What are the three levels of strategy

Marketing Management I: Basics of Marketing. Strategic Marketing (Part 1)

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1 Marketing Management I: Basics of Marketing Strategic Marketing (Part) Summer Semester 0 Prof. Dr. Michael Steiner Prof. Dr. M. Steiner Marketing I.

2 The Marketing Center Münster (MCM) Prof. Dr. M. Steiner Marketing I.

3 Lecture plan BACHELOR # Vorl. Date time lecture hall. Die.,: 5-7: 45 H. Th.,: 5-09: 45 H part. Tue.,: 5-7: 45 H 4th Fri.,. 04.0: 5-: 45 H 5th Tue.,: 5-7: 45 H 6th Fri.,: 5-: 45 H 7th Tue. ,: 5-7: 45 H 8th Fr.,: 5-: 45 H part 9. Mon.,: 5-7: 45 SP 7 (Schlossplatz 7 in the courtyard) 0 Fri,: 5-: 45 H . The.,: 5-7: 45 H. Fr.,. 05.0: 5-: 45 H Prof. Dr. M. Steiner Marketing I.

4 Structure Marketing I (Bachelor / Diploma) CW 46 CW 47 CW 48 Lecture Lecture Intut Tutor of the week Prätut (individualized + only if required) The INTUT week begins after the Friday lecture * and ends: 00 a.m. before the next Friday lecture * Exception: Thursday, you have the opportunity to take part in self-tests during this period. M. Steiner Marketing I 4

5 INTUT / PRÄTUT - self-tests # Prel. Date INTUT self-test. The., Follow-up to the lecture. Thursday, follow-up to the lecture -. Self-test goal: Identification of strengths and weaknesses. Die., INTUT # Use of the forum to discuss the tasks in which mistakes were made and to clarify comprehension problems 4. Fr., self-test Aim: Control of the learning success + improvement of the number of points (submission by no later than 00 a.m. before the Friday lecture) INTUT # Prof. Dr. M. Steiner Marketing I 5

6 INTUT / PRÄTUT Distribution and crediting of the additional points General Rules Average number of points in the self-tests Additional points for the final exam 575 to 600 6.0 - These are additional points, nothing changes in the assessment of the exam Exam with a maximum of 90 points - The points acquired through the self-tests are BONUS points, which are added to the points achieved in the final exam Self-tests - Maximum number of points for a self-test: 600 points (0 P ~ Min) The best self-test of each INTUT is scored - max INTUT week - At the end of the term, an average point value is determined from all 6 INTUTs, which leads to the corresponding number of additional points (see right) - If an INTUT does not take part in a self-test, this leads to a rating of 0 additional points 550 to 574 5.5 55 to 549 5.0 500 to 54 4.5 475 to 499 4.0 450 to 474.5 45 to 449.0 400 to 44.5 75 to 99.0 50 to 74.5 5 to 49 , 00 to 4 0.5 0 to 99 0.0 Prof. Dr. M. Steiner Marketing I 6

7 INTUT / PRÄTUT Registration for the platform Register at! Create new account! - All fields are mandatory! - The login name is arbitrary and is only used for login PLEASE NOTE: Please enter - your Uni-Muenster - address, - your real name and - your matriculation number! - We can only credit you with the additional points for the exam if you correctly identify yourself! Prof. Dr. M. Steiner Marketing I 7

8 INTUT / PRÄTUT Navigation on INTUT.de Click under Courses on Marketing I and register. In the course area you will find: - the newsletter forum announcements - the download area of ​​the lecture documents and old practice exams - the individual self-tests (you can only take part in the respective self-test of the current INTUT week) - the forums for the individual INTUTs as well as an old exam forum Prof. Dr. M. Steiner Marketing I 8

9 INTUT / PRÄTUT Review of the self-test - After you have taken the self-test, you can always view a report with an overview of the correct and incorrect tasks - (Click again on the corresponding self-test in the course area) Here you can go straight to the wrong ones Tasks (marked in red) jump Prof. Dr. M. Steiner Marketing I 9

10 INTUT / PRÄTUT Explanation of the task types Task type Explanation Example of true / false statements ATTENTION: With this type of task, new / different statements may appear when you repeatedly take part in the self-test of an INTUT Multiple choice Depending on the task, it may be possible that several answers are correct Assignment Depending on the task, it may be correct to use a suggestion from the drop-down menu several times. Enter a number Enter only the number you are looking for (without euros or other information). Enter a word Please enter only the searched word a Prof. Dr. M. Steiner Marketing I 0

11 Structure of Marketing I (Bachelor / Diploma) In the forum you can: Ask questions and answer other contributions (questions and answers) Like on Facebook Prof. Dr. M. Steiner Marketing I.

