Value

Try and test your new power plant in real conditions before you spend the money on building it!

       Strategy

Coordinate your marketing tactics with business strategy!

       Profit

Use your existing power and process plant in the most efficient way and improve your profit!

       Economy

Don't make expensive experiments with your business.

Coordinate your marketing tactics with business strategy! It is in your interest that buyers are not confused and have a clear picture on what you offer them!

 

StraticsDownload is a tool for coordination of marketing tactics with business strategy. Business strategy is defined by top management and in Stratics model, it is defined through The Life Cycle of the company, BCG Matrix and Ansoff Matrix. Each company or product passes through four main phases in life cycle: introduction, growth, maturity and decline, as it is shown in the following figure:

 

 

BCG (Boston Consulting Group) Matrix is a matrix which shows the business strategy through relative market share and growth as it is shown in the figure on the left. Matrix is devided in four quadrants, where upper-right quadrant characterizes low market share and high growth, which is one of characteristics of companies for which it is not clear whether they will succeed on the market or not and which is why these companies are called Question marks. This quadrant is typical for start-ups. Upper-left quadrant is characterized by companies with high relative market share and growth. These companies are Stars on the market and this is the position where companies could enter in the second phase of life cycle. The third, lower-left quadrant is characterized by mature companies with small growth but high relative market share and which maintain their business in order to create profit on long term. These companies are called Cash cows. The fourth, lower-right quadrant is characterized by companies which have small relative market share and low level of growth, which can be seen on companies which fight to survive on the market and are called dogs. This is the usual position for companies in the last phase of life cycle.

 

Ansoff Matrix shows the position of the company according to sales of new and existing products on new or existing markets as the following figure is showning:

 

 

 

 

 

 

 

 

When the current strategic position of the company is shown in matricies above, the marketing tactics is defined, which is ofthen the responsibility of middle level management. One of the most important tools for defining marketing tactics is 4P- Marketing Mix, where 4P means Product, Place, Price and Promotion. MIXMAP model suggested by Vignali and Davies (1994) sets the most important variables of certain elements of marketing mix in a way to follow the company in 4 quadrants of The Life Cycle, BCG Matrix and Ansoff Matrix. This approach to Marketing Mix can be seen on the following figure:

 

 

It is important to mention that Stratics model besides basic elements of marketing mix gives the opportunity to include other elements which could be more important for certain industry as it is shown in the following figure:

 

 

Business stategy and marekting tactics described in this way, is shown in the main interface as it can be shown in the following figure. Since business strategy is set by top management and marketing tactics by middle level management, it is not rare that tactics does not follow the strategy. In the following case, the company is, regarding the strategy, situated in the first quadrant, while marketing tactics is in first, second and fourth quadrant. In the end, the real position of the company is in the first quadrat and the model, with the use of GE/McKinsey matrix proposes to invest to build.

 

 

In order to bring the company into the strong real position, which is the first quadrant, Stratics model suggests the steps which are shown in the following figure:

 

Since Direct sellnig is defined as the most important sales channel in this case, the model suggests the increase of Direct selling for at least %. On the opposite side, HR-qualifications and Quality promotion are higher than the position of Question mark (first quadrant), and if the company wants to come back to this position, it does not have to invest too much money in this issues. But if the company wants to follow the proposal which comes from the real postion in GE/McKinsey matrix, the following strategy should be defined in a way to reach the Star position. In this case, the Stratics model suggests the steps shown in the following figure:

 

If this company wants to enter the position of the Star, it should incresase Direct selling for at least 155 %, raise the price for at least 104%, Personal contact selling for 410% and focus on the increase of the share of new products and market share.

 

If you feel interested in trying the possibilities of the use of Stratics model to improve your business, Stratics model can be downloaded here, and for full shapshot of your business or product and needed steps forward to reach wanted business result, we invite you to contact us directly since we are confident that we have the knowledge and experience which could be of help to you.