Architecture of Market Dominance Formulating and Executing Company Marketing Strategy a The _ palette Soames Leroy olele-1K:) G ai aos Playbook i SY-N ae) imine apt oe Ss iu) Positioning Seen ceeThe Blueprint of Brand Equity: Rolex Core Promise: Market Position: sentiment of achievement Founded 1905. The world’s ‘and belonging toan largest luxury watch brand, exclusive ub, ‘commanding ~$46B in revenue Strategic Consistency (The 4Ps) ! Product: Timeless design, historic durability (1926 Oyster waterproof, 1953 Submariner, Everest expeditions) Price: Premium pricing strictly enforced. Zero discounts Place: Restricted to exclusive jewelers with signature crystal prism displays. No direct online sales. Promotion: Elite sports partnerships (Wileson singe 1978), supplemented by massive digital adaptation (5.5\+ Facebook likes, high-end YouTube documentaries) andthe Tudor brand for younger segments. Strategic Takeaway Enduring brand equity requires an absolute, unyielding consistency in strategy paired with tactical digital adaptation.The Strategic Planning Cascade Strategic planning is the continuous process of developing a strategic fit between the organization's goals and capabilities and its changing market opportunities. Broad corporate missions must translate into specific, measurable objectives at every level. area) RO ea Business RaiDefining Purpose: The Market-Oriented Mission reese tee Sica racticcueA MCI eeaeec hints needs, not product features. It must be meaningful, specific, motivating, and customer-focused. Product-Oriented WET Stel i alcse} Chipotle: We sell burritos. ne ace UMC Starbucks: We sell coffee. PSUs CME CU leeds (oldies ‘itz-Carlton: We rent out rooms. Lie eel ol AMT Reg Ort CO ceo Actionable Mission Example: CVS Health + Mission: Helping people on their path to better health (A pharmacy innovation company). * Objectives: Increase access, lower costs, improve care quality. * Strategic Actions: Eliminated tobacco sales, expanded MinuteClinics, launched chronic-care programs.Designing and Shaping the Business Portfolio Core Objective: Achieving the optimal fit between company strengths, internal weaknesses, and external market opportunities. The Strategic Business Unit (SBU): A distinct division, product line, or single brand that requires focused assessment to determine future support. 1. Analyze Current Portfolio 2. Shape Future Portfolio Focus resources on the strongest Reduce portfolios when products no longer opportunities: fit strategy, during economic downturns, or + Example: GE aggressively shifted from when weak businesses drain resources. legacy appliances and finance into + Example: P&G divesting Crisco, Folgers, industrial infrastructure to invent thenext | Duracell, and CoverGirl. digital industrial era. + Example: GM dropping Oldsmobile, Pontiac, Hummer, and Saab. rt 7 Ro to oo,Portfolio Resource Allocation: The BCG Matrix Case Anchor: Red Bull (The Ultimate Star) Created the energy-drink Category from scratch. Captured a 44% market share by bypassing traditional media to build a fiercely loyal community ‘through extreme events and social media dominance. Stars: Require heavy investment to finance rapid growth, Eventually ‘ransition to Cash Cows. Market Growth Rate (High/Low) Cash Cows: Established, successful SBUs that generate the cash required to support other units, Question Marks: Require massive cash injections simply to hold their share, let alone increase it, Dogs: Generate enough cash to maintain themselves but promise no large future yields. Harvest or divest Relative Market Share (High/Low)Mapping Vectors for Expansion Concept: The Product/Market Expansion Grid (Ansoff Matrix) isolates four distinct paths an organization can take to grow its current business portfolio. Existing Markets New Markets Existing Products Market Penetration Driving more sales of current products into current markets without changing the fundamental product. Market Development Identifying and developing entirely new markets or demographic segments for current products @ New Products Product Development Offering modified or entirely new products to current, established market segments. @ ation Diver Starting up or acquiring businesses positioned outside the company’s current products and current markets.Multidimensional Growth Execution: Under Armour ee) iPr A CS ere arr acy Dac) CEC Eo Ok Saun) single year and pushed an expanded variety of styles in existing product lines eerste een eed Secu DS Tg eer ee non Cea Ce Ratan s Campaign. Simultaneously drove geographic Pee Rennie el rn) Gere ees ca Moved beyond thelr core apparel competency EM yee! Pee ene ey (MapMyFitness apps) for their existing user ies Diversification ee ee ny Integrate cognitive computing and advanced fitness tracking, entering the RumerThe Value-Delivery Ecosystem Can ee DA ee ke iene en eee cere ae ie ie ecu c te eee ROC ea iS ea acute casa en cura é SA erly (The interconnected series ofinterral Corunna Pere e rtd products) BOON cain’ (he wider ecosystem where pariners collaborate to improve the performance ofthe entire system) ST Peace eu uN Ler Marketers at headquarters dor't just advertise; they act as network facilitators, helping 3,500. independent store owners stock the optimal product mix and execute localized promotions.Filtering the Market: The STP Funnel Strategic Imperative: A company must logic out exactly how it intends to achieve its objectives in the market. This begins by filtering the noise. AOTranslating the Mix: The Shift to Customer-Centricity Coe OM ECU CuSO Reece Ren ec en se tees ohare eu Mau ce) Ace on US eae h oul ear eens eset aC) Company Perspective (4Ps) Customer Perspective (4Cs) rite Cor uo) (Goods and services offered) oe (Solving a specific problem) Cad ens CoM) => (eoeecece eee) asd an ee (Availability logistics) (Ease of access and purchase) PF i Ca Mua (Communication of merits) Ue en)The Continuous Engine of Marketing Management DSS Te Mee ten enn ne Developing broad strategic and specific marketing plans. (Terese eon eee Ni urea Teena) setting budgets, and outining action programs, Measuring results against objectives. Includes Operating Control (checking annual plan performance) and Strategic Control (checking if strategies stl it opportunities via comprehensive marketing audits). Preece Eo en Mee Meee son tener structure, and company culture. (Organizations may structure Patuctancsn capac ton CML © ImplementsDiagnosing the Environment: Comprehensive SWOT Context: The foundation of the entire Marketing Management Cycle begins with a rigorous, unsentimental analysis of the current state. Bait Strengths Internal capabilites, resources, an situational factors that may help the Vee Ranesy 9 ev. Internal limitations and PS i factors that may interfere “w Poole Se NMSSM tone performance. its objectives. TROUT MUTT 1Cy Favorable factors or trends in the extemal Unfavorable external factors or trends th COTM a UE aU e abl ey een eae RON acer Roeser EeeValidating Execution: Marketing ROI The Core Mandate: Every marketing dollar spent must ultimately produce a measurable, verifiable profit, (Net Return from Marketing Investment) Mailksiting NOW = (Cost of the Marketing Investment) Beyond Immediate Profit: Customer-Centered Measures Modem strategic control requires tracking long-term equity, not just short-term sales. Customer Customer Customer Lifetime Acquisition Retention Value (CLV) Are we capturing new Are our current What is the total projected market share customers remaining revenue a single customer efficiently? within our ecosystem? will generate across their entire relationship with the brand?The Architecture of Dominance: System Synthesis Dae cay Cee oe eres focused, market-oriented mission that flows Ree er ere nL) business portfolio (BCG & Ansoff models) PAI return Pee} emer ats Pees eee eae Ceara Meena gcc Pete ear eae ee Coen) CE eee eee The Final Word: Market dominance—as demonstrated by Rolex, Red Bull, and Under Armour— is not achieved through isolated marketing campaigns, but through absolute strategic alignment from the corporate mission down to the individual customer interaction,