(2) marketing; module 1; session 2; marketing strategy

7/21/2019 (2) Marketing; Module 1; Session 2; Marketing Strategy

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1

Module I: Understanding Marketing Management

Session 1: An Overview of Marketing

Session 2: Marketing Strategy



g gy

2

Learning Obje tives

1. Explain strategic planning process and thecontribution of marketing in developingmarketing strategy.

2. Describe business portfolio and growthstrategies.3. Explain how a company obtains Sustainable

competitive advantage.. Describe the elements of a marketing plan.



!

Ste"s of Strategi #lanning

MissionStatement

CorporateStrategy Business Unit

Strategy

MarketingStrategy

Statement of anorganization’s purpose;should be marketoriented.

Supporting goals andobjectives to guide theentire company.

Collection of businessesand products that make upthe company.

Detailed planning for each departmentdesigned to accomplish strategic objectives.

Marketing Mix Elements:1. Product2. Distri ution!. Promotion". Pricing



$

Arena!usiness ScopeServed "arket#arget Segments

Advantage$alue %roposition#arget&ompetitors'imitability

A ess&hannel Structure&ommunication mix

A tivitiesScope ( Scale of

)ctivities%artnerships

Market%drivenOrgani&ation

'ay: Strategy as ()oi es



*

Marketing Strategy

"apping!usiness'andscape

Developing&ompetitive )dvantage

)nticipating&ompetitive Dynamics

and SustainingSuperior %erformance

&ompetitors

&ustomers Suppliers

&omplementors

&ompany

&ompetitiveStrategies

!usiness%ortfolio%lanning

*rowthStrategies

"arket Shared!asedStrategies

+ffensive andDefensiveStrategies

"arketingStrategies

Segmentation#argeting

%ositioning

"arketing mix,%roduct%romotion%lace

%rice

Environment



+

#perational ExcellenceSuperior value via con$enience% &uality andprice ( oyota! Dell"

Customer 'ntimacySuperior value by means of uilding strongrelations(ips )it( uyers and satis*yingneeds (#ome Depot! $raft"

Product +eaders(ipSuperior value via product inno$ation (%&!

Sony! 'pple"

C o m p e t i t

i $ e

S t r a t e g i e s


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'esigning t)e-usiness #ortfolio

#he best portfolio is the onethat best fits the company-sstrengths and weaknesses tothe opportunities in theenvironment.#he company must,

analy e its current businessportfolio or Strategic !usiness/nits 0S!/-sdecide which S!/-s shouldreceive more less or noinvestmentshape the future portfolio bydeveloping growth strategies foradding new products or

businesses to the portfolio


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/)e -(0 0rowt)%s)are Matri



-(0 Matri Strategies

-uildncrease market share4orks well for 5uestionmarks

old%reserve market share*ood for cash cow

arvestncrease short6term cashflow 0by decreasinginvestment andexpenditure

'ivestSell or li5uidate*ood for dogs and

5uestion marks 0due to poormarket position or poor fitwith care products



#ortfolio S enarios Alternative


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/)e 03 Strategi #lanning 0rid

03 MatriMarket Attra tiveness

"arket growth rate"arket si eDemand variability!usiness profitability"acroenvironmentalfactors!usiness rivalry*lobal opportunities

-usiness Strengt)

"arket share*rowth in market share!rand e5uityDistribution channelaccess%roduction capacity%rofit margins relativeto competitors

. ells



M a r k e t # e n e t r a t i o n

M a r k e t ' e v e l o " m e n t

# r o d u t ' e v e l o " m e n t

' i v e r s i f i a t i o n

#resentMarkets

5ewMarkets

#resent#rodu ts

5ew#rodu ts

'evelo"ing 0rowt) Strategies


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Market #enetration

#rimary 'emand'evelo"ment 07ew /se"ore /sagesMarket S)are In reaseMarket A 6uisition

Market 7ationali&ation

Market 'evelo"ment

5ew Market Segments0ndustrial ( &onsumer"arkets 7ew ndustrialSectors 7ew &onsumerSegment5ew 'istribution ()annel0Direct "arketing $ending"achine 8ranchise System0eogra")i 3 "ansion0'ocal Expansion *lobalExpansion

