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MARKETING STRATEGY
SESSION -1
INTRODUCTION
MBA 2011-13
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Sun Tze on Strategy
Know your enemy, know yourself, andyour victory will not be threatened.
Know the terrain, know the weather, andyour victory will be complete.
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WHAT IS STRATEGY
Strategy in a firm is the pattern of
objectives, goals and essential policies to
achieve the stated goals in such a way as todefine what business the company is in or is
to be in .
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The Role of Strategy in Corporation
CorporateMission &Objectives
Strategy:CorporateBusiness
Functional
Operating Plans
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Corporate strategy seeks to unify all
business lines of a company and point them
toward an overall goal.Business strategy focuses on defining the
manner of competition in a given industry
or product/market segment.
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What is strategic planning
Strategy specifies direction. A strategic statement
includes the description of new competitive
equilibrium to be created, the cause and effect ofrelationships that will bring it about, and the logic
to support the course of action.
A strategic plan specifies the sequence and timing
of steps that will alter competitive relationships
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Strategic planning scorecard
Is our planning really strategic
Do our plans leave room to explore strategic alternatives
Do we have time and incentive to investigate truly
important things Have we ever seriously evaluated a new approach to an old
market
Do our plans critically document and examine strategic
assumptions Do we consistently make an attempt to examine consumer,
competitor, and distributor responses to our programmes?
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MARKETING STATEGY
Marketing Strategy is an endeavor by a
Corporation to differentiate itself positively
from its competitors using its relativecorporate strengths to better satisfy
customer needs in a given environmental
setting.
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Marketing strategy (contd..)
Marketing Strategy is a series of
integrated actions leading to asustainable competitive advantage.
John Scully
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Key Elements of Marketing Strategy
Formulation
The strategic 3 Cs
Customers, Competitors & the Corporation
Environment analysis -- PEST Strategic Marketing Decisions
Where to compete
How to compete
When to compete
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Three 3 Cs of Marketing Strategy
Customer
Competition
Corporation
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What is Competitive
Advantage?
Competitive advantage is a companys
ability to perform in one or more ways
that competitors cannot or will notmatch. Philip Kotler
If you dont have a competitive
advantage, dont compete.Jack Welch, GE
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Other Characteristics of
Competitive Advantage
Substantiality
Is it substantial enough to make a difference?
Sustainability Can it be neutralized by competitors quickly?
Ability to be leveraged into visible business
attributes that will influence customers
(Source: Strategic Marketing Management, Aakers)
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Seeking Competitive
Advantages
Positions of advantage
Superior customer value
Lower relative total costPerformance advantages
Customer satisfaction, Loyalty, Market Share,Profit
Sources of advantages Superior skills & knowledge, Superior
resources, Superior business process
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Left-handed and right handed
organization and their strategies
Left-handed organizations are financially driven
and work with financial plan, ROI, cost , expenses
debt and assets.
Right-handed organization are market driven with
the primary focus of satisfying the customers. The
business decisions flow back from an
understanding of customers rather than from afinancial requirement.
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Strategic Review Process
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Challenges of the next
millennium
Decline of mega-brands as the result of
attacks from low-branded and low priced
competitors.Disappearance within many organizations
of staff marketing departments and
emergence of more focused functions withspecific line responsibilities
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Decline in the demand of certain specialist
marketing skills, including collection and
analysis of data.Emergence of GENX consumers who
demand a far high value added offer.
Markets which are characterized byinfinitely more aggressive and desperate
levels of competition.
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Emergence of new markets and
segmentation and rapid increase in new
product innovations.European integration and growing power of
distribution channels
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All these factors (challenges) have resulted
in need of managers revisiting the
traditional terms and practices of marketingby asking themselves the following
questions.
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Questions that modern day
marketers should ask themselves
Is marketing and its focus on meeting andanticipating customer needs is still a widely
accepted business philosophy?Are the strategies focused on creating value
to all stakeholders and customersatisfaction?
Is marketing function integrated with otherfunctions of the organization as a part ofvalue creating strategy?
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Is the Marketing strategy global in scope?
Does significant part of the marketing effort
constitute innovative practices notpreviously used by the organisation and itscompetitors?
Are strategic alliances for co-marketingactivities being formed and are marketingstrategies based on the development of longterm relationships with the clients?
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Thank You