Marketing Strategy - An

Overview
By
Dr. Ravindra Pratap Gupta

ISSUED IN PUBLIC INTEREST

Advisable
All material in slides need not be
understood.
Use your current working environment and
experience to relate to situations. Errors and
omissions regrettable. Subject to corrections
on
Being brought to notice

Quote-1
Indian Connotation of Marketing
Maha+Racketing
&
Mar+Kutting
- Dr Ravindra Pratap Gupta

Contents
Definition-Marketing
Role of Marketing
Scope of Marketing
Definition-Marketing Management
Difference between Sales & Marketing
Difference between Strategy & Tactics
Marketing Strategy-Hierarchy Linkage
Definition-Marketing Strategy
What is Competitive Advantage?
A Viable Marketing Strategy
Key Elements of Marketing Strategy Formulation
For designing marketing Strategy Orgnaisations need to

answer
Marketing Strategy aligned with-The Business Vision
Market Strategy Inputs & Outputs

Marketing
Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, services to
create exchanges that satisfy individual and
organizational goals
--American Marketing Association

Role of Marketing
Primary Role of Marketing is to stimulate potential

aggregate demand and thus enlarge the size of

the market.
Another important role which marketing plays is
that it helps in the discovering of entrepreneurial
talent.

Scope of Marketing
Task of creating, promoting and delivering goods

and services to consumers & businesses.

Marketers are skilled in stimulating demand for
companys products.
Marketing managers seek to influence the level,
timing, and composition of demand to meet the
organizations objective.

Scope of Marketing.
Marketing people are involved in marketing 10 types of

entities
Ideas
Goods
Services
Experience
Events
Persons
Places
Properties
Organisations
Information

Marketing Management

Marketing management is the art and science

of choosing target markets and getting, keeping,
and growing customers through creating,
delivering, and communicating superior customer
value.

Difference Between- Sales &

Marketing

Sales-trying to get the customer to want what

the company produces
Marketing-trying to get the company produce
what the customer wants
Marketing is all about creating a pull, sales is
all about push.
Marketing is all about managing the four Ps
product
price
Place
promotion

Difference between Strategy

and Tactics
Strategies-Companies long term plan.
Tactics-Companies Short term plans

Strategic Plan
Outlines the broad framework and guidelines for
the business
Tactical Plan
Presents the Operational Details or
implementation aspects for reaching strategic
goals

Marketing Strategy-Hierarchy
Linkage
Hierarchy of goals and objectives
Organizational Goals and Objectives
Marketing Goals and Objectives
Marketing Mix Goals and Objectives
Marketing Mix Element Goals and Objectives

Marketing Strategy-Defined
A statement of how a brand will achieve its

objectives. The strategy provides decisions and

direction regarding variables such as the
segmentation of the market, identification of the
target market, positioning, marketing mix
elements, and expenditures. A marketing strategy
is usually an integral part of a business strategy
that provides broad direction to all functions.
(Source: American Marketing Association)

Marketing Strategy is a series of integrated

actions leading to a sustainable competitive

advantage.-John Scully

What is Competitive Advantage?

Resources+Capabilities = Competitive

Edge
Competitive Advantage
Competitive advantage is a companys
ability to perform in one or more ways
that competitors cannot or will not
match.

--Philip Kotler

A Viable Marketing Strategy

Must have a clearly defined market
Must have a good match between

corporate strengths and market needs

Must have significant positive
differentiation in the key success factors
of the business

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

For Designing Marketing

Strategy-Organisations need to
answer
What
What
What
What

is our business?
is the value to the customer?
will be our business
should be our business

As connoted by Peter Drucker

Marketing Strategy aligned

with-The Business Vision
Core
Core
Value
Value

Core
Core
Purpose
Purpose

Business
Business
Vision
Vision
Mission
Mission
(Action)
(Action)

Vision & Mission Linkage-Marketing

Strategy
What business are you in?-Mission
Mission statement-Alignment of Marketing
Strategy
Statement of marketing strategy
Indicates product, market scope
Shows growth factor
Shows differential advantage
Shows management orientation

Market Strategy Inputs &

Outputs
External Analysis
Customer Analysis
Competitor Analysis
Market/submarket Analysis
Environmental Analysis

Internal Analysis
Performance Analysis
Determinants of strategic

options

Strategic
Strategic Analysis
Analysis
Outputs
Outputs
Strategy
Strategy Identification,
Identification,
Selection,
Selection, and
and

6 Steps to Strategic Planning

Situational Analysis (SWOT)

Threats/Opportunities

Developing the Corporate Mission

After SWOT Organization needs to figure out where it wants to go and what it wants to
do?

