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Marketing: Planning and Strategy

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Strategy: Definition

A pattern of major objectives, goals, essential policies and plans that define the current or future firm’s business and the kind of company the firm is now or is to become.

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Why do we need to “Strategize”

Finite resourcesUncertainty about competitive strengthsIrreversible commitment of resourcesCoordinated decisionsUncertainty about control of initiative

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Elements of Marketing Strategy Formulation

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Strengths

Weaknesses

Opportunities

Threats

SWOT Analysis

internal

external

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Identifying and Framing Organizational Growth

Opportunities

What might we do? - environmental opportunity

What do we do best? - distinctive competency

What must we do? - success requirements

Converting Environmental Opportunities into

Organizational Opportunities

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Product strategy

Promotion/Communication strategy

Placement/Distribution/Channel strategy

Pricing strategy

The Marketing Mix

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Existing New

Existing

New

MarketPenetration

MarketDevelopment

New OfferingDevelopment

Diversification

Markets

Offerings

Formulating Product-Market Strategies

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Formulating Product-Market Strategies

Market Penetration Strategy

greater dominance is key

Market Development Strategy

exporting

licensing

joint venture

direct investment

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Formulating Product-Market Strategies

Product-Development Strategy

product innovation

product augmentation

product line extension

cannibalism

Diversification

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Drafting a Marketing Plan

Context and Scope of Marketing Effort

Focus: Business, Product, Brand

Time Dimension: Short-run, Long-run

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Decisions About Competing

Where (markets)When (Entry)How

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Problems in Strategic Marketing

Too much emphasis on where to compete

Too little emphasis on how to compete when to compete adaptability uniqueness

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Implementation: Common Problems

Simplify marketing strategiesMore focus on uniqueness and adaptabilityImprove speed and flexibility