Marketing strategy is commonly referred to Marketing is about value creation (serving

as a core strategy. It is composed of market customers better than competition) and value
segmentation, targeting and brand capture (profit maximation). In order to do that
positioning – collectively known as STP. marketers, follow a marketing process.

MARKETING MARKETING MARKETING MARKETING

Marketing tactics, on the other hands are ANALYSIS PLANNING ANALYSIS CONTROL
more popularly known as 4Ps are composed
of product, place, price and promotions.
Marketing strategy formulation must begin by
Strategic Tactical analyzing external factors of the business,
Marketing Marketing focusing on seeking opportunities first rather
Thought than on marketing mix.
Concept process (big Taking action near Marketing Environment includes the forces
idea – Big term (how to) outside of marketing. It consists of Macro-
Picture)
environment (national issues) and Micro-
To attain the
environment (company issues) both of which
Purpose company’s To execute the
objectives strategy can influence marketing decisions. For Macro-
environment 3 popular frameworks are
*Understanding
the PESTLE, INDUSTRIAL ANALYSIS, KEY FOR
environment Promoting and SUCCESS and for micro-environment is the
Activities *Understanding selling to the 6C’s.
the industry consumers
*Understanding
the customers
MACRO-ENVIRONMENT
*understanding
the competition Political, Economic, Social, Technological,
*understanding Legal & Environmental Forces.
the brand
STP Marketing mix POLITICAL FACTORS (how and to what
(Segmentation- (4Ps for services degrees do government policies affect the
Key Targeting- to include people, economy)
Concepts Positioning) process and • Tax policy
physical
environment) • Labor law
Timetable Timeless Time-bound
• Environmental Law
Absence Too much Blind action- Doing
of the talking- without having a • Trade restrictions
other Nothing gets plan.
• Tariffs
side done
• Political Stability
• Health
• Education
• Infrastructure
ECONOMIC FACTORS (the impact of a • Consumer Law
country’s financial indicators on how business
• Antitrust law
operate and make decisions)
• Employment law
• Economic Growth
• Health and safety law
• Interest Rates
ENVIRONMENTAL FACTORS (ecological and
• Exchange Rates
environmental aspects that can affect business
• Inflation Rates such as insurance, tourism, farming)
SOCIAL FACTORS (how the demand for a • Weather
company’s product and how firms should
• Climate and climate change
operate are affected by social demographics,
attitudes, and opinions on issues like careers
and culture, education and ethics, health and
safety, housing and fashion immigration and INDUSTRIAL INDUSTRY
diversity, among others) Industrial Analysis
• Careers
• Culture It identifies the 5 interacting forces that affect
the profitability of an industry. These forces
• Education enable firms to identify competitive pressures
(those with high threat) as well as opportunities
• Ethics
in the marketplace.
• Health
1. THREATS OF NEW ENTRANTS
• Safety o ECONOMIES OF SCALE
o PRODUCT DIFFERENTIATION
• Housing
o CAPITAL REQUIREMENT
• Fashion and lifestyle o SWITCHING COST – Ability to
change suppliers from one to
• Immigration
another affects new entrants.
• Diversity o ACCESS DISTRIBUTION
o COST DISADVANTAGE
TECHNOLOGICAL FACTORS (how INDEPENDENT OF SCALE
technological aspects affect innovation, o GOVERNMENT POLICY
productivity, investment and cost) 2. THREATS OF SUBSTITUTES
• R & D (research and development)  Substitutes should be considered
from the perspective of buyer and
• Automation how they perceived.
• Technology Incentives
3. RIVALRY AMONG EXISTING
• Rate of technological change COMPETITION
LEGAL FACTORS (how the laws of a country  Rivalry among existing in
can affect how companies adopt policies as to competition is described to be the
its operation, cost structure, and the demand for most intense in a price war,
its products) followed by promo war, which can
significantly lower profitability.
• Discrimination Law
Rivalry among existing competition is
considered high when prices are adjusted
downward frequently.
 NUMBER OF MAJOR OR
EQUALLY BALANCED
COMPETITION
 INDUSTRY GROWTH
 FIXED COSTS
 PRODUCT DIFFERENTIATION
 SWITCHING COSTS
 UNUSED PLANT CAPACITY OR
ENLARGED NEW CAPACITY
 DIVERSITY OF COMPETITION
 STRATEGIC STAKES
 EXIT BARRIER
4. BARGAING POWER OF CUSTOMERS
 VOLUME PURCHASE BY
CUSTOMERS
 BUYING PRICE VIS-À-VIS
PRODUCT COST - with small
margins, industrial buyer would to
constantly negotiate for better
deals, better terms, and better
concessions.
 NUMBER OF SUPPLIERS IN AN
INDUSTRY
 ACTUAL OR PERCEIVED
DIFFERENTIATION - well-known
brands enjoy a higher stature
than unknown brands, as they
become simplifiers of choice.
5. BARGAINING POWER OF SUPPLIERS
 INDUSTRY DOMINANCE
 AVAILABILITY OF
SUBSTITUTES
 IMPORTANCE OF BUYER TO
SELLER
 IMPORTANCE OF INPUT TO
BUYER
 PRODUCT DIFFERENTIATION
 SWITCHING COST
 THREATS OF FORWARD
INTEGRATION
KEY FOR SUCCESS AND SWOT
Key for success, which is the source
document of Strength, Weakness (SW)
analysis, one half of SWOT analysis with
OT being in the acronym for
Opportunities and Threats.
Key for success (KFS) also known as
logic of industry (LOI) or Economics
of business (EOB) is simply a blueprint
composed of controllable and
uncontrollable variables critical to
success of a firm that must be managed
well, in order to attain its goal and
outperform competition.
When KFS is managed well in
established markets, companies have
higher chances to be successful.
The word “key” in KFS connotes a
limited number so it is important to
include only those that have a high
impact to the industry and to the firm.
When looking at KFS its important to
include similar products that can provide
the same satisfaction to the consumers in
considering segment. It all depends on
how a consumer positions a product in
relation to other products in their minds.
Another point to consider is that in
defining KFS by market segment, what is
true in one segment may not be true in
another.
The industry the firm competes in must
defined well so that KFS can be
distinguished thoroughly. The industry
that a marketer defines will affect their
product’s positioning, success factors,
