Blue Ocean Strategy

Framework to implement Blue Ocean Strategy

Despite a long-term decline in the circus industry, Cirque du Soleil profitably increased revenue 22-fold over the last ten years by reinventing the circus. Rather than competing within the confines of the existing industry or trying to steal customers from rivals, Cirque developed uncontested market space that made the competition irrelevant.

Cirque created what the authors call a blue ocean, a previously unknown market space. In blue oceans, demand is created rather than fought over.

There is ample opportunity for growth that is both profitable and rapid. In red oceans—that is, in all the industries already existing—companies compete by grabbing for a greater share of limited demand. As the market space gets more crowded, prospects for profits and growth decline. Products turn into commodities, and increasing competition turns the water bloody.

There are two ways to create blue oceans. One is to launch completely new industries, as eBay did with online auctions. But it’s much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry.

In studying more than 150 blue ocean creations in over 30 industries, the authors observed that the traditional units of strategic analysis—company and industry—are of limited use in explaining how and why blue oceans are created. The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major market-creating business offering.

Creating blue oceans builds brands. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades.

Marketing tricks which work in practice

 Guerrilla Marketing: The Non-Advertising Approach to Promotion
With all the advertising clutter out there, often the best bet to getting attention for your business isn’t advertising at all, but other kinds of promotion—more of a guerilla marketing approach. These non-advertising marketing approaches generally require less money to implement and are often more effective. The only catch is that they require time and creativity to develop.

Coupons

You don’t have to distribute coupons in print advertising or in big direct-mail campaigns. You can hand them out on the street corner, at trade shows, in emails, on your website, or just about anyplace else. You can send a few to your best customers, or you can include “next purchase” coupons in customer orders.


Coupons can be “quick and dirty” to design and print because their selling point is price, not image. To ensure your chances of getting an additional sale or establishing an ongoing relationship with your customers, make your coupon offer exceedingly generous.

Contests

People love contests. They even love to see other people win! Just witness the phenomenal success of game shows on television. If you choose to develop a promotional contest, infuse it with fun, make it silly, and don’t forget to really talk it up. If your contest is wacky and crazy enough, you should be able to get good media coverage. Remember, this is essentially free advertising!

Gifts

Marketing Orientations

    Marketing has developed through time and every specific period has its inherent characteristics. When we talk about marketing orientations, we cannot ignore this fact as in different time periods marketing had a different purpose and was concentrated to solve a different problem. Let us discuss marketing chronology and marketing orientations for each period:

1.      After Industrial Revolution companies started to put their attention on effective production and distribution processes.

Marketing definition, online marketing, advertisement, marketing plan sample

    To understand what is marketing lets discuss some of its definitions. The shortest and more precise definition of marketing is “meeting needs profitably”. Good examples of companies who used this formula are eBay and IKEA. Both find market needs, which are not satisfied and meet them with lower costs, which allowed them to generate profit. 

    The American Marketing Association offers other, more formal definition “Marketing is the activity, Set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

    Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. Thus scholars see marketing management as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

      Online marketing (also known as Digital Marketing) is a term for the marketing of products or services using digital technologies, mainly on the Internet, but also including mobile phones, display advertising, and any other digital medium.