2020

Winning Markets
Marketthrough
- Oriented Strategic
Planning
Presented by: Irene
Chua

M A RM A N
G 23
01
 Strategic planning consists
2020

of 3 actions broadly

1.Managing a companies ’ portfolios

2.Assesing each
business’ strength
by
considering the market’s growth rate and the
company ’ s position fit in the market.
M A RM A N
G 23 3.Formulating a game plan for each of
its business to achieve long - term
02 objectives.
 2020
Strategic Planning is done in 4
levels
Corporate Strategic Division Plan
Plan
It decides what resources to allocate to which It decides how much funds to allocate to the
business and what business to diversify into SBUs.

SBU Plan
Strategic Business Unit (SBU) implies an independently managed division of a large
company, having its own vision, mission and objectives, whose planning is done
separately from other businesses of the company.

Product Plan
M A RM A N Product Planning is the ongoing process of identifying and articulating market
G 23 requirements that define a product's feature set. Product planning serves as the basis
for decisions about price, distribution and promotion.
03
 2020

Corporate and
Strategic
Division
Planning This basically
subsumes 4
activities :

Defining corporate
mission Establishing SBU
Assigning resources to
each SBU Planning new
business

M A RM A N
G 23

04
 2020

Defining the Corporate

Mission A good mission
statement provides employees with a shared sense of purpose, direction and
opportunity.

Contents of marketing plan

Executive summary and table of
contents - presents a brief overview of
the proposal

Current marketing situation-

presents relevant data on sales,
costs, profits, market, competitors,
distribution, and macro
M A RM A N
environment.
G 23

05
 The
2020

M arketing
Process
The value delivery
sequence
The traditional physical process sequence assumes the company knows what to
make and that the market will buy enough units to produce profits for the company.
M A RM A N
G 23 In the value delivery sequence there are 3
parts:
1. ”Choose the value”-the marketing staff does segmentation, targeting and positioning of the market

2. “Provide the value”-after the STP process has chose the value, the product’s specifications and services should be
detailed , the price and then the product should be manufactured and distributed

3. ”Communicate the value”-the customers are communicated about the value of the product through the
sales force, promotion and advertisement.
06
 2020

The
M arketing
Process
The Marketing process
consists of analyzing
markets, researching and
selecting markets, designing
marketing strategies,
planning marketing
programs and organizing,
M A RM A N implementing and controlling
G 23 the marketing
efforts.
07
 2020

1. Product or service alliance

- one company licenses the other to produce is product, or t w o
companies jointly market their complementary product or a n e w
product.

2. Promotional alliance
- one company agrees to carry the promotion for
another company’s product or service.

3. Logistics alliance
- one company offers logistic services to
another company’s product.

4. Pricing collaboration
M A RM A N
G 23

- one more companies join in a special pricing

collaboration.
08
 2020

5. Program Formulation
- after developing the principal strategies, companies
must w o rk out detailed supporting programs for
them.

6. Implementation
- For the implementation of strategy the 4 S is
nececssary Style, Skills, Staffs and Shared
Values
7. Feedback and Control
- A company’s internal strengths and weaknesses in various department need to
M A RM A N be identified periodically.
G 23

09
 Strategic
2020

formulation
strategic is the roadmap for achieving the envisaged goals. Porter defined strategy as
“creation of a unique and valuable position involving different set of
activities”.

Overall cost
leadership
here a business aims at delivering its products at the

Differentiation
lowest prices in the market and wins a large market
share.
here a business aims at achieving superior
performance in an important customer area valued by a large chunk of
the market. It could strive to be the service leader, the quality leader,
the style leader or technology leader.

M A RM A N
G 23
Focus
here a firm concentrates on one or more narrow
market segments. It first identifies such a segment and then pursues
10
either cost leadership or differentiation in them.
 2020

Strategic
Alliances
The strategic alliances could be in the form of marketing alliances in the
following ways:

Integrative growth- by backward Integration, Forward Integration, or

Horizontal integration.

