Strategic Marketing

Strategy
A Strategy is a Fundamental pattern
of present and planned objectives
,resource deployments and
interactions of an organization with
markets ,competitors and other
environmental Factors.

The definition suggests that a
strategy should specify 1. What
(Objectives to be accomplished) 2.
where (on which industries and
product-markets to focus), and
(3)how (which resources and
activities to allocate to each product-
market to meet environmental
opportunities and threats to gain a
competitive advantage).

The components of strategy --
Scope
Goals & objectives
Resource
Deployments
Identification
of
Sustainable
competitive
advantage
Synergy
Strategy
Strategy
Scope The scope of an organization refers to the breadth of its strategic
domains the number and type of industries ,product lines and market
segments it competes in or plan to enter ,which should reflect the mission
statement of the organization.


Goals and objectives Strategies should also detail desire levels of
accomplishment on one or more dimensions of performance such as
volume growth ,profit contribution and return of investment -over specified
time periods.

Resource deployments Every organization has limited financial and
human resources .Formulating a strategy also involves deciding how these
resources are to be obtained and allocated ,across businesses, product
markets ,functional departments and activities within each business or
product market.
.

Strategy
Identification of a sustainable competitive advantage The most
important part of strategy is how the organization will compete in each
business and product market within its domain .How can it position
itself to develop and sustain a different advantage over current and
potential competitors? To answer such questions manager must
examine the market opportunities in each product market and the
companys distinctive competencies or strengths relative to its
competitors.

Synergy Synergy exists when the firms businesses, product markets,
resource deployments & competencies complement and reinforce each
other .Synergy enables the total performance of the related businesses
to be greater than it could be otherwise : the whole becomes to be
greater than the cum of its parts.

Marketing Strategy
The primary focus of marketing strategy is to effectively allocate
and coordinate marketing resources and activities to accomplish
the firms objectives within a specified product market .


Therefore the critical issue concerning the scope of a marketing
strategy is specifying target market(s) for a particular product or
product line. Next firm seeks competitive advantage and
synergy through a well-integrated program of marketing mix
elements tailored to the needs and wants of potential customers
in that target market.
Marketing Strategies
Scope
Target Market Definition
Product Line depth and breadth
Product market development plan
Scope
Branding policies
Line Extension
Product Elimination Plans
Marketing Strategy
Goals and Objectives
Constrained by business
and corporate goals
Objectives for a specific
product-market entry
1.Sales,
2.Market Share,
3.Contribution Margin,
4.Customer Satisfaction.
Marketing Strategy
Allocation Of Resources
Allocation Across components of Marketing Plan for a specific product market entry
Marketing Strategy
Sources of competitive advantage
Primarily through effective product positioning
;superiority on one or more components of marketing
mix relative to competitors
Within specific product market.
Marketing's Role
The essence of strategic planning at all levels is identifying
threats to avoid and opportunities to pursue. The primary
strategies responsibility of any manager is to look outward
continuously to keep the firm in step with changes in the
environment. Because they occupy the positions at the
boundary between the firms and its customers, distributors and
competitors, wherein marketing managers have to be most
familiar with conditions and trends in market environment.
Consequently ,they are not only responsible for developing
strategies ,but are also are primary participants and contributors
to the planning process at the business and corporate level as
well.
Influence Of functional Units
Marketing strategy
Decisions
Marke
ting
Sales R & D Operation
s
Finance
Advertising Messages 65 29 3 1 2
Customer satisfaction
Measurement
48 35 5 8 4
Customer Satisfaction
Improvement
40 37 7 10 6
Distribution Strategy 34 52 1 6 6
Customer service &
Support
31 47 5 10 7
Pricing 30 41 4 9 16
Marketing Strategy:
Marketing strategy is a method of focusing an organization's
energies and resources on a course of action which can lead to
increased sales and dominance of a targeted market niche. A
marketing strategy combines product development, promotion,
distribution, pricing, relationship management and other
elements; identifies the firm's marketing goals, and explains how
they will be achieved, ideally within a stated timeframe.
Marketing strategy determines the choice of target market
segments, positioning, marketing mix, and allocation of
resources. It is most effective when it is an integral component
of overall firm strategy, defining how the organization will
successfully engage customers, prospects, and competitors in
the market arena. Corporate Strategies, corporate missions, and
corporate goals. As the customer constitutes the source of a
company's revenue, marketing strategy is closely linked
with sales. A key component of marketing strategy is often to
keep marketing in line with a company's overarching mission
statement.