12 Structure of Marketing I (Bachelor / Diploma) Ranking according to the likes: Prof. Dr. M. Steiner Marketing I.

13 INTUT / PRÄTUT Use of the forum Title in the forum: There is a predefined structure. Questions about Intut Title begins with Intut. Questions about a true / false question in the Intut Title begins with Intut W / F + "At least the first 5 words of the statement. Other questions about the Intut Intut Question xx Please only post questions about a task in the appropriate thread. This makes it easier for all participants the overview. The tutor of the exercise and the forum is Carsten Schulze-Bentrop. The tutor does not answer any questions to the personal address. Everything is discussed openly in the forum. Forum entries for the individual self-tests are only carried out during the respective INTUT week the tutor supervises. / Afterwards the moderation is taken over by former students. In case of abuse we reserve the right to close the discussion forum! Prof. Dr. M. Steiner Marketing I

14 INTUT / PRÄTUT Cooperation The system is very much geared towards the independence of the students. We will solve all problems and questions. However, it should be noted that the discussion forum is not a live chat, so that an immediate answer to the questions cannot always be expected. Criticism, praise and suggestions for improvement to us as soon as possible (please do not swallow anger and pile up). Please ensure that you deal correctly with each other and with individual contact persons at the chair. Please avoid tasteless, disparaging and insulting discussion forum contributions. We reserve the right to suspend lectures and exercises for an indefinite period. Of course, the content remains relevant to the exam. Prof. Dr. M. Steiner Marketing I 4

15 INTUT / PRÄTUT Organization PRÄTUT The students are asked to ask the tutor to present certain solutions or explanations in the PRÄTUT. Not all questions can necessarily be answered online. The length of the PRÄTUT depends on the students' inquiries. If nothing is asked, there is also no PRÄTUT. In the Friday event, the tutor announces the topics he has dealt with in the following PRÄTUT as well as the place and time of the PRÄTUT. Complete sample solutions are not written to in the PRÄTUT. The PRÄTUT ONLY deals with problems that were previously raised on the Internet. Complete the relevant self-test EVERY WEEK. You will NOT have an opportunity later to ask questions about old tasks. Prof. Dr. M. Steiner Marketing I 5

16 References Basic textbooks and workbooks on Strat. Marketing Backhaus, K./Schneider, H. Strategisches Marketing ,. Edition, 009 Backhaus, K./Voeth, M. Industriegütermarketing, 9th edition, 00 Benkenstein, M. Strategisches Marketing ,. Edition, 009 Hax, A. C./Majluf, N. S. West, D./Ford, J./Ibrahim, E. The Strategy Concept and Process: A Pragmatic Approach ,. Edition, 996 Strategic Marketing: Creating Competitive Advantage ,. Edition, 00 Prof. Dr. M. Steiner Marketing I 6

17 Bibliography Basic textbooks and workbooks on operational marketing Becker, J. Marketing-Konzeption, 9th edition, 009 Esch, F.-R./Herrmann, A./Sattler, H. Marketing ,. Edition, 008 Homburg, C./Krohmer, H. Marketingmanagement ,. Edition, 009 Kotler, P./Keller, K. L. Marketing Management ,. Edition, 009 Meffert, H./Burmann, C. / Marketing Basics Market-Oriented Kirchgeorg, M .: Unternehmensführung ,. Edition, 0 Scharf, A./Schubert, B./Hehn, P. Marketing, 4th edition, 009 Prof. Dr. M. Steiner Marketing I 7

18 Exam Notes on the exam The contents of the lectures and exercises are relevant. For optimal preparation, old exams are made available in the download area of ​​INTUT.de. Tasks from the old exams that do not match the content of the lecture and exercise are of course not relevant !!! Exam duration: 90 min. 90 points Exam at the end of the term Prof. Dr. M. Steiner Marketing I 8

