Post on 08-Apr-2018
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Marketing strategy
ANALYSIS AND DECISION
Embarking on a through marketing analysis path is not ajoke.
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THE NATURE OF STRATEGY
What makes a company better?
Commited employees to creating and
satisfying customers. companies adapt and respond to a
continuously changing marketplace
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You need to be daring and adventurous
because there is no way you can get all the
facts before you can start the real analysis
Marketers are powerful from training
Marketers are versatile
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There is no single route or only one best
solution to a problem. We only need to weigh
all the alternatives
cost to be incurred
resources at hand
the expertise pool of the organization
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Company considerations
the circumstances
the time or season
the level attained by the organization in theindustry
the oganisations mission statement
the organisations history/culture
Existing portfolio
Experience with marketing and markets
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THE CONCEPT OF STRATEGY Dictionary def. - The science of planning and
directing military operations
The Professional marketer big picture,
long term view,
way of achieving objectives,
summary of tactics,
guidelines for tactics,
platform for integrated marketing
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Other Perspectives
Kotler (1996) Game Plan
Ansoff (1987) Decision-making rules
Subhash C. Jain (1993) Direction Micheal Porter (1985) Competitive
advantage
Mintzberg & Quinn (1996) 5Ps Dimensions
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Dimensions
Plan a unified, comprehensive andintegreted plan designed to ensure objectives
are achieved
Ploy manoevre to attack or threaten toattack the competitor eg. Threatening to enter
a new market, cut prices or launch lower
prices fighting brands.
*Ploy to serve as action to pre-empt
competitors response
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Pattern Summary of series of actions to
achieve consistency in behaviour whether
intended or not.
Position Defines how an organisation, or
brand wants to be seen in the market place
Leader, challenger, follower, or nicher
Known as competitive position
Becomes a mediating force, match between the
environment and organisation Perspective An ingrained way management
perceives the total business environment and
how it intends responding to forces within it.
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Perspective the marketing strategy should
permeate internally
All employees should understand strategy and feel
part of it
A corporate cultural environment is thus created
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Marketing Contribution to Strategy
Defining the business mission
Analysis of the environmental, competitive
and business situations Development of objectives, goals and
strategies
D
efining the product, market, distribution andquality plans to implement strategies
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LECTURE 2
Aspects of Strategic Choice
Strategy Implementation
Levels of Strategy
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PART 1
STRATEGIC CHOICE
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Marketing Strategy
Marketing strategy is defined as the analysis,
strategy development, and implementation
activities in selecting market targets for the
product-markets of interest to the
organization, by, managing the marketing
programme and positioning strategies
designed to meet the needs of customers ineach market target.
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The activities involved in
Analyzing
D
eveloping strategy and implement activities for the organization
but you have to manage the marketing
programmes (models and concepts, peste etc)
the ultimate goal- meet the needs of customers
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Why are marketing strategies so
important1. Because they represent the means by which
businesses attempt to influence consumers
2.T
heir implementation requires major costallocations
3. They determine the competitive position of
the business and affect growth potential
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Aspects of Strategic Choice
Strategic marketing plan- it is the laying out
the target markets and the value proposition
that will be offered, based on the analysis of
the best market opportunities
Tactical marketing plan- they are marketing
tactics, including product features, promotion,
merchandising, pricing, sales channels, andservices.
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Decision making (weather strategic or tactical
plan) is but a part of a broader problem-
solving process.
1. analysis,
2. choice and
3. implementation.
*Unexpected events can create new opportunities,
destroy foreseen opportunities, or alter the balanceof advantage between opportunities.
Have to be challenging and good enough to keep you
ahead of competition
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Strategic Analysis
Strategic analysis focuses on understanding
the strategic position of the organisation
which requires that answer be found to such
questions:
A. What changes are taking place in the environment.?Competition etc
B. How will these changes affect the organization and its
activities?
C. What resources does the organization have to deal withthese changes?
D. What do those groups (decision makers) associated with
the organization wish to achieve? (targets)
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Strategic Choice
Strategicchoicehasthreeaspects:
The generation of strategic options, which should go
beyond the most obvious courses of action.
The evaluation of strategic options, which may be
based on exploiting an organisations relative
strengths or in overcoming its weakness.
The selection of a preferred strategy which willenable the organization to seize opportunities within
its environment or to counter threats from
competition.
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Strategic Implementation
Strategic implementation is concerned with
translating a decision into action, which
presupposes that the decision itself (i.e.the strategic
choice) was made with some thought being given tofeasibility and acceptability. The allocation of
resources to new courses of action will need to be
undertaken, and there may be the need for adapting
the organizations structure to handle new activitiesas well as training presonnel and devising
appropriate systems.
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Strategic Implementation
Functional tactics
Differences between function and businessstrategies/corporate strategies
Time horizon (immediate future or now)
Specificity
Participants who develop them
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Key Questions in Strategic Choice
Strategic choices need to take account of the
environmentand build on core competences
Strategic choices need to take account of theexpectations and influence ofstakeholders
Strategic direction and methods should build
on broad strategic choices
Resources and competences should be
developed to deliver and sustain the chosen
strategies
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PART 2LEVELS OF STRATEGY
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Levels of Strategy
Three organisational levels
Corporate level
Business unit level and
Functional Level
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Corporate Level Strategy
Define corporate strategy and discuss its
purpose
Describe the different corporate level
strategies
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What is corporate level strategy
What is the corporate level strategy
Company-wide strategies
long term actions intended to achieve thecorporate strategic plan
Top management decision
Defined in the corporate mission statement
Financial and non financial goals
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Specific Decisions
Market Definition
Decisions taken here include product
introduction or withdrawal, creation of a newdepartment, repositioning the business.
The value of a business unit to the overall
portfolio
Attitudes at the corporate level reflect the
concerns of the stakeholders
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Business Level
A strategic business unit may be a division,
product line, or other profit center that can be
planned independently from the other
business units of the firm.
Companies actually compete at the business
level
Integrated and coordinated set of
commitments and actions the firm uses to
gain a competitive advantage by exploiting
core competencies in specific markets.
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Choosing BLS
Since customers are the lifeblood of every
organisations, they must be taken into
consideration at the business level.
Who will be served?
What are their needs that need to be
satisfied?
How will these needs be satisfied?
The business strategies are called generic
strategies because they can be used in all
industries.
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Functional level The level of the operating divisions and departments
Significant to the success of any strategy
Allocation of resources
Translate strategic decisions to strategic options
*value chain Functional units of an organization are involved in
higher level strategies by providing input into the
business unit level and corporate level strategy, such
as providing information on resources andcapabilities on which the higher level strategies can
be based
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Purpose of BLS
The purpose of a business level strategy is to
create differences between the firms position
and those of its competitors
Question
Do we perform activities differently?
or
Do we perform different activities?
How to perform the value chains primary and
support activities in ways that create competitive
advantage that can be of value to customers?