A marketing strategy can serve as the foundation of a marketing plan. A
marketing plan contains a set of specific actions required to successfully
implement a marketing strategy. For example: "Use a low cost product to attract
consumers. Once our organization, via our low cost product, has established a
relationship with consumers, our organization will sell additional, higher-margin
products and services that enhance the consumer's interaction with the low-cost
product or service."
A strategy consists of a well thought out series of tactics to make a marketing
plan more effective. Marketing strategies serve as the fundamental underpinning
by marketing plans designed to fill market needs and
reach marketing objectives. Plans and objectives are generally tested for
measurable results.
A marketing strategy often integrates an organization's marketing goals, policies,
and action sequences (tactics) into a cohesive whole. Similarly, the various
strands of the strategy , which might include advertising, channel
marketing, internet marketing, promotion and public relations can be
orchestrated. Many companies cascade a strategy throughout an organization,
by creating strategy tactics that then become strategy goals for the next level or
group. Each one group is expected to take that strategy goal and develop a set
of tactics to achieve that goal. This is why it is important to make each strategy
goal measurable.
Marketing strategies are dynamic and interactive. They are partially planned and
partially unplanned
Marketing strategies may differ depending on the unique situation of the
individual business. However there are a number of ways of categorizing some
generic strategies. A brief description of the most common categorizing
schemes is presented below:
Strategies based on market dominance - In this scheme, firms are classified
based on their market share or dominance of an industry. Typically there are
four types of market dominance strategies:
Leader
Challenger
Follower
Nicher

Porter generic strategies - strategy on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while
strategic strength refers to the firms sustainable competitive advantage. The
generic strategy framework (porter 1984) comprises two alternatives each with
two alternative scopes. These are Differentiation and low-cost leadership each
with a dimension of Focus-broad or narrow.
Product differentiation
Cost leadership
Market segmentation
Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is
on the cutting edge of technology and business innovation. There are three
types:
Pioneers
Close followers
Late followers

Marketing warfare strategies - This scheme draws parallels between marketing
strategies and military strategies.

Marketing participants often employ strategic models and tools to
analyze marketing decisions. An Ansoff Matrix is also often used to
convey an organization's strategic positioning of their marketing mix.
The 4Ps can then be utilized to form a marketing plan to pursue a
defined strategy.
There are many companies especially those in the Consumer Package
Goods (CPG) market that adopt the theory of running their business
centered around Consumer, Shopper & Retailer needs. Their Marketing
departments spend quality time looking for "Growth Opportunities" in
their categories by identifying relevant insights (both mindsets and
behaviors) on their target Consumers, Shoppers and retail partners.
These Growth Opportunities emerge from changes in market trends,
segment dynamics changing and also internal brand or operational
business challenges.The Marketing team can then prioritize these
Growth Opportunities and begin to develop strategies to exploit the
opportunities that could include new or adapted products, services as
well as changes to the 7Ps.
Mix

People
An essential ingredient to any service provision is the use of
appropriate staff and people. Recruiting the right staff and
training them appropriately in the delivery of their service is
essential if the organization wants to obtain a form of
competitive advantage. Consumers make judgments and deliver
perceptions of the service based on the employees they interact
with. Staff should have the appropriate interpersonal skills,
attitude, and service knowledge to provide the service that
consumers are paying for. Many British organizations aim to
apply for the Investors In People accreditation, which tells
consumers that staff are taken care off by the company and they
are trained to certain standards.
Process
Refers to the systems used to assist the organization
in delivering the service. Imagine you walk into
Burger King and you order a Whopper Meal and you
get it delivered within 2 minutes. What was the
process that allowed you to obtain an efficient service
delivery? Banks that send out Credit Cards
automatically when their customers old one has
expired again require an efficient process to identify
expiry dates and renewal. An efficient service that
replaces old credit cards will foster consumer loyalty
and confidence in the company.
Physical Evidence
Where is the service being delivered? Physical
Evidence is the element of the service mix which
allows the consumer again to make judgments on the
organization. If you walk into a restaurant your
expectations are of a clean, friendly environment. On
an aircraft if you travel first class you expect enough
room to be able to lay down!
Physical evidence is an essential ingredient of the
service mix, consumers will make perceptions based
on their sight of the service provision which will have
an impact on the organizations perceptual plan of the
service.
Ps
Marketing Ps
Component
Four Ms Of Advertising

