Marketing: Planning and Strategy

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

Why do we need to Strategize

Finite resources Uncertainty about competitive strengths Irreversible commitment of resources Coordinated decisions Uncertainty about control of initiative

Elements of Marketing Strategy Formulation

SWOT Analysis

Strengths
Weaknesses Opportunities external Threats internal

Identifying and Framing Organizational Growth Opportunities

Converting Environmental Opportunities into Organizational Opportunities

What might we do? - environmental opportunity What do we do best? - distinctive competency

What must we do? - success requirements

The Marketing Mix

Product strategy
Promotion/Communication strategy

Placement/Distribution/Channel strategy
Pricing strategy

Formulating Product-Market Strategies

Markets
Existing Existing New

Market Penetration New Offering Development

Market Development

Offerings
New

Diversification

Formulating Product-Market Strategies

Market Penetration Strategy

greater dominance is key

Market Development Strategy

exporting licensing joint venture direct investment

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 strategies More focus on uniqueness and adaptability Improve speed and flexibility

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