please answer the question from the notes below.no outside answer please

Chapter 6

* Explain the concept of targeting fully.

* Explain the concept of positioning fully.

• Market Targeting and Strategic Positioning
• Chapter 06
• Learning Objectives
• Market targeting strategy
• Targeting in different market environments
• Positioning strategy
• Developing the positioning strategy
• Determining positioning effectiveness
• Market Targeting Strategy
• Targeting alternatives
• Factors influencing targeting decisions
• Market Targeting Strategy
• Targeting and positioning strategies consist of:
  • Identifying and analyzing the segments in a product-market
  • Deciding which segment(s) to target
  • Designing and implementing a positioning strategy for each target
• Targeting Alternatives
• The targeting decision determines which customer group(s) the organization will serve
• Market targeting fall into two major categories:
  • Segment targeting when segments are clearly defined
  • Targeting based on product differentiation
• Exhibit 6.1 - Market Targeting Approaches
• Factors Influencing Targeting Decisions
• Stage of product-market maturity
• Extent of diversity in buyer value requirements
• Industry structure
• The firm's capabilities and resources
• Opportunities for gaining competitive advantage
• Targeting in Different Market Environments
• Emerging markets
• Growth markets
• Mature markets
• Global markets
• Targeting in Different Market Environments
• Product-market environment is influenced by:
  • The extent of concentration of competing firms
  • The stage of maturity
  • Exposure to international competition
• Four life cycle stages include:
  • Emerging
  • Growing
  • Mature
  • Declining
• Exhibit 6.2 - Life Cycle of a Typical Product
• Emerging Markets
• Two types of emerging markets:
  • A totally new product-market
  • A new product technology entering an existing product-market
• Emerging Markets
• Buyer diversity
  • Segmentation limited due to similarity of buyers' preferences
• Product-market structure
  • Small new organizations
  • Limited access to resources
  • First-mover advantage
• Emerging Markets
• Capabilities and resources
  • Unique benefit strategy rather than low-cost
• Targeting strategy
  • Focus on a preference or use situation
• Growth Market
• Product-market structure
  • Numerous competitors
  • Lack of financial or organizational skills
• Capabilities and resources
  • Possible strategies
    • Pursuit of a market leadership strategy
    • Follow very selective targeting and positioning strategies
• Growth Market
• Targeting strategy
  • Extensive market coverage by firms with established businesses in related markets
  • Selective targeting by firms with diversified product portfolios
  • Very focused targeting strategies by small organizations serving one or a few market segments
• Mature Markets
• Buyer diversity
  • Identification and evaluation of market segments necessary to select targets that offer each firm a competitive advantage
• Product-market structure
  • Intense competition for market share
  • Emphasis on cost and service, and pressures on profits
• Mature Markets
• Capabilities and resources
  • Management's objectives - Cost reduction, selective targeting, product differentiation
• Targeting
  • Deciding which segment to serve
  • Firms pursuing extensive targeting strategies may decide to exit from certain segments
• Global Markets
• Two primary options for consideration in selecting strategies for global markets:
  • The advantages of global integration
  • The advantages of local responsiveness
• Global integration
  • Extent to which standardized products and other strategy elements can be designed to compete on a global basis
• Global Markets
• Local responsiveness
  • Important segmentation variables: Climate, language group, media habits, and income
• Targeting
  • Strategies:
    • Targeting a single country
    • Regional targeting
    • Targeting on a global basis
• Exhibit 6.3 - Strategic Positioning Initiatives
• Exhibit 6.4 - How Positioning Works
• Selecting the Positioning Concept
• Positioning concepts:
  • Should be linked to buyers' value requirements
  • Focus of the concept may be:
    • Functional
    • Symbolic
    • Experimental
• Selecting the Positioning Concept
• Positioning decision
  • Determine the preferred (ideal) position of the buyers in each market segment of interest
  • Then compare this preferred position with the actual positions of competing brands
• Developing the Positioning Strategy
• Scope of positioning strategy
• Marketing program decisions
• Developing the Positioning Strategy
• The positioning strategy integrates:
  • Marketing program components into a coordinated set of initiatives designed to achieve the firm's positioning objective(s)
• Developing the positioning strategy includes:
  • Determining the activities and results
  • Choosing the amount to spend on each program component
  • Deciding how much to spend on the entire program
• Scope of Positioning Strategy
• Positioning strategy is usually centered on:
  • A single brand
  • A line of related products for a specific market target
• Scope of Positioning Strategy
• The strategy is:
  • Brand-specific
  • Greater in scope
  • This depends on factors as:
    • Size of the product-market
    • Characteristics of the good or service
    • Number of products involved
    • Product interrelationships in the consumer's use situation
• Marketing Program Decisions
• Product strategy
• Value chain strategy
• Pricing strategy
• Promotion strategy
• Competitive advantage
• Designing the positioning strategy
• Cross-functional relationships
• Exhibit 6.5 - Positioning Strategy Overview
• Determining Positioning Effectiveness
• Customer and competitor research
• Test marketing
• Analytical positioning techniques
• Determining positioning effectiveness
• Positioning and targeting strategies
• Determining Positioning Effectiveness
• Positioning evaluation should include:
  • Customer analysis
  • Competitor analysis
  • Internal analysis
• Exhibit 6.6 - Determining Positioning Effectiveness
• Determining Positioning Effectiveness
• Customer and competitor research
  • Research Studies
  • Preference Maps
  • Multivariate data analysis
• Test marketing
  • Generates information about
    • Commercial feasibility and marketing program
    • New positioning strategies for new products
• Determining Positioning Effectiveness
• Analytical positioning techniques: Includes management judgment along with
  • Obtaining information about customers and prospects
  • Analyzing it
  • Developing strategies based on the information
• Determining Positioning Effectiveness - Positioning Errors
• Positioning and Targeting Strategies
• Positioning strategies become challenging when:
  • Management decides to target several segments
• Objective:
  • Develop an effective positioning strategy for each targeted segment
• One way of focusing a positioning strategy:
  • Use of a different brand for each targeted segment

