What is a Strategy

A

Strategy is the Science and Art of assessing your situation Setting goals and Using the available resources to Accomplish these goals.

Strategic Marketing
“Marketing

Strategy is a series of integrated actions leading to a sustainable competitive advantage.”

Effective Strategic Marketing
 Strategic

Marketing Process Requires a Unique Marketing Plan for each of the Strategic Business Units.  Market Analysis  Competitive Analysis  Product Life Cycle Analysis

Key Elements of Marketing Strategy Formulation
 The

Customers  Competitors Competencies

strategic 3 Cs

Where to compete How to compete When to compete

AND Strategic Marketing Decisions

Paradigm of Strategic Marketing Process

CUSTOMERS

Relationship Marketing Solution selling Business process integration

COMPETITION
1.

Developing appropriate marketing mix A careful analysis of each stage of the product life stage and taking appropriate decisions for each situation

3.

COMPETITION….
1.

Carving a market niche whereas the company feels competitively and strategically stronger. By appropriately segmenting the market and selecting and serving the most appropriate segment. Deciding for acquisition, merger, diversification or collaborations in order to make the company stronger and more competitive in the market.

3.

5.

COMPETENCIES
1.

2.

3.

It is a source of competitive advantage in that it makes a significant contribution to perceived customer benefits. It has applications in a wide variety of markets. It is difficult for competitors to imitate.

METHODS TO DEVELOP STRONG COMPETENCIES
1.

2. 3.

Striking strategic alliances or joint ventures wherever necessary. Developing of value chains. Creating market niches etc.

METHODS TO DEVELOP STRONG COMPETENCIES
1. 2. 3.

4.

Becoming a global player in size. Acquiring the latest technology Investing liberally in research and developmental activities. Developing best brands

Marketing Analysis & Planning
… A Strategic Perspective

Environmental Scan
S.W.O.T. Analysis -

Internal • Strengths & Weaknesses: - Marketing
Company reputation Market Share Customer Satisfaction Product Quality Service Quality Pricing Effectiveness Distribution Effectiveness Promotion Effectiveness Sales Force Effectiveness/Coverage Innovation Effectiveness

External Opportunities:
- Attractiveness - Success Probability

Threats:
- Political/Legal/Regulatory - Economic - Social/Cultural - Technological

- Finance - Manufacturing - Organization

Four Basic Types of Opportunities Ansoff’s Product-Market Expansion Grid
Present Products New Products

Present Market

Market Penetration

Product Development

New Customers/ Markets

Market Development

Diversification

Source: Philip Kotler, et al

Skimming/Penetration Strategy:
Price/Promotion Strategies
High

Price Level

Rapid Skimming Strategy
(High price/high promotion)

Slow Skimming Strategy
(High price/low promotion)

Low

Rapid Penetration Strategy
(Low price/heavy promotion) High

Slow Penetration Strategy
(Low price/low promotion) Low

Promotion Expense Mix

What is a Strategic Business Unit? (SBU)
A

set of products or product lines
With clear independence from other products or product lines for which a business or marketing strategy should be designed

Characteristics of a viable SBU
 Unique

business mission  Definable set of competitors  Integrative planning done independently  Responsible for resource management in all areas  Large enough but not so large as to become bureaucratic

Marketing at the SBU Level— Strategic Marketing

Strategic Marketing requires Strategic Marketing

Detailed understanding of market needs, and Proactive use of competitive intelligence at the
corporate as well as SBU’s levels

Focuses on what the firm do best at the SBU
level To secure and maintain a sustainable competitive advantage

What is Competitive Advantage?
 Competitive

advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match.”
Philip Kotler

 “If

you don’t have a competitive advantage, don’t compete.”

Seeking Competitive Advantages
 Positions
 

of advantage

Superior customer value Lower relative total cost

 Performance

advantages

Customer satisfaction, Loyalty, Market Share, Profit

 Sources

of advantages

Superior skills & knowledge, Superior resources, Superior business process

Situation Analysis
  

Internal Analysis—company; capability etc. External Analysis—customers, market definition, industry
structure

SWOT Analysis  Strengths, Weaknesses, Opportunities & Threats

Identify & prioritize major problems and opportunities: selection of key issues

Based on the firm’s core competencies, decide on future options

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