MPS

(1) Introduction to Strategy

S P Ketkar
What is a Strategy?
A View from the top

It is a fundamental pattern of
– Present and planned objectives
– Resource deployments and
– Interactions of an organizations with
 Markets
 Competitors and
 Other environmental factors
Strategy covers

What – Objectives to be accomplished

Where – Industries and product-markets
to focus and
How – Resources allocation to each
product-market to meet environmental
opportunities & threats and gain
competitive advantage
What are the components of a
Strategy?

 Scope
 Goals and Objectives
 Resource deployments
 Sustainable competitive advantage
 Synergy
What is the hierarchy of
Strategies?

 Corporate
 Business
 Functional
– HR
– Financing
– Marketing
Components at different
levels of Strategy

Corporate Business Marketing

Scope M&A, Entirely new What products, Target market, product

biz related diversification line depth
Goals Overall revenue, Sales growth, Market share, customer
EPS technology stisfaction
Resources Allocation amongst Allocation across Allocation across
biz depts, products components of marketing
plan

Sustainable Superior corporate Competencies Product positioning and

Competitive finance, HR relative to competition superiority on
Advantage components

Synergy Shared technology, Shared resources Shared marketing

competencies across products resources
across biz
Role of marketing in
formulating Strategies

 Research has shown that marketing plays a role

considerably influencing Biz and Corporate
strategies – (closer to market, channel,
customer)
 Market oriented organizations: ultimate
objective of all activities is to satisfy customer
needs
– Do customers know what they want?
– Market oriented at any cost?
Why are some companies not
market oriented?

 Influence of different stages of

development across countries / industries

 Competitive conditions allow companies

to be successful in the short run

 Strategic Inertia
What is affecting the strategic
role of marketing?

 Globalization

 Importance of service sector

 Develpments in IT Telecom (B2B, B2C,

C2B and C2C

 Relationships across functions and firms

Marketing strategy – Formulation and
Implementation Process

• Corporate Objectives and Strategy

• Business Level Objectives and Strategy
• Market Opportunity analysis
– Understanding market opportunities - 4Cs
– Sizing the opportunities
– Market segmentation, targeting and positioning
• Strategies for products in Introduction, Growth, Maturity
and Decline stages
• Implementation and Control
Marketing Plan

A written document detailing

– Current situation wrt customers, competitors,

and external environment

– Guidelines for objectives, marketing actions

and resource allocation over planning period

– Control and monitoring measures and

contingency action plan
Marketing Plan - Contents

• Executive Summary
• Current market situation and trends
• Past performance review (existing products)
• Key Issues (SWOT)
• Objectives
• Marketing Strategy
• Action Plan – target market, responsibilities, budgets
• Projected P&L Statement
• Monitoring and Control
• Contingency Plans