MRKT 2400

TOPIC 2

Marketing strategy
What is a Strategy?
Strategy is an organization’s overall long-
term plan of action to achieve a desired state
in the future (goal)
Strategy provides focus and direction
bearing in mind the resource constraint
Hierarchy of Strategies

Corporate Mission -> Corporate Goals ->

Corporate Strategy Deployment of Resources among SBUs
(Company level)

SBU Strategy SBU’s objectives -> Competitive strategy -

(Subsidiary level) >Deployment of resources across product-markets

Marketing Strategy Marketing objectives -> target markets ->

competitive advantage
(Product-market level)
Marketing input is essential in all 3 levels
Corporate strategy sets the direction.
Marketing strategy ensures that we achieve
that direction
Mission Statement is a Strategic Intent
Mission defines the purpose of existence and the boundaries within which to operate

Ideally, Mission statement shall provide answers to these questions:

1. What business are we in and where we want to go

2. Who are our customers

3. What kind of value do we provide to our customers

A good mission statement guides the selection of market opportunities to pursue

What is a good mission statement
Short, Concrete, Inspirational
Formula: VERB + TARGET + OUTCOME
Save endangered species from extinction
Improve African children’s health
Examples of Mission statements
“To connect the world’s professionals to make them more
productive and successful.”

“To give people the power to share and market the world more open and
connected”
“To make it easy to do business anywhere”

“To enable people and businesses throughout the world to

realize their full potential”
“We strive to offer our customers the lowest possible prices,
the best available selection, and the utmost convenience”

“To accelerate the world’s transition to sustainable energy”

 A Good Mission statement

• Defines a common purpose of the company’s existence

• Sets a strategic direction, a vision

• Provides guidelines on how decisions

are made

• Helps to prioritize resources

• Shares sense of directions and inspiration among employees

Examples of Bad mission statements

“ To increase the socio-economic welfare of our country through

transparent financial partnership in every stage of your life” - Kapital Bank

“Sony is committed to developing a wide range of innovative products

and multimedia services that challenge the way consumer’s access and
enjoy digital entertainment. By ensuring synergy between businesses
within the organization, Sony is constantly striving to create exciting new
worlds of entertainment that can be experienced on a variety of different
products.”
Mission Statement can evolve
Evolution of PepsiCo mission statement

1. “Marketing superior quality food and beverage products for households and
consumers dining out”  acquired Frito-Lay, Taco Bell, and Pizza Hut and
divested of Wilson sporting goods

2. Then narrowed its scope in response to a changing global competition to

concentrated on package foods and beverages  divest of all fast-food chains,
acquired Tropicana juices, Lipton’ iced teas, and Gatorade sports drinks; new
brand Aquafina bottled water

3. “Create more smiles with every sip and every bite. By creating joyful moments
through our delicious and nourishing products and unique brand experiences. Be
the global leader in convenient foods and beverages by winning with purpose”.
more nutritious and healthier snacks and drinks
Uber Mission statement
Evolution of UBER mission statement

1. Make transportation as reliable as running water, everywhere, for everyone 

2. We ignite opportunity by setting the world in motion

3. https://youtu.be/IvIu8zGYbMI
Exercise on Mission statement

1. Go online and find mission statements of local organization (or organization

functioning in Azerbaijan) – can be for-profit, non-profit, government

2. Work in teams

3. Evaluate: Is it a good mission statement? To your knowledge, do these

organizations meet their mission statements? Why, or why not?

4. Develop a mission statement for any kind of company (restaurants, retailers,

physicians, manufacturers, sports team)
SBU portfolio analysis
 Exercise on Portfolio analysis

The Stylish Dog has sold twice as many dog beds as its closest competitor in the
rapidly expanding pet bed market

The market for recreational drones is growing exponentially each year. Flight inc. has
one third of the market share as compared to its largest competitor

After DVRs hit the market, VCR market growth slowed dramatically. A marginal
electronics manufacturer, Sonic continues to manufacture VCRs for customers with
an inventory of VCR tapes

The ski industry has slowed down based on the growing popularity of snowboarding,
however K2 maintains its position as market share leader.
Diversification analysis
 Exercise on Diversification analysis
Identify growth opportunities for Nike Golf. Its product line is limited to golf
accessories: golf gloves, golf balls, and golf clubs. Assume that Nike Golf currently
serves only the US market and lacks a presence in China, Brazil, or India.

PRODUCTS
MARKETS
CURRENT NEW

CURRENT

NEW
 Marketing Plan: SOSTAC framework
Where are we now?
Market opportunity & sources of Competitive advantage

Did we get there?

Performance evaluation and Where do we want to be?
Market monitoring Ultimate criteria of success

What is our plan

Budget & Action plan: who, what, when How do we get there?
Target market & Value proposition
(points of difference)

By what means?
Marketing Program = 4Ps
 Situation Analysis
Everything that can directly or indirectly affect the company’s ability to earn profits
 Company capabilities
What do we do the best? Core competencies include skills, technologies and resources

Corning’s key strength is the ability to manufacture glass. (its competitive advantage)
It recognized marketplace trend and shifted its focus to manufacture durable scratch-
resistant glass on smartphones
Situation analysis: the SWOT Framework
Favorable Unfavorable
Factors Factors

Internal Company analysis

Factors

External
Factors Market analysis
Example of SWOT
Strategic Implication of SWOT analysis
 Objective Setting

Mission

Increasingly detailed
Increasingly strategic

Corporate
objectives

Business unit
objectives

Marketing objectives
Marketing Plan objectives

Financial objectives Marketing objectives

• $ Sales volume • Market Share

• Sales from new • Brand awareness
products • Brand preference
• Net Marketing • CLV
contribution • Customer retention
• Customer satisfaction
• Perception of relative
product quality
• Revenue per customer
Objective setting: SMART
Strategy: STP framework
Tactics: 4 P
Implementation
 Performance evaluation
Key Performance Indicators are critical metrics that you need to measure to control
the progress to your goal. We can spot deviations and take corrective actions