19 Marketing structure I. What is marketing? .. Sales and marketing .. The KKV as a marketing navigator .. Marketing from a decision perspective.4. Marketing goals. Strategic marketing .. What is strategy? .. The three levels of strategy .. What are marketing strategies? .4. Market-strategic decision problems.4 .. The game arena.4 .. The game behavior.4 .. The rules of the game. Operational marketing: Marketing mix .. Basics of brand policy .. Marketing mix: Service policy ... Product policy ... Price policy ... Communication policy..4. Distribution policy .. Marketing mix: consideration (price and condition policy) Prof. Dr. M. Steiner Marketing I 9

20 On the relationship between sales and marketing Sales Provider Mindset: Push Mindset: Pull Customer Marketing Prof. Dr. M. Steiner Marketing I 0

21 Regarding the relationship between sales and marketing Sales performance utilization The core of the consideration are the sales instruments (product, price, distribution, communication) Functional unit Marketing Management of Comparative Competitive Advantages (KKV s) Management concept that affects all functional areas of a company. Prof. Dr. M. Steiner Marketing I.

22 On the relationship between sales and marketing Meffert / Burmann / Kirchgeorg: Marketing = market-oriented company management (Meffert, Burmann, Kirchgeorg, 008) Meffert: Marketing means ... planning, coordination and control of all company activities aimed at current and potential markets. The company's goals in the overall economic goods supply process should be achieved through the permanent satisfaction of customer needs (Meffert, 997). American Marketing Association (AMA): Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (AMA, 004). Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (AMA, 007). Nieschlag / Dichtl / ​​Hörschgen: Marketing is the consistent alignment of all decisions that directly and indirectly affect the market to the requirements and needs of consumers or buyers (marketing as a maxim) with an effort to create preferences and thus achieve competitive advantages through targeted entrepreneurial measures (Marketing as a means) and with systematic decision-making using modern techniques (Marketing as a method) (Nieschlag / Dichtl / ​​Hörschgen, 00). Prof. Dr. M. Steiner Marketing I.

23 Marketing structure I. What is marketing? .. Sales and marketing .. The KKV as a marketing navigator .. Marketing from a decision-making perspective.4. Marketing goals. Strategic marketing .. What is strategy? .. The three levels of strategy .. What are marketing strategies? .4. Market-strategic decision problems.4 .. The game arena.4 .. The game behavior.4 .. The rules of the game. Operational Marketing: Marketing Mix .. Basics of Brand Policy .. Marketing Mix: Service Policy ... Product Policy ... Price Policy ... Communication Policy..4. Distribution policy .. Marketing mix: consideration (price and condition policy) Prof. Dr. M. Steiner Marketing I.

24 The KKV as a marketing navigator Backhaus: Marketing = Management of KKV s (Backhaus / Voeth, 00; Backhaus / Schneider, 009) N Problems and needs of the customer Problem solution (know-how) of the provider A KKV Marketing - triangle solutions (Know -How) of the competitor K Prof. Dr. M. Steiner Marketing I 4

25 Dimensions of the KKV KKV Effectiveness goals: to do the right things Efficiency goals: to do things right perceived significant defensible 4 economic Prof. Dr. M. Steiner Marketing I 5

26 elements of the KKV: Significance (I) No. 8 Importance: Degree of fulfillment: Decision criteria Complete techn. Documentation less important poor rather important sufficient important mediocre very important good, 0,5,0,5,0,5 4,0 47 Good experience in the past 48 Convincing references 6 Prize Prof. Dr. M. Steiner Marketing I 6

27 elements of the KKV: Significance (II) Importance: Degree of fulfillment: No. Decision criteria 8 Complete techn. Documentation less important poor rather important sufficient important mediocre very important good, 0,5,0,5,0,5 4,0 47 Good experience in the past 48 Convincing references 6 Prize Prof. Dr. M. Steiner Marketing I 7

28 elements of the KKV: Significance (III) Importance: Degree of fulfillment: No. Decision criteria 8 Complete techn. Documentation less important poor rather important sufficient important mediocre very important good, 0,5,0,5,0,5 4,0 47 Good experience in the past 48 Convincing references 6 Price Degree of fulfillment A: Degree of fulfillment B: Prof. Dr. M. Steiner Marketing I 8

29 Elements of the KKV: Perception (I) B. A. Prof. Dr. M. Steiner Marketing I 9

30 elements of the KKV: Perception (II) Example: Cocaine Prof. Dr. M. Steiner Marketing I 0

31 Elements of the KKV: Perception (III) Similarities and differences between fields A and B Prof. Dr. M. Steiner Marketing I.

