Strategic Marketing PPT @ MBABECDOMS

8/3/2019 Strategic Marketing PPT @ MBABECDOMS

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Strategic marketing


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Interaction between marketing

and corporate strategy

Figure 20.1


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Corporate versus marketing strategy

Corporate strategy:

Allocation of resources

within an organisation to

achieve the businessdirection and scope

specified within

corporate objectives.

Helps to control andco-ordinate the different

areas of the

organisation.

Marketing strategy:

Defines target markets,

direction and

requirements in order tocreate a defensible

position compatible with

the overall corporate

strategy.


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Marketing plans and programmes

Marketing plan:

Turning strategies into implementable actions.

A detailed written statement specifying target markets,

marketing programmes, responsibilities, time scales andresources to be used within the defined budgets.

Marketing programmes:

Actions, often tactical, using marketing mix variables to

gain advantage within target market. Means of implementing the marketing strategy.

Normally detailed in the marketing plan.


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Influences on marketing strategy

Figure 20.2


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Strategic marketing analysis models

All of these models view products as:

Manageable individual entities on an operational basis.

A product portfolio (set of products each of which make

a unique contribution to the corporate picture) on a

strategic basis.


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Analysis models

Boston Box.

GE matrix.

Shells directional policy matrix.


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The Boston Box

Figure 20.3


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Boston Box

Dog - holds a weak market share in a low growth

market.

Question mark - high market growth with low share.

Star - a market leader in a growth market.

Cash cow - as market growth starts to trail off, stars can

become cash cows.

War horses - market leaders, whose cash generatingposition under threat due to negative market growth.

Dodos - low share of a declining market means that

sales are dwindling away.


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GE matrix

Figure 20.4


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Shells directional policy matrix

Figure 20.5


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Types of growth

Intensive growth:

Market penetration.

Market development.

Product development.

Diversified growth

Integrative growth - backward, forward, horizontal.

No growth - harvesting, entrenchment, withdrawal.


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Competitor analysis

A systematic attempt to identify and understand key

elements of a competitors strategy in terms ofobjectives, strategies, resource allocation and

implementation through the marketing mix.


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Porters Five Forces Model

1. Bargaining power of suppliers.

2. Bargaining power of customers.

3. Threat of new entrants.

4. Threat of substitute products or services.

5. Rivalry among current competitors.


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Concerns of an Org.s competitive analysis

1. Who are our competitors?

2. How can our competitors be grouped meaningfully?

3. What are our competitors strengths and weaknesses?

4. What are our competitors objectives and strategies?

5. How are our competitors likely to react to changes in

the marketing environment?


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Concerns of an Org.s competitive analysis (1)

Competitor identification


Similar specific-same product, technology and target market

Similar general-same product area, but different segments

e.g. Haagen daze vs. Walls

Different specific-same need satisfied by different means

e.g. Eurostar vs. British airway

Different general-competing for discretionary spend

e.g. holiday vs. new car


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2. How can our competitors be grouped meaningfully?Different characteristics for identifying Strategic groupings

Figure 20.8Source: Adapted from Wilson et al. (1992).


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3. What are competitive strengths and weaknesses

Requires use of various information sources.

Consider in terms of critical success factors:

e.g. manufacturing, technical and financial strength,

relationships with supplier and customer, its market and

segment, product range, its volume, cash and profits etc.

Information can be used to plan and launch attack.


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4. What are our competitors objectives and strategies?

Objectives related to cash generation, market share,

technological leadership, quality recognition

etc.

Find clues in product portfolio.

Strategy - related to its positioning, marketing mix etc.


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5. How are our competitors likely to react to changes in the

marketing environment?

Learn by experience

Not easy to predict its reaction due to: its cost structures,

relative market positions, product life cycle, industrial

position etc.


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Similar specific-same product, technology and target market

Similar general-same product area, but different segments

e.g. Haagen daze vs. Walls

Different specific-same need satisfied by different means

e.g. Eurostar vs. British airway

Different general-competing for discretionary spend

e.g. holiday vs. new car


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Useful information about competitors

Table 20.2Source: Wilson et al. (1992).


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Generic strategies

Figure 20.9


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Sources of differentiations

Product branding, innovation, quality,

specification, design, image, patents;

Price price positions, price-value combinations

Place intensive, exclusive distributions

Promotion creativity, spending

Service strong trust with customer


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Choice of generic strategy

Fit between the demands of the strategy and the

organisations capabilities and resources.

The main competitors abilities on similar criteria.

The key criteria for success in the market and their

match with the organisations capabilities.


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Competitive positions and strategy

Figure 20.10


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Attacking and defending

Aggressive strategies - frontal, flank, encirclement,

bypass, and guerrilla attacks.

Defence strategies - fixed position, mobile, flanking,

contraction, counter offensive.


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Attack strategies

Figure 20.11Source: Kotler and Singh (1981). Reproduced with permission ofThomson Media, Eleven Penn Plaza, New York, NY 10001


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Defence strategies

Figure 20.12Source: Kotler and Singh (1981). Reproduced with permission ofThomson Media Eleven Penn Plaza, New York, NY 10001.


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Co-operative and independent strategies

Many situations can also be characterised by peaceful

coexistence and co-operative alliances betweencompetitors.

Documents

Strategic Marketing PPT @ MBABECDOMS