Marketing Strategy

(Business has only two basic functions - marketing and innovation.

- Peter Drucker)

(First Lecture: Introduction)

Prof. V. K. Chhabra

You all have studied many subjects like

Marketing management
Marketing research
Sales management
Consumer behavior
Advertising
International marketing
Management process
Quantitative techniques & OR
Finance, Economics etc
In marketing strategy you will get an opportunity to apply and
use them to resolve orgnisational strategic marketing issues and
attain long term objectives..

Strategic Career Planning

Work out marketing strategy for your own career

Develop your self as the best product( consolidate your strengths &
overcome weaknesses to match what the market needs)

Identify your target market place and position yourself in marketing,

sales, finance, retailing, operations, HR etc

Promote yourself and develop your core competencies( capabilities

and skills)

Provide value based service to the employer and get your market
price

What is a strategy ?
Strategy is concerned with the relationships between ends(goals) and means(methods)

OR
It is the relationship between the results we seek and utilisation of resources at our
disposal.

Marketing strategy is defined as the way in which a company endeavors to differentiate

itself positively from its competitors, using its relative corporate strengths to better satisfy
customer needs.

Functional aspects of Strategic Plan

Strategic plan

Key
functions

strategic
Production
planning

Strategic
Finance planning

What to produce
&
how much

Funds required
&
how to raise it

Strategic
Marketing
plan

What to sell
&
how to sell

strategic
Human resource
plan

Man power planning

&
development

Strategic Managers for All Levels

Distinctions between strategy and tactics

IPL teams plan strategies and use tactics while playing which is situation based

Aspects

Strategy

Scale of the Objective

Grand

Limited

Scope of the Action

Broad and General

Narrowly Focused

Guidance Provided

General and ongoing

Specific/ situational

Degree of Flexibility

Adaptable but not easily

changed

Quick to adjust

Timing in Relation
action

Before Action

During Action

Focus of resource
utilization

Deployment

Tactics

Employment

Marketing Mix of strategy: Seven Ps

(product & market focused)

Marketing Strategy vs. Marketing Management

Marketing strategy
focuses on
New markets to be served
New product launch
Timing of market entry/ exit
Competition to be tackled
Customers to be serviced

Marketing management
deals with
marketing mix(4 Ps)
to serve the

designated markets

Marketing strategy vs. Marketing Management

(Seven Differentiating factors)
Marketing management

Marketing strategy

1.

1.

Mission

Deals with delineated business

2. Leader ship style
Requires reactive perspective

Mission

Deals with what business to emphasize and

why
2. Leader ship style
Requires proactive perspective

3. Decision process

3. Decision process

Bottom up

Mainly top down

4. Opportunity search

4. Opportunity search

Ad hoc search for new opportunities

Ready to seek new opportunities

Difference between strategic marketing vs. marketing management

Marketing management
5. Relationship with environment
Environment considered with
occasional disturbances

Marketing Strategy
5. Relationship with environment
Environment considered ever
changing and dynamic

6. Time frame
Day to day

6. Time frame
Long range i.e. . Decisions have long
term implications

7. Nature of job
Requires maturity, experience &
control

7. Nature of job
Requires vision, creativity and
originality

Marketing strategy is a Road Map targeting Goals

Stage1
Where are we now
(Beginning)

Stage 5
How can we ensure arrival
(Control)

Stage4
Which way is best
(Evaluation)

Stage 2
Where we want to be
(End)

Stage 3
how might
we get there
(Means)

Marketing Strategy Case Studies: Success Stories

1.

Tata Motors entry from commercial vehicles to passengers cars like Indica , Nano(
low cost small car) and luxury cars Land Rover & Jaguar(global market)

2.

LG emerging as the market leader in home appliances/electronic goods beating

old players like Videocon, Voltas, Godrej, Onida, etc

3.

Success story of Volkswagen for hatchback and sedan segments in India

4.

Low cost airline Indigo emerges as market leader and goes global, a great
success story in the Indian aviation sector

5.

ITCs major shift from cigarettes to paper, packaging, hotels, processed food
products and FMCG

Put on thinking cap for Marketing Strategy lectures

Thanks for
your
participation!