0rowt) Strategies 819


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0rowt) Strategies 829

#rodu t 'evelo"ment

'is ontinuousInnovation5ew 0eneration of#rodu ts#rodu t Line 3 tension7ationali&ation orA 6uisition;eatures Adding#rodu t #erforman eIm"rovement

'iversifi ation

(on entri'iversifi ation#ure 'iversifi ation'iversifi ation basedon ore om"eten y


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Market #enetration: &ompany growth byincreasing sales of current products to currentmarket segments without changing the product.ow<

Market 'evelo"ment: &ompany growth byidentifying and developing new marketsegments for current company products. ow< #rodu t 'evelo"ment: &ompany growth byoffering modified or new products to currentmarket segments. ow<'iversifi ation: &ompany growth throughstarting up or ac5uiring businesses outside the

company s current products and markets. ow<

0rowt) Strategies: An 3 am"le



1,

Marketing Strategy

"apping!usiness

'andscape

Developing&ompetitive )dvantage

)nticipating&ompetitive Dynamics

and SustainingSuperior %erformance

&ompetitiveStrategies

!usiness

%ortfolio%lanning

*rowthStrategies

"arket Shared!ased

Strategies

+ffensive andDefensiveStrategies

"arketingStrategies



1.

Market #osition Strategies

Strategies for

Market 7eaders

Market ()allengers

Market ;ollowers

Market 5i )ers



2=

Market%Leader Strategies 819

3 "anding t)e total market#argeting %roduct to 7ew /sers%romoting 7ew /ses of %roduct 0$aseline !aking Soda

Encouraging *reater %roduct /se 0"ichelin *illette

Market S)are 3 "ansion

'efending Market s)are#he leader must continuously defend its territory.#he most constructive response to attacks isontinuous innovation .



21

Market%Leader Strategies 829

'ttacker

%" re)emptive

Defense*" Counter)+ffensiveDefense

," &obileDefense

-" lankDefense

/" ositionDefense

Defender

0" ContractionDefense

'efensive Strategies



2$

Market%()allenger

#he market challengers- strategic ob9ective is togain market share and to become the leadereventually

:ow;Do nothing

)ttack the market leader which is high risk.

)ttack other firms of the same si eunderperforming or poorly financed. )ttack small local and regional firms that areunderperforming and poorly financed.



2*

Atta ker 'efender

8!93n ir lement atta k

849 -y"ass atta k

829;lank atta k

8$90uerilla atta k

819;rontal atta k

Market%()allenger 0eneral Atta kStrategies



!=

Intensive advertising "romotion

#rodu t"roliferation

#restigegoods

#ri e dis ounts

#rodu tinnovation

'istributioninnovation

Im"rovedservi es

Manufa turing ostredu tion

S"e ifiAtta kStrategies

Lower%"ri ed goods

Market ()allenger S"e ifi Atta kStrategies

>alue%"ri ed goods



!2

Market%5i )er Strategies

Smaller firms can avoid larger firms by targeting smaller markets or nichesthat are of little or no interest to thelarger firms.

1ichers must create niches! e2pandthe niches and protect them.

e.g. 1ike constantly created ne3niches))cycling! 3alking! hiking!cheerleading! etc.

4hat is the major risk faced bynichers5

&arket niche may be attacked bylarger firms once they notice theniches are successful .

7iche Specialties,End6user &ustomer6si e$ertical6level

Specific customer *eographic%roduct>product line%roduct feature=ob6shop?uality6priceService

&hannel



!*

3lements of a Marketing #lan

3 1 e u t i v e S u m m a r y ( u r r e n t M a r k e t i n g S i t u a t i o n

/ ) r e a t s a n d O " " o r t u n i t i e s

O b j e t i v e s a n d I s s u e s

M a r k e t i n g S t r a t e g y

A t i o n # r o g r a m s - u d g e t s

( o n t r o l s



!

#:)7@ A+/8or ' S#E7 7*

%rinciples of "arketing"odule SESS +7 #4+

%resented by 7.@arami BC F GBHIJFOP QO R KT KU K KV .... WH XYKU

(2) marketing; module 1; session 2; marketing strategy

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