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The English Language of Marketing. Учебное пособие

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Supplementaryreading
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Seventh
Principle: Maneuver
(The easiest routes are often the most heavily defended; the longest way round can be the shortest way home)
Eighth Principle: Concentration of Resources (Mass sufficiently superior force at the decisive place and time)
Ninth Principle: Economy of Force (Assess accurately where you employ your resources)
Tenth Principle: Command structure (The management process unleashes the power of human re­sources)
Eleventh Principle: Personal Leadership (It requires the leader’s faith in his or her people and their faith in the leader’s ability to win)
Twelfth Principle: Simplicity
Even the simplest plans are difficult to execute
This article dwells on the first six principles which should be viewed from two angles strategic and tactical.
The First Principle – Honour the Customer.
Strategically – honoring the customer aims at building a life­long relationship. From the tactical point of view – honoring the customer aims at satisfaction with every interaction.
It’s common knowledge that companies exist because cus­tomers have their needs. If a company does know its target cus­tomer and it does bring real value to that customer it will be doing business for life. As your strategy is to win the customer you must always offer him benefits. And your tactics here is to pick a spot that is inherently advantageous to your company and delight the customer. Whatever it is that makes you a preferred supplier must answer the customer’s question, “What does it do for me?”
The customer is the force that drives your business, therefore it is vital for you to think about the customer’s problems and to
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solve them. In order to do this get the information from customers concerning shortcomings and improve the performance. Conti­nuous improvements, driven by feedback from customers, is a fundamental component of good marketing. What counts is what the customers want. Happy customers come back again and again.
The Second Principle – Organization of Intelligence
Strategically intelligence reduces surprise and focuses plans and tactically it helps you take calculated risks. The ultimate solu­tion is a combination of:
1. Structures that size the decision making.
2. Good information at all levels.
3. Personal reconnaissance on the part of the ultimate decision
maker.
4. A predisposition to take action on information gained.
Successful strategy needs good information. Failure to or­ganize the input leaves you and your organization in the position of sifting through data that are not relevant, and in this case time and opportunities may be lost.
Another major factor related to the second principle is a tho­rough assessment of your marketing opportunity. It includes SWOT analysis. The acronym stands for strengths, weaknesses, opportunities and threats.
Knowledge is marketing power. All great captains have won be­cause they looked both ahead and back. Looking back they re­viewed the actions of their predecessors in similar circumstances. But they did not copy, they learned. Because copying misses the subtleties that are so important to succeed. Copying from your competitor can take you in the wrong direction. But the business mind can roam through concepts and develop winning strategies.
Another crucial factor connected with the second principle is a good research program that keeps you informed. For example America’s successful corporations treat research as a corporate as­set because it helps them market more efficiently and effectively.
A successful entrepreneur knows his competitor as organiza­tions and as people. The best competitive analysis profiles not only
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the company but also the characteristics of the top decision mak­ers. When you truly understand your competitor as a person, you can easily predict his or her future courses of action.
It is very important to study the signals and match your per­sonal observations with formal research. Perception and judgment go hand in hand. At the same time don’t forget to protect your se­crets and always bear in mind that there is no place where espio­nage is not possible.
The Third Principle – Maintenance of the objective.
Strategically the objective provides one main direction and tactically the objective is a specific goal.
The objective must be clearly defined and communicated to the subordinates. Strategically there must be only one main direc­tion and tactically there must be a single objective. The statement of the objective must be targeted towards a goal that is strategically and tactically meaningful. Attainment of your objective should con­tribute significantly to the fulfillment of your long-range plans – your corporate mission.
Of all maxims in the Art of War “fighting when victory is as­sured” is among the most significant and useful because it clearly states that the way to win must be determined before the battle. This concept of strategy before tactics applies to every situation – thinking comes before doing. Strategy is a mental process whereas tactics involves action. Tactics is the execution of strategy in the real world and must always be tuned to correct conditions. The marketing process determines the consumer driven strategy; the selling process engages in tactics to deliver the product or service to the end customer. If you have not done your strategy (market­ing) well, then your only hope is to be saved by superior tactics (selling or merchandising). Victory is determined by the strategy established before entering the market.
As it has been already mentioned the supreme excellence is to win without fighting. In war the best thing of all is to take the enemy’s state whole and intact. To ruin it is an inferior strategy.
