Marketing: Planning and Strategy

1
Strategy: Definition

A pattern of major objectives, goals, essential policies

and plans that define the current or future firm’s
business and the kind of company the firm is now or
is to become.

2
Why do we need to “Strategize”

Finite resources
Uncertainty about competitive strengths
Irreversible commitment of resources
Coordinated decisions
Uncertainty about control of initiative

3
Elements of Marketing Strategy Formulation

4
 SWOT Analysis

 Strengths
internal
 Weaknesses

 Opportunities
external
 Threats

5
Identifying and Framing Organizational Growth Opportunities

Converting Environmental Opportunities into

Organizational Opportunities

 What might we do? - environmental opportunity

 What do we do best? - distinctive competency

 What must we do? - success requirements

6
The Marketing Mix

 Product strategy

 Promotion/Communication strategy

 Placement/Distribution/Channel strategy

 Pricing strategy

7
 Formulating Product-Market Strategies

Markets
Existing New

Market Market
Existing
Penetration Development
Offerings
New Offering
New Diversification
Development

8
Formulating Product-Market Strategies

Market Penetration Strategy

 greater dominance is key

Market Development Strategy

 exporting
 licensing
 joint venture
 direct investment

9
Formulating Product-Market Strategies

Product-Development Strategy
 product innovation

 product augmentation

 product line extension

 cannibalism

Diversification

10
Drafting a Marketing Plan

 Context and Scope of Marketing Effort

 Focus: Business, Product, Brand

 Time Dimension: Short-run, Long-run

11
Decisions About Competing

Where (markets)
When (Entry)
How

12
Problems in Strategic Marketing

Too much emphasis on

 where to compete

Too little emphasis on

 how to compete

 when to compete

 adaptability

 uniqueness

13
Implementation: Common Problems

Simplify marketing strategies

More focus on uniqueness and adaptability
Improve speed and flexibility

14