Marketing: Planning and Strategy

Strategy: Definition A pattern of major objectives, goals, essential policies and plans that define the current or future firm’s business and the kind of company the firm is now or is to become.

A pattern of major objectives, goals, essential policies and plans that define the current or future firm’s business and the kind of company the firm is now or is to become.

Why do we need to “Strategize” Finite resources Uncertainty about competitive strengths Irreversible commitment of resources Coordinated decisions Uncertainty about control of initiative

Finite resources

Uncertainty about competitive strengths

Irreversible commitment of resources

Coordinated decisions

Uncertainty about control of initiative

Elements of Marketing Strategy Formulation

S trengths W eaknesses O pportunities T hreats SWOT Analysis internal external

S trengths

W eaknesses

O pportunities

T hreats

Identifying and Framing Organizational Growth Opportunities What might we do? - environmental opportunity What do we do best? - distinctive competency What must we do? - success requirements Converting Environmental Opportunities into Organizational Opportunities

What might we do? - environmental opportunity

What do we do best? - distinctive competency

What must we do? - success requirements

Product strategy Promotion/Communication strategy Placement/Distribution/Channel strategy Pricing strategy The Marketing Mix

Product strategy

Promotion/Communication strategy

Placement/Distribution/Channel strategy

Pricing strategy

Existing New Existing New Market Penetration Market Development New Offering Development Diversification Markets Offerings Formulating Product-Market Strategies

Formulating Product-Market Strategies Market Penetration Strategy greater dominance is key Market Development Strategy exporting licensing joint venture direct investment

Market Penetration Strategy

greater dominance is key

Market Development Strategy

exporting

licensing

joint venture

direct investment

Formulating Product-Market Strategies Product-Development Strategy product innovation product augmentation product line extension cannibalism Diversification

Product-Development Strategy

product innovation

product augmentation

product line extension

cannibalism

Diversification

Drafting a Marketing Plan Context and Scope of Marketing Effort Focus: Business, Product, Brand Time Dimension: Short-run, Long-run

Context and Scope of Marketing Effort

Focus: Business, Product, Brand

Time Dimension: Short-run, Long-run

Decisions About Competing Where (markets) When (Entry) How

Where (markets)

When (Entry)

How

Problems in Strategic Marketing Too much emphasis on where to compete Too little emphasis on how to compete when to compete adaptability uniqueness

Too much emphasis on

where to compete

Too little emphasis on

how to compete

when to compete

adaptability

uniqueness

Implementation: Common Problems Simplify marketing strategies More focus on uniqueness and adaptability Improve speed and flexibility

Simplify marketing strategies

More focus on uniqueness and adaptability

Improve speed and flexibility