place
Skimming - charging higher price
because people will buy anyway
Penetration - charging lower than
going-rate to gain market share
quickly because people will try
product or switch
Pricing options at launchPricing options at launch

12. Customer Loyalty LadderCustomer Loyalty Ladder
Prospect
Customer
Regular
Customer
Supporter
Advocate
Increasing
Loyalty

13. Dimensions of Differentiation
Emotions
Aesthetics
Functional Core

14. Successful Strategy
• Strategy should emphasise something
that makes your firm as unique as
possible and delivers as much value as
possible to the customer
• The best chance of doing this comes
from differentiation with the aim of
dominating your market and to do this
effectively and quickly
• Then to continue to innovate based
upon your differential advantage

15. Sustaining Competitive Advantage
• Reputation – often encapsulated in
the brand, but communicated through
relationships
• The way the organisation innovates
– again and again
• The organisation’s strategic assets
– particularly the ones that can’t be
copied or competitors do not have
access to

16. Finally….
• Strategy should be clear and focused
• Supported by
- a culture that aims high
- a structure that is flexible & responsive
• A good strategy is important but effective
strategy execution is vital
(and often ignored)