Mkting Strategy n Decision

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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?

Mkting Strategy n Decision

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