Chapter 7 Discuss fully strategic alliances and joint ventures. Strategic Relationships

• Chapter 07
• Learning Objectives
• The rationale for interorganizational relationships
• Forms of organizational relationships
• Global relationships among organizations
• Exhibit 7.1 - Strategic Relationships
• The Rationale for Interorganizational Relationships
• Opportunities to enhance value
• Environmental complexity
• Competitive strategy
• Skills and resource gaps
• Evaluating the potential for collaboration
• Exhibit 7.2 - Drivers of Interorganizational Relationships
• Opportunities to Enhance Value
• Organizations can couple their competencies to offer superior customer value
• Relationship strategy may result in a much more attractive value offering
• Environmental Complexity
• Environments display:
  • Escalating turbulence
  • Diversity
    • Differences between the elements in the environment
    • Reduces the capacity of an organization to respond quickly to customer needs and new product development by:
      • Altering internal organization structures
      • Establishing strategic relationships with other organizations
• Competitive Strategy
• Working with other organizations a key element of how an organization competes
• Skills and Resource Gaps
• Skills and resource requirements of technologies in many industries surpass the capabilities of a single organization
• Sharing of complementary technologies and risks are important drivers for strategic partnerships
  • Technology constraints
  • Financial constraints
  • Market access
  • Information technology
• Evaluating the Potential for Collaboration
• Collaborative relations include:
  • Shared activities such as product and process design
  • Cooperative marketing programs
  • Applications assistance
  • Long-term supply contracts
  • Just-in-time inventory programs
• Evaluating the Potential for Collaboration
• Relevant criteria when considering possible collaborative relationships with other organizations:
  • What is the strategy?
  • The costs of collaboration
  • Is relationship strategy essential?
  • Are good candidates available?
  • Do relationships fit our culture?
• Forms of Organizational Relationships
• Supplier relationships
• Intermediate customer relationships
• End-user customer relationships
• Strategic customers
• Strategic alliances
• Joint ventures
• Internal partnering
• Managing interorganizational relationships
• Objective of the relationship
• Relationship management
• Partnering capabilities
• Control and evaluation
• Exiting from alliance
• Exhibit 7.3 - Vertical and Lateral Organizational Relationships
• Supplier Relationships
• Strategic supplier
  • Has a major impact on the company's value offering and its relationships with its own customers
• Outsourcing
  • Allows a company to expand sales without capital investment in all stages of the value chain
• Intermediate Customer Relationships
• Include:
  • Marketing intermediaries
  • Producers assembling products for the end-use market
• Vertical relationships - Occur between producers and marketing intermediaries
• Value chain relationships - Provide access to consumer and organizational end-users
• Interorganizational relationships - Vary from highly collaborative to transactional ties
• End-User Customer Relationships
• The driving force underlying strategic relationships is that through partnering, a company may:
  • Enhance its ability to satisfy customers
  • Cope with a rapidly changing business environment
• Strategic Customers
• Key account management structures and global account management approaches:
  • Dominant customers
  • Strategic account management
• Strategic Alliances
• An agreement between two organizations to cooperate to achieve one or more common strategic objectives
• Success
  • A promising strategy for enhancing the competitive advantage of the partners
