Functional Level Strategy:MARKETING STRATEGY

By CA Anushri Agrawalanulohia.agrawal@gmail.com

www.anushriagrawal.com

Role

• Support to overall business strategy• Ensure better performance in their respective

functional areas

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What

• Marketing, financial, production, research anddevelopment and human resourcemanagement

• Within functional strategies, there might beseveral sub functional areas.

• Marketing, financial, production, research anddevelopment and human resourcemanagement

• Within functional strategies, there might beseveral sub functional areas.

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Why• A sense of direction to the functional staff• Facilitates the implementation of corporate

strategies and business strategies• Basis for controlling activities in different

functional areas of business• Bring harmony and coordination• Similar situations in different functional areas are

handled in a consistent manner

• A sense of direction to the functional staff• Facilitates the implementation of corporate

strategies and business strategies• Basis for controlling activities in different

functional areas of business• Bring harmony and coordination• Similar situations in different functional areas are

handled in a consistent manner

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MARKETING STRATEGY• All the activities related to identifying the needs of

customers and taking such actions to satisfy them inreturn of some consideration

• what is strategically right than what is immediatelyprofitable.

• The term marketing constitutes different processes,functions, exchanges and activities that createperceived value by satisfying needs of individuals

Examples of Marketing Decisions:1. The amount and the extent of advertising.

Whether to use heavy or light advertising.What should be the amount of advertisingin print media, television or internet?

2. The kind of distribution network to be used.Whether to use exclusive dealerships ormultiple channels of distribution.

3. Whether to be a price leader or a pricefollower? Whether to offer a complete orlimited warranty?

4. Whether to limit or enhance the share ofbusiness done with a single or a fewcustomers?

5. Whether to reward sales people based onstraight salary, straight commission, or on acombination of salary and commission?

• All the activities related to identifying the needs ofcustomers and taking such actions to satisfy them inreturn of some consideration

• what is strategically right than what is immediatelyprofitable.

• The term marketing constitutes different processes,functions, exchanges and activities that createperceived value by satisfying needs of individuals

Examples of Marketing Decisions:1. The amount and the extent of advertising.

Whether to use heavy or light advertising.What should be the amount of advertisingin print media, television or internet?

2. The kind of distribution network to be used.Whether to use exclusive dealerships ormultiple channels of distribution.

3. Whether to be a price leader or a pricefollower? Whether to offer a complete orlimited warranty?

4. Whether to limit or enhance the share ofbusiness done with a single or a fewcustomers?

5. Whether to reward sales people based onstraight salary, straight commission, or on acombination of salary and commission? 6CA KANIKA KHETAN

MARKETING PROCESS

• The marketing process is the process of analyzingmarket opportunities, selecting target markets,developing the marketing mix, and managing themarketing effort. Target customers stand at thecentre of the marketing process

1. Delivering Value to Customers2. Connecting with customers

• The marketing process is the process of analyzingmarket opportunities, selecting target markets,developing the marketing mix, and managing themarketing effort. Target customers stand at thecentre of the marketing process

1. Delivering Value to Customers2. Connecting with customers

This “partnering” will produce a value delivery network.

MARKETSEGMENTATION,

MARKETING TARGET,MARKET

POSITIONING

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MARKETING MIX

• important part of overall competitivemarketing strategy.

• The marketing mix is the set of controllablemarketing variables that the firm blends toproduce the response it wants in the targetmarket.

• important part of overall competitivemarketing strategy.

• The marketing mix is the set of controllablemarketing variables that the firm blends toproduce the response it wants in the targetmarket.

