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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 strategic 3 Cs
Customers
 Competitors
Competencies
AND
 Strategic Marketing Decisions
Where to compete
How to compete
When to compete
Paradigm of Strategic
Marketing Process
CUSTOMERS
 Relationship Marketing

 Solution selling

 Business process integration


COMPETITION
1. Developing appropriate marketing
mix

3. A careful analysis of each stage of


the product life stage and taking
appropriate decisions for each
situation
COMPETITION….
1. Carving a market niche whereas the company
feels competitively and strategically stronger.

3. By appropriately segmenting the market and


selecting and serving the most appropriate
segment.

5. Deciding for acquisition, merger, diversification or


collaborations in order to make the company
stronger and more competitive in the market.
COMPETENCIES
1. It is a source of competitive advantage
in that it makes a significant
contribution to perceived customer
benefits.
2. It has applications in a wide variety of
markets.
3. It is difficult for competitors to imitate.
METHODS TO DEVELOP
STRONG COMPETENCIES

1. Striking strategic alliances or


joint ventures wherever
necessary.
2. Developing of value chains.
3. Creating market niches etc.
METHODS TO DEVELOP
STRONG COMPETENCIES

1. Becoming a global player in size.


2. Acquiring the latest technology
3. Investing liberally in research
and developmental activities.
4. Developing best brands
Marketing Analysis & Planning
… A Strategic Perspective
Environmental Scan
S.W.O.T. Analysis -

Internal - External -
• Strengths & Weaknesses: Opportunities:
- Marketing - Attractiveness
Company reputation - Success Probability
Market Share
Customer Satisfaction
Product Quality
Service Quality Threats:
Pricing Effectiveness - Political/Legal/Regulatory
Distribution Effectiveness - Economic
Promotion Effectiveness
- Social/Cultural
Sales Force Effectiveness/Coverage
- Technological
Innovation Effectiveness
- Finance
- Manufacturing
- Organization
Four Basic Types of Opportunities
Ansoff’s Product-Market Expansion Grid
Present Products New Products

Present Market Product


Market Penetration Development

New Market
Customers/ Diversification
Development
Markets
Source: Philip Kotler, et al
Skimming/Penetration Strategy:

Price/Promotion Strategies

High Rapid Slow


Skimming Skimming
Strategy Strategy
Price Level

(High price/high promotion) (High price/low promotion)

Rapid Slow
Penetration Penetration
Low
Strategy Strategy
(Low price/heavy promotion) (Low price/low promotion)

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