INTRODUCTION

Strategic Marketing & Planning

Naveed Ilyas | naveed.ilyas@hotmail.com

NAVEED ILYAS

Director Global Marketing & Business Development

(Asia, Africa, Europe & North America) for IBEX Global
(Formerly TRG The Resource Group)
Visiting Faculty Institute of Business Management
Trainer Reveal Executive Development Center &
Management Association of Pakistan
Member- Harvard Business School Publishing for
Educators
Co-Author - Marketing Management cases & practices
of Pakistani corporations
Winner of All Pakistan Business Plan Competition LUMS
Ex President Marketing Society of IoBM
Summa Cum Laude Award, Houston, TX
Academic Excellence Awards, Houston, TX 2

Introduction

Class Introduction

Name, Your job, Accomplishments, Your goal

and do you manage your self (yes/no) ?

Course Outline (has been posted)

Term Project Outline (will post it)
Interbrand top 3 brands
Interbrand Assignment
Weekly Schedule
Google Group

https://groups.google.com/d/forum/smpfall2015
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Introduction

Google Group

https://groups.google.

com/d/forum/smpfall2015

CR

C.R
Emails on Google Group
Will remind me to upload the articles /
cases
Will coordinate with students
Will maintain the FB group if needed

Marketing ?

What is Marketing?

Creating Value

For the target customers value is created by

anticipating the future needs and wants of
the target market, and meeting these needs.

Delivering Value

To the target Market

Communicating Value
Capturing Value

MARKETING IS
THE ART OF CREATING
GENUINE CUSTOMER
VALUE.
MARKETING IS NOT..
FINDING CLEVER WAYS TO SELL
WHAT YOU MAKE
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Marketing Strategy

The Plan for

Creating Value
Delivering Value
Communicating the Value
Capturing a portion of that value

Marketing
If you have the same strategy as your
competitor

STRATEGY

YOU HAVE NO

If your strategy can be easily copied

YOU HAVE A WEAK
STRATEGY

If your strategy is unique..

YOU HAVE A STRONG AND SUTAINABLE
BUSINESS
SOUTHWEST AIRLINES
HARLEY DAVIDSON

10

Strategic Marketing

If your strategy is unique, YOU

HAVE
A clear target market and need
A distinctive and winning value
proposition
A distinctive supply chain to deliver it.
Your costs are low
You can charge premium price

11

Strategic
Marketing

Strategy has to be market

driven as the Starting Point is
the consumer and the market
that he is in.
However a balance has to be struck
between marketing goals and
Financial Performance..
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Strategy has 3 levels

Corporate Strategy

Allocation of Resources to Business /

Division

Business/Division
Strategy

Dealing With Competitive Situations

Functional Level Strategy

Aakers Model
WHERE TO COMPETE ?
Product-Market Investment Decision

Business Strategy
HOW TO COMPETE ?
Value
Proposition

Assets &
Competencies

Functional area
Strategies

Aakers Model

Product Market Investment Strategy

Scope of Business

Ansoff Matrix

Which products, which competitors to compete with, markets, etc.

P&G only consumer goods
BASF b2b chemicals only
Expanding the scope of business has its rewards and risks

P&G lost half its stock value in the six months before A.G
Lafley took over as CEO in 2000 because the firm invested
considerable resources behind new business initiatives that
disappointed or failed.
Then revived and focused back on the twelve largest
brands and reducing investments on other eight brands.

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Ansoff Matrix
Present
Present
Products
Products

New
New
Products
Products

Present
Present
Markets
Markets

Market
Market
Penetration
Penetration

Product
Product
Expansion
Expansion

New
New
Markets
Markets

Market
Market
Expansion
Expansion

Diversification
Diversification

Aakers Model (contd.)

Value Proposition

Offering needs to appeal to new and existing customers.

Should be sustainable. Appeal should be relevant, and
meaningful to the customer.

A good value (Imtiaz)

The best overall quality (Lexus)
Value proposition of other brands ?

17

Aakers Model (contd.)

Assets and Competencies

Strategic Competency

Strategic Asset

This is what a business does exceptionally well

For example : Customer Relationships

A resource such as a brand, customer base

Strategy formulation must consider the cost and feasibility

of generating or maintaining assets or competencies that
will provide the basis for a sustainable competitive
advantage (SCA)

Synergies

Functional area strategies and programs

18

Criteria to Select
Business Strategies

Is the ROI attractive

Is there a sustainable competitive

advantage

Will the strategy have success in the

future

Is the strategy feasible

within the financial and human resources of the

organization
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MARKET DRIVEN STRATEGIES

MarketDriven
Strategy
Challenges
of a New
Era for
Strategic
Marketing

Becoming
Market
Oriented

Becoming
Market
Driven

Distinctive
Capabilitie
s
Creating
Value for
Customer
s
21

Market Driven
Strategies
All marketing
strategy decisions
should start with a
clear understanding
of

Markets

Custom
ers

Comp
etitors

22

Why Pursue a Market

Driven Strategy

Achievements of companies
displaying market driven
characteristics are impressive
Dell
Southwest

Airlines

Zara
Imtiaz
Apple
Caf

Flo
Saeed Ghani
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MarketDriven
Strategy
Challenges
of a New
Era for
Strategic
Marketing

Becoming
Market
Oriented

Becoming
Market
Driven

Distinctive
Capabilitie
s
Creating
Value for
Customer
s
24

Becoming Market
Oriented

The customer is the focal point of the

organization

There is commitment to continuous creation of

superior customer value

There is involvement and support of the entire

company Holistic Marketing Concept

25

Holistic Marketing

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Becoming Market
Oriented

Customer Focus

Competitor Intelligence

Failure to identify and respond to competitive threats can

create serious consequences for a company (for ex:
Polaroid)

Cross Functional Coordination (Zaras

Case)

What are the customers value requirements?

