Marketing Strategy: Introduction
What is strategy?
How does marketing contribute?- The marketing concept- Market orientation
Marketing Strategy: Introduction What is strategy? A fundamental pattern of present and planned objectives, resource deployments, and interactions of an organization with markets, competitors, and other environmental factorsthe search for a favourable competitive position(Porter, 85)
Marketing Strategy: IntroductionCorporate strategy-organizations scope and resource deployment
Business-level strategy-competitive strategy of a business unit in its industry
Marketing strategy-targeting, segmenting and positioning for a product. Figuring out the marketing mix
Marketing Strategy: Introduction What is the marketing concept?determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.(Kotler et al, 96)
Marketing Strategy: Introduction
What do marketers mean when they say their firms are market oriented?
Marketing Strategy: IntroductionWhat are advantages and disadvantages of market orientation?
Why do some firms lack orientation towards the market ?
Marketing Strategy: Introduction
Market oriented in not marketing oriented- information on all important buying influences permeates every corporate function-Strategic/tactical decisions are made inter-functionally and inter-divisionally-divisions and functions make well-coordinated decisions and execute them with commitment
Marketing Strategy: Introduction
Which should come first the customer need or the product idea? - Marketing myopia
Discussion questions
Q.1 : In defining their strategies, should companies pursue broadly or narrowly defined missions?
Q. 2: What are the advantages of each approach?
Characteristics of Effective Corporate Mission Statements
BroadSpecificFunctionalBased on customer needsTransportation businessLong-distance transportation for large-volume producers of low-value, low-density products PhysicalBased on existing products or technologyRailroad businessLong-haul, coal carrying railroad
Ansoff Strategies
Current Products
New Products
Current Markets
Market penetration strategy
Product development strategy
New Markets
Market development strategy
Diversification strategy
The BCG Growth Share Matrix
Cash Flows Across Businesses in the BCG Portfolio ModelGrowth rate (cash use)HighLowStarsCash cowsDogsQuestionmarksHighLowRelative market shareDesired direction of business developmentCashFlows
The GE Nine-Cell Matrix1 Invest/grow2 Selective investment/ maintain position3 Harvest/divest
*8*A tool for allocating resources in diversifies companies: The GE Nine-Cell Matrix
How would you assess competitive position and industry attractiveness?Factors to assess competitive positionRelative shareCustomer loyaltyMarginsDistributionTechnologyMarketing skillsPatents
Factors to assess industry attractivenessSizeGrowthCompetitive intensityPrice levelsProfitabilityTechnological sophisticationGovernment regulations
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