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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 factors

 “…the search for a favourable

competitive position…”
 (Porter, ‘85)
Marketing Strategy: Introduction
• Corporate strategy
 -organizations scope and resource

• Business-level strategy
 -competitive strategy of a business unit in its

• 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 competitor’s
 (Kotler et al, ‘96)
Marketing Strategy: Introduction

 What do marketers mean when they
say their firms are market oriented?
Marketing Strategy: Introduction
What 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

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

Q. 2: What are the advantages of each approach?

Characteristics of Effective
Corporate Mission Statements
Broad Specific

Functional Transportation Long-distance transportation

Based on business for large-volume producers of
low-value, low-density
customer needs products

Physical Railroad business Long-haul, coal carrying

Based on existing railroad
products or
Ansoff Strategies

C u rren t P ro d u cts N ew P ro d u cts

M ark et p en etratio n P ro d u ct d ev elo p m en t
C u rren t M ark ets strate g y strate g y

M ark et d ev elo p m en tD iv ersificatio n

N ew M ark ets strate g y strate g y
The BCG Growth Share Matrix

Stars Question marks
4 2 1
Market 6
growth 3
rate 10%
(in Cash cows Dogs
constant 7
8 11 12
9 10 13

10 1 0.1
Relative market share
Source: Adapted from Barry Hedley, “Strategy and the Business Portfolio,” Long Range Planning 10 (February 1977).
Cash Flows Across Businesses in the
BCG Portfolio Model
Growth rate (cash use)

Stars Question


Low Dogs
Cash cows

High Low
Relative market share

Desired direction of business development

The GE Nine-Cell Matrix

Industry attractiveness
High Medium Low
competitive position

High 1 1 2

Medium 1 2 3

Low 2 3 3

1 Invest/grow
2 Selective investment/ maintain position
3 Harvest/divest