marketing direction and etc.
KFS must reviewed periodically because
not all rules will be the same in the future.
Marketers need to understand and
anticipate changes in rapid transition 1. Company can indicate a plus for
industries. relative strength and minus the for
relative weakness for each
There are so called KFS a breakthrough departments performance. A
idea can “reinvent” the rules in an weakness in a specific functional area
industry especially as firms approach means improvement projects are
non- customers or solve pain points of needed.
existing customers.  R&D
 Sourcing
In the logic of strategy never fear  Purchasing
dominant players.  Production
 Warehouse
The strengths and weaknesses of a firm  Finance
are measured against their target  Marketing
competition.
 Operations
 Sales
An exception about strength of one being
 Credit
a weakness of another is when firms
 Order Processing
make their weaknesses irrelevant by
redefining rules of the industry.  Delivery
 Collection
In terms of relevance. If a company is  Service
very strong or very weak in an area, but
that strength or weaknesses is a factor 2. Customers (5 types of customers)
for success in the industry.  CONSUMER MARKETS-
Individual buyers who buy for
Marketers must try to establish a cluster their own use.
of strengths or differentiation to avoid  BUSINESS MARKETS-
being easily matched by competition. organizational buyers who buy
as input to their own product.
In formulating marketing strategies, firms  GOVERNMENT MARKETS-
must be able to exploit their strengths as government agencies that buy
well as take advantage of a competition to produce public services.
of a competitor’s key weak points to  INTERNATIONAL MARKETS-
satisfy their customers better. buyers are from country.
 RESELLER MARKETS-
Micro-environment organization or individual
- Deals with company’s issues buyers who buy for resell at a
profit without adding anything
From 3C’s of marketing strategy namely to the product.
company, customers, and competition to
add 3 more variables namely channel, 3. Competition (2 types of competition)
complementors and communities.  DIRECT COMPETITION -
similar offering from the
6C’s perspective of the costumer.
- Company - Channel  INDIRECT COMPETITION -
- Customers - Complementors offering deemed as subtitles
- Competition - Communities to another product or services.
4. Channel - Individuals or companies
who buys and resell the company’s
products to final buyers.
 Distributors
 Wholesalers
 Retailers
 Direct sellers
 Home TV shopping
 Online retailers
5. Complementors - Individuals or
businesses who can help an
organization understand, promote
and/or sell its product or services.
 PHYSICAL DISTRIBUTION-
companies or individual who
store and transport the
company’s product to final
buyer.
 MARKETING AGENCIES-
companies or individual who
helps to understand or
promote the company’s
products to final buyer.
 FINANCIAL
INTERMEDIARIES-
companies or individual who
help give credit for the
company’s products to final
buyer.
6. Communities - Public stakeholders
where the organization needs to be
sensitive to their product opinions.
1. Financial public - organizations
or individuals who can ease or
hinder an organizatrion’s
access to credit.
2. Media public - mass media or
social media.
3. National Government Public –
government laws can be
created that can ease or
restrict company’s actions.
4. Local Government public –
mayors or powerful councilors
can create problem for
uncooperative businesses.
5. General public – attitude of
change in attitude that can
affect a company’s sales
volume.
6. Local public - neighborhood
and community groups who
can question a companys
effect on the local area.
7. Citizen - action public-
environmental or health
groups can question the action
of a company’s publicity.
8. Employees - individuals who
are employed within an
organization.
9. Suppliers - organizations or
individuals who are employed
to help an organization
produce products or get
specific jobs done.
Firms usually sequence their analysis
from macro to micro- environment to
find if they have the opportunity or
right to win in the marketplace.
PESTLE TRENDS
INDUSTRY ANALYSIS
KEY FOR
SUCCESS
6 C's
RIGHT TO WIN ANALYTICAL
SEQUENCE
Marketers must look outside of the
firms to consider the effect of
PESTLE trends to their marketing
mix. They can look at the industry
they operate to understanding where
profitability can be compromised or
grown. Key factors for success also
known as (logic of industry) are used
to understand the existing winning
variables of the industry as basis to COMPARISSON
redesigning innovation of what to add FOCUS GROUP IN- DEPTH
DISCUSSION DISCUSSION
or what to abandon when new
(FGD) (IDI)
industry rules are created. Number of 7- 9 Batch Individual
Participants
The 3c’s of marketing is expanded *Privacy - no
*Share need to be
into 6c’s in order to analyze experiences conscious of the
oppurtunities as well as what may Advantages *Build from others presence of
affect the companys operations. If in the room others in FGD’s
attention is not given to one of the *Ability to follow
up answers
6c’s. Strong sensemaking skills are *Discussion with
required to analyze the macro and strangers in the
micro-environments. room *More time-
*Maybe consuming
Disadvantages influenced by *Inability to share
MARKETING RESEARCH - An opinions of others experiences and
indispensable tool for marketers to *Inability to follow build from others.
up individual
know what needs to be done, albeit
replies
creativity will still be needed in terms
of how to communicate and execute
the strategy. Some IDI’s are done in pairs. In FGD’s or mini-
FGD’s of 4 to 5 people (for experts or when
TYPES OF MARKETING discussing sensitive topics.
RESEARCH
Among the quantitative market
Qualitative market research is researches is the Usage, Attitude
conducted initially which are validated and Image studies (UAI) which help
subsequently with market research marketers understand the
although qualitative research is also consumer’s product usage and
used to probe deeper into information attitude (used in market
(such as knowing why) gathered from segmentation) as well as image
quantitative research. (used in brand positioning).

