Marketing Strategy

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• Marketing as per Peter Drucker – the aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.

• Chartered institute of marketing– marketing as the process of discovering, expecting and suiting the customer needs and at the same time making profits.

Marketing……

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• In Greek – strategos means to lead.• To be successful in business an organization should plan to utilize

available resource.• Strategy helps organization to realize its mission and be successful.

Strategy……….

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To achieve long term goals…. Good Strategy …… What needs to be achieved? What it needs to be achieved? How it needs to be achieved?

Strategy helps…. Business to develop. Sustain its competitive advantage. Build brand image. Enhance performance. Define market position. Create USP….

Strategy………. In Business

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• What to do..• What not to do…• Who the customers are…• What requirement of theirs to be met…• At what price…

Strategy………. Specifies…

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• Scope --- Type of businesses , Industries, market segments (company operates or plans to)..

• Goals --- Specific goals and objectives of the organization.

• Resource allocation --- Human & Financial. Optimal utilization of available resources.• Sustainable competitive advantage --- comes from strength

& core competence of organization.• Synergy --- Combined effort of various group working together.

Components of Strategy….

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Levels of strategy

Corporate level strategy

Business level strategy

Functional level strategy

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Corporate level strategy

Diversifying Coordination between businesses.

Strengthening Co. position thru out its business.

Financial, operating, managerial

aspects, sharing resource,

knowledge & expertise.

Identifying strategic fit to find competitive

advantage.

How well Co’s. objectives and

strategies match – competencies and

External environment.

Identifying the priorities for allocating

the resources.

Identify profitable business &

allocate resource

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Business level strategy

Responding to

the changes in the environ

ment

InternalEnvironment

External Environment

Attaining

competitive

advantage.

Identify

product/servic

es that offer competitiv

e advantag

e.Develop

unique

capabilities.

Protect

business

from tactics of

competitor

s.

Developing

distinctive

competencies.Technological advantag

e.Defe

ct free product.

Specialize

d marketing

.JIT…etc

Coordinating

initiative of

functional units.

Synergy

enhances effectiveness of strategy.

Dealing with

strategic issues

of busines

s.

Approval from top management for

major

actions &

inform of developments, modification or revision of strategies

.

Plan of action to deal within its industry

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• Focuses on product or market.• Focuses on functional unit, department, or

process within the business.

Functional level strategy.

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Strategic Marketing Marketing StrategyIt is the formulation of a strategy taking into consideration the constantly evolving trends in business environment by giving customer satisfaction at most importance.

It is analysis, development, implementation of selected market target strategy for the product markets in which the organization has interest.

It involves monitoring the environment constantly to identify the changes and to modify the strategy accordingly.

It involves implementation and managing the marketing strategy that have been formulated to meet the marketing objectives and customer needs.

It focuses on the performance of the organization as a whole.

It focuses on the performance of a product / service in the target market.

It views marketing as a key activity of the entire business rather than the specialized function.

It combines the customer- influencing strategies with market focused activates to gain competitive advantage in the industry.

It has a boarder perspective, i.e. it is concerned with the changing trends in business, changes in the customer needs and customer satisfaction.

It has a narrow perspective : Concerned with the customer , organization boundaries, market and competitors.

It is about how to do. It is about what to do.

Strategic management & Marketing strategy

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• Competitive strategy refers to how a company competes in a particular business.

• Competitive strategy is concerned with how a company can gain a competitive advantage through a distinctive way of competing.

Competitive Strategy

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•

Sustainable competitive advantage is the focal point of your corporate strategy. It allows the maintenance and improvement of your enterprise's competitive position in the market.

• It is an advantage that enables business to survive against its competition over a long period of time.

Competitive Advantage of Corporate ………..

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• Hilton & Marriott

» Vs

» La Quinta Motor inns

Marketing strategy & competitive advantage -- CS

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• Success in business depends on VISION & Competitive advantage.

• Vision vs. Mission

• Vision –where the co. expects to be in future.• Mission –Basic purpose for which the co. is in

business.

Marketing strategy & Competitive advantage….

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• Business can achieve comp. Advantage by..• Focus on customers..• Analysis of requirements of buyers..• Identify gaps in service provided by the

competitor product/ service..• Identifying unmet requirements.. To find

opportunities..• Customer satisfaction analysis..

Competitive advantage..

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• Competence is the ability to perform a specific task, action or function successfully.

• Success of an organization lies in identifying its ability to identify, develop, and take advantage of its core competences..

Competence..

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• Provide access to wide variety of market.• Contributes by providing benefits which are perceived important by

customer.• Difficult for competitors to imitate.

Core Competence advantage..

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• The link between the core competences and final product is CORE PRODUCT.

• Honda Engines -- CS

Core Competence

Area of expertise Core Competence Company

Engines Efficiency & Performance

Honda

R & D Research Merck.co

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