Marketing Strategy: Introduction

What is strategy?

How does marketing contribute?- The marketing concept- Market orientation

Marketing Strategy: Introduction What is strategy? A fundamental pattern of present and planned objectives, resource deployments, and interactions of an organization with markets, competitors, and other environmental factorsthe search for a favourable competitive position(Porter, 85)

Marketing Strategy: IntroductionCorporate strategy-organizations scope and resource deployment

Business-level strategy-competitive strategy of a business unit in its industry

Marketing strategy-targeting, segmenting and positioning for a product. Figuring out the marketing mix

Marketing Strategy: Introduction What is the marketing concept?determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.(Kotler et al, 96)

Marketing Strategy: Introduction

What do marketers mean when they say their firms are market oriented?

Marketing Strategy: IntroductionWhat are advantages and disadvantages of market orientation?

Why do some firms lack orientation towards the market ?

Marketing Strategy: Introduction

Market oriented in not marketing oriented- information on all important buying influences permeates every corporate function-Strategic/tactical decisions are made inter-functionally and inter-divisionally-divisions and functions make well-coordinated decisions and execute them with commitment

Marketing Strategy: Introduction

Which should come first the customer need or the product idea? - Marketing myopia

Discussion questions

Q.1 : In defining their strategies, should companies pursue broadly or narrowly defined missions?

Q. 2: What are the advantages of each approach?

Characteristics of Effective Corporate Mission Statements

BroadSpecificFunctionalBased on customer needsTransportation businessLong-distance transportation for large-volume producers of low-value, low-density products PhysicalBased on existing products or technologyRailroad businessLong-haul, coal carrying railroad

Ansoff Strategies

Current Products

New Products

Current Markets

Market penetration strategy

Product development strategy

New Markets

Market development strategy

Diversification strategy

The BCG Growth Share Matrix

Cash Flows Across Businesses in the BCG Portfolio ModelGrowth rate (cash use)HighLowStarsCash cowsDogsQuestionmarksHighLowRelative market shareDesired direction of business developmentCashFlows

The GE Nine-Cell Matrix1 Invest/grow2 Selective investment/ maintain position3 Harvest/divest

*8*A tool for allocating resources in diversifies companies: The GE Nine-Cell Matrix

How would you assess competitive position and industry attractiveness?Factors to assess competitive positionRelative shareCustomer loyaltyMarginsDistributionTechnologyMarketing skillsPatents

Factors to assess industry attractivenessSizeGrowthCompetitive intensityPrice levelsProfitabilityTechnological sophisticationGovernment regulations