32 Elements of the KKV: Defense capability (I) Competition Competition through innovation Imitation threatens KKV KKV defensible if the competition can be prevented from imitation Source: Reed / DeFilippi, 990, S Prof. Dr. M. Steiner Marketing I.

33 Example: Claas elements of the KKV: Defense capability (II) Prof. Dr. M. Steiner Marketing I.

34 Elements of the KKV: Efficiency capital value with sensitivity analysis / simulation analysis (initial situation) Initial situation The market volume is stable units per year. The initial market share is% and can probably be increased to 5% after two years. The price per piece is 760 GE and an annual price drop of% is to be expected. The variable costs are constant at 60 MU per unit. The fixed costs amount to .5 million MU annually. In addition, there is an initial investment of .5 million MU to be made. The relevant interest rate is 0%. Explicit planning period: 5 years Thereafter: constant C 0 a 0 ptktixtt K t with a 0 = initial investment, pt = price in period t, kt = variable costs in period t, xt = sales volume in period t, K t = fixed costs in period t , i = interest rate Prof. Dr. M. Steiner Marketing I 4

35 elements of the KKV: efficiency net present value with sensitivity analysis / simulation analysis (net present value): the business plan period sales volume price 760.00 75.40 744.88 77.4 70.05 sales,,,,, 54 variable costs / unit 60, 00 60.00 60.00 60.00 60.00 sat. variable costs,,,,, 00 fixed costs,,,,, 00 market launch costs, 00 total,,,, 00.4.5,, 54 discount rate discounted amounts,,, 5 0,, 56.77.,, 96 net present value:, 58 Prof. Dr. M. Steiner Marketing I 5

36 elements of the KKV: efficiency net present value with sensitivity analysis / simulation analysis (determination of the sensitive influencing factors) period sales volume price 760.00 75.40 744.88 77.4 70.05 sales,,,,, 54 variable costs / unit 60.00 60 , 00 60.00 60.00 60.00 sat. variable costs,,,,, 00 fixed costs,,,,, 00 market launch costs, 00 total,,,, 00.4.5,, 54 discount rate discounted amounts,,, 5 0,, 56.77.,, 96 net present value:, 58 net present value decreases to 0.00 if (cp) a) the drop in price is 4% pa, b) the market volume falls by 40% per unit, c) the fixed costs rise or d) the var. costs rise by 7.6%. Prof. Dr. M. Steiner Marketing I 6

37 elements of the KKV: efficiency net present value with sensitivity analysis / simulation analysis (distribution of the sensitive influencing factors) drawing of the random numbers period for the price allocated price for the var.costs allocated var.costs 9 750,,, 40 700.00 (750 60) (, ) C0 ... Prof. Dr. M. Steiner Marketing I 7

38 elements of the KKV: Efficiency capital value with sensitivity analysis / simulation analysis (histogram of capital values) Drawings with Excel 5.5 million drawings with Crystal Ball Prof. Dr. M. Steiner Marketing I 8

39 Elements of the KKV: Efficiency capital value with sensitivity analysis / simulation analysis (distribution function of capital value and hypothetical alternative distribution) () Drawings (a) hypothetical alternative Prof. Dr. M. Steiner Marketing I 9

40 Conception of the KKV in comparison Net benefit advantage (NNV) = Customer benefit (KV) Unique Selling Proposition (USP) Costs and benefits for customers Benefits for customers NNV = KV USP Value Proposition Offer A Offer K Offer A The benefit of the offer of A is greater than the costs incurred by the customer. Uniqueness of the range of services offered by provider A compared to the competition K. Source: Backhaus (006): From customer benefits to value proposition to KKV, in: Thexis (006 edition). Prof. Dr. M. Steiner Marketing I 40

41 Conception of the KKV in comparison Net-benefit-difference (NND) = Relative customer advantage (RKV) Comparative competitive advantage KKV Costs and benefits for consumers Costs and benefits for consumers, costs of the supplier A NND RKV Perceived benefit difference A> K Cost difference A perceived by the buyer K Cost difference perceived by the buyer A

