Strategy framework.

1. Marketing Strategy: Introduction
• What is strategy?
• How does marketing contribute?
- The marketing concept
- Market orientation

2. Marketing Strategy: Introduction
• What is strategy?
A fundamental pattern of present and
planned objectives, resource deployments,
and interactions of an organization with
markets, competitors, and other
environmental factors
“…the search for a favourable
competitive position…”
(Porter, ‘85)

3. Marketing Strategy: Introduction
• Corporate strategy
-organizations scope and resource deployment
• Business-level strategy
-competitive strategy of a business unit in its
industry
• Marketing strategy
-targeting, segmenting and positioning for a
product. Figuring out the marketing mix

4. Marketing Strategy: Introduction
• What is the marketing concept?
“…determining the needs and wants of target
markets and delivering the desired satisfactions
more effectively and efficiently than competitor’s
do.”
(Kotler et al, ‘96)

5. Marketing Strategy: Introduction
What do marketers mean when they say
their firms are market oriented?

6. Marketing Strategy: Introduction
What are advantages and disadvantages of
market orientation?
Why do some firms lack orientation towards
the market ?

7. Marketing Strategy: Introduction
Market oriented in not marketing oriented
- information on all important buying influences
permeates every corporate function
-Strategic/tactical decisions are made inter-
functionally and inter-divisionally
-divisions and functions make well-coordinated
decisions and execute them with commitment

8. Marketing Strategy: Introduction
Which should come first – the customer
need or the product idea?
- Marketing myopia

9. Discussion questions
Q.1 : In defining their strategies, should companies
pursue broadly or narrowly defined missions?
Q. 2: What are the advantages of each approach?

10. Characteristics of Effective
Corporate Mission Statements
Broad Specific
Functional
Based on
customer needs
Transportation
business
Long-distance
transportation for large-
volume producers of low-
value, low-density products
Physical
Based on existing
products or
technology
Railroad business Long-haul, coal carrying
railroad

11. Ansoff Strategies
Current Products New Products
Current Markets
Market penetration
strategy
Product development
strategy
New Markets
Market development
strategy
Diversification
strategy

12. The BCG Growth Share Matrix
High
Low
Stars
Dogs
Question marks
10 0.1
Relative market share
Market
growth
rate
(in
constant
dollars)
10%
1
Source: Adapted from Barry Hedley, “Strategy and the Business Portfolio,” Long Range Planning 10 (February 1977).
5
6
9
8
7
Cash cows
4
10 13
1
2
3
11 12

13. Cash Flows Across Businesses in the
BCG Portfolio Model
Growth
rate
(cash
use)
High
Low
Stars
Cash cows Dogs
Question
marks
High Low
Relative market share
Desired direction of business development
Cash
Flows

14. The GE Nine-Cell Matrix
Business’s
competitive
position
High
Low
Medium
Industry attractiveness
High Medium Low
1 1 2
1 2 3
2 3 3
1 Invest/grow
2 Selective investment/ maintain position
3 Harvest/divest