Its about starting with a customer need/wants, deciding
which needs to meet, and involving the entire organization
in the process of satisfying customers.

Removing the walls between business functions and

working together to provide superior customer value

Performance Consequences

Market orientation leads to superior organizational

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performances

Zaras Cross Functional

Feature
The Zara boutique is buzzing on Calle Real in the
rain northern Spanish city of La Coruna.
Customers are buying out the newly designed red
tank tops and black blazers, but they are pining
for beige and bright purple ones, too. Most
fashion companies would need months to retool
and restock. Not Zara. Every Saturday the store
manager pulls out a Casio handheld computer
and types in orders for new clothes. They arrive
on Monday.
Zara is the Dell Computer Inc. of the fashion
industry. The Spanish star is using the Web to
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churn out sophisticated fashion at budget
prices,

Zaras Cross Functional

Feature
Now , a new design can go from pattern to store
in two weeks, rather than six months.
Traditionally ,fashion collections are designed
only four times a year. And major retailers
outsource more of their production to low cost
subcontractors in far off developing countries
such as China. Zara ignores the old logic. For
quick turnaround, it makes some two thirds of its
clothes in a company owned facility in Spain,
restocks stores around the globe twice a week,
and continually redesigns its clothes an
astounding 12,000 different designs a year.
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Zaras Cross Functional

Feature
Heres how Zara does it:
A store manager sends in a new idea to La
Coruna headquarters. The 200 plus designers
decide if its appealing, then come up with specs.
The design is scanned into a computer and
zapped
to
production
computers
in
manufacturing, which cut the material needed to
be assembled into clothes by outside workshops.
The manufacturing plant is futuristic, too, stuffed
with huge clothes cutting machines that are run
by a handful of technicians in a laboratory style
computer control center.
30

MarketDriven
Strategy
Challenges
of a New
Era for
Strategic
Marketing

Becoming
Market
Oriented

Becoming
Market
Driven

Distinctive
Capabilitie
s
Creating
Value for
Customer
s
31

Distinctive Capabilities
Distinctive Capabilities (competencies) are
skills and accumulated knowledge, exercised
through organizational processes, that enable firms
to coordinate activities and make use of their
assets.

32

Distinctive Capabilities

Southwest Airline's Distinctive

Capabilities
Southwest

uses a point-to-point route

system rather than the hub-and-spoke
design used by many airlines.
The carriers value proposition consists of
low fares and limited services (no meals).
Low Operating costs by using only
Boeing 737 aircraft
ECONOMY CLASS ONLY
No baggage transfer to other airlines
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Offer Disproportionate
(higher) contribution
to superior customer value

Logic of Distinctive
Capabilities
* to compete in new
markets
* Create market entry
barriers to potential
competitors

Provides value to customers on

a more cost-effective
basis
34

Distinctive
Distinctive
Capabilities
Capabilities
are
are
Applicable to
Multiple
Competition
Situations
(not always)

Superior to
the
Competition

Difficult to
Duplicate

35

Distinctive Capabilities

Apples iPhone

Zara

Saeed Ghani?

36

Name of the game is !

To Pursue value opportunities that match its distinctive
capabilities

Value
Requirement
s

Distinctive
Capabilities
37

MarketDriven
Strategy
Challenges
of a New
Era for
Strategic
Marketing

Becoming
Market
Oriented

Becoming
Market
Driven

Distinctive
Capabilitie
s
Creating
Value for
Customer
s
38

Creating Value for

Customers
An organizations distinctive capabilities are used to deliver
value by differentiating the product offer, offering lower
prices relative to competing brands, or a combination of
lower cost and differentiation.

39

Creating Value for

Customers
Value
To
Target
Customer

Proposition

Price

(BENEFITS)

40

Image
Image value
value
Personnel
Personnel value
value
Services
Services value
value

Total
Total
customer
customer
value
value

Product
Product value
value

Customer
Customer
delivered
delivered
value
value

Monetary
Monetary cost
cost
Time
Time cost
cost
Energy
Energy cost
cost

Total
Total
customer
customer
cost
cost

Psychic
Psychic cost
cost
41

MarketDriven
Strategy
Challenges
of a New
Era for
Strategic
Marketing

Becoming
Market
Oriented

Becoming
Market
Driven

Distinctive
Capabilitie
s
Creating
Value for
Customer
s
42

Market Sensing
Capabilities

MARKET
DRIVEN
STRATEGIES
Customer Linking
Capabilities
43

Becoming Market
Driven

Market Sensing Capabilities

Effective process for learning about markets

Collecting information needs to be shared
across functions and interpreted to
determine proper actions

Customer Linking Capabilities

Creating and maintaining close customer

relationships
Customer linking also reduces the possibility
of a customer shifting to another suppliler.
44

MarketDriven
Strategy
Challenges
of a New
Era for
Strategic
Marketing

Becoming
Market
Oriented

Becoming
Market
Driven

Distinctive
Capabilitie
s
Creating
Value for
Customer
s
45

Challenges of a New Era

Turbulent markets
Intense competition
Disruptive Innovations (self
cleaning windows, iron free shirts)
Escalating customer demands
Globalization (outsourcing trends)

46

Next Session
Market and Competitive Space
Case Study session Competition

Must read before coming to the class

Periodic Quiz may be taken

47

Thank you

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