Message
Measurement
Media
Money
The Vision sets out an organizations future .A vision is a statement about what
an organization wants to become .It should give shape and direction to an
organizations future . ASB banks statement is To be the best bank and
financial services provider in New Zealand ,excelling in customer service.
The Mission represents what an organization wishes to achieve in the long term
.It should be broad statement of intention as it sets out an organizations
purpose and direction .It should be oriented to particular markets and customers
served. The mission should help the managers make decisions concerning
which opportunities to pursue and which to ignore.
Tesco To create value for customers to earn their lifetime loyalty.
Coca Cola --Everything we do is inspired by our enduring mission: To refresh the
worldin body, mind and spirit. . 2. To inspire moments of optimism
through our brands & our actions. 3. to create value and make a difference
everywhere we engage.
JCB Our mission is to grow our company by providing innovative, strong and high
performance products and solutions to meet our global customers need.
Organizational Values define the acceptable interpersonal and
operating standards of behavior. They govern and guide the behavior
of individuals within the organization.
Organizational goals at the strategic level represent what should be
achieved ,the outcomes of the organizations various activities . These
may be articulated in terms of profit, market share ,share value, return
of investment or numbers of customers served. In term of long term
and short term goals.
Organization or corporate strategy is the means by which the resources
of organization are matched with the needs of the environment in which
the organization decides to operate . Corporate strategy involves
bringing together the human
resources,logistics,production,marketing,IT and financial parts of
organization into a plan that supports ,reinforces ,and helps accomplish
the organizational goals.

The Initial phase of the marketing strategy process is the development
of knowledge and understanding about the target market(s). It is crucial
that all people involved in the strategy process are well informed with
accurate, pertinent& up to date information.
Analyzing Competitors Organizations that pay particular attention to
their competitors generally perform better than those who do not .In
order to undertake an analysis of a firms competitors five key
questions must be answered.
1. Who are our competitors?
2.What are their strengths and weaknesses?
3.What are their strategic goals?
4Which strategies are they following?
5.How are they likely to respond.
Who are our competitors
Competitors are those firms who offer products & services that attempt
to meet the same market need as your own.



Direct competitors are those who offer the same target market similar
products and services. Direct competitors may also offer a product in
same category but target different market segments. Indirect
competitors are those who address the same target market but offer a
different product or service to satisfy the market need , for e.g..
HMV,Sony,Ipod.By understanding who the main competitors are it
becomes possible to make judgment about the competition and create
the strategy.
What are their Strengths and weaknesses?
Getting information about a competitors range of products and their
sales volume and value, with profitability,prices,discount structures, the
nature of their relationship with suppliers & distributors, their
communication campaigns and special offers are all important. In some
circumstances getting information about new products that are either in
development or about to be launched can be critical.
Other activities apart from marketing activities are the production and
marketing capabilities their technical, management and financial
resources, distribution channels and relative success in meeting
customer and market needs.
The overall objective is to determine what competitive advantage a
competitor might have and whether this advantage can be sustained,
imitated or undermined.
What are their strategic goals
Contrary what is often written in the popular press, profit is not the
single, overall strategic goal for most organizations. Firms develop a
range of goals such as achieving a certain market share ,market
leadership, or market reputation for innovation, environmental concern
or ethical trading.
The Boston Consulting Group (BCG) Growth-Share Matrix, or
more simply known as the BCG Matrix, continues to be one of
the more popular strategic management tools used today.
The BCG Matrix classifies business units or product portfolios
into four distinct categories based on market growth and market
share, measured against competitors.
In the diagram, various portfolios can be classified as dogs,
question marks, stars, or cash cows. Cash cows are leaders in a
mature (low growth) market, dogs are cash traps, question
marks have the potential of becoming stars or dogs, and stars
are the high maintenance high performers.
In simplest terms, organizations will have a mix of portfolios that
fit into each of these quadrants. The idea is to retire the dogs;
and make use of the cash cows to both promote question marks
into new stars and continue to invest in stars until these become
cash cows.
Which strategies are they following
Once a competitors goals are understood it becomes easier to predict
what these strategies are likely to be. these strategies can be
considered through two main factors ,competitive scope and
positioning.
Competitive scope refers to the breadth of market addressed. Is the
competitor attempting to service the whole of a market, particular
segment, or a single niche segment.
Brands can be positioned in markets according to particular attributes
and benefits a brand offers .e.g. cameras can be positioned according
to their technical features, whilst cosmetics are often positioned on
style and fashion ,frequently led by brand ambassadors who are
considered to personify the brand values. Once this is understood it is
possible to follow the marketing mix elements that are aligned to
support the positioning strategy .
How are they likely to respond
Understanding the strategies of competitors helps inform whether they
are intent on outright attack or defense and how they might react to
particular strategies initiated by others .


