Intro. to Marketing Strategies


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Intro. to Marketing Strategies

  1. 1. Foundations of Strategic Marketing Management Nicole Howatt
  2. 2. The Primary Purpose of Marketing To create long-term and mutually beneficial exchange relationships between an entity and the publics with which it interacts.
  3. 3. Expanding Responsibilities of Marketing Managers <ul><li>Expanded responsibilities include: </li></ul><ul><ul><ul><li>Charting the direction of the organization </li></ul></ul></ul><ul><ul><ul><li>Contributing to decisions that will create and sustain a competitive advantage & affect long-term organizational performance </li></ul></ul></ul>
  4. 4. Evolution of the Marketing Manager This has prompted the emergence of strategic marketing management as a course of study and practice. <ul><ul><li>From being only an </li></ul></ul><ul><ul><li>to being a </li></ul></ul>
  5. 5. Processes in Strategic Marketing Management <ul><li>Defining the organization’s business, mission, and goals </li></ul><ul><li>Identifying and framing organizational growth opportunities </li></ul><ul><li>Formulating product-market strategies </li></ul><ul><li>Budgeting marketing, financial, and production resources </li></ul><ul><li>Developing reformulation and recovery strategies </li></ul>
  6. 6. 1. Business Definition By defining a business from a customer or market perspective … <ul><li>What Business are we in? </li></ul><ul><li>An organization should define a business by: </li></ul><ul><ul><li>The type of customers it wishes to serve </li></ul></ul><ul><ul><li>The needs of those customer groups </li></ul></ul><ul><ul><li>The means or technology by which the organization will satisfy the customer needs </li></ul></ul>
  7. 7. Most statements describe: Benefits: 1. Crystallizes management’s vision 2. Provides guidance 3. Inspires and challenges employees 4. Provides direction Business Mission <ul><li>Management’s vision of what the organization seeks to do </li></ul>
  8. 8. Business Goals Goals or objectives convert the organization’s mission into tangible actions and results that are to be achieved, often within a specified time frame. Three major categories of goals: Production Goals Financial Goals <ul><li>Marketing Goals </li></ul><ul><ul><li>market share </li></ul></ul><ul><ul><li>marketing productivity </li></ul></ul><ul><ul><li>sales volume </li></ul></ul><ul><ul><li>profit </li></ul></ul><ul><ul><li>customer satisfaction </li></ul></ul><ul><ul><li>customer value creation </li></ul></ul>
  9. 9. Identifying and Framing Organizational Growth Opportunities Process Two
  10. 10. <ul><li>Sources of environmental opportunity : </li></ul><ul><li>Unmet or changing customer needs </li></ul><ul><li>Unsatisfied buyer groups </li></ul><ul><li>New means or technology for delivering value to prospective buyers </li></ul>Converting Environmental Opportunities into Organizational Opportunities
  11. 11. What do we do best? <ul><li>Distinctive Competency describes an organization’s unique strengths or qualities including: </li></ul><ul><ul><li>Skills </li></ul></ul><ul><ul><li>Technologies </li></ul></ul><ul><ul><li>Resources </li></ul></ul>Converting Environmental Opportunities into Organizational Opportunities
  12. 12. The 5 C Strategic Analysis Framework <ul><li>Customers </li></ul><ul><li>Company </li></ul><ul><li>Competitors </li></ul><ul><li>Context </li></ul><ul><li>Collaborators </li></ul>
  13. 13. Consumer Behavior Analysis <ul><li>Identify decision making unit. </li></ul><ul><ul><li>Who is involved in the purchase? </li></ul></ul><ul><ul><li>What role does each play? </li></ul></ul><ul><li>Possible roles: </li></ul>User Decider Initiator
  14. 14. Consumer Behavior Analysis <ul><li>Decision Making Process </li></ul><ul><ul><li>Information search </li></ul></ul><ul><ul><li>Criteria of evaluation </li></ul></ul><ul><ul><li>Importance of attributes </li></ul></ul><ul><li>Purchase and Consumption patterns </li></ul><ul><ul><li>Where does the consumer buy? </li></ul></ul><ul><ul><li>How is the product used? </li></ul></ul>
  15. 15. Consumer Behavior Analysis <ul><li>Answer questions like: </li></ul><ul><ul><li>What are the benefits sought? </li></ul></ul><ul><ul><li>Likes and dislikes about current offers? </li></ul></ul><ul><ul><li>Image and perceptions of available brands? </li></ul></ul><ul><ul><li>Price sensitivity? </li></ul></ul>
