MARKETING STRATEGY

FORMULATION

By:
Dua Aijaz (20221-32202)
Sana Iqbal (20221-32407)
 INTRODUCTION

Key Marketing questions

Elements of effective
strategy
Frameworks for strategic
marketing decisions
MARKET
DEFINATION AND
SELECTION
Market selection is the choice of
domain in which firm will
compete for customers.
Customer segments
-The firm will serve
Functions
-The functions of those customer segments that
will be provided or supported.
Technologies
-That will be used to provide or support the
function
 POSITIONING AND DIFFERENCIATION

Differentiation: What uniquely different benefits do we offer prospective

customers.

Positioning: What might customers perceive as the advantages and

disadvantages of our position relative to our competition.
ALTERNATIVE STRATEGIES FOR
DIFFERENTIATION AND POSITIONING
A CROSS COUNTRY COMPARISON OF
LEADERSHIP POSITIONS
 PRODUCT LIFECYCLE

Product lifecycle is a proactive

rather than reactive stance -

Market entry and exit?

What competitors are planning?

When to drop prices?

Introduce new models?

Change marketing
communication?

Distribution strategy?
MARKET ENTRY/EXIT
DECISIONS
Product Manager - When should
we launch this new product?

Sales manager – Should we try to

penetrate a new account or expand
into a new territory?

Senior executive of Corporation

FRAMEWORK
DESIGNED BASED ON
Market Attractiveness –
Viability of the market for long term profitability

Competitive position –
Business strength needed to succeed
Example: Vestron would be able to highlight the difference between the two
less-risky strategies and the more-risky alternatives of integrating backward
into the video production
CRAFTING AND
COMMUNICATING
Point # 01
MARKETING
VISION AND Should be focused on financial goals as well as customer
innovative requirements.
VALUES
Point # 02
Marketing strategy should be
consistent with the shared values, Should be aligned with the organization values –
that serves as the foundation of a if essential, new values can be introduced.
company’s culture and provide
continuity as management personal
Point # 03
change.
Should be aligned with the company’s social responsibility
Example: – cannot put employees in ethical dilemma.
IBM & Apple computer
Pepsico & CocaCola
 RESPONSE TO COMPETITOR’S
MARKETING STRATEGY
COMPETITIVE RESPONSE ANALYSIS & ACTIONS

Identify the range of Forecast the likely Redo the analysis Select the strategy
possible impact of each for successive that is expected to
competitive combination of their periods to examine yield the best
reactions to each actions and the the overall effect of results across the
strategic option that competitors' each series of range of
are considering. reactions. moves on their competitive
objectives and reactions.
values.

Example: John Deere & company 1976 - Launch of a new tractor - Strategy would be
lowering existing price? new segment? new product with premium price?
FLEXIBILITY AND FOCUS IN MARKETING STRATEGY
FORMULATION
FLEXIBILITY AND FOCUS IN
MARKETING STRATEGY
FORMULATION
Lockstep - High focus & Low flexibility
Success in short run but organization takes longer time to realize
the changes and adapt it accordingly.

Paralysis - Lack of focus & flexibility

Due to financial loss, turnover and layoffs

Chaos - Lack of focus with high flexibility

Organization employees working in different directions creating
chaotic situation.

Perennial Renaissance - High focus & high flexibility

Perennial - Consistent enduring, constant change
Renaissance – creativity and a rebirth of the ideals of an earlier age.

It combines a continuous renewal of the marketing strategy,

seemingly performing a magical feat to keep the organization ahead
of evolving competitors, technology, and customer needs.
MOST EFFECTIVE APPROACH TO FORMULATE
MARKETING STRATGEY
 CONCLUSION

The frameworks presented in this note highlight marketing's role in shaping the strategy formulation
process.

Through conducting more in-depth analyses of market selection, differentiation, positioning, and entry
and exit strategies, marketers can integrate these strategies with vision and values.

This blending process enables marketers to craft more effective solutions and respond more adeptly
to competition.

Marketers can also positively influence the strategic processes that engage other functional
managers and their CEO.