Some market leaders believe that an aggressive response to a
challengers action is important otherwise their leadership position
might be undermined .There are of course range of Reponses that
firms might use ,reflecting organizational objectives, leadership styles,
industry norms, and new strategies born of new owners.
Suppliers and Distributors
So far analysis of the performance has tended to concentrate on the
nature and characteristics of firm's competitive behavior..

Now it is common to find high levels of integration between a
manufacturer and intermidiary.Account needs to be taken of the
strength of these relationships and consideration needs to be given to
how market performance might be strengthened or weakened by the
capabilities of channel inermidiary.Suppliers and distributors have
become central to the way in which firms can develop specific
competitive advantage .Analysis of this channel is key to do the
strategic analysis.
Scenario Planning

Scenario Planning
What Is Scenario Planning?
One way to see the future is to create memories of
it envisioning your industry years down the road,
taking into account the trends and uncertainties
driving the business. By imagining your typical
challenges, under multiple scenarios, you can invest
in the capabilities and strategic moves needed to
succeed.
Scenario Planning helps you avoid common thinking
traps, address uncertainty, identify future key
success factors and align core competencies at the
corporate, division or business unit levels.

Swot Analysis
Perhaps the most common analytical tool is SWOT analysis .
Strengths and weakness relate to the internal resources
And capabilities of organization as
Perceived by customers.

Swot Analysis.

Strengths--Positive tangible and intangible attributes, internal to an
organization., They are within the organizations control.
Weakness--Factors that are within an organizations control that detract
from its ability to attain the desired goal.Which areas might the
organization improve?
Opportunities
External attractive factors that represent the reason for an organization to
exist and develop.
What opportunities exist in the environment, which will propel the
organization?
Identify them by their time frames
Threats
External factors, beyond an organizations control, which could place the
organization mission or operation at risk.
The organization may benefit by having contingency plans to address
them if they should occur.
Classify them by their seriousness and probability of occurrence.

The Top 5 mistakes:
An unclear goal
Maintaining too narrow of a focus
Neglecting input from others
Performing an analysis only once
Reliance on SWOT as a holistic diagnostic strategy
A concise SWOT Analysis
Keep your SWOT analysis short and focused. If it becomes too long-
winded, youll soon forget some of the more important points and it will
become less effective in the long term.
Great SWOT Strengths
When considering your SWOT strengths, its all too easy to
congratulate yourself and identify what you think it is that makes you
great. Instead, flip the coin and consider what it is that your customers
do/will think are your strengths.
Few Weaknesses
Having written a long list of SWOT based strengths for your
organization, its also very easy to become a bit jaded and quickly fly
over your weakness, without a critical eye. As a result, count up the
number of SWOT based strengths, and then write twice as many
weakness. This will force you to take a deeper look at the areas that
you need to improve

Opportunities
By considering your SWOT analysis based opportunities, you get to
play god with your future. Its all too easy to look at opportunities with
rose-tinted glasses and predict opportunities that dont actually exist.
Instead, look at the opportunities that are available to you today.

Threats
Again, as with SWOT weaknesses, when you consider your SWOT
threats, you have to take a cold hearted look at some of the things that
youd probably rather ignore.

Ansoff Matrix.

Growth
A vast majority of organization
consider growth to be primary
objective .However there are
different forms of growth and care
needs to be taken to ensure that the
right goals are selected .Growth can
be intensive ,integrated or
diversified.
Intensive Growth Growth through
market penetration and both market
and product development is
regarded as intensive growth .

Characteristics of intensive
growth

Strategic
Goal
Explanation
Market
Penetration
To increase the sales of
established products in
current market.
Market
Development
To increase the sales of
established products in new
markets.
Product
development
To increase sales by
developing new products for
delivery in current markets.
Diversification To increase sales by
developing new products for
delivery in new markets.
Diversified Growth
When an organization adopts diversification strategy they are moving
outside their current ,known areas of expertise .Through diversification
they begin to work with new products ,in new markets, and this brings
new risks.
Diversification for single product organization is an important
development for two main reasons .First risk becomes spread across
two or more markets, and secondly ,organization resources such as
management ,marketing,finance,production,operations can be used
more effectively and efficiently when deployed across more than one
product or market.
Cadburys dependency on chocolate related products has been brought
into focus as consumer trends towards healthy eating have resulted in
poor chocolate sales. This has helped prompt diversification into gum
market when the company bought the Trident brand and an Australian
brand of healthy sweets (Bowery,2007).