© 2006 by Nelson, a division of Thomson Canada Limited1-104/19/23
Slides developed by:Slides developed by:
Peter YannopoulosPeter Yannopoulos
Chapter 1Chapter 1
Strategic Marketing Planning and Strategic Marketing Planning and Market OrientationMarket Orientation
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Marketing StrategyMarketing Strategy
Marketing strategy is about Marketing strategy is about satisfying valuable customers satisfying valuable customers in a superior wayin a superior way
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Marketing is about …..
Choosing a certain course of action and
rejecting other alternatives after careful
consideration
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The objective of marketing is…
To focus on those marketingstrategies that are more in line with the organizational goals and capabilities
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Components of Marketing StrategyComponents of Marketing Strategy
Pricing strategy
Distributionstrategy
Promotion strategy
Product strategy
Market segment strategy
Positioning strategy
Components Components of Marketing of Marketing
StrategyStrategy
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The Strategic Marketing Planning
Product Strategy
Pricing Strategy
Distribution Strategy
Promotion Strategy
Implementation and Control
Strategic Positioning
Corporate Vision, Mission, and Goals
Situational Analysis
Market Segmentation and Target Marketing
Market Definition
Business-Level Strategy
Corporate Strategy
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Corporate Vision
A mental image of a desirable
future state of an organization
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Properties of Effective Corporate Visions
Shared
Grounded in reality
Informed
Intent to win
Effective Effective CorporateCorporate
VisionsVisions
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Corporate Mission
It identifies what the firm stands for and its operating philosophy
It is a multi-dimensional concept that consists of several components
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Components of Corporate Mission
It reflects the values of the organization
It reflects the true purpose of the business
It includes the policies and operational standards of the organization
It includes the firm’s competitive position and competitive advantage
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Competing on the Edge
It involves taking action, observing
what happens, and adopting the
course of action that seems to work
best
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Deliberate Strategies
Strategies that are the result of a
formal planning process
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Emergent Strategies
Strategies that occur from
responses to customer requests,
manufacturing problems,
competitive threats, and
technological advances
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Market Orientation
InterfunctionalCoordination
InterfunctionalCoordination
CustomerOrientationCustomer
Orientation
CompetitorOrientationCompetitorOrientationMarket
Orientation
MarketOrientation
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Customer Orientation
Intimate knowledge of customer needsStrong customer commitmentCreation of superior customer valueSuperior market sensing capabilitiesDevelop customer relationships with
valuable customersSegment markets and choose the most
attractive segments
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Competitor Orientation
Know direct and indirect competitorsMonitor competitor activityRegularly analyze competitor strategies Benchmark performance against
competitorsRespond rapidly to competitor actions
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Interfunctional Coordination
Regularly collect market informationMarket information is shared among
functionsAll functions contribute to meeting
customer needsThere is a strong coordination of all
functions
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Some Strategic Advantages of Market Orientation
Encourages behaviour needed to create superior customer value
Helps design a superior marketing strategy to guide marketing actions
Outperform competitorsCreate loyal customersCharge higher prices
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Strategic Interdependence
The outcome of a firm’s strategy depends on the strategy it chooses but also on the strategy chosen by its rivals
Firms must be aware of the possible moves and countermoves of competition and adjust their marketing plans to reflect such moves
The process of strategic interaction forces firms to continually improve the quality of their products and lower prices
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Major Influences on Marketing Strategy Formulation
Triple Bottom Line
Triple Bottom Line
GlobalizationGlobalization
Marketing Convergence
Marketing Convergence
Major Influences on
Marketing Strategy
Major Influences on
Marketing Strategy
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Triple Bottom LineTriple Bottom Line
SocialFinancial
Environmental
Triple Triple BottomBottom
LineLine
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