1 Strategic Marketing- Session 1 for Pgp 2010-12 Sem II

8/8/2019 1 Strategic Marketing- Session 1 for Pgp 2010-12 Sem II

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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 patternof

objectives, goals and essential policies to

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

tobe in .


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The Role of Strategy in Corporation

Corporate

Mission &

Objectives

Strategy:

Corporate

Business

Functional

Operating

Plans


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Corporate strategy seeks to unify all

business lines of a company and point them

toward anoverall goal.

Business strategy focuses ondefining the

mannerof 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 descriptionofnew competitive

equilibrium tobe created, the cause and effect ofrelationships that willbring 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

Doour plans leave room to explore strategic alternatives

Do we have time and incentive to investigate trulyimportant things

Have we ever seriously evaluated a new approach to anoldmarket

Doour plans critically document and examine strategic

assumptions Do we consistently make an attempt to examine consumer,

competitor, anddistributor responses toour programmes?


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MARKETING STATEGY

Marketing Strategy is an endeavorby a

Corporation todifferentiate itself positively

from its competitors using its relativecorporate strengths to better satisfy

customerneeds 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

FormulationThe strategic 3 Cs

Customers, Competitors & the CorporationEnvironment analysis -- PEST Strategic Marketing Decisions

Where to compete

How to competeWhen 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 toperform in one ormore ways

that competitors cannotor will notmatch. Philip Kotler

If you dont have a competitive

advantage, dont compete.JackWelch, GE


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Other Characteristics of

Competitive AdvantageSubstantiality

Is it substantial enough to make a difference?

Sustainability

Can it be neutralizedby competitors quickly?

Ability tobe leveraged into visible business

attributes that will influence customers

(Source: Strategic Marketing Management, Aakers)


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Seeking Competitive

AdvantagesPositions of advantage

Superior customer value

Lower relative total costPerformance advantages

Customer satisfaction, Loyalty, Market Share,Profit

Sources of advantages

Superior skills & knowledge, Superiorresources, Superiorbusiness process


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Left-handed and right handed

organization and their strategiesLeft-handedorganizations are financially driven

and work with financial plan, ROI, cost , expenses

debt and assets.Right-handedorganization 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

millenniumDecline 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 demandof certain specialist

marketing skills, including collection and

analysis ofdata.

Emergence of GENX consumers who

demand a far high value addedoffer.

Markets which are characterizedbyinfinitely more aggressive anddesperate

levels of competition.


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Emergence ofnew markets and

segmentation and rapid increase innew

product innovations.

European integration and growing powerof

distribution channels


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All these factors (challenges) have resulted

inneedof managers revisiting the

traditional terms and practices of marketingby asking themselves the following

questions.


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Questions that modernday

marketers should ask themselvesIs marketing and its focus on meeting and

anticipating customerneeds is still a widely

acceptedbusiness philosophy?Are the strategies focusedon 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 usedby the organisation and itscompetitors?

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


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Thank You

1 Strategic Marketing- Session 1 for Pgp 2010-12 Sem II

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