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Formulation of Marketing Strategy/Strategic marketing management process

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Strategic Marketing Techniques

• Social Marketing• Augmented Marketing• Direct Marketing• Services Marketing• Person Marketing• Organization Marketing

• Social Marketing• Augmented Marketing• Direct Marketing• Services Marketing• Person Marketing• Organization Marketing

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• Place Marketing• Enlightened Marketing• Differential Marketing• Synchro-Marketing• Concentrated Marketing• Demarketing

• Place Marketing• Enlightened Marketing• Differential Marketing• Synchro-Marketing• Concentrated Marketing• Demarketing

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FINANCIAL STRATEGY

These include:• acquiring needed capital/sources of fund,• developing projected financial

statements/budgets,• management/ usage of funds, and• evaluating the worth of a business

These include:• acquiring needed capital/sources of fund,• developing projected financial

statements/budgets,• management/ usage of funds, and• evaluating the worth of a business

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ACQUIRING CAPITAL

• an appropriate mix of debt and equity• sources of funds

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PROJECTED FINANCIAL STATEMENTS

• Projected (pro forma) financial statement analysis is acentral strategy-implementation technique because itallows an organization to examine the expected results ofvarious actions and approaches

• financial ratios• A financial budget is also a document that details how

funds will be obtained and spent for a specified period oftime.

• Some common types of budgets include cash budgets,operating budgets, sales budgets, profit budgets, factorybudgets, capital budgets, expense budgets, divisionalbudgets, variable budgets, flexible budgets, and fixedbudgets

• Projected (pro forma) financial statement analysis is acentral strategy-implementation technique because itallows an organization to examine the expected results ofvarious actions and approaches

• financial ratios• A financial budget is also a document that details how

funds will be obtained and spent for a specified period oftime.

• Some common types of budgets include cash budgets,operating budgets, sales budgets, profit budgets, factorybudgets, capital budgets, expense budgets, divisionalbudgets, variable budgets, flexible budgets, and fixedbudgets

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Financial budgets have somelimitations

• so detailed that they are cumbersome and overlyexpensive

• Over budgeting or under budgeting can causeproblems.

• financial budgets can become a substitute forobjectives. A budget is a tool and not an end in itself.

• budgets can hide inefficiencies if based solely onprecedent rather than on periodic evaluation ofcircumstances and standards

• budgets can hide inefficiencies if based solely onprecedent rather than on periodic evaluation ofcircumstances and standards

• so detailed that they are cumbersome and overlyexpensive

• Over budgeting or under budgeting can causeproblems.

• financial budgets can become a substitute forobjectives. A budget is a tool and not an end in itself.

• budgets can hide inefficiencies if based solely onprecedent rather than on periodic evaluation ofcircumstances and standards

• budgets can hide inefficiencies if based solely onprecedent rather than on periodic evaluation ofcircumstances and standards

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UTILIZATION OF FUNDS

• investment or asset-mix decisions.• capital investment; fixed asset acquisition;

current assets; loans and advances; dividenddecisions; and relationship with shareholders

• Gujarat Ambuja Cements (EXAMPLE)

• investment or asset-mix decisions.• capital investment; fixed asset acquisition;

current assets; loans and advances; dividenddecisions; and relationship with shareholders

• Gujarat Ambuja Cements (EXAMPLE)

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EVALUATING THE WORTH OFBUSINESS

• integrative, intensive, and diversification strategies are oftenimplemented by acquiring other firms

• Various approaches for determining a business’s worth:a) stockholders’ equity. Net worth represents the sum of common

stock, additional paid-in capital, and retained earningsb) a business’s worth as five times the firm’s current annual profit. A

five year average profit level could also be used.c) letting the market determine

the selling price of a similar company the price-earnings ratio method Market price plus premium

• integrative, intensive, and diversification strategies are oftenimplemented by acquiring other firms

• Various approaches for determining a business’s worth:a) stockholders’ equity. Net worth represents the sum of common

stock, additional paid-in capital, and retained earningsb) a business’s worth as five times the firm’s current annual profit. A

five year average profit level could also be used.c) letting the market determine

the selling price of a similar company the price-earnings ratio method Market price plus premium

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PRODUCTION STRATEGY

• production system, operational planning andcontrol and logistics management, Supplychain management

• production system, operational planning andcontrol and logistics management, Supplychain management

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