Transcript Topic 1- Marketing Strategy and Perspectives File

Topic 1: Strategic Marketing
Topic 1: Marketing strategy:
analysis and perspectives
Structure
A. INTRODUCTION
1. Overview and Strategy Blueprint
2. Marketing Strategy: Analysis &
perspectives
C. WHERE DO WE WANT TO BE?
B. WHERE ARE WE NOW?
3. Environmental & Internal Analysis:
Market Information & Intelligence
4. Strategic Marketing Decisions,
Choices & Mistakes
5. Segmentation, Targeting
& Positioning Strategies
6. Branding Strategies
7. Relational & Sustainability
Strategies
D. HOW WILL WE GET THERE?
E. DID WE GET THERE?
14. Strategy Implementation, Control
& Metrics
8. Product Innovation & Development
Strategies
9. Service Marketing Strategies
10. Pricing & Distribution
11. Marketing Communications
12. E-Marketing Strategies
13. Social and Ethical Strategies
Learning Objectives
 To introduce the concept of strategy
 To illustrate the hierarchy of strategy
 To describe the purpose and role of ‘strategy’
 To review the linear models for strategy making
process
 To discuss the relationship between corporate and
marketing strategy
The concept of ‘strategy’
Generic
 a plan of attack for winning
 a plan for beating the opposition
Organisational
 a plan for achieving organisational goals
 a plan for securing a competitive advantage in a
given market
Strategy definition
“the direction and scope of an organisation over the
long(er) term, which ideally matches its resources to its
changing environment and, in particular its markets,
customers or clients so as to meet stakeholder
expectations”
Johnson & Scholes (1999)
Hierarchy of strategy
Corporate
Strategy
Corporate Headquarters
SBU
Manufacturing Finance
HRM
SBU
Business
(Division
Level)
Strategy
SBU
Marketing
R&D
Functional
Strategy
* Strategic management may be initiated at any or all of these hierarchical levels of
an organisation.
Three levels of strategy
Corporate
The overall goals of the business; often expressed in financial
terms
Competitive/Business (SBU)
How to compete in individual product-markets and support the
corporate strategy
Functional
Functional strategies for the organisation’s functional areas in
support of SBUs and corporate strategies
Purpose of strategy
 To set the future direction for the organisation
 To state how it is to create value to customers
 To identify what product/s and in which markets the firm
will invest its resources
 To describe how it is to perform better than competition
Strategy help in:
 Defining the scope of business
 Finding ‘Strategic Fit’ between the organisation and its
external environment
 Identifying a Sustainable Competitive Advantage
(SCA)
 Guiding the allocation of resources
The interrelationship between marketing and
corporate strategy
Corporate Strategy
Specifying the organisation’ mission
Allocation of resources across the
whole organisation
Portfolio of activities for the
organisation
Defining organisational objectives
Informs
Achieves
operationalises
Brassington Frances and Stephen Pettitt (2006)
Guides
Directs
Controls
Co-ordinates
Marketing Strategy
Competing in a product market
Selecting market segments
Designing the mix
Operational vs strategic marketing
Operational Marketing
• Action-oriented
• Existing opportunities
• Non-product variables
• Stable environment
• Reactive behaviour
• Day-to-day management
• Marketing department
Strategic Marketing
• Analysis-oriented
• New opportunities
• Product market variables
• Dynamic environment
• Proactive behaviour
• Longer range management
• Cross-functional
Marketing orientation
Marketing orientation is a state of mind, or a
philosophy, that guides the strategic vision and future
direction of companies. Marketing-orientated firms
adopt a proactive search for market opportunities,
use market information as a base for analysis and
organisational learning, and adopt a long-term
strategic perspective on markets and brands.
Does marketing
orientation contribute to
company success?
Marketing orientation and
business performance
?
Conclusion
• Strategy can be simply defined as a plan for securing a competitive
advantage in a given market.
• Strategy exists at multiple levels in an organisation: corporate,
business unit, and functional levels.
• The marketing concept has a significant role to play in strategy
development and corporate success.
• Competitive marketing strategy aims to establish a profitable
competitive position for the firm against all forces that determine
industry competition.
• Strategy making process has been discussed in the literature in such
terms as strategic market planning and strategic market management.