Transcript Marketing Strategy

Marketing Strategy
MKT 460
Lecture 1:
Strategic Marketing and
The Marketing Planning Process
Taufique Hossain
Learning Objectives
 Be able to conceptualise marketing strategy.
 Appraise the nature and processes of strategic
marketing planning.
 Assess the importance of marketing
strategy/planning to a business and identify the
kinds of things that can go wrong!
Marketing Defined
 Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of ideas,
goods, and services to create exchange and satisfy
individual and organizational objectives (AMA 1985).
 Marketing is the management process responsible for
identifying, anticipating, and satisfying customer
requirements profitably (CIM 2001).
 Marketing is the activity, set of institutions, and processes
for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners,
and society at large (AMA 2008).
Mutually Beneficial Exchanges
PROVIDER’S
Goals
Survival
Financial
Social
Spiritual
Ecological
etc
OFFERS
Products, services etc CUSTOMER’S
Goals
Customer &
Provider
Satisfaction
Purchases, support
RESPONSES
Solutions
Benefits
Altruism
Well being
etc
The Concept of Market Orientation
 Organization wide generation, dissemination,
and responsiveness to market intelligence
(Kohli and Jaworski 1990).
 The organizational culture that most
effectively and efficiently creates the
necessary behaviors for the creation of
superior value for buyers and thus, continuous
superior performance for the business (Narver
and Slater 1990).
Components and Context of Market
Orientation
Customer
Orientation
Competitor
Orientation
Market-led
Organisational
Culture
Focus on the
Long Term
Inter-functional
Co-ordination
Fabric of the New Marketing Concept
 Create customer focus throughout the business.
 Listen to the customer.
 Define and nurture the organization’s distinct
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competencies.
Target customers precisely.
Manage for profitability, not sales volume.
Make customer value guiding star.
Let the customer define loyalty.
Fabric of the New Marketing Concept
 Measure and manage customer expectations.
 Build customer relationships and loyalty.
 Define the business as a service business.
 Commit to continuous improvement and innovation.
 Manage culture along with strategy and structure.
 Grow with partners and alliances.
 Destroy marketing bureaucracy.
Resource-Based View of Marketing
 Follows from work on the resource based view of
the firm in strategic management:
 The locus of interest concerns resources and
capabilities possessed by the firm, which can be
deployed by its strategy to achieve competitive
advantage and superior performance.
 The source of superior performance lies in the
possession and deployment of distinctive, hard to
imitate or protected resources.
Marketing Approaches
Market Needs
Customer-Led
Marketing
Resource-Based
Marketing
Product Push
Marketing
Organisational Capabilities
Organisational Stakeholders
Customers
Shareholders
Distributors
Focal
Organisation
Suppliers
Managers
Employees
Marketing and Performance
Outcomes
Marketing
Resources
MarketOriented
Culture
Assets
Capabilities
Market
Performance
Customer
Satisfaction &
Loyalty
Sales Volume &
Market share
Financial
Performance
Summary of Marketing
Fundamentals
 Focus on the customer.
 Only compete in markets where you can establish
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a competitive advantage.
Customers do not buy products.
Marketing is too important to leave to the
marketing department.
Markets are heterogeneous.
Markets and customers are constantly changing.
The Role of Marketing in Strategic
Management
Identify and communicate customer wants and needs
throughout the organisation.
Determine the competitive positioning to match the
needs of the customers with company capabilities.
Marshal all relevant organisational resources to
deliver customer satisfaction.
Strategic Fit
Marketing Planning
 First step is to define the business purpose or
mission:
 What business are we in?
 What business do we want to be in?
 Mission statement—A statement of the
organization’s purpose and what it wants to
accomplish in the wider environment.
Components of Mission
Strategic Intent
Vision of what you want to be
Market Definition
Mission
Company Values
Objectives and Strategy
Customer Targets
Guiding Principles
Competitive Positioning
Distinctive Competencies
Differential Advantage
Core skills
The Marketing Strategy Process
Business
Purpose
Industry
Analysis
Market Target
Control
Core Strategy
Competitive
Positioning
Implementation
Marketing Mix
Company
Analysis
Competitive
Advantage
Organisation
Establishing the Core Strategy
 Analysis of organizational resources.
 Analysis of the markets served.
 Analysis of SWOT constituents.
SWOT Analysis
Good
Points
Danger
Points
Internal
External
Strengths
Opportunities
What are we
good at relative
to competitors?
What changes are
creating new
options for us?
Weaknesses
Threats
What are we bad at
relative to
competitors?
What emerging
dangers must we
avoid or counter?
SWOT Strategic Implications
Opportunities
Strengths
Weaknesses
Exploit existing
strengths in
areas of
opportunity
Build new
strengths first to
take advantage
of opportunities
Threats
Use existing
strengths to
counter
threats
Build new
strengths to
counter threats
Core Strategy
Improve
Performance
Improve
Productivity
Increase Sales
Expand
Market
Increase
Share
Increase
Margins
Reduce
Costs
New uses
Win share
Increase price
Capital costs
New users
Acquire share
Add value
Fixed costs
Increase use
frequency
Create
alliances
Change product
mix
Variable costs
New products
Creation of Competitive Positioning
 Market targets
 Differential advantage:
 Cost leadership
 Differentiation
 Focus
Reading
 Hooley et al. Chapters1 and 2.
 Nohria, Joyce, and Robertson (2003), ‘What
Really Works’, Harvard Business Review, July,
pp. 42-53.
 Piercy and Morgan (1994), ‘The Marketing
Planning Process: Behavioral Problems
Compared to Analytical Techniques in Explaining
Marketing Plan Credibility’ Journal of Business
Research, 3, pp.167-178.