42 Effectiveness and efficiency as benchmarks of the CIS net benefit positive Effectiveness efficiency deficits Effectiveness-oriented CISI Effectiveness and efficiency-oriented CIS Net benefit zero indifference Cost advantage Net benefit negative Efficiency and effectiveness deficit Effectiveness deficit Profit negative Profit zero profit positive Efficiency Source: based on Plinke, 995. Prof. M. Steiner Marketing I 4

43 Marketing structure I. What is marketing? .. Sales and marketing .. The KKV as a marketing navigator .. Marketing from a decision-making perspective.4. Marketing goals. Strategic marketing .. What is strategy? .. The three levels of strategy .. What are marketing strategies? .4. Market-strategic decision problems.4 .. The game arena.4 .. The game behavior.4 .. The rules of the game. Operational Marketing: Marketing Mix .. Basics of Brand Policy .. Marketing Mix: Service Policy ... Product Policy ... Price Policy ... Communication Policy..4. Distribution policy .. Marketing mix: consideration (price and condition policy) Prof. Dr. M. Steiner Marketing I 4

44 Marketing from a decision-making perspective Goals Goals are desirable conditions (Meffert / Burmann / Kirchgeorg, 008) Strategies. What is strategy? Which company level? What are Marketing Strategies? Measures Specific action programs are tangible, short-term tasks that can be precisely identified, monitored and evaluated. (Hax / Majluf, 996) Prof. Dr. M. Steiner Marketing I 44

45 Marketing structure I. What is marketing? .. Sales and marketing .. The KKV as a marketing navigator .. Marketing from a decision-making perspective.4. Marketing goals. Strategic marketing .. What is strategy? .. The three levels of strategy .. What are marketing strategies? .4. Market-strategic decision problems.4 .. The game arena.4 .. The game behavior.4 .. The rules of the game. Operational Marketing: Marketing Mix .. Basics of Brand Policy .. Marketing Mix: Service Policy ... Product Policy ... Price Policy ... Communication Policy..4. Distribution policy .. Marketing mix: consideration (price and condition policy) Prof. Dr. M. Steiner Marketing I 45

46 Marketing goals: Definition of marketing goals: Marketing goals determine the desired target states (market-specific target positions) that are to be realized with the pursuit of marketing strategies and the use of marketing instruments. The marketing target planning ties in with both future market opportunities and the company's existing resources. (Becker, 009, p. 6) Prof. Dr. M. Steiner Marketing I 46

47 Characteristics of decision-theoretical goals Objective dimensions must be operationalized! Target content Target extent: Time reference (e.g. market share) - Extremeization (minimization / maximization) - Fixation (e.g. holding current market share) - Satisfication (e.g. at least three percent increase in market share) (e.g. in the coming financial year) Material scope (e.g. in company division / market segment xy) Prof. Dr. M. Steiner Marketing I 47

48 Management cockpit: target hierarchies Target target Normative management Strategic management Strategic management at company level Internal analysis Success of SBUs Overarching competencies Strategy formulation Portfolio management Entry Expansion Hold Withdrawal Alignment Role of the central level Degree of internationalization Choice of methods Internal solution Organic growth Decommissioning External solution Acquisition / Cooperation Sales Strategic management at business area level () External analysis Competitors Customers Internal analysis Resources Skills Purpose of the company Corporate culture Corporate constitution Formulating the strategy Basis of the competitive position What advantage should be achieved in the competition? Competitive strategy Vision Overall objective of the company Broad market development Where should the advantage be achieved? Company guidelines Selection of the portfolio alternative with the highest degree of target achievement Strategy analysis Strategy evaluation Type of service provision How should the advantage be achieved? Presentation of the company as an attractive employer (HR management) Management of the financial sphere of the company / SBU including risk management (financial management) Preparation of data on business development (financial accounting, balance sheet preparation, tax accounting, investor relation) Decision support through project-related surveys, analysis and preparation of data (controlling) Support of the processes through the provision of technology and systems as well as the corresponding service Operationalization of the strategy planning as well as specification of goals and measures for functional areas Planning of production factors (personnel, systems) Cost and revenue planning, balance sheet results planning, financial planning Output: Successful implementation of the company's overall objective (shareholder approach) Objectives at company level (maximizing the value contribution of the head office) Objectives at SBU level (maximizing the value of the business field) Source: Bauer, 009. Prof. Dr. M. Steiner Marketing I.