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A business strategy that wins without fighting either terro­rizes potential new competitors so that they never enter the market or defeats existing competition. The supreme excellence in market­ing strategy is to attack the competitor’s plans.
But the world moves on, markets evolve and new products emerge. Technology has created entirely new business opportunities. The problem is that market opportunities keep changing and too of­ten one can miss a strategic turn. That is why it is paramount to estab­lish strategic initiatives and select those that will make difference.
Usually a narrowly focused business will be more successful than the one offering a broad variety. To differentiate oneself from the competitor it could be necessary to increase quality, or provide better service. Finding a new distribution channel can also relocate the bat­tlefield. Introducing a new technology can be a great differentiator.
The next step is to develop a plan of action and to put it down on paper, because it establishes clarity and direction. To write a plan, one must bear in mind a simple formula 5Ws+H, i.e. Why? Who? What? When? Where? How? Having the right product aimed at the right market is only part of the battle; being able to deliver the right product is the key issue. But always remember that market is full of surprises and allow for flexibility to adapt to changing situations. The rule is to try the extremes that will make a test successful and adjust back to a profitable program. Think creatively – even consider steal­ing conceptually from an entirely different business.
One more essential point related to the third principle: Do not underestimate. It means that you should not reject new informa­tion and you should consider your worst indicator. Here is a sim­ple model for evaluating competitive actions in order to determine options for action:
1. What is the strategic position of our competitor?
2. What actions has our competitor taken?
3. What have we done?
4. What do we expect our competitor to do?
5. What will we do?
Take calculated risks and try something dramatically differ­ent. Marketing creativity involves risk taking and can lead to ex-
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traordinary competitive advantages. It takes courage to be differ­ent, and a lot of courage to be very different.
Never forget that survival is the ultimate objective of every enterprise.
The Fourth Principle – A Secure position
(The leader must take up a strong position, inspire others to follow him, discover where the enemy is weak and attack there)
Strategically a secure position establishes the basis for an of­fensive and tactically it helps you make use of your natural strength.
As we know the marketplace consists of the following players:
The Superpowers (the big ones in control);
The Secondary Powers (they play follow the leader or form an alliance);
The Business Gorillas (too small to be targeted, but always in danger).
The shakeout in retailing has almost demolished the me­dium-sized businesses. The small-town department store either has been wiped out or formed an alliance with a large chain. Flou­rishing at the two extremes are the giants and the boutiques.
Proceeding from the forth principle the first thing is to make yourself invincible. But to do it one must devise new weapons or new technology. The rule for achieving success with new technol­ogy is to be scrupulously objective and understand the limitations of the technology. To be invincible one must continuously be on the attack and seize favorable positions by taking advantage of the competitor’s unpreparedness and attacking him where he is the most vulnerable. The preemptive strategy is a major action that secures a competitive advantage.
Another factor related to the Fourth Principle is the necessity to occupy the High Ground. Through the centuries, strategists have emphasized the importance of the strength that comes from hav­ing right on your side. Political and business empires have been built on the bedrock of moral strength. Many successful organiza­tions have a moral fervor in their mission. The more strongly this fervor permeates the organization the greater is the strength of the
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offensive. So, we can make a conclusion that the best defense is to plan a good offense.
Much of the success of American industry has been the re­sult of an internally focused and less visible defense centered on productivity and higher quality. The strength of this defense is that it provides a strong offensive capability. An investment in quality systems can be a good defense. The net result is that prod­uct performance improves and costs go down. When world-class quality is achieved, not only has the organization designed a pro­tection against foreign invasions, but from this secure base it can launch world-competitive products.
The Fifth Principle – Offensive Action
(A great army must be consolidated, big forces must be well­exercised, the most suitable control must be chosen, and the army must be ready to take advantage of opportunities. This is what is called being prepared.)
Strategically offensive action provides initiative for move­ment and tactically it keeps you in control.
Successful execution of the plan is critical to success. Only of­fensive action achieves decisive results. Because action permits the manager to exploit the initiative and impose his will on the mar­ketplace or the competition. Key to the successful offense are skills, preparation, training, and above all, information. History proves that a successful attack is won before it begins. The offensive spirit must permeate the company and moreover the offensive must be at a time and place of your own choosing.
