The Nature of Strategy Pertemuan 19 & 20

Mata kuliah : 00274 - INTEGRATED MARKETING COMMUNICATIONTahun : 2009/2010

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What is STRATEGY? Marketing Communication Strategy Integrated and drive all the communication tools in a single purposeful direction.

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Forward or Backward Strategy

Igor Ansoff makes strategy out to be a carefully planned, heavily analyzed, prescriptive activity far removed from the details of tactical creativity. Henry Mintzberg suggest that strategy is an

emergent pattern in organizational actions to which managers give legitimacy by ascribing the label of strategy to what has already happened

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SOSTAC planning system Situation, where are we now? Objectives, where do we want to be? Strategy, summaries how we are going to get there Tactics, details of strategy Action, means implementation Control, means measurement, monitoring, reviewing, updating and modifying

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SOSTAC planning system This means that strategy should come before tactics Strategy should drive the tactics in an overall direction otherwise the tactics can drift anywhere Strategy summaries how the objectives will be achieved.

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Definitions of StrategyDictionary definitions Strategy: the science of planning and

directing military operations; a plan or action based on this; skill in managing

or planning esp. by using stratagem (Collins Pocket Dictionary, 1986) Stratagems: a trick or plan for deceiving an enemy in war, any trick or scheme (Collins Pocket Dictionary, 1986)

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Marketers’ DefinitionsHere is how strategy has been defined by marketing professionals:

A big pictureA longer-term viewA way of achieving objectivesA summary of tacticsA guideline for tacticsA platform for integrating the marketing mixA platform for integrated communicationsA platform for combining the positioning,

segmentation and the mixA way of making things fit better.

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Mintzberg’s 5Ps of StrategyHe listed 5 definitions of strategy :Plan; ‘… a unified, comprehensive, integrated plan designed to ensure objectives are achieved’Play: ‘… a maneuver to attack or threaten to attack a competitor.. Threatening to enter a market, cut prices or launch lower priced “fighting brands”

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Pattern: the summary of a series of action

(consistency in behavior whether or not intended). Position: how the organization or brand

wants to be seen in the market place and whether it wants to be a leader or

a follower in a niche or not. Perspective: permeates internally–within the organization so that all employees see the strategy and feel part of it… the corporate culture.

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(1)Corporate Strategy

(2)Marketing Strategy

(3)Marketing Communications Strategy

THE THREE LEVELS OF STRATEGY:

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Three Levels of Strategy Corporate Strategy; Long term moves made to achieve corporate plans and objectives. Corporate strategy involves senior management decisions, eg. choosing what business to be in!

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Three Levels of Strategy Marketing Strategy/operational strategy: can cover manufacturing system, eg. McDonald’s strategy was to systematize the franchisingsystem so that it could deliver a consistent level quality, service, cleanliness and value around the world!

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Three Levels of Strategy Marketing Communications Strategy: involves the whole marketing mix and marketing communication tools and choice of target markets, exploiting competitive advantage, eg. reposition the product as up-market, state of the art, priced accordingly and distributed through exclusive retail stores, and supported

by a major above the line campaign.

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Types of Strategy Product Strategy: determines and guides decisions about product development, eg to expand the range instead of restrict the range, focus on product enhancements only, utilize miniaturizations.

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Pricing strategy (PS)

PS: determines prices and pricing structures, eg. adopt a premium pricing strategy (skimming the market) instead of a cut price strategy (penetrating the market)

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Distribution strategy Distribution strategy; determines the routes for distribution eg to distribute directly through mail order instead of retail outlets or to develop multi-level channels instead of single-level channels

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Marketing Communication Strategy

Marketing communications strategy: determines the message or sequence of messages which should be shared with specific target audiences through the optimum communications mix (eg. advertising or direct mail)

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Advertising strategy: Advertising strategy: determines the message or sequence of messages which should be shared with specific target audiences through the optimum media mix (eg televisions or press advertisement).

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The Benefits of Strategy Each tactical activity is able to build on the others to create strength through continuity and consistency Tactical planning is that much easier and quicker when clear strategic direction is agreed Marketing communications strategy creates many more benefits through integration.

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The components of marketing strategy :

Products Markets/customers Strengths/competitive advantage Scope/scale Objectives Resources Timing

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Tips for strategy makers Adopt SOSTAC Do your homework Develop some options Know your resources Win seniors management support Do not hurt your market or environment Put everything in place before making a move.

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Good Luck! Be Happy with Your daily Activity!