Transcript Strategic Marketing, 3 rd edition

West, Ford, & Ibrahim
Strategic Marketing, 3rd edition
Chapter 2: Marketing strategy:
analysis and perspectives
© Douglas West, John Ford, and Essam Ibrahim, 2015. All rights reserved.
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
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
8. Product Innovation & Development
Strategies
9. Service Marketing Strategies
10. Pricing & Distribution Strategies
11. Marketing Communications Strategies
12. International Marketing Strategies
13. Social and Ethical Strategies
Learning Objectives
 To introduce the concept of strategy and illustrate the
hierarchy of strategy
 To describe the purpose of ‘marketing strategy’
 To review the two perspectives of marketing strategy,
and define the concept of marketing orientation
 To discuss the relationship between corporate and
marketing strategy
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
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
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
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
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
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
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
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
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
Purpose of marketing strategy
 To set the direction of the organisation and decide what
product/s & in which markets the firm should invest its
resources
 To define how it is to create value to customers
 To describe how it is to perform marketing activities
(4Ps) better than competition
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
Marketing Strategy – Two Perspectives
 Marketing strategy at the functional level
 Planning and controlling the marketing activities
 Planning and implementing the 4Ps/7Ps
 Management customer relationship
 Marketing as a philosophy/orientation
 Guiding the organisation’s overall activities
 Playing a key role in the strategic management process
(SMM)
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
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.
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
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)
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
Guides
Directs
Controls
Co-ordinates
Marketing Strategy
Competing in a product market
Selecting market segments
Designing the mix
Does marketing
orientation contribute to
company success?
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
Marketing orientation and
business performance
?
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition
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.
West, Ford, & Ibrahim: Strategic Marketing, 3rd edition