Strategy in Mktg and Selling

7/31/2019 Strategy in Mktg and Selling

1/37

Strategic Planning

forMarketing & Selling


2/37


3/37


4/37

What is Strategic Planning?

An organized and documented method onsetting objectives and defining how theywill be accomplished

It describes how an organization or anindividual will get to where he wants to go

AND

It describes how one will know whetherhe got there any time


5/37

What are the benefits ofStrategic Planning?

Improves Organizational Performance

Provides Focused and Realistic Direction

Clarity about where we are going and how we willget there

Improve Resource Development Efforts


6/37

Strategic planning process

Assess strengths, weaknesses,Opportunities and Threats

Define Goals and Objectives

Establish SMART Action Plans tomeet identified Goals and objectives

Evaluate Progress


7/37

Strategy

Strategy isplanningthat allows youto get more business than yourincidental share.

Strategy is about getting customersand keeping them.

Drucker: The purpose of abusiness is to create a customer.

Build it and they will come.


8/37

STRATEGY IN ACTION


9/37

Strategy

Theprocessof strategy includes:

Analysis

Formulation

Implementation


10/37

Strategic Planningand Analysis

Planning how to get more than your fairshare involves:

Scanning the overall environment

Scanning and researching the industryenvironment

Researching direct competitors

Researching skills and resources

Analyzing current strategy


11/37


12/37

Operational EffectivenessIs Not Strategy

Operational effectiveness is necessary to competebut not sufficient to win.

A company can outperform others and win only if itcan establish a difference that it can sustain adifferential competitive advantage.

In the past barriers to entry were the primary competitive

advantage.

Operational effectiveness means doing thingsbetterthan competitors, strategic positioningmeans doing things differentfrom competitors.


13/37

Strategy Rests OnUnique Activities

The essence of strategy is choosing toperform activities differently than rivalsdo.

Strategic positions can be based oncustomers needs, customers accessibility,or the variety of a companys products orservices.

Change is happening too fast.


14/37

Generic Strategies

There are three generic (primary)strategies:

Differentiation

Focus (niche marketing) Cost leadership

These definitions characterize strategicpositions at the simplest and broadestlevels.


15/37

Secondary Strategies

Within the three basic strategies, there areseveral secondary strategies:

Defense: Block competition to avoid losing marketshare.

Offense : Attack competition head on.

Flanker Brand : Establish new position.

Fighting Brand : Create a new brand to compete

with competitive new brand.

Guerrilla Marketing: Force competition to respond

with small resources.

Ambush Marketing


16/37

Determining Strategy

To determine strategy, answer the following questions:

Which of our products/services are the most distinctive?

Which of our products/services are the most profitable?

Which of our customers are the most satisfied?

Which customers, channels, or purchase occasions are mostprofitable?

Which of the activities in our value chain are the mostdifferent and effective.

How can we make everything better? Now!


17/37

Potential Traps

Meaningless differentiation

Getting greedy

Throwing money at a problem

Lack of commitment

Innovation stagnation


18/37

Profit is Important

Profit is the key to a successful strategy

Compromises and inconsistencies in thepursuit of growth will erode thecompetitive advantage a company.

Keep an eye on profitable growth.


19/37

FROM THE EXPERT


20/37

Must have a clear and simple strategy.

Must define how to get more than a fair share.

Must be committed to strategic moves andsignal commitment to competitors.

Must follow through on commitmentscontinually and retaliate quickly andaggressively to counter moves.

Must continually innovate

SUMMARY


21/37

What is Marketing??

Selling?

Advertising?

Promotions?

Making products available in stores?

Maintaining inventories?

All of the above, plus much more!


22/37

Marketing = ?

Marketing is the process of planning

and executing the conception, pricing,

promotion, and distribution of ideas,goods, services to create exchanges

that satisfy individual and

organizational goals

American Marketing Association


23/37

Marketing = ?

Marketing management is the

art and science of choosing

target markets and getting,

keeping, and growing customers

through creating, delivering, andcommunicating superior

customer value.


24/37

Simple Marketing System

(a collection

of sellers)

(a collection

of Buyers)

Communication

Information

Goods/services

Money

M k ti ?


25/37

Marketing = ?

Marketing is the sum of all activities that takeyou to a sales outlet. After that sales takes

over.

Marketing is all about creating a pull, sales isall about push.

Marketing is all about managing the four Ps

product

price

place

promotion


26/37

The 4 Ps &4Cs

Marketing

Mix

Product

Price Promotion

Place

Customer

Solution

Customer

Cost

Communication

Convenience


27/37

Sales

Trying to get the customer to want

what the companyproduces

Marketing

Trying to get the company producewhat the customerwants

Difference Between - Sales & Marketing ?


28/37

Who is a Customer ??

Anyone who is in the market

looking at a product / service for

attention, acquisition, use or

consumption that satisfiesa want

or a need

C


29/37

Customer

CUSTOMER has needs, wants, demands

and desires

Understanding these needs is starting pointof the entire marketing

These needs, wants arise within aframework or an ecosystem

Understanding both the needs and theecosystem is the starting point of a longterm relationship

How Do Consumers Choose Among


30/37

How Do Consumers Choose AmongProducts & Services?

Value - the value or benefits the customers

gain from using the product versus the cost

of obtaining the product.

Satisfaction - Based on a comparison of

performance and expectations.

Performance > Expectations => Satisfaction

Performance < Expectations => Dissatisfaction

C t P bl S l ti


31/37

Customers - Problem Solution

As a priority , we must bring to ourcustomers WHAT THEY NEED

We must be in a position to UNDERSTANDtheir problems

Or in a new situation to give them a chance

to AVOIDthe problems

Cl ifi ti f S i


32/37

Classification of Services

Materials / Components

Computers

Major Product withMinor Services

Product = Service

Major Service with

Minor ProductBusiness Hotels

Good Transportation

Banking Pure IntangibleService

Major Characteristic of Services


33/37

Intangibility Services are intangible - cannot be

seen, tasted, felt, heard or smelled beforepurchase.

Inseparability - Services are produced and

consumed simultaneously.

Variability or Heterogeneity Services are highly

variable

Perishability Services cannot be stored.

Non Ownership - Services are rendered but there

is no transfer of title

Major Characteristic of Services

Great Words on Marketing


34/37

Great Words on Marketing

1. The purpose of a company is to create a

customerThe only profit center is the customer.

2. A business has twoand only twobasic functions:

marketing and innovation. Marketing and innovationproduce results: all the rest are costs.

3. While great devices are invented in the Laboratory, greatproducts are invented in the Marketing department.

Competition Cent ic/C stome Cent ic


35/37

The range of products has emerged from beingcompetition-centric.

Technology alone does not deliver, helps people do.

Customers need to be educated too

Customers are not only present where competition is.

Advertising will only sell, Not retain customers.

Selling focuses on the needs of the seller; marketing on

the needs of the buyer.

Trust is not a differentiator at all

it is the very minimum that the customer expects!!

Competition Centric/Customer CentricSelling Plan

So what will the differentiators be :


36/37

Technology ?

Brand ?

So what will the differentiators be :


37/37

The real differentiator of

customer centricity in a

commoditised world of financialproducts -

Customer Service !

Strategy in Mktg and Selling

Documents

Transcript of Strategy in Mktg and Selling