For Corporate Mission Organizations needs to

answer
Reason for Existence & Responsibility to Stake Holders
Customer Needs
Role of R & D
Number of Product Offers in each Product Category
Types of Diversification Planned by Management
Organisation must have its marketing , its innovation
objectives, its productivity objectives, profit objectives
and its social objectives

Determining the Business

Composition
Core Business
Venture in to related areas
Venture in to Entirely new areas
Pursue some Business
Sell or Hire off some business

Determining the Business

Composition
Product-Market Growth
Directions
Present
Present
Products
Products

New
New
Products
Products

Present
Present
Markets
Markets

Market
Market
Penetration
Penetration

Product
Product
Expansion
Expansion

New
New
Markets
Markets

Market
Market
Expansion
Expansion

Diversification
Diversification

Source: H. Igor Ansoff, Strategic

Diversification, Harvard Business
Review, September-October 1957,

Vertical
Vertical Integration
Integration

Forming & Analyzing Strategic

Business Unit (Profit Centre)
SBU defined on Bases of
Need the business is attempting to meet
The end users to be served
The product offerings that will serve customer
needs
Analysis of SBU is done using some of approaches
as Boston Consulting Group Matrix

Forming & Analyzing Strategic

Business Unit (Profit Centre)
BCG Matrix
22%

Stars

Some cash use

Future cash cow
Profitable in highly
Competitive Mkt
Market Growth10%
Rate

0%

? Marks

High cash use

? Is to build or not
Not gained foothold
Need lot of spending
To build

Cash Cows

Dogs

Dogs
Generate cash for
Low or no cash use
?, Stars
When to divest or
Profitable in
Liquidate
Declining Mkt

10x

1.5x
Relative Market

.1x

(log scale)

Business Unit Objectives & Strategy

Objectives of SBU
To Build , Maintain, Harvest or Divest
Strategies Can aim at
Strengthening a weak business unit
Capitalizing on a strong one
Michael Porter has suggested 3 Generic Strategies
Overall cost leadership-aims at cutting production and
distribution cost so that prices can be brought below
competition
Differential Strategy-concentrating on an important &
desired customer benefit. A company can be a style leader, a
service leader or a quality leader
Focus-Concentrating on a small manageable market to achieve
cost and differentiation within a smaller group of customers

Developing the marketing Strategy

Target Market Selection

Three Action Areas
Whether to sell to the entire market or

concentrate on a portion
Determining when an existing target market
strategy needs to be modified
Deciding to stop serving a particular target
market

Setting Marketing Objective

Sales
Market Share
Contribution to profit
Getting new customer groups
Strengthening brand image
Building customer awareness & attitudes
Educating customers about brand features and uses

Demand Forecasting
Market Potential, Market Forecast, Sales Potential, Sales
Forecast
Sales Forecasting
Executive Judgment, Sales force Composite, Survey of Buyer
intentions, Trend Analysis

Developing the Marketing

Programme
Strategic Decision Areas
Marketing Mix-4 Ps
Product
Price
Place
Promotion

The 4 Ps & 4Cs

Marketing
Mix
Place

Product

Customer
Solution

Convenience
Price

Promotion

Customer
Cost

Communication

Strategy Decision Areas

Product
Product Design
Product Development
Product Variety
Quality
Features
Packaging
Branding
Services
Warranties

Strategy Decision Areas

Price
Cost
Competitive Price
Discount & Allowances
Credit Period & Terms

Strategy Decision Areas

Place
Channel Selection
Channel Coverage
Inventory Management
Storage & Warehousing
Distribution Logistics

Strategy Decision Areas

Promotion
Advertising
Sales Promotion
Publicity
Public Relations
Personal Selling
Direct Marketing
??????

Strategy Decision Areas

Two more Ps to Plan & watch
Politics
Public Opinion

Developing Marketing
Programme and Follow-up
Developing Marketing Programme
All MARCOM tools to be worked as IMC budget
Advertising
Sales Promotion
Personnel Selling
PR & Publicity
Direct Marketing
Follow-up by
Sales Analysis
Iceberg Principle & 80/20 Principle
Marketing Cost Analysis
Profitability of Marketing Strategy

Quote-2
"The most serious mistakes are not being
made as a result of wrong answers. The truly
dangerous thing is not getting the right
questions."

Dr Ravindra
Pratap Gupta

Questions
Q 1) Define Marketing Discuss its role & Scope.

Define Marketing Management, Marketing

Strategy, Competitive Advantage, Marketing Mix?
Q 2) What do you understanding strategic
planning. Discuss the 6 steps in strategic
planning?

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Thanks