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SAATCHI&SAATCHIADVERTISING2.StrategyBasicsSaatchi&SaatchiTrainingSAATCHI&SAATCHIADVERTISINGDefinitions:StrategyStratagem:AnartificeortrickdesignedtooutwitandsurprisetheenemyAdeviceorschemeforgainingadvantageStrategy:Theartofacommander-in-chief;projectinganddirectingthelargermilitarymovementsandoperationsofacampaignGeneralshiportheartofconductingacampaign;artificeorfinessegenerallySAATCHI&SAATCHIADVERTISINGTactics:Thescienceorartofmaneuveringinpresenceoftheenemy;purposefulprocedureDefinitions:TacticsSAATCHI&SAATCHIADVERTISINGStrategydiffersmateriallyfromtactics;thelatterbelongingonlytothemechanicalmovementofbodiessetinmotionbytheformerWhat’sthedifference?SAATCHI&SAATCHIADVERTISINGShangchangruzhanchangMarketingasWarfareSAATCHI&SAATCHIADVERTISINGThe36StrategiesNotanewideainChinaSAATCHI&SAATCHIADVERTISINGBingFa:SunTzuTeiWangGungWuTzuSunBin(Andacoupleofhundredothers)NotanewideainChinaSAATCHI&SAATCHIADVERTISINGKnowwhentofight,andwhennottoObtainthewholeheartedsupportofyourtroopsBepreparedtoseizefavourableopportunitiesFreeyourselffrominterferencebysuperiorsWhenthetimeisright,actdecisivelyandswiftlySunTzu:FiveEssentialComponentsofVictorySomeChineseIdeasonStrategySAATCHI&SAATCHIADVERTISINGThehighestformofvictoryistoconquerbystrategyTheopportunityforvictoryisprovidedbytheenemyBasicelementscombineintouniquestrategiesKeepplansasdarkasnight,movelikeathunderboltAttackwhen(&where)theenemyisleastpreparedSunTzu:SomeChineseIdeasonStrategySAATCHI&SAATCHIADVERTISINGKnowyourself,Knowyourenemy.100battles,100victoriesSunTzu:SomeChineseIdeasonStrategySAATCHI&SAATCHIADVERTISINGStrategystartswithaMapBrandBBrandCBrandDBrandEWherewearenowWherewewanttobeSAATCHI&SAATCHIADVERTISING•Thestrategicprocessconsistsof:•Definingwhereweare•Identifyingwherewecouldgo•Selectingwherewewanttogo•Identifyinghowtogetthere•Mapshelpshowthissimply,andpointtheway•Gettingthemaprightisagreatstart•YoucanmapanythingStrategystartswithaMapSAATCHI&SAATCHIADVERTISING•Greatbrandsareslantedinthemindsofconsumers•Givingthemuniqueterritorytoown&defend:eitherrationaloremotional•Leadershipisperceptual;advertisinghelpscreateenduringadvantagesforbrandsBrandBBrandCBrandDBrandEWherewearenowWherewewanttobePositioningisStrategySAATCHI&SAATCHIADVERTISINGTheBusinessModel•AnUmbrellaorTentbroadenoughtocovereverythingthecompanywantstodo•Toooftenawishlist•Basedonme-too?thinkingTacticsTacticsStrategyTopDownTacticsStrategySAATCHI&SAATCHIADVERTISINGTheMilitaryModel•Muchmorehard-nosed•Basedonwhatislikelytosucceed•Coreelements:surprise/focussedforceTacticStrategyStrategyBottomUpSAATCHI&SAATCHIADVERTISINGAfterMichaelPorterSTRATEGICADVANTAGECost/ProductivityLeadershipFocus/NicheLeadershipProduct/ServiceLeadershipLowCostPositionParticularSegment(s)OnlyMarket-wideUniquenessPerceivedbyCustomerThreeGenericBusinessStrategiesSAATCHI&SAATCHIADVERTISINGPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerCompetitionAvoiderStrategiesforCompetitiveAdvantageSAATCHI&SAATCHIADVERTISINGPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerCompetitionAvoiderMarketExpansionShareProtectionPre-emptiveActionStrategiesforCompetitiveAdvantageSAATCHI&SAATCHIADVERTISINGPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerCompetitionAvoiderMarketExpansionShareProtectionPre-emptiveActionCover/blockcompetitivemovesStrategiesforCompetitiveAdvantageSAATCHI&SAATCHIADVERTISINGPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerCompetitionAvoiderMarketExpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementCover/blockcompetitivemovesStrategiesforCompetitiveAdvantageSAATCHI&SAATCHIADVERTISINGPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerCompetitionAvoiderMarketExpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementCover/blockcompetitivemovesFollowtheleaderStrategiesforCompetitiveAdvantageSAATCHI&SAATCHIADVERTISINGPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerCompetitionAvoiderMarketExpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementMarketNicheBy-PassCompetitionCover/blockcompetitivemovesFollowtheleaderStrategiesforCompetitiveAdvantageSAATCHI&SAATCHIADVERTISINGPRO-ACTIVESTRATEGIESFocus/NicheLeadershipProduct/ServiceLeadershipMarketLeaderREACTIVESTRATEGIESChallengerorFollowerCompetitionAvoiderMarketExpansionShareProtectionPre-emptiveActionHeadtoHeadFlankingStrategiesEncirclementMarketNicheBy-PassCompetitionCover/blockcompetitivemovesFollowtheleaderMaintainStatusQuoStrategiesforCompetitiveAdvantageSAATCHI&SAATCHIADVERTISINGLeaderStrategiesversustheLeaderCompetitorSAATCHI&SAATCHIADVERTISINGLeaderStrategiesversustheLeaderCompetitorHeadtoHeadSAATCHI&SAATCH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