Corporate and marketing strategy

01/24/05

Goals, Strategy and tactics GOAL

What you want to accomplish

STRATEGY Specific plan of action designed to accomplish

objective. Characterized by

a specified target market and a marketing program to reach it.

TACTICS Logistics necessary to execute strategy

Goals Well-stated goals should be:

Realistic Measurable Specific Time Period Consistent Prioritized

Levels of strategy in organizations

Corporate Strategy Corporate Vision Corporate Culture Business mission

Product Versus Market Oriented Business Definitions

Company Product oriented Market oriented

Amazon.com

We sell books, videos, CDs, toys, consumer electronics, hardware, housewares and other products

We make the Internet buying experience fast, easy and enjoyable – we’re the place where you can find and discover anything you want to buy online

Disney We run theme parks We create fantasies – a place where America still works the way its supposed to

Portfolio planning

CurrentProducts

NewProducts

1. Market penetration strategy

3. Product development strategy

2. Market development strategy

4. Diversification strategy

CurrentMarkets

NewMarkets

Market product analysis

RetainProducts Harvesting Retrenchment

RetainMarkets

EliminateMarkets

EliminateProducts

Pruning Divestment

Market product analysis

Consolidation strategies Harvesting

The use of a gradually decreasing share of the company’s resources to support the product or business. However, the product or business is retained as long as it is profitable

Pruning The attempt to continue serving the same market but not all the

segments within that market Retrenchment

An organization continues to offer the same product line but retreats to its strongest core markets

Divestment The selling off of a business or a product line to another company

because there is a weak “fit” between its mission and competencies and the requirements for making the product successful

Marketing Strategy For this course, strategy simply is how you

combine the Four P’s of marketing to achieve your stated goals

Strategy should be determined after environmental analysis is completed

The Four P’s should:– Fit the Five C’s of the micro environment– Should be internally consistent with each other

Planning phase

Situationalanalysis

Goalsetting

Marketingprogram

Implementationphase

Controlphase

Step 1 Step 2 Step 3

Marketing plan

Results Co

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The strategic marketing process

Situation Analysis Situation Analysis

Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s plans and the external factors and trends affecting it.

A short-hand summary of the situation analysis is the SWOT ANALYSIS

SWOT Analysis How can we:

Build on key competencies (strengths) Correct glaring problems (weaknesses) Exploit significant opportunities

(opportunities) Avoid disaster (threats)

Strengths and weaknesses deal with the internal environment

Opportunities and threats deal with the external environment