Marketing Strategy Excellent

8/8/2019 Marketing Strategy Excellent

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Strategic Market Planning

Strategic market planning sets the strategic

direction for a business and plays a critical

part in achieving a businesss long-run

objectives of sales growth, profit

performance, and share position.Best 2000


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Market-Based Management

Tactical Marketing

Strategies

Market Analysis

Strategic Market

Planning

Marketing Planning, Implementation and Performance


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Strategic Market Planning Process

The strategic market plan sets the strategic

direction and provides broad guidelines for

resource allocation.

A tactical market strategy is a short-term

marketing strategy with a one-year time horizon.

The primary purpose of a strategic market plan

is to provide a strategic direction from which toset performance objectives and guide the

development of a tactical marketing strategy.


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Offensive vs. Defensive Strategic

Market Planning

Offensive strategic market plans require

investment for growth, which limits short-run profit

performance while building sales revenue and

improving share position.

A defensive strategy to protect share should notbe misinterpreted to mean a strategy of holding

resources constant.


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Market Plans

Offensive -- Growth-oriented built around:

Share penetration ormarket growth of existing markets

Plans to enternew existing oremerging markets.

Critical to business growth and future market positionand profitability


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Market Plans (cont.)

Defensive -- Designed to protect market positions

and profitability:

Protecting profitable market positions

Reducing market focus to improve profitability

Harvesting and divestment

Critical to current share, sales, and profit

performance


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Product Market Diversification

A Diverse Portfolio Offers Opportunities for

Increased Growth and Risk Reduction

Offers new market and segment opportunities

Reduces dependence on any single product-market

Can smooth overall performance by offsettingcompetitive conditions and product life cycles with

different product-markets

Each product-market in a businesss portfolio of

offerings in some way contributes to both the short-run

and the long-run performance of the business.


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Strategic Marketing Planning Process

Starts with an assessment of:

1. Current Business Performance

2. Market Attractiveness

3. Competitive Advantage


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Figure 11.3

Strategic Marketing Planning Process

1. 2. 3.


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The Boston Consulting GroupsGrowth-Share Matrix20%-18%-16%-

14%-12%-10%-8%-

6%-4%-2%-

0Marke

tG

row

th

Rate

10x 4x 2x 1.5x 1xRelative Market Share

.5x .4x .3x .2x .1x

Dogs 8

7

3

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Question marks

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Cash cows

6

Stars

5

4

1. Business Performance


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Figure 11.4

Factors That Shape Market Attractiveness

2. Market Attractiveness


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Fig 11.5: Indexing Market Attractiveness of a Market


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Determinants of a Competitive

Advantage

1. Differentiation Advantage a sustainable product

or service advantage that translates into a benefit

important to target customer

2. Cost Advantage A sustainable lower cost relativeto competition

3. Marketing Advantage A sustainable advantage

over competitors in either channels of distribution,

sales force, or marketing communications


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Fig 11.6 Determinants Competitive Advantage

3. Competitive Advantage


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Fig 11.7 Indexing a Competitive Advantage


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g . : or o o na ys s ra eg c r gPlansNine Cell Market Attractiveness-CompetitiveAdvantage Matrix


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Figure 11.8: Portfolio Analysisand Strategic Marketing Plans

Grow - Invest to improve or grow competitive advantage. In anunderdeveloped or emerging market, this can also mean to invest in

order to grow the market, and hence, its attractiveness.

Entry Invest to enter an attractive market to establish a desiredcompetitive advantage. This strategy could also require investment to

accelerate the growth of a new or underdeveloped market.


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Grow - Invest to improve or grow competitive advantage. In an

underdeveloped or emerging market, this can also mean to invest in

order to grow the market, and hence, its attractiveness.

Protect Invest to protect or hold a competitive advantage.Businesses often fail to invest in hold strategies, and the result is an

erosion of competitive advantage.


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Protect Invest to protect or hold a competitive advantage.

Businesses often fail to invest in hold strategies, and the result is an

erosion of competitive advantage.


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Figure 11.8: Portfolio Analysisand Strategic Marketing PlansGrow - Invest to improve or grow competitive advantage. In anunderdeveloped or emerging market, this can also mean to invest in order

to grow the market, and hence, its attractiveness.

Protect Invest to protect or hold a competitive advantage. Businesses

often fail to invest in hold strategies, and the result is an erosion of

competitive advantage.

Harvest Adjust prices and marketing expenses to gradually exit the

market while attempting to maximize profits during this gradual exit.


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Figure 11.8: Portfolio Analysisand Strategic Marketing PlansGrow - Invest to improve or grow competitive advantage. In an

underdeveloped or emerging market, this can also mean to invest in order



often fail to invest in hold strategies, and the result is an erosion ofcompetitive advantage.

Focus Selectively narrow market focus to profitable segments or niches

within a segment in order to capture profits while limiting the resources

committed to this market.


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Figure 11.8: Portfolio Analysisand Strategic Marketing PlansGrow - Invest to improve or grow competitive advantage. In an

underdeveloped or emerging market, this can also mean to invest in order



often fail to invest in hold strategies, and the result is an erosion of

competitive advantage.

Focus Selectively narrow market focus to profitable segments or niches

within a segment in order to capture profits while limiting the resourcescommitted to this market.


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Figure 11.8: Portfolio Analysisand Strategic Marketing PlansDivest Quick divestment from a market. When there are no short-termprofits to be gained with a divest strategy, an immediate exit strategy is

appropriate.




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Divest Quick divestment from a market. When there are no short-term

profits to be gained with a divest strategy, an immediate exit strategy is

appropriate.




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Figure 11.8: Portfolio Analysisand Strategic Marketing PlansProtect Invest to protect or hold a competitive advantage. Businesses

often fail to invest in hold strategies, and the result is an erosion ofcompetitive advantage.



Figure 11 11


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Figure 11.11

Zi-Techs Acoustics Current Performance

Protect Grow Focus Harvest Divest


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Figure 11.12: Zi-Tech Portfolio

Analysis and Strategic Market Plan

Documents

Marketing Strategy Excellent