MARKETING STRATEGY

STRATEGY

What is strategy? ...the fundamental means or scheme for reaching objectives.

Levels of Strategy
Corporate Strategy
(covers all the businesses)

Business Strategy
(exists at the individual business)

Functional-Level Strategy
(limited to the specific businesses)
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MARKETING STRATEGY

What is marketing strategy? ...the selection of target markets and the creation and maintenance of an appropriate marketing mix.

Marketing Strategy

Marketing strategies typically fall apart when:

New competition enters market Buyer preferences change Insufficient quality & volume

Components of a Marketing Strategy

Marketing Strategy Process

Assess Current Performance

Establish Specific Objectives

Develop Marketing Strategy

Design Marketing Programs

Logical Flow

Marketing strategy Process Step 1. Assess Current Performance

Strategic Business Unit
GE Matrix

BCG Matrix

Step 1. Assess Current Performance

Strategic Business Unit

What is SBUs? ...a unit of the firm that can be considered a separate entity for planning purposes. For Example:General Electric set up 43 SBUs, each of which had its own mission within the company & an identifiable market with a unique customer base.

Step 1. Assess Current Performance

Boston Consulting Group

Step 1. Assess Current

Performance
General Electric Matrix
Business Strength

Strong Medium Weak Very High AttractiveAttractive Acceptable

Market Attractiveness To Be Medium Attractive Acceptable Avoided

To Be Low Acceptable Avoided

Investment for Growth (OCL) Maintain position; seek selective growth & earnings (DIFFERENTIATION)

To Be Avoided
Harvest or divest (FOCUS)

Marketing strategy Process Step 2. Establish Specific Objectives

Monitor the Environment
Recognize Capabilities, Resources & Limitations Understand Opportunities & Risks

Marketing strategy Step 3. Develop the Marketing Process Strategy

It involves a realistic assessment of firms strengths & weaknesses weighted against the opportunities & risks that exist in the marketplace.

Positioning Growth approaches Marketing Approaches

Step 3. Develop the Marketing Strategy

Positioning

What is Positioning?

... the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer.

Step 3. Develop the Marketing Strategy

Growth Approaches
Intense Growth

Diversified Growth

Integrated Growth

Intense Growth

A growth approach that depends on products or markets that have not yet achieved full potential.
Market Penetration Market Development Product Development

CONT

Intense Growth

Diversified Growth

A broad growth approach in which a firm enters new markets with new products.

Horizontal Diversification
(products that are technologically unrelated to the firms current product)

Concentric Diversification
(products that are technologically

related to the firms current product)

Conglomerate Diversification
(products that are totally

unrelated to the firms current product)

Integrated Growth

A growth approach in which a firm develops a stronger position within its industry. - Backward integration - Forward Integration - Horizontal Integration

Marketing Approaches
In this, the marketer need to define overall approach to marketing. Undifferentiated Marketing
(aims one product at broad market)

Step 3. Develop the Marketing Strategy

Differentiated Marketing
( aims specialized product at target market)

Concentrated Marketing (aims single or limited line of

similar products to the specialized customer segments)

Marketing strategy Step Process 4. Design the Marketing

Program
To develop the program that will help the organization meet its objectives.

Select the Target Market Develop a Marketing Mix Control the Marketing Plan

Select the Target Market

A target market is a clearly identified segment of the market to which the company wants to appeal. - There are several tests, an marketer should apply before proceeding: Big Enough Need Growth Structure of Demand

Develop a Marketing Mix

The marketing mix is the set of controllable tactical marketing toolsproduct, price, place, and promotionthat the firm blends to produce the response it wants in the target market.

Control the Marketing Plan

Controlling the marketing plan involves three steps:Measuring results of the implementation Comparing results with objectives Deciding whether the plan is meeting objectives

Effective Marketing Strategy

It requires continual attention & creativity, as well as a commitment from management:Ongoing Process Based on creativity

Critical Element

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Key Terms
1. Leaders Innovative companies who are regularly first into the marketplace with new products.
Copy what the leaders do. Provides specialized product offering.

2. Followers 3. Nichers 4. Distinctive Competency

Those things that a particular firm does better than any other firm in its industry. 5. Market share An organizations portion of the total sales in a market, expressed as a %.