Focus group discussion (FGD) and SECTIONS OF DETAILS TOPICS PROBED IN

In-depth interview (IDI) UAI UAI
Brand awareness Brand awareness, advertising
awareness, source of awareness
Product category use, or why not it
is used –never not anymore, size
or variant mix, usage frequency,
Usage Behavior who uses, who else uses, when is
the product used, product usage
,brands use more often, brand
being use presently
Where it was last bought ,where it
most often bought, purchase
Purchase frequency, size mix purchase
behavior ,quantity last bought , price paid,
alternative in mind during last
purchase, brand availability, what
else was bought with the brand
Products attributes desired ,likes
about existing brands, dislikes about
Product existing brands, rating of completing
Experience brands on attributes, socio
demographics data, media habits.
 Market research allows the marketers Steps in Marketing Research
and entrepreneurs to answer the
Steps in
various “w” questions (who, what, Marketing What it is Example
when and etc.) Research
This gives focus Know the voice of
1. Define your and clarity on why channel
1. In macro level market segmentation research you are doing costumers,
answer the question “What are groupings problems or market research specifically pain
of similar customers? issues. and how data will points and context
be used in making of pain points of
2. In micro level these questions can be
decisions. distributors.
answered: Determine if you
a. Decision Making Unit “Who need qualitative
purchases the product? and/or quantitative
2. Choose your approach, then In-Home visit plus
b. In Decision Making Process (DMP) market determine the in-depth interview
“How, where and when is the research specific type of (IDI) of distributors.
purchase made? approach marketing research
you will use to attain
c. Consumer motivation and guide the
your research
marketer “What do the consumer goals.
want and why? Ask dislikes as well
Draft and test the as wish lists.
questions to be Subdivide
3. Create your asked to the right respondents via
research sampling target and new distributors,
design plan how data will lapsed distributors
be analyzed. and top performing
distributors.
This involves having
4. Collect the the invited One-on-one
data respondents answer interview.
your research
completely.
Lapsed distributors
Cluster and convert lack confidence.
5. Interpret the the “what” to “so They quit after
data what” to gain experiencing a
insights or new sales rejection
truths. even after passing
their sales training.
Convert “what” to
“now what”,
meaning, the Offer demo
actions that should assistance and
6. Recommend be taken by the coaching to lapsed
solutions target users. It may distributors who
be possible to easily get
recommend discouraged.
different actions for
different users.