Strategic Marketing

Session 2
 Strategic Planning
o Developing & maintaining a strategic fit between the
organizations goals & capabilities and its changing
marketing opportunities.

o Planning activities occur at:

the business unit,
Product levels, and
market levels

o And include:
Defining the purpose and mission
Setting objectives and goals,
Designing the business portfolio
Developing detailed marketing and departmental plans
 Business Portfolio
o The collection of businesses and products that make up the company.

o Identify strategic business

Portfolio Design units (SBUs)
o Assess each SBU:
o Step 1: The BCG growth-share
Analyze the current matrix classifies SBUs into
business portfolio one of four categories using
the:
o Step 2: Market growth rate, and
Shape the future SBUs relative market
business portfolio share within the market.
 BCG Growth-Share Matrix

High
Market Question
Stars
Growth Marks

Low Cash
Market Dogs
Cows
Growth

High Relative Low Relative

Market Share Market Share
Business Portfolio
o Determine the future role of
Portfolio Design each SBU and choose the
appropriate resource
allocation strategy:
o Step 1:
Build
Analyze the current Hold
business portfolio Harvest
o Step 2: Divest
Shape the future
business portfolio o SBUs change positions over
time
Developing Strategies for Growth & Downsizing

Product/Market Expansion Grid

Existing Products New Products

Existing Market Product

Markets Penetration Development

New Market
Diversification
Markets Development
 Planning Marketing
o Marketing plays a key role in the strategic planning
process.

o Marketers must practice CRM and Partner

Relationship Management.
With other departments of the same SBU to support
value-chain,

As well as with other firms in the marketing system to

help to build a superior value delivery-network.
The Marketing Process

o The strategic planning

Key Elements and business portfolio
analysis processes help to
identify and evaluate
o Analyzing marketing marketing opportunities.
opportunities
o Selecting target o The purpose of the marketing
markets process is to help the firm
plan how to capitalize on
o Developing the these opportunities.
marketing mix
o Managing the
marketing effort
The Marketing Process

o The segmentation process

Key Elements divides the total market into
market segments.
o Analyzing marketing
o Target marketing determines
opportunities which segment(s) are
o Selecting target pursued.
markets
o Developing the o The market positioning for the
product is then determined.
marketing mix
o Managing the
marketing effort
The Marketing Process

o Competitor analysis guides

Key Elements competitive marketing strategy
development.
o Analyzing marketing
opportunities o Strategy leads to tactics by way of
o Selecting target the marketing mix:
markets The Four Ps product,
price, place, promotion (seller
o Developing the viewpoint)
marketing mix
The Four Cs customer
o Managing the solution, cost, convenience,
marketing effort and communication (customer
viewpoint)
The Marketing Process

o Marketing analysis
Key Elements Provides information helpful in
planning, implementation, and
o Analyzing marketing control
opportunities o Marketing planning (assignment
o Selecting target Appendix 1!)
markets Strategies and tactics
o Developing the o Marketing implementation
marketing mix Turns plans into action
o Marketing control
o Managing the
marketing effort Operating control
Strategic control
Marketing audit
 Competitor Analysis
Competitive Advantage is the advantage of the organization
over competitors, gained by offering consumers greater value
than competitors offer.

o Firms face a wide range of competition

Steps in the
o Be careful to avoid competitor myopia
Process:
o Methods of identifying competitors:
o Identifying Competitors Industry point-of-view
o Assessing Competitors Market point-of-view
o Selecting Competitors Competitor maps can help
to Attack or Avoid
Competitor Analysis

Steps in the o Determining competitors

objectives
Process:
o Identifying competitors strategies
o Identifying Competitors Strategic groups
o Assessing Competitors o Assessing competitors strengths
o Selecting Competitors and weaknesses
to Attack or Avoid Benchmarking

o Estimating competitors reactions

Competitor Analysis

Steps in the o Strong or weak competitors

Process: Customer value analysis

o Close or distant competitors

o Identifying Competitors Most companies compete
o Assessing Competitors against close competitors
o Selecting Competitors o Good or Bad competitors
to Attack or Avoid The existence of competitors
offers several strategic
benefits
 Competitive Strategies
o Approaches to Marketing Strategy
No single strategy is best for all companies

Marketing strategy and practice often passes

through three stages:
Entrepreneurial marketing

Formulated marketing

Intrepreneurial marketing
 Basic Competitive Strategies
o Porter
Overall cost leadership
Lowest production and
distribution costs
Differentiation
Creating a highly
differentiated product line
and marketing program
Focus
Effort is focused on
serving a few market
segments
o Value Disciplines
(Michael Treacy & Fred Wiersema)
Operational excellence
Superior value via price
and convenience
Product leadership
Superior value via product
innovation
Customer intimacy
Superior value by means of
building strong
relationships with buyers
and satisfying needs
Competitive Strategy
o Expanding the total demand
Finding new users
Competitive Discovering and promoting new
Positions product uses
Encouraging greater product
usage
o Market Leader
o Market Challenger o Protecting market share
Many considerations
o Market Follower Continuous innovation
o Market Nicher
o Expanding market share
Profitability rises with market
share
Competitive Strategy

o Option 1: challenge the

market leader
Competitive High-risk but high-gain
Positions Sustainable competitive
advantage over the leader is
key to success
o Market Leader
o Market Challenger o Option 2: challenge firms
of the same size, smaller
o Market Follower size or challenge regional
or local firms
o Market Nicher
o Full frontal vs. indirect
attacks
Competitive Strategy
o Follow the market leader
Competitive Focus is on improving
profit instead of market
Positions share

o Market Leader Many advantages:

o Market Challenger
o Market Follower
o Market Nicher
Learn from the market
leaders experience
Copy or improve on the
leaders offerings
Strong profitability
Competitive Strategy

o Serving market niches

means targeting sub-
Competitive segments
Positions o Good strategy for small
firms with limited resources
o Market Leader
o Market Challenger o Offers high margins
o Market Follower o Specialization is key
By market, customer, product,
o Market Nicher or marketing mix lines
Balancing Customer & Competitor Orientations

o Companies can become so competitor centered that

they lose their customer focus.

o Types of companies:
Competitor-centered companies
Customer-centered companies
Market-centered companies