STRATEGY

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Strategic Planning
Long term organization
direction
Concerned with all the
organization
Emphasis on Financial
performance
Overall organizational goals
Marketing Planning
Medium term daily
performance
Concerned with marketing
Finance is important beside
awareness ,MS &satisfaction
measures
Specific departmental target
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Strategist ,Planner ,tactician
• Which market ?

• How to attack competition ?

• Using TV ad ?

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 Strategic Tactical
Marketing Marketing
Time Long term Short term
Frame
Focus Broad (Global or Narrow (Brand or segment)
portfolio)
Key Tasks Defining marketing & Operational activities
competitive position
Examples Market development Promotion
Product Development Price discount
New pack design

!! Trend Breaking

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 Strategy Development
• Competitive (generic) strategies
Porter :Focus ,differentiation ,cost leadership
• Growth strategy (strategic directions)
Ansoff Matrix : Market penetration ,market
development ,product development ,
diversification
• Alternative methods
Internal development ,acquisition ,joint ventures
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 Porter Generic Strategies
• Cost Leadership
-It may (&may not) reflect on pricing ,but it reflect on profit
-Economies of scale ,technology
-Block the competition !! But maintaining this is difficult
• Key drivers :
- Infrastructure (even skills)
-Linkages &relationships (airbus)
- Economies of scale (why go global ?)

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 Porter Generic Strategies
• Differentiation
Performance ,
Perception (Metro vs Kheir zaman)
Augmentation (after sales service

- Allows premium pricing

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 Porter Generic Strategies
• Focus (niche)
- Geographic /End users / Specialist products

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 AVOID

Stuck in the middle position

Very low profitability

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 Growth Strategy

Generating Alternative Strategic options

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 Quick aggressive
plan but can
reach saturation
Switch from-
competitors
Frequency /value-
of purchase Modified or new
Nido plus 1
Windows 9
E banking

New segment
,organization Start or acquire
channel ,market business outside
Geographic- current scope
expansion Geographic-
New indication of - expansion
drug Virgin
Orascom Mina Maged
 Ansoff Examples
A. Market penetration : Change your car
,change your number
B. Market development: New areas or new
drug indications
C. Product development : New chipsy ,A
new cola free from caffeine ,new version
of mobiles.
D. Diversification : moving from having a
music industry to have an airline industry.

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 Gain more market share
• Is not an ad or sales promotion ,it is a new
development

• Evaluate the competitor response

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Apply Ansoff

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More Strategic Methods
Value
Plus
• Integration :Vertical (Backward &forward) –horizontal)

• Diversification:
-Concentric Diversification (New & related products/services)
-Conglomerate Diversification (New & unrelated products/services)
-Horizontal Diversification (New & unrelated products/services for
current customers)

• Defensive Strategies
-Retrenchment: (Regrouping , Cost & asset reduction to reverse
declining sales & profit)
-Divestiture :(Selling a division or part of an organization)
-Liquidation: Selling , Company’s assets, in parts, for their tangible
worth

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International Marketing

Same Concepts , Less effort.

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Ambition has no limit
The world is yours

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It may save you

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 Introduction
-An informed decision
Why it saves ? Why go international ?
Intensity of the competition
Saturated domestic market.
Product life cycle differences (Fridges in Africa)
Financial reasons –(investment incentives )
Organizational issues – ( mergers)

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 It is a challenge
Domestic marketing International marketing

Main language Many languages

Dominant culture Multi-culture

Research straightforward Research complex

Relatively stable environment Often unstable environment

Single currency Exchange rate problems

Business conventions understood Conventions diverse and unclear

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 International Enviroment
China !!
• P
• E
• S
• T
• E
• L

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 Just for Fun
Black is thought to be unlucky in China,
White is a mourning colour for Japan
Green is associated with sickness in
Malaysia.

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The crucial issue

Market research

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 Other points to Examine
External Market Place
Importing to Egypt
-Population size and growth
-Population density and concentration
-Population age and distribution
-Income and income distribution
-Economic activity
-Natural resources
-Topography
-Climate
-Energy and communication
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 Market Entry Strategies
1. Licensing-
-It requires relatively low levels of investment.
-A contract that, to produce products or services and trade
marks that belong to another organization, namely the
licenser.
Advantages: include a low level of commitment &reduced
market entry costs

Disadvantages: include being tied into a long-term

relationship (conflict)
2. Agents –
-Agents are overseas sales personnel with commission
-They can enter the market
-Agents selection !!
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 Market Entry Strategies
3.Franchising –
-A contract to market and supply a product or
service that has been very strictly designed and
developed by the franchiser.
-The franchiser will most likely have strict terms
and conditions on store design, store layout and
contents sold within the retail outlet
4. Company acquisition –
-Gaining market entry by buying an existing
company in the country where you wish to trade.
-Infrastructure is in place, but the financial risk !!.
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 Market Entry Strategies
5. Wholly owned subsidiary –
-The most expensive methods
6. Joint venture –
-Potentially buying up to half of a compatible
business.
-Sharing everything but different aims leads
to ……
CONFLICT

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 Entry Barriers
Apply on Sudan
• Too much red tape (routine)

• Transportation difficulties

• Lack of trained personnel

• Slow payment by buyers

• Language barriers.
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 To Overcome Barriers
• Choose the right entry strategy

• Knowledge is power

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Standardization vs Adaptation
-A standardized strategy :
The same product , price, distribution channel
and promotional campaign are used across the
globe.
It is the most cost effective but not the most
competitive.
CIM: “ Internet”
- Adaptation strategy
The whole or part of the marketing mix has to be
changed to meet the changing needs of different
nations.
Same product with different other 6 Ps
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Think Globally ,Act Locally

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Assignments

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Till next week !!!
minafanos@hotmail.com
0106613178

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