Strategy and Tactics

Swati Vispute

Introduction
Vicks came with a new liquid cold remedy which cleared up scratchy throats and running eyes, unfortunately it also put you to sleep. This was a problem if you wanted to drive or go to work. They came up with a brilliant idea. If the product puts you to sleep, lets position it as a nighttime cold remedy. The first nighttime remedy is an advertising tactic that will work on the proven principle that of being first.

What is a Tactic
Tactic is an idea .

When you look for Tactic, you look for an idea.

Tactic is a competitive mental angle.

Tactics Dictate Strategies

A tactic must have a competitive angle in order to have a chance of success. This does not mean necessarily a better product or service, but rather there must be an element of differentness It could be smaller, bigger, lighter, heavier, cheaper, more expensive. It could be a different distribution system

Tactics dictate strategies-cont

A tactic must be competitive in the total marketing arena, not just competitive in relation to one or two other products or services
Eg: Volkswagens decision in the late fifties to introduce the first small car. At the time General Motors was manufacturing nothing but big, heavily chromed patrol boats. The BEETLE was a runaway success.

The VW Beetle was not the first small car on the market. But it was the first car to occupy the small position in the mind. It made a virtue out of its size, while the others apologised for their small size.
Think Small said the VW ads.

Tactic - cont
A Tactic must have a competitive mental angle.
The battle takes place in the mind of the prospect.

There were plenty of pizza places with home delivery operations when Tom Monaghan launched Dominos. But nobody owned the home delivery position in the mind.

A competitive mental angle is the point in the mind that allows your marketing program to work effectively. Thats point to leverage to achieve results. A Tactic alone is not enough. To complete the process, tactic must be turned into a strategy. Need both to establish a position in the mind.

Strategy

Strategy is not a goal.

Like life itself, a strategy ought to be focused on the journey, not the goal. Strategy is a coherent

marketing direction

Strategy - cont
A

Strategy is coherent in the sense that it is focused on the tactic that has been selected.
VW

had a big tactical success with the small car, but it failed to elevate this idea to a coherent strategy. It forgot about small and instead elected to bring into the U.S. market a family of big, fast, and expensive VWs. But these tactics had already been preempted by other car manufacturers. This opened the way for the Japanese to take over the small car idea.

Strategy - cont

A Strategy encompasses coherent marketing activities.

Product, Pricing, distribution, advertising-all the activities that make up the marketing mix must be coherently focused on the tactic.

Strategy - cont
A strategy is a coherent marketing direction . Once the strategy has been established, the direction should not be changed.
The purpose of strategy is to mobilize your resources to preempt the tactic. By committing all your resources to one strategic direction you maximize the exploitation of the tactic .

Tactic vs Strategy
1. A tactic is a singular idea or angle.
A strategy has many elements, all of which are focused on the tactic

2. A tactic is an angle that is unique or different.

A strategy may well be mundane

3. A tactic is independent of time and relatively constant.

A strategy unfolds over a period of time. A sale is a Tactic used by most retailers at one time or another. A store that has a sale everyday is a discount store, which is a strategy.

Strategy vs Tactic 4. A tactic is a competitive advantage.

A strategy is designed to maintain that competitive advantage.

5. A tactic is communications oriented.

A strategy is product, service or company oriented.

Strategy vs Tactic-cont
6. A tactic can be a rather small advantage.
The tactic exploited by Tom Monaghan at Dominos was to focus on the home delivery of pizza only. In itself, not a tremendously exciting idea. But it was unique as no one else was doing it. Dominos tactic was just one tactic, not a collection of tactics. The idea was built around home- delivery -only. Not home delivery plus take away plus dine in plus burgers plus hot dogs etc. By building a nation wide homedelivery-only chain they could guarantee pizza in 30 mts. Concept.

The purpose of Strategy

There are no good strategies. Just strategies that work tactically and there are strategies that dont work tactically.

Then what is the purpose ? The purpose of strategy is to keep the competition from adversely affecting your tactics. (to preserve your tactics)

Purpose of Strategy -Cont

Dominos home delivery unit could have been easily have been neutralized by market leader Pizza Hut. With the strategy of expanding into nationwide chain of home delivery units, Dominos effectively drove a powerful wedge into the competition. The tactic is the angle that produces results. The strategy is the organisation of the company to produce the maximum tactical pressure.

Purpose of Strategy-cont
The tactic dictates the strategy, then the strategy drives the tactic. The relationship between the two is crucial to the success of marketing.