Transcript Topic 1 - Extra Reading File

Topic 1: Marketing Strategy Analysis
and Perceptions
West, Ford & Ibrahim: Strategic
Marketing 2e
Chapter 1: Overview and Strategy
Blueprint
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
 Be able to define marketing strategy.
 Understand the essential differences between the main
approaches towards marketing strategy.
 Review the structure of the book.
 Assess the importance of marketing strategy to a business and
identify the kinds of things that can go wrong.
Chapter at a Glance
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Thinking First
Seeing First
Doing First
Postmodern
Simple Rules
Postmodern
Market-oriented strategy
The book’s perspective
What to choose
How important is marketing strategy?
Introduction: Definition of Competitive
Marketing Strategy
“A market-oriented strategy that establishes a
profitable and sustainable market position for the
firm against all forces that determine industry
competition by continuously creating and
developing a competitive advantage from the
potential sources that exist in a firm’s value
chain.”
Key Elements
Market-oriented:
Strategy based upon the needs & wants of the marketplace
Establishes a profitable
market position:
End goal of strategy to make a profit in the for-profit sector or
to meet alternate metrics (NFP sector)
Establishes a sustainable
market position:
Marketing strategy not about one-off transactions. Aim is to
find a place in the market
Forces that determine
industry competition:
Complex mix of ingredients that create the marketing
‘whirlwind’
Continuously creating &
developing CA:
Find a spot where, if need be, the primary challenges can be
tackled
Potential sources that
exist in a firm’s value
chain:
What value any organisation wants to create using its
available marketing resources
Definition
“Marketing strategy is…a market-oriented
approach that establishes a profitable market
position for an organisation against all forces
that determine industry competition by
continuously creating and developing a
sustainable competitive advantage (SCA) from
the potential sources that exist in a firm’s value
chain.”
Dress Down Version!
“Marketing strategy is an approach to enable an
organisation to best use it resources to meet the
needs of its customers.”
Strategy......
 The word ‘Strategy’ was initially introduced and defined in the
ancient military dictionaries
 It comes from the Greek word ‘strategos’, strictly meaning a general
in command of an army; it is formed from ‘stratos’, meaning army
and ‘ag’, meaning to lead
 Used first time in business literature by William Newman (1951)
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
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
It helps…
 Define the scope of business
 Finding ‘Strategic Fit’ between organisation and its
environment
 Identifying a Sustainable Competitive Advantage (SCA)
 Guiding the allocation of resources
Thinking First
Cognitively analysing a
strategic marketing
problem and developing
the solution (the strategy)
through a carefully
thought-out process
It can help to see the big
picture occasionally
throughout the process. It
can involve some
inspiration & insight, but
largely the process is one of
painstakingly doing your
homework
Market Orientation
Self-centred
Customer
Compelled
Sceptical
(Day, 1998)
4 Main Ways of Approaching Marketing Strategy
THINKING FIRST
SEEING FIRST
DOING FIRST
SIMPLE RULES
COMPETITIVE
MARKETING
STRATEGY
Seeing First
• Importance of seeing the overall decision
is sometimes greater than thinking about it
• Insight often only comes after a period of
preparation, incubation, illumination &
verification in the cold light of day
• The 'eureka' moment
Doing First
(1) do something, (2) make sense of it
(3) repeat the successful parts & discard the rest.
Instead of marketing strategy –
the reality is often that ‘doing’ drives
Many companies have successfully diversified their businesses
by a process of figuring out what worked & what did not
Postmodern view
Tricksterism
Entertainment
Amplification
Secrecy
Exclusivity
(Brown, 2003)
Simple Rules
How-to rules keeping managers organised to be able to seize opportunities
Boundary rules help managers to pick the best opportunities
based geography, customers or technology
Priority rules are about allocating resources amongst competing opportunities
Timing rules relate to the rhythm of key strategic processes
Exit rules are about pulling out from past opportunities
What to Choose?
•
Thinking First/Market Orienation works best when the issues are clear, the
data are reliable, the context is structured, thoughts can be pinned down
and discipline can be applied
•
Seeing First works best when many elements have to be creatively applied,
commitment to solutions is key and communications across boundaries are
needed (e.g. in NPD)
•
Doing First or simple rules work best when the situation is novel and
confusing, complicated specifications would get in the way and a few simple
relationship rules can help move the process forward
•
The Postmodern orientation needs to be continually borne in mind to
provide a check on how, in reality, buyers will interpret the final offering
Framework for a Five Year PESTLIED and
Scenario Analysis
TIME FRAME: 5 YEARS
SOURCE
DESCRIPTION
Political
Economic
Social
Technological
Legal
International
Environmental
IMPLICATION FOR ORGANISATION
CERTAINTY
IGNORE
5
MARKETING
STRATEGY
4
1
2
3
4
5
IMPORTANCE
2
IGNORE
1
SCENARIO
CERTAINTY IMPORTANCE
1-5
1-5
Marketing Strategy Blueprint
PHASE 1
Where are
we now?
PHASE 2
Where do we
want to be?
PHASE 3
How will
we get there?
Market Scan/
Scenarios
Objectives
& Future
Directions
Action Plan
Internal
Analysis
A
U
D
I
T
Segment
Target
Strategic
Fit
Position
S
T
R
A
T
E
G
Y
Marketing
Mix
Contingency
PHASE 4
Did we
get there?
Monitor
T
R
A
N
S
L
A
T
I
O
N
Possible
Corrective
Action
E
V
A
L
U
A
T
I
O
N
The easyGroup
Conclusion
• Seeing First or Doing First are approaches to decisionmaking that normally need a sound understanding of
Thinking First to be successful
• You need to know the rules before you should break
them—you can break all the rules once you know what
they are!