<ul><li>CHAPTER ELEVEN </li></ul><ul><li>Formulating Marketing Strategy </li></ul>
The Significance of Marketing Strategy <ul><li>The Plan/Instrument for Value Delivery </li></ul><ul><li>Helps Realise the ...
The Significance of Marketing Strategy <ul><li>In Particular, Helps Realise the Targeted Income and Profit </li></ul><ul><...
The Significance of Marketing Strategy <ul><li>On What Differentiation Strength to Compete? </li></ul><ul><li>On What Comp...
Formulating the Marketing Strategy <ul><li>Assembling the Marketing Mix </li></ul>Chapter 11 :   Formulating Marketing Str...
Formulating the Marketing Strategy <ul><ul><li>The marketing mix can  be assembled  in many different ways </li></ul></ul>...
Formulating the Marketing Strategy <ul><ul><li>The marketing mix has to be separately worked out for each brand </li></ul>...
Conditions for Success of Marketing Strategy <ul><li>Correct Sizing up of the Competitive Forces </li></ul><ul><ul><li>Str...
Upcoming SlideShare
Loading in …5
×

Ch11 formulating marketing_strategy

665 views

Published on

Published in: Business, News & Politics
  • Be the first to comment

Ch11 formulating marketing_strategy

  1. 1. <ul><li>CHAPTER ELEVEN </li></ul><ul><li>Formulating Marketing Strategy </li></ul>
  2. 2. The Significance of Marketing Strategy <ul><li>The Plan/Instrument for Value Delivery </li></ul><ul><li>Helps Realise the Unit’s Marketing Objectives </li></ul><ul><ul><li>Example of Dabur Foods; </li></ul></ul><ul><ul><li>To become a leading, integrated players in Indian fruit processing marketing. </li></ul></ul><ul><ul><li>To make its fruit juice brands Real, activ, major contestants in their segment. </li></ul></ul><ul><ul><li>To Achive a total sales turnover of Rs 500 crore by 2010. </li></ul></ul>Chapter 11 : Formulating Marketing Strategy
  3. 3. The Significance of Marketing Strategy <ul><li>In Particular, Helps Realise the Targeted Income and Profit </li></ul><ul><li>Specifies the Position the Unit will Seek in its Industry and How it will Compete Therein </li></ul><ul><li>What Market Segments to Serve? And What Products to Offer? </li></ul><ul><li>Who are the Firm’s Competitors? Whom to Compete, Whom to Avoid? </li></ul><ul><li>The Growth Path: Market Penetration? Market Development? Product Development? </li></ul>Chapter 11 : Formulating Marketing Strategy
  4. 4. The Significance of Marketing Strategy <ul><li>On What Differentiation Strength to Compete? </li></ul><ul><li>On What Competitive Advantages Will the Fight be Based? </li></ul><ul><li>What are Resources? </li></ul>Chapter 11 : Formulating Marketing Strategy Formulating the Marketing Strategy <ul><li>The ‘STP Plus Marketing Mix’ Approach </li></ul><ul><li>The ‘STP’ </li></ul><ul><ul><li>Segmentation of the Market </li></ul></ul><ul><ul><li>Targeting (picking the appropriate segments) </li></ul></ul><ul><ul><ul><li>What part of the market do we serve? What part we choose not to serve </li></ul></ul></ul><ul><ul><li>Positioning the offer </li></ul></ul><ul><ul><li>STP </li></ul></ul>
  5. 5. Formulating the Marketing Strategy <ul><li>Assembling the Marketing Mix </li></ul>Chapter 11 : Formulating Marketing Strategy
  6. 6. Formulating the Marketing Strategy <ul><ul><li>The marketing mix can be assembled in many different ways </li></ul></ul><ul><ul><ul><ul><li>Selecting the optimum combination is the name of the game </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The elements have to be harmonised and synthesised </li></ul></ul></ul></ul><ul><ul><li>Deciding the weightage for each P </li></ul></ul><ul><ul><ul><li>Godrej Storewel gives higher weightage to product </li></ul></ul></ul><ul><ul><ul><li>Asian paints places higher emphasis on distribution </li></ul></ul></ul><ul><ul><ul><li>The mix has to take its cue from the customers </li></ul></ul></ul><ul><ul><li>Marketing mix cannot be a static thing; it has to be juggled as required </li></ul></ul><ul><ul><ul><li>Change in environmental variables warrants the juggling of the mix </li></ul></ul></ul><ul><ul><ul><li>In particular, change in customer preference warrants the juggling </li></ul></ul></ul><ul><ul><ul><li>Change in PLC stage too demands change in the mix </li></ul></ul></ul><ul><ul><ul><li>Changes within the firm too necessitate modifications in the mix </li></ul></ul></ul><ul><ul><ul><li>Freezing the marketing mix would mean marketing inertia </li></ul></ul></ul>Chapter 11 : Formulating Marketing Strategy
  7. 7. Formulating the Marketing Strategy <ul><ul><li>The marketing mix has to be separately worked out for each brand </li></ul></ul><ul><ul><li>Marketing mix is the visible part of marketing strategy </li></ul></ul><ul><ul><li>Both quantitative analysis and judgement have a role in finalising marketing mix </li></ul></ul><ul><ul><ul><li>Marketing mix needs the support of competitive advantage </li></ul></ul></ul><ul><ul><li>Marketing, the interaction between marketing mix variables and environment variables </li></ul></ul><ul><ul><li>The controllable and the non-controllable variables of marketing </li></ul></ul><ul><ul><li>Linkage between marketing mix, marketing effort and marketing budget </li></ul></ul><ul><ul><li>Assembling and managing the marketing mix is the main task in marketing </li></ul></ul><ul><ul><li>Discussions on marketing mix are spread through the entire text </li></ul></ul><ul><ul><li>‘ STP plus marketing mix’ sums up marketing strategy </li></ul></ul>Chapter 11 : Formulating Marketing Strategy
  8. 8. Conditions for Success of Marketing Strategy <ul><li>Correct Sizing up of the Competitive Forces </li></ul><ul><ul><li>Strategy and forces of competition impact mutually; strategy reflects as well as shapes forces of competition </li></ul></ul><ul><li>Possession of Relevant Competitive Advantages </li></ul><ul><ul><li>While price route requires cost advantage, differentiation requires relevant competitive advantages </li></ul></ul><ul><ul><li>Cost advantage desirable whether the strategy is price-oriented or differentiation oriented: </li></ul></ul><ul><li>Price and Differentiation Routes Cannot Remain Mutually Exclusive </li></ul><ul><li>Neither Price Competitiveness, nor Differentiation is Sufficient; the Firm has to be Value Competitive </li></ul>Chapter 11 : Formulating Marketing Strategy Marketing Strategy has to Result in an Executable Marketing Plan

×