49 Management cockpit: target hierarchies Overall objective of the company Objectives Company management Objectives SBU Objectives SBU Objectives SBU objectives Manager Objectives manager Objectives manager Objectives sales person Objectives sales person Target relationship? Prof. Dr. M. Steiner Marketing I.

50 Relationships between marketing goals, goal relationships, goal complementarity e.g. Increase in market share and increase in profit: positive correlation with target neutrality e.g. Increase in sales and improvement of environmental protection: no direct connection unproblematic conflict of goals e.g. Sales increase and cost reduction: possibly negative correlation Decision rules necessary (target weighting, prioritization, ranking,) Prof. Dr. M. Steiner Marketing I 50

51 Marketing structure I. What is marketing? .. Sales and marketing .. The KKV as a marketing navigator .. Marketing from a decision perspective.4. Marketing goals. Strategic marketing .. What is strategy? .. The three levels of strategy .. What are marketing strategies? .4. Market-strategic decision problems.4 .. The game arena.4 .. The game behavior.4 .. The rules of the game. Operational Marketing: Marketing Mix .. Basics of Brand Policy .. Marketing Mix: Service Policy ... Product Policy ... Price Policy ... Communication Policy..4. Distribution policy .. Marketing mix: consideration (price and condition policy) Prof. Dr. M. Steiner Marketing I 5

52 Limitation of the object of consideration The term strategy in business administration Communication strategy Strategic pricing policy Strategic participation Strategic alliance Cost leader strategy Strategic outsourcing Pioneering strategy Basic strategic orientation Multi-brand strategy Skimming strategy Strategic positioning Strategy: all or nothing? Prof. Dr. M. Steiner Marketing I 5

53 Our understanding of strategy. What is strategy Definition of strategy: A strategy offers a medium to long-term (flexible) orientation framework for future action. Strategies are the link between goals and operational decisions (measures). Goals are therefore not part of a strategy, but their normative reference point. Measures are developed to transform strategic fundamental (directional) decisions into concrete actions. Strategies do not provide a rigid framework, but a framework that may have to be adapted to changing environmental conditions. At which company level are strategic decisions made? The three-level strategy concept according to Hax / Majluf Prof. Dr. M. Steiner Marketing I 5

54 Marketing structure I. What is marketing? .. Sales and marketing .. The KKV as a marketing navigator .. Marketing from a decision-making perspective.4. Marketing goals. Strategic marketing .. What is strategy? .. The three levels of strategy .. What are marketing strategies? .4. Market-strategic decision problems.4 .. The game arena.4 .. The game behavior.4 .. The rules of the game. Operational Marketing: Marketing Mix .. Basics of Brand Policy .. Marketing Mix: Service Policy ... Product Policy ... Price Policy ... Communication Policy..4. Distribution policy .. Marketing mix: consideration (price and condition policy) Prof. Dr. M. Steiner Marketing I 54

55 The three-level strategy concept. The three strategy levels Company objectives Company strategies GF objectives Company measures GF objectives GF strategies GF strategies ... GF Measures GF Measures Fct Objectives Fct Objectives Fct Objectives Fct Objectives Fct Strategies Fct Strategies Fct Strategies ... Fct Measures Fct Measures Fct Measures Fct Measures GF Business field Fkt: Function Prof. Dr. M. Steiner Marketing I 55

56 Strategy at company level: The framework for action. The three strategy levels Corporate goals Corporate strategies GF goals Corporate measures GF goals Corporate strategies deal with GF strategies GF strategies ... fundamental decisions that affect the entire company. GF measures are strategic decisions that GF cannot decentralize measures without losing significant synergy effects. Fkt Targets Fkt Targets Fkt Targets Fkt Targets Fkt Strategies Fkt Strategies Fkt Strategies Fkt Strategies ... Fkt Measures Fkt Measures Fkt Measures Fkt Measures GF: Business Area Fkt: Function Prof. Dr. M. Steiner Marketing I 56