Diversification growth- exploiting opportunities in new business

M A RM A N
G 23

11
 2020

M ARKETI NG

C ONC EPTS
According to marketing approach,
competitors are companies that
satisfy the same customer need.

The market concept of

competition reveals a broader set
of actual and potential
competitors.

By mapping the buyer’s steps in

obtaining and using the product
a company’s direct and indirect
M A RM A N competitors can be identified
G 23

12
 Analyzing
2020

Strategies:Competitors
What strategies a company uses to enter/survive in the market?

Objectives: What are the objectives of the competitor’s and what drives its behavior? Factors shaping a
competitor’s include size, history, current management, and financial situation.e the objectives of the competitor’s
and what drives its behavior? Factors shaping a competitor’s include size, history, current management, and
financial situation.

Strengths and Weaknesses: A company needs to gather information on each competitor’s strengths
and weaknesses

M A RM A N
G 23

13
 2020

3 IMPORTANT VARIABLES
ANALYZING COMPETITORS
FOR
Share of market- The competitor’s share of the target market

Share of mind-The percentage of costumers who named the

competitor responding to the statement, “Name the first company that
comes to mind in this industry.”

Share of heart - The percentage of customers who named the

competitor in responding to the statement, “Name the company from
which you would prefer to buy the product.” Companies that make steady
M A RM A N gains in mind share and heart share will inevitably make gains in market
G 23 share and profitability

14
 2020

Defending Market
Share
The most constructive response is
continuous innovation. The leader leads the industry in developing new product
and customer services, distribution effectiveness, and cost cutting. It keeps
increasing its competitive strength and value to customers.

M A RM A N
G 23

15
 Position Defense: It involves occupying the most desirable
2020

market space in the minds of the consumers

Flank Defense: The market leader should also erect outposts

to protect a weak front or possibly serve as an invasion base
for counterattack .

Preemptive Defense: A more aggressive maneuver is to

attack before the enemy starts its offense. A company can
lunch a preemptive defense in several ways.

Counteroffensive Defense: The leader can meet the attacker

frontally or hit its flank or launch a pincer movement. An effective
counterattack is to invade the attacker ’s main territory so that it
will have to pull back to defend the territory.

M A RM A N
Mobile Defense: In mobile defense, the leader stretches its
G 23 domain over new territories that can serve as future centers for
defense and offense through market broadening and market
diversification.
16
 Contraction Defense: Giving up weaker
2020

territories and reassigning resources to stronger

territories.

Expanding Market Share

A company should consider four factors before pursuing
increased market share:

The possibility of provoking antitrust

action Economic cost

T h e e f fe c t o f
P u r su i n g t h e
in c r e asmeadrmkeatriknegt-
w r o n g
smhiaxrestornataecgtyual and perceived
quality.
17
 2020
The effect of increased market
share on actual and perceived quality.

Competitive Strategies for Market Challengers Defining the Strategic

Objective and Opponent(S)

A market challenger must decide whom to attack

It can attack the market leader. This is a high- risk

but potentially high-payoff strategy

It can attack firms of its own size that are not doing the job
and are underfinance

It can attack small local and regional firms

M A RM A N
G 23

18
 2020

Choosing
a General Attack
Strategy
Frontal Attack: The attacker matches its opponent’s product, advertising, price,
and distribution.
Flank Attack: Identifying shifts in market segments geographic areas that are
causing gaps to develop, and then rushing in to fill the gaps and develop them into
strong segments.
Encirclement Attack: The encirclement involves launching a grand offensive
on several fronts. Make sense when the challenger commands superior
resources.
Bypass Attack: It means bypassing the enemy and attacking easier markets to
M A RM A N broaden one’s resource base.
G 23

19
 2020

A brand is no longer
what we tell the
consumer
– it is whatitconsumers
is
tell each other it is.
Scott Cook,

M A RM A N
G 23

20