• Strategic Alliances
• Weaknesses
  • Collaborations suffer from the potential threat of opportunistic behavior
  • Weak alignment of objectives
  • Performance metrics
  • Clashes of corporate culture
  • Poorly structured partnerships
• Strategic Alliances
• Types of alliances
  • Marketing
  • Research and development
  • Operations (manufacturing)
  • Financial relationship between the partners
• Strategic Alliances
• Requirements for alliance success
  • Effectively matching capabilities of participating organizations
  • Favorable benefits and trade-offs
  • Integrity of the alliance partner
• Alliance vulnerabilities
  • Important to recognize that alliance relationships may be fragile and difficult to sustain effectively
• Joint Ventures
• Agreements between two or more firms to establish a separate entity
• Uses:
  • To develop a new market opportunity
  • To access an international market
  • To share costs and financial risks
  • To gain a share of local manufacturing profits
  • To acquire knowledge or technology for the core business
• Internal Partnering
• Occurs between business units, functional departments, and individual employees
  • Intent is to encourage and facilitate cross-functional cooperation rather than specialization
• Success of internal partnering requires:
  • Developing strong internal collaboration that cuts across functional boundaries
• Internal Partnering
• Steps to evaluate internal partnering:
  • A cost-benefit analysis of the potential gains from improved internal synergies
  • Investigation of why collaboration is not happening
  • Assessment of what is needed to unblock the problem
  • Consideration of the possible downside of efforts to enhance internal collaboration before acting
• Exhibit 7.4 - Managing Organizational Relationships
• Objective of the Relationship
• New technologies and competencies
• Developing new markets and building market position
• Market selectivity
• Restructuring and cost-reduction
• Relationship Management
• Set of guidelines:
  • Planning
  • Trust and self-interest
  • Conflicts
  • Reputational risk
  • Leadership structure
  • Flexibility
  • Cultural differences
  • Technology transfer
  • Learning from a partner's strength
• Partnering Capabilities
• Important to consider what is necessary to build an organizational competence in strategic alliance
  • Partnering effectively with other organizations is a key core competence
• Control and Evaluation
• Metrics should be comparable across alliances
• Metrics should be defined and discussed with alliance partners
• There should be clarity about the implications of alliance performance
• Control and Evaluation
• A process for auditing alliance performance should be implemented
• Alliance performance should be linked to individual performance review
• A forum should be created for reviewing and acting on alliance performance data
• Control and Evaluation
• Companies may miss opportunities to reduce costs and generate additional income by failing to:
  • Launch a process
  • Diagnose performance
  • Generate restructuring options
  • Execute the changes
• Exiting from Alliance
• A successful disengagement plan should consider:
  • Identifying and agreeing on the events that will trigger exit from the alliance
  • Detailed description of the rights of each partner to alliance assets and products on disengagement
  • Design of the disengagement process
  • A communication plan for continuous flow of information to involved parties during the alliance dissolution
• Global Relationships Among Organizations
• The global integrated enterprise
• Inter-nation collaborations
• The strategic role of government
  • Government interventions
  • Competing with state-owned enterprises
  • Collaborating with state-owned enterprises
  • Government regulation