I think many a times companies do have to cater to certain product lines even if they do not fit in the overall strategy in order to maintain profitability. In the case of HP, when it decided to shut it's PC business, it did face a lot of criticisms and eventually the company had to roll back the strategy.
Mary - Yes, and what's even more amazing is how few companies create clear differentiation in their communications. I won't repeat my comments from the April post on claiming something significant or valualbe to customers -http://www.ebnonline.com/author.asp?section_id=1205&doc_id=204530
The "no marketing" problem is often driven by a cost orientation rather than an investment one. If Marketing is a cost (like rent?) then so is R&D. They both create payback and you lose without doing both
I'll ask all this column's readers to stop and think about what's your marketing strategy? Can you explain it? Can most of the people in your company? If not there likely isn't one working.
Ford - I couldn't agree with your comments more. Especially the part about doing the same things over and over again - even without any tracking statistics to support their strategies. It's amazing how so many companies are reluctant to try something new. Or to shake things up a little bit. I just recently posted a blog on the subject - http://makeitcountmarketing.com/blog/?p=132. I also agree with Dennis about how many businesses do not market at all! It's hard to convince companies that if they want to grow, they need a marketing strategy - especially now in this economic climate.
Marketing strategy should typically be company confidential. It will become obvious to competitors once you start executing tactics. However, whatever market position your brand is in, it still needs a strategy. From "The 22 Immutable Laws of Marketing" by Jack Trout and Al Reis "If you are shooting for second place, your strategy is determined by the leader."
It is possible that many a companies may have the marketing strategy ,but will not disclose it to keep their competitors guessing. So when explicitly asked their management may give evasive answers but they will be secretly working on strageies to counter their competition.
Similarly Many a companies are strong followers. So these companies first see the moves by their leader competitors and plan their strategy in line so that they also get a share of the market created by the market leaders. Their marketing strategy can be summed up in one sentence - Follow the leader. The example of AMD in their earlier years can be given as the strong followers of Intel.
Wale - Yes. The market is huge for those brands and if one on them didn't compete with the others for mindshare with a marketing investment, that company would lose market share and not be around much longer.
Thanks Ford. What i was trying to pass across, with or without all those sponsorships, market still huge for the likes of Shell, Total and Chevron on daily basis.
The word-of-mouth approach sometimes work if you just want to maintain a current level of business, but a more aggressive marekting strategy is needed to promote significant, sustainable growth.
Wale - I'm unclear on what' smeant in your second paragraph. However, I assure you that ExonMible, Shell, Lambo, Roll Royce, Bugatti, and especially Apple spend a bundle on advertising. That you haven't come across their promotional efforts tells me you're eaithe rliving rather remotely and/or not being exposed to the media they're using to promote themselves. Here in the SF Bay Area we see Apple's billboards (very expensive) for iPads as well as periodic TV advertising. That's likely just the tip of the iceberg.Shell sponsors Formua I auto racing as well as advertises gllobally.Guessing you're reading the wrong publications to miss some of the other high-end product marketers.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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