57 Strategy at company level using the example of Siemens AG Goal: Goal: Double growth compared to the global average. GDP. The three strategy levels Communication (COM) IT services (SBS) Industrial solutions (I&S) Building technology (SBT) Energy generation (PG) Traffic technology (TS) Energy transmission and distribution (PTD) Medical technology (Med) Automation and drive technology (A&D) Light (Osram) Energy Health Industry Automotive Electronics (SV) Strategy: Adjustment of the business portfolio Measures: Deployment of an analysis team to assess the future prospects of the individual SBUs Source: Prof. Dr. M. Steiner Marketing I 57

58 Strategy at business area level: The focus of action. The three strategy levels: corporate goals corporate strategies GF goals corporate measures GF goals GF strategies GF strategies ... GF measures GF measures Business strategies Fkt (Business Strategies) Fkt Fkt are aimed at bringing the respective goals business field into a competitive target. The business field strategies are to be formulated and implemented in such a way that they are in line with the general Fct Fct corporate strategy strategies. Strategies Strategies ... Fkt Measures Fkt Measures Fkt Measures Fkt Measures GF: Business Area Fkt: Function Prof. Dr. M. Steiner Marketing I 58

59 Strategy at business unit level using the example of the Health Division of Siemens AG. The three strategy levels Health Objective: Health Strategy: Health Measures: Market leadership in all areas of medical technology Innovation leader strategy High investments in R&D and targeted company takeovers, e.g. B. CTI Molecular Imaging (5 million), Diagnostic Products (77 million), Bayer Diagnostics (. 4 billion) Prof. Dr. M. Steiner Marketing I 59

60 Strategy at the functional level: The instruments for action. The three strategy levels corporate goals corporate strategies corporate measures Functional strategies represent fundamental decisions GF goals in the different functional areas GF goals (procurement, GF strategies financing, sales, production) in GF a strategies company .... GF measures GF measures Fct goals Fct Targets Fkt Targets Fkt Targets Fkt Strategies Fkt Strategies Fkt Strategies Fkt Strategies ... Fkt Measures Fkt Measures Fkt Measures Fkt Measures GF: Business Field Fkt: Function Prof. M. Steiner Marketing I 60

61 Strategy at the functional level using the example of Siemens AG. The three strategy levels Prof. Dr. M. Steiner Marketing I 6

62 Strategy at the functional level using the example of Siemens AG. The three strategy levels Prof. Dr. M. Steiner Marketing I 6

63 Marketing structure I. What is marketing? .. Sales and marketing .. The KKV as a marketing navigator .. Marketing from a decision-making perspective.4. Marketing goals. Strategic marketing .. What is strategy? .. The three levels of strategy .. What are marketing strategies? .4. Market-strategic decision problems.4 .. The game arena.4 .. The game behavior.4 .. The rules of the game. Operational Marketing: Marketing Mix .. Basics of Brand Policy .. Marketing Mix: Service Policy ... Product Policy ... Price Policy ... Communication Policy..4. Distribution policy .. Marketing mix: consideration (price and condition policy) Prof. Dr. M. Steiner Marketing I 6

64 Definition of strategic marketing. What are Marketing Strategies? Backhaus: Core of strategic marketing = management of KKVs, i.e. development, expansion and defense of KKV positions. N Problems and needs of the customer Problem solution (know-how) of the provider A KKV Marketing - Triangle solutions (know-how) of the competitors K Prof. Dr. M. Steiner Marketing I 64

65 Definition of strategic marketing. What are Marketing Strategies? Backhaus: Core of strategic marketing = management of KKVs, i.e. development, expansion and defense of KKV positions. KKVs are i. W. business area-specific. Problems and needs of the orientation towards the management of KKVs implies that the demand that Strategic Marketing is at its core a business area strategy. Problem solving (know-how) of the provider A KKV Marketing - triangle solutions (know-how) of the competitors K Prof. Dr. M. Steiner Marketing I 65

66 Marketing strategies are essentially GF strategies. What are Marketing Strategies? Company objectives Company strategies GF Objectives GF Measures Company measures GF Objectives GF -Strategies GF -Strategies ... GF Measures Fct Objectives Fct Objectives Fct Objectives Fct Objectives Fct Strategies Fct Strategies Fct Strategies ... Fct Measures Fct Measures Fct Measures Fct Measures GF: Business area Fkt: Function Prof. Dr. M. Steiner Marketing I 66