  16. 16. Company Analysis: SWOT <ul><li>Internal </li></ul><ul><ul><li>Strength </li></ul></ul><ul><ul><li>Weaknesses </li></ul></ul><ul><li>External </li></ul><ul><ul><li>Opportunities </li></ul></ul><ul><ul><li>Threats </li></ul></ul>
  17. 17. SWOT Analysis A formal framework for identifying and framing organizational growth opportunities S trengths W eaknesses O pportunities T hreats
  18. 18. Company Analysis: Goals <ul><li>Business goals should be </li></ul><ul><ul><li>specific </li></ul></ul><ul><ul><li>actionable </li></ul></ul><ul><ul><li>measurable </li></ul></ul><ul><ul><li>time-bound </li></ul></ul><ul><li>What is problematic with the following goals? </li></ul>
  19. 19. Competitor Analysis: Basics <ul><li>Comparison of costs, capabilities, methods and strategies. </li></ul><ul><li>Do SWOT on your competitors </li></ul><ul><li>Analyze the competition! </li></ul><ul><li>Objective factors: </li></ul><ul><ul><li>Size of sales force </li></ul></ul><ul><ul><li>Plant capacity </li></ul></ul><ul><ul><li>Price and Performance </li></ul></ul>
  20. 20. Competitor Analysis: Strategic <ul><li>Strategic analysis </li></ul><ul><ul><li>Future Goals: What drives the competition? </li></ul></ul><ul><ul><li>Assumptions: What do competitors believe about the market? </li></ul></ul><ul><ul><li>Current Strategy: What are the competitors doing? </li></ul></ul><ul><ul><li>Capabilities: What can the competitors do? </li></ul></ul>
  21. 21. Context: Macro Economic, Technology, Industry Analysis <ul><li>Traditional industry analysis </li></ul><ul><ul><li>Size, growth, profitability, concentration, business cycles, technology etc. </li></ul></ul><ul><li>Historical trend analysis </li></ul><ul><li>Demographics and economic trends </li></ul><ul><li>Technology discontinuities and market turbulence </li></ul>
  22. 22. Industry Attractiveness: Porter’s Five Forces Model Threat of New Entrants High or low barriers High or low threats Industry Competition Numerous? Slow or fast growth? Low or high differentiantion High or low exit barriers Intense treat? Buyer Power Plentiful alternatives Low switching costs Intense threat? Supplier Power Switching costs? Threat of forward Integration High or low threat Threat of Substitutes Similar function Shifting preferences Intense threat?
  23. 23. Collaborator <ul><li>Downstream channels </li></ul><ul><li>Upstream suppliers </li></ul><ul><li>Industry level alliances </li></ul><ul><li>Technology alliances </li></ul><ul><li>Market alliances </li></ul><ul><li>Financial linkages </li></ul><ul><li>International linkages </li></ul>
  24. 24. Formulating Product-Market Strategies Process Three
  25. 25. Existing products New products Existing markets New markets Product-Market Strategies
  26. 26. Seeking a larger market share in a market in which organization already has an offering <ul><li>This strategy involves: </li></ul><ul><li>Attempts to increase present buyer’s usage or consumption rates of the offering </li></ul><ul><li>Attracting buyers of competing offerings </li></ul><ul><li>Stimulating product trial among potential consumers </li></ul><ul><li>Consider?? </li></ul>Market Penetration Strategy
  27. 27. Introducing its existing offerings to markets other than those that the organization is currently serving. <ul><li>Reaching new markets requires: </li></ul><ul><li>Carefully considering competitor strengths and weaknesses and competitor retaliation potential </li></ul><ul><li>Modification of the basic offering </li></ul><ul><li>Consider? </li></ul>Market Development Strategy
  28. 28. <ul><li>This approach may be taken for: </li></ul><ul><li>Product Innovation – develop totally new offerings </li></ul><ul><li>Product Augmentation – enhance the value to customers of existing offerings </li></ul><ul><li>Product line extension – broaden the existing line of offerings by adding different sizes, forms, flavors, etc. </li></ul>Product Development Strategy
  29. 29. Development or acquisition of offerings new to the organization and introducing those offerings to publics not previously served by the organization. Diversification Strategy