© 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