67 Objectives of CIS management. What are Marketing Strategies? Net benefit positive Effectiveness Efficiency deficits Effectiveness-oriented KKV Effectiveness and efficiency-oriented KKV Target KKV - position Net benefit zero indifference Cost advantage Net benefit negative Efficiency and effectiveness deficits Effectiveness deficit Profit negative Profit zero profit positive Efficiency Source: based on Plinke, 995. Prof. Dr. M. Steiner Marketing I 67

68 Strategic Marketing at the Company Level. What are Marketing Strategies? Corporate goals Corporate strategies GF goals GF measures Corporate measures GF goals In view of the need for a market-oriented coordination of SBU strategies GF strategies SBU strategies GF strategies ... Business areas, part of the marketing strategy is also part of the corporate strategy. GF Measures Fkt Targets Fkt Targets Fkt Targets Fkt Targets Fkt Strategies Fkt Strategies Fkt Strategies Fkt Strategies ... Fkt Measures Fkt Measures Fkt Measures Fkt Measures GF: Business Unit Fkt: Function Prof. M. Steiner Marketing I 68

69 brand models as an approach to the market-side coordination of the business areas. What are Marketing Strategies? Lamborghini The ultimate sports car Volkswagen The Bugatti car Visions, passion, driving force and art in automotive engineering Seat Auto emoción Skoda Skoda Simply clever! Audi Vorsprung durch Technik Bentley The Sporting Grand Tourer Porsche There is No Substitute Prof. Dr. M. Steiner Marketing I 69

70 Conclusion Goals Goals are desirable states (Meffert, 000) strategies. What is strategy? Which company level? What are Marketing Strategies? Measures Specific action programs are tangible, short-term tasks that can be precisely identified, monitored and evaluated. (Hax / Majluf, 996) ad: A strategy offers a medium / to long-term (flexible) framework for future action, which may have to be adapted to changing environmental conditions. ad: Strategic action can be found both at the level of the company as a whole and at the business field and functional level. ad: Marketing is understood here as the management of KKVs. Strategic marketing therefore takes place primarily at the management level. Prof. Dr. M. Steiner Marketing I 70

71 Marketing structure I. What is marketing? .. Sales and marketing .. The KKV as a marketing navigator .. Marketing from a decision-making perspective.4. Marketing goals. Strategic marketing .. What is strategy? .. The three levels of strategy .. What are marketing strategies? .4. Market-strategic decision problems.4 .. The game arena.4 .. The game behavior.4 .. The rules of the game. Operational Marketing: Marketing Mix .. Basics of Brand Policy .. Marketing Mix: Service Policy ... Product Policy ... Price Policy ... Communication Policy..4. Distribution policy .. Marketing mix: consideration (price and condition policy) Prof. Dr. M. Steiner Marketing I 7

72 Overview of company objectives Company strategies Company measures GF objectives GF objectives GF strategies GF strategies ... GF measures GF measures Management of KKVs Marketing strategy Overview Fct goals Fct strategies Fct goals Fct strategies Fct goals Fct strategies Fct goals Fct strategies ... N Problems and needs der demander Fkt measures Fkt measures Fkt measures Fkt measures GF: Business field Fkt: function Problem solving (know-how) of the provider KKV solutions (know-how) of the competitors A Marketing triangle K Which is the marketing triangle that is relevant for us? Game arena GP.4. How do the actors involved in this marketing triangle behave? What rules do the actors in this marketing triangle follow? Game behavior GP.4. Rules of the game GP.4. Prof. Dr. M. Steiner Marketing I 7

73 Economic Competition and Sports Competition: Similar Key Strategic Questions Which is the Relevant Market? (Competition arena / play arena) Prof. Dr. M. Steiner Marketing I 7

74 Economic Competition and Sports Competition: Similar Key Strategic Questions How do the individual market participants behave? (Competitive behavior / gaming behavior) Source: McKinsey Wissen, 004. Prof. Dr. M. Steiner Marketing I 74

75 Economic Competition and Sports Competition: Similar Key Strategic Questions Which Rules Are Played By? (Competition rules / rules of the game) The Straddle Technique (William Page, 874) The Flop Technique (Dick Fosbury, 968) Prof. Dr. M. Steiner Marketing I 75