strategic marketing- session 1 mba 2011-13

7/31/2019 Strategic Marketing- Session 1 MBA 2011-13

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MARKETING STRATEGY

SESSION -1

INTRODUCTION

MBA 2011-13


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Sun Tze on Strategy

Know your enemy, know yourself, andyour victory will not be threatened.

Know the terrain, know the weather, andyour victory will be complete.


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WHAT IS STRATEGY

Strategy in a firm is the pattern of

objectives, goals and essential policies to

achieve the stated goals in such a way as todefine what business the company is in or is

to be in .


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The Role of Strategy in Corporation

CorporateMission &Objectives

Strategy:CorporateBusiness

Functional

Operating Plans


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Corporate strategy seeks to unify all

business lines of a company and point them

toward an overall goal.Business strategy focuses on defining the

manner of competition in a given industry

or product/market segment.


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What is strategic planning

Strategy specifies direction. A strategic statement

includes the description of new competitive

equilibrium to be created, the cause and effect ofrelationships that will bring it about, and the logic

to support the course of action.

A strategic plan specifies the sequence and timing

of steps that will alter competitive relationships


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Strategic planning scorecard

Is our planning really strategic

Do our plans leave room to explore strategic alternatives

Do we have time and incentive to investigate truly

important things Have we ever seriously evaluated a new approach to an old

market

Do our plans critically document and examine strategic

assumptions Do we consistently make an attempt to examine consumer,

competitor, and distributor responses to our programmes?


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MARKETING STATEGY

Marketing Strategy is an endeavor by a

Corporation to differentiate itself positively

from its competitors using its relativecorporate strengths to better satisfy

customer needs in a given environmental

setting.


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Marketing strategy (contd..)

Marketing Strategy is a series of

integrated actions leading to asustainable competitive advantage.

John Scully


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Key Elements of Marketing Strategy

Formulation

The strategic 3 Cs

Customers, Competitors & the Corporation

Environment analysis -- PEST Strategic Marketing Decisions

Where to compete

How to compete

When to compete


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Three 3 Cs of Marketing Strategy

Customer

Competition

Corporation


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What is Competitive

Advantage?

Competitive advantage is a companys

ability to perform in one or more ways

that competitors cannot or will notmatch. Philip Kotler

If you dont have a competitive

advantage, dont compete.Jack Welch, GE


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Other Characteristics of

Competitive Advantage

Substantiality

Is it substantial enough to make a difference?

Sustainability Can it be neutralized by competitors quickly?

Ability to be leveraged into visible business

attributes that will influence customers

(Source: Strategic Marketing Management, Aakers)


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Seeking Competitive

Advantages

Positions of advantage

Superior customer value

Lower relative total costPerformance advantages

Customer satisfaction, Loyalty, Market Share,Profit

Sources of advantages Superior skills & knowledge, Superior

resources, Superior business process


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Left-handed and right handed

organization and their strategies

Left-handed organizations are financially driven

and work with financial plan, ROI, cost , expenses

debt and assets.

Right-handed organization are market driven with

the primary focus of satisfying the customers. The

business decisions flow back from an

understanding of customers rather than from afinancial requirement.


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Strategic Review Process


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Challenges of the next

millennium

Decline of mega-brands as the result of

attacks from low-branded and low priced

competitors.Disappearance within many organizations

of staff marketing departments and

emergence of more focused functions withspecific line responsibilities


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Decline in the demand of certain specialist

marketing skills, including collection and

analysis of data.Emergence of GENX consumers who

demand a far high value added offer.

Markets which are characterized byinfinitely more aggressive and desperate

levels of competition.


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Emergence of new markets and

segmentation and rapid increase in new

product innovations.European integration and growing power of

distribution channels


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All these factors (challenges) have resulted

in need of managers revisiting the

traditional terms and practices of marketingby asking themselves the following

questions.


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Questions that modern day

marketers should ask themselves

Is marketing and its focus on meeting andanticipating customer needs is still a widely

accepted business philosophy?Are the strategies focused on creating value

to all stakeholders and customersatisfaction?

Is marketing function integrated with otherfunctions of the organization as a part ofvalue creating strategy?


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Is the Marketing strategy global in scope?

Does significant part of the marketing effort

constitute innovative practices notpreviously used by the organisation and itscompetitors?

Are strategic alliances for co-marketingactivities being formed and are marketingstrategies based on the development of longterm relationships with the clients?


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Thank You

strategic marketing- session 1 mba 2011-13

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