In the competitive world of business, any organization has to evolve different strategies to strive hard to achieve its goal and be there in the competition. Organizations identify, plan and manufacture products and provide services, so that it doesn’t face stiff competition from its rivals but makes its rivals compete with it. In order to make this possible, company need to market its products and services through the best mediums available and make the consumer conscious about the product. Marketing is an essential and important tool of any successful business. Scott (2006) states that companies without marketing mindset are at a disadvantage in today’s business world that are product centric rather than customer centered.
The overall concept of Blue Ocean Strategy is innovation. It is understood from the book that companies should identify, plan a strategy and create a business of which no competition exists. Kim and Renee (2005) divide the competitive business world into two segments of Red Ocean and Blue Ocean. It is further explained that ‘Red Ocean’ is the business world full of competition where the existing organizations compete with each other to acquire its share in the market whereas ‘Blue Ocean’ is the unidentified market area. The Blue Ocean is the space wherein the business is new in the market and has no threat of competition instead it has to create competition.
The giants of particular commodity or product or services, who are termed as leader, find it difficult to survive in the competitive world of business without marketing. American Marketing Association has defined marketing as the performance of the business activities that direct the flow of goods and services from producer to consumer or user. Marketing assists in identifying specific markets for products and services, guiding the development of products, packages, and services, etc. (Kumar)
In blue ocean strategy this concept has a new meaning and a new method to implement in the firms. Blue ocean marketing concept proposes a method based on the segmented target group and the product development and marketing is based on the conduct of this group. The concept is good but cannot be fitted with all firms and their marketing procedures as it lack competition, which is vital in the marketing concept.
Table of Contents
1. Introduction
2. Marketing Strategy
3. Innovation
4. Benefits of Marketing Concepts
5. Marketing Strategies
6. Value of Marketing
7. Marketing Plans & Products
8. Market Segmentation & Blue Ocean Strategy
9. Marketing in Blue Ocean
10. Conclusion
Objectives and Topics
This work explores the intersection and compatibility between traditional marketing strategies and the "Blue Ocean" strategy, critically examining whether the latter can serve as a primary marketing tool for modern businesses.
- The role of marketing in competitive business environments.
- Distinction between "Red Ocean" (competitive) and "Blue Ocean" (innovation-based) strategies.
- Implementation challenges of Blue Ocean strategy within various product categories.
- The importance of customer-oriented approaches and market segmentation.
- Limitations of Blue Ocean strategy in the context of comprehensive marketing management.
Excerpt from the Book
Marketing Strategy
David (2007) states that creating a marketing strategy is only the first step towards the attainment of goal and after the strategy has been built; its solidarity has to be maintained to attract external stakeholders. He criticizes the marketing directors who are using B2B model while the others in the market have adopted real and valuable marketing strategies.
The first principle of blue ocean strategy is to reconstruct market boundaries to create blue oceans so that it doesn’t face any level of competitions and existence of competitors is zero. In order to create Blue Ocean, it becomes necessary to identify the threats and difficulties that make Red Ocean such a difficult world to live in. The red ocean companies are trapped in this area due to following reasons, 1) they define their industry similar to which exists in the market and try to provide the best other than others, 2) they try to and follow the strategic accepted methods, models, principles of developed and successful companies and strive to stand out in their strategic group, 3) as they produce similar products and provide service similar to that of the other industry, they focus the same consumer, which further makes the competition stiff and harder, 4) they define the scope of products and services similarly, 5) they accept the rules and regulations of the specific industry as they are governed by the governing body and functions accordingly and 6) some seasonal products produced by the companies will face stiff competition from its rivals as all the companies will enter the market at same time.
Summary of Chapters
Introduction: Outlines the necessity of marketing in competitive business and introduces the fundamental distinction between Red and Blue Ocean market segments.
Marketing Strategy: Discusses the necessity of maintaining strategic solidarity and explores why Blue Ocean principles may be difficult to apply to all industry types.
Innovation: Defines value innovation as the core of Blue Ocean strategy and explores its role in expanding market boundaries.
Benefits of Marketing Concepts: Highlights the advantages of a market-oriented approach, focusing on consumer needs and integrated business operations.
Marketing Strategies: Contrasts traditional Red Ocean competition with the Blue Ocean approach of creating new market spaces.
Value of Marketing: Examines marketing as a dynamic discipline essential for firm success and addresses the influence of the business environment.
Marketing Plans & Products: Explains the six-point framework for constructing Blue Ocean strategy and differentiates between consumer and industrial product marketing.
Market Segmentation & Blue Ocean Strategy: Analyzes how segmentation is handled within Blue Ocean strategy compared to traditional marketing practices.
Marketing in Blue Ocean: Discusses brand positioning and the necessity of catering to non-customers to build business value.
Conclusion: Synthesizes the findings, arguing that Blue Ocean strategy has limited value as a standalone tool and should be integrated with traditional marketing for full efficacy.
Keywords
Blue Ocean Strategy, Red Ocean, Marketing Strategy, Innovation, Market Segmentation, Value Innovation, Competitive Advantage, Consumer Orientation, Marketing Management, Strategic Planning, Business Environment, Market Boundaries, Customer Satisfaction, Corporate Objectives, Marketing Mix.
Frequently Asked Questions
What is the core focus of this research?
The work examines the relevance and utility of "Blue Ocean" strategies in the context of corporate marketing and corporate strategic debates.
What are the central themes discussed?
The paper covers the differences between Red and Blue Ocean models, the role of innovation, market segmentation, and how traditional marketing plans interact with these concepts.
What is the primary objective of the work?
The primary goal is to evaluate if Blue Ocean strategy is a comprehensive replacement for traditional marketing or if it serves better as a supplementary strategic tool.
Which scientific approach is utilized?
The author employs a literature-based analysis and conceptual comparison, reviewing theories from management and marketing experts to draw conclusions on strategy formulation.
What does the main body cover?
It covers the implementation of Blue Ocean frameworks, the importance of product strategy, the distinction between service and product marketing, and the necessity of managing environmental variables.
Which keywords define this work?
Key terms include Blue Ocean Strategy, Value Innovation, Competitive Advantage, and Market Segmentation.
How does the author define the difference between Red and Blue Ocean?
Red Ocean represents existing market spaces where competition is fierce, while Blue Ocean represents unidentified market areas where businesses create new, non-competitive space.
Why does the author conclude that Blue Ocean strategy has limited value?
The author argues that because Blue Ocean strategies often lack competition, they may not fit the diverse and changing demands of all firms, making traditional, comprehensive marketing strategies more essential for overall corporate success.
How is the Indian Premier League (IPL) used as an example?
The IPL is cited as a modern example of Blue Ocean strategy because it introduced a totally new concept of cricket that attracted entrepreneurs and significant investment, challenging existing sports business formats.
- Quote paper
- Barrack Kennedy (Author), 2010, Is marketing the source of "Blue Ocean" strategies?, Munich, GRIN Verlag, https://www.grin.com/document/269818