Organizing the offensive one must marshal adequate resources.
Seizing the offensive is the only strategy that can work in an ex­panding and competitive economyregardless of whether it is national or international. Taking action makes you master of the situation.
The most effective and decisive way to reach the objective is to seize, maintain, and exploit the initiative. Being on the offensive puts you in control of your relationship with your customers and forces your competitors to react. In other words use the situation to the best advantage and enable prospective customers buy your products.
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The world is full of "enablers" that help sell products. Such things as premium with the purchase and coupons are enablers that help new products get off the ground and established prod­ucts gain momentum. A different package concept or special sales events and limited-time offers can be enablers. What's important is to get started and then find ways to gain momentum.
One can achieve a marketing breakthrough by applying not only one of the principles but the combined force of several principles. To gain a breakthrough you must do the unusual. This does not guarantee success, but it gives you the best chance of success.
But you should remember that no one victory is gained in the same manner as another that is why your tactics must al­ways change to suit the circumstances.
Rapid decision-making produces rapid action.
The Sixth Principle – Surprise
Surprise is the best way to gain psychological dominance and deny the initiative to the opponent. Strategically surprise re­quires skillful planning and tactically it occurs when it is too late for your opponent to react.
In new product development it takes more than the accepted basics of high quality, low cost, and differentiation to succeed in today’s world markets. The new rules add speed and flexibility as key components in moving products to markets.
To achieve surprise marketing forces must move rapidly. Speed and caution are opposite side of the same coin.
The secrecy in many companies prior to trade shows could be a model for national security. Price sheets are printed at the last minute and products to be displayed are kept under wraps.
Some actions require stealth and deception to keep the op­ponent confused.
Proceeding from the above we can make a conclusion that the principles that have been mentioned are universal and can be applied not only to marketing, but also to management, sport and other areas aimed at results….
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Discussion
1. Do you agree that the art of marketing is the art of war? Give
your reasons.
2. Do you believe it’s enough to use one or two principles in
your marketing strategy or you need a combination of all of
them?
3. Is success always guaranteed if you use such principles?
4. Is it possible to make oneself invincible? How?
5. How do you understand the third principle “ Maintenance
of the objective”?
Exercise 1
Write a composition about a company that uses some of the principles. Give examples.
Exercise 2
Translate from Russian into English
1. Маркетологи должны учитывать национальные тради-
ции и уровень доходов потребителя.
2. Хорошая репутация обычно является результатом хоро-
шего обслуживания покупателей и высокого качества
товаров.
3. Информацию о доходах на душу населения, покупа-
тельной способности и т.д. маркетологи могут получить
из данных переписи населения.
4. Точка насыщенияэто такая точка
, свыше которой ни-
чего нельзя воспринять.
5. Итог финансового отчета показывает количество при-
были или убытка.
6. Навязчивая реклама помогает лучше запомнить наиме-
нование товара.
7. Упаковка должна предохранять товар от порчи и загряз-
нения, и сделать кражу и подмену невозможной.
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8. Маржа представляет собой разницу между стоимостью и
продажной ценой.
9. Вам необходимо усовершенствовать свой конвейер.
10. Если Вам надо сделать покупку, куда Вы предпочитаете
пойти в специализированный магазин или универмаг?
11. Планирование и содействие продаже посредством при-
влекательной рекламы называется искусством торговли.
12. Товары этой фирмы неконкурентноспособны и могут
быть вытеснены с рынка из-за высокой цены.
13. Под товарным видом понимаются те качества товара, ко-
торые привлекают потенциальных покупателей.
14. Затоваривание может привести к распродаже остатков и
потере прибыли.
15. Типичным для бизнеса является разумная наценка к
средней стоимости товара.
16. Ситуация, при которой в условиях рынка существует
мало
продавцов, называется олигополией.
17. Запланированных доход может быть выражен как про-
цент от продаж или в качестве фактической денежной
суммы.
18. В магазине, торгующем по сниженным ценам, Вы можете
купить товары со скидкой, если заплатите наличными и
все расходы по ремонту и обслуживанию возьмете на себя.
19. Последнее время дистрибьютеры
стали давать товарам
свои собственные названия.
20. Поддержание соответствующего качества товара увели-
чивает стоимость производства и окончательную цену.
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ъGrammar reference
§1. Действительный залог
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