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LINKAGES OF MARKETING STRATEGY

TO CORPORATE STARTEGY

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© for BSNL internal circulation only

AGENDA

Understanding Corporate strategic Planning

Strategic marketing Planning

Linkage of Marketing Strategy to Corporate

Strategy

STRATEGIC PLANNING

VISION : What we want to be

MISSION : fundamental purpose of the organization

A mission statement provides a path to realize the vision in line with its values

VALUE

Beliefs that are shared among the stakeholders of an organization. Values drive an

organization's culture and priorities.

GOAL & OBJECTIVE

Goals convert the mission into targeted levels of performance to be achieved by a specific

time.

STRATEGY:

Strategy narrowly defined, means "the art of the general" (from Greek stratcgos). A

combination of the Ends (goals) for which the firm is striving and the Means (policies)by

which it is seeking to get there.

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STRATEGY

Strategy refers to a plan of action designed to achieve a

particular goal

Strategy is the direction and scope of an organisation

over the long-term: which achieves advantage for the

organisation through its configuration of resources

within a challenging environment, to meet the needs of

markets and to fulfill stakeholder expectations

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In other words, strategy is about:

Where is the business trying to get to in the long-term (direction)

Which markets should a business compete in and what kind of activities

are involved in such markets? (markets; scope)

How can the business perform better than the competition in those

markets? (advantage)?

What resources (skills, assets, finance, relationships, technical

competence, facilities) are required in order to be able to compete?

(resources)?

What external, environmental factors affect the businesses' ability to

compete? (environment)?

What are the values and expectations of those who have power in and

around the business? (stakeholders)

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only

CORPORATE STRATEGY

Strategy is the way in which a company orients itself towards the market in

which it operates and towards the other companies in the marketplace

against which it competes. It is a plan an organization formulates to gain a

sustainable advantage over the competition. The central strategic issue:

why different companies, facing the same environment, perform

differently.

Strategy answers the following questions:

what are the sources of the company's sustainable competitive advantage?

how a company will position itself against competition in the market over the

long run to secure a sustainable competitive advantage?

what are the key strategic priorities?

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Business mission

External Env.

Analysis

Goal formulation

Strategy formulation

Programmeformulation

Internal. Env.

Analysis

Implementation

Feedback & control

CORPORATE STRATEGY PLANNING

PROCESS

SWOT

VISION

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Marketing Strategy

Marketing strategy is a process that can allow an

organization to concentrate its limited resources

on the greatest opportunities to Increase Sales

and achieve a sustainable competitive advantage.

A marketing strategy should be centered around

the key concept that customer satisfaction is the

main goal.

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MARKETING STRATEGY

Marketing Strategy: The means by which a goal is to be

achieved, usually characterized by a specified target

market and a marketing program to reach it.

Marketing Tactics: Detailed day-to-day operational

decisions essential to the overall success of marketing

strategies

Situation AnalysisMarket Product Setting Goal

Setting Marketing ProgrammeImplementation

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Marketing Strategy Vs. Corporate

strategy

Marketing Strategy must be linked to overall

Corporate strategy, which defines how the

organization will Successfully Engage customers,

prospects, and competitors in the market arena

Marketing strategy determines the choice of target

Market Segments, Positioning, Marketing Mix,

and Allocation Of Resources

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INDUSTRY STRUCTURE

Pure Monopoly

Pure Oligopoly

Differentiated Oligopoly

Monopolistic Competition

Pure Competition

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Factors Affecting Industry Structure &

Competition

Number of sellers and degree of differentiations

Entry & mobility barrier

Cost Structure

Vertical Integration

Global Reach

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Components of Marketing Strategy

Environmental Scanning

Need analysis

Market Segmentation

Brand Value

Pricing Strategy

Product Positioning

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How marketing fits into overall strategic plan:

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marketing programs in line with corporate

strategy:

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STAR ??

CASH COW

DOGS

Relative market share

Rate

of

Mark

et

Gro

wth

BCG GROWTH SHARE MATRIX

“Invest in the stars, get rid of the dogs!”

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SUM UP

Marketing plays a very significant role in

translating corporate strategy into reality

Designing appropriate marketing mix in synch

with corporate strategy is must not only for

realizing the corporate objectives but also for

sustaining the results

© for BSNL internal circulation only

© for BSNL internal circulation only