BUSINESS-MODELING AS AN INNOVATIVE DEVELOPMENT OF MARKETING STRATEGY DEVELOPMENT
As a result of studying this chapter, the student must:
• adaptive approaches to organizational changes;
• Features of managing marketing strategies at the corporate, functional and operational levels;
• the basic principles of the formation of a balanced scorecard;
be able to
• make marketing decisions at the corporate, functional and operational levels;
• use a system of balanced indicators to implement a marketing strategy;
• Create flexible business models;
• skills of strategic marketing management of enterprises;
• the techniques and skills of creating a balanced system of goals;
• Approaches to the management of marketing strategies at the corporate, functional and operational levels.
The role of business modeling in strategic marketing management
The global economic crisis affected almost all the main spheres of economic activity today. Most organizations operating on the market seek to achieve results that will not only maximize profits in the short term, but also increase the value (welfare) of the company in the long term.
The situation in the modern markets encourages modern managers to focus on solving current short-term tasks, rather than focusing on implementing a long-term strategy, thereby maximizing profits and increasing the company's welfare.
A strategy is a qualitatively defined, generalized model of the actions of organizations that it needs to implement to achieve its goals through the allocation and coordination of its resources.
There are a number of definitions of the concept "strategy", the best of which may be the definition of Henry Mintzberg, based on the recognition of five factors ( 5R Mintzberg):
1) plan - the plan;
2) ploy - reception;
3) perspective - perspective;
4) pattern behavior - the behavioral principle;
5) position of prospect to others - position in relation to others.
From a marketing point of view, strategic management can be presented in the form of a descriptive model that includes analysis of the environment, the definition of mission and objectives, the choice of strategy, the implementation of the strategy, evaluation and monitoring of implementation (Figure 4.1).
Fig. 4.1. Strategic Management Model
It should be borne in mind that the development of any strategy requires detailed elaboration at various levels of the organizational hierarchy. A typical organizational structure can be conditionally divided into three main levels of management (Figure 4.2):
1) the tone management of the company;
2) middle management;
3) linear management.
The top management of the company , for example, may include such positions as chief executive officer, director of information support and chief financial officer. Management of this level is engaged in the development and implementation of corporate strategy (business strategy). The horizon of planning corporate strategies is 10 years or more.
Middle management is responsible for developing and implementing functional strategies. The managers of this level may include managers of strategic economic units, department heads and project managers. The horizon for planning functional strategies usually ranges from three to five years.
Fig. 4.2. Organizational levels of strategic management
Line Management is developing and implementing operational strategies. The horizon for planning operational strategies ranges from one month to one year, however, in practice, such planning is most common quarterly.
Developing a corporate strategy usually includes the mission and vision of the company.
At the top of corporate goals is mission (justification of the company). The mission statement describes potential markets, consumers of the company and specifies the main points of application of its efforts.Vision of the company assumes the definition of a business structure that will allow the company to realize its mission (Figure 4.3).
Traditionally, revenue streams are determined by the following formula:
where Ms - market share; Ar - purchase size; Ra - the price of the purchase unit; D - time.
In some cases, when sales are made through third-party companies, such as App Store , use the formula
where Tg - the cost of transactions.
The cost structure is based on two main components: fixed and variable costs.
Fig. 4.3. General view of the business model
Building business models allows companies to determine whether their chosen vision is viable or not.
The development of functional strategies involves the management of strategic business units, as well as the definition and solution of tasks for target segments and positioning. Solving problems within strategic economic units allows to determine the amount of money generated by a strategic business unit (Figure 4.4).
Fig. 4.4. Portfolio matrix BCG
Strategic business unit:
1) is an independent business or a set of interrelated businesses that can carry out planned activities separately from the rest of the company;
2) has its competitors;
3) has its manager responsible for strategic planning and profitability, and is also responsible for controlling most of the factors affecting profit.
Heads of departments, as well as project managers are engaged in the development and implementation of functional strategies. This part of the organizational strategy includes segmentation and goal setting, product positioning and decision making.
In determining the positioning of the company, the Abbel model and traditional segmentation characteristics (Figure 4.5) can be used: behavioral, geographic, demographic, psychographic.
Fig. 4.5. The Abbel segmentation model
In different business models, the allocation of consumer segments can be carried out in different ways, which is due to the company's ability to meet the target customers (Figure 4.6). The development of a positioning strategy involves seven basic steps:
1) the choice of the current product:
2) the definition of competitors;
3) determining how consumers evaluate possible product options;
4) find out how competitors are perceived;
5) definition of gaps in held positions;
6) planning and implementation of strategic positioning;
7) monitoring the position.
Fig. 4.6. Different segmentation strategies
Line managers are engaged in developing and implementing an operational strategy for the marketing mix: product, location, promotion and price (Table 4.1).
The alignment of corporate, functional and operational strategies enables companies to perform efficiently in the marketplace using the chosen business model.
Activities in the operational marketing strategy
Element marketing complex
2. A set of characteristics.
3. Branded name.
4. Type of package.
6. Related Services
1. Number and types of intermediaries.
3. Location of warehouses.
4. Methods of distribution
1. Budget development.
2. Creating an advertising message.
3. Media selection.
4. Training of sales personnel.
5. Types of direct marketing.
6. Methods of sales promotion
1. Definition of demand.
2. Calculating costs.
3. Maximizing the price of the commodity complex.
4. Competitiveness factors
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