Marketing Strategies

Group3
A: STRATEGY AND PLANNING
What is Planning?
 Planning is deciding in the present what to do in the future. It involves both
determination of a desired future and the steps necessary to bring it about.
 - Philip Kotler an American Marketing Author

There are three levels of planning:

 1. Corporate or Visionary Planning
 2. Business Planning
 3. Functional Planning

This Figure demonstrate these levels as well as process:

 B: CORPORATE STRATEGY
• What is Strategy?
 Strategy generally involves setting goals and priorities, determining actions to achieve the
goals, and mobilizing resources to execute the actions. A strategy describes how the ends
(goals) will be achieved by the means (resources).
 Luca Simeone
Strategies are formulated asa response to the various factors in the company's environment.

There are also three levels of strategy:

 1. Corporate Strategy
 2. Business Strategy
 3. Functional-level Strategy

 Also company's environment comes from both internal and external sources.
 •Organistional Stance and Positioning
 There are three organizational stances:
 1. Leaders
 2. Followers
 3. Nichers
What happens when the position of Business are threatened?
 Well, they have to attack or defend.
Some Attack Strategies
 1. Direct Challenge - Differential Advantage
 2. Direct Attack - Distinctive Competence
 3. Direct Attack - Market Share
 4. Flank Attack
 5. Encirclement
 6. Bypass
 Some Defence Strategies
 1. Position Defense
 2. Pre-emptive Defence
 3. Counter-offensive
 4. Mobile Defence
 5. Flanking Defense
 6. Contraction Defence
C: MARKETING STRATEGIES

What is marketing strategy?

 The marketing strategy is the means of achieving the corporate objectives. As such
it lays down longer-term goals and the targets for the marketing personnel to follow.

Types of Marketing Strategy:

 1. Undifferentiated Marketing
 2. Differentiated Marketing
 3. Concentrated Marketing
Maintaining The Competitive Edge
1.Product/Service Quality
 Considered “normal” standard in every Product.

 You must position your product in appropriate

grades.
 Marketing researcher identify the grades and you
must judge which them aim at.
 Product might not be top grades feature , the grades
u choose must be identifiable by the customer.

 It is essential that different model of your product

but customer confuse to choose different model.

 If u open a catalogue such as index , you will see

serval model of electric shavers for instance, all from
the one marker, it is difficult to see why there are so
money.
2.Availability
 There is so little to choose between some product
that one is not available immediately, the consumer
will choose a different one.

 Your product widely distributed if they are highly

competitive.

 Getting your product into lots of shop because

retailer have their own view of what will sell and
make then profit.

 You have to convince them too ,that the product is

worth having on their shelves.

 Problem in ensuring delivery, if u can control the

delivery time late, You can do better than your
competitor on this, you will have a competitive edge.
3.Price
 Price matter most which are obviously better than
those of competing products.

 Making a special offer of some sort(such as three for

the price of two , if the retailers will go along with
your policy.

 Remember the lowest price is not necessarily the

competitive edge , buyer can be suspicious of a low
price with some goods.
4.Promotion
 If u tell people your product are the best, and you can
show example that “prove” the claim, some people
will believe you and other will test your claim.

 It is necessary to tell people your product exists

before they have any chance of buying it.
5.People
 Employee play an important role in adding value to a
product and in particular service.

 Performance of employee will have an indirect effect

(for a product) or a direct effect (for a service)

 It is important for organizations to be able to train

and motivate their employees to deliver excellent
customer service.
5.Physical Evidence
 Physical evidence most applies to the delivery of
services.

 For example, would be an airline; the flight is the

delivery of service.
Benefits of Marketing Objectives

 They give a clear direction to the personnel

involved

1. Everyone knows exactly what is expected of them and

how they supposed to be working.

2. People who do not have a clear idea of what it is they

are working towards become disillusioned and
demotivated.
 They can create unity
1. A common goal unites people in all circumstance ,
particularly when the goal is seen as being worthwhile.

2. If the object are seen to have been set with good

purpose, everyone will work together to achieve them.
 They allow for measurement of
achievement

1. Because the objective specify targets and time scales,

monitoring can be carried out check progress.
2. Allow the achievement of success , which create the
“feel good” factor.

3. Can become a powerful motivator for personal as

they will strive to do better.
 They can reduce risk
1. If all personnel know what is they are working
towards, there will less of risk doing what they think
best, rather than what have been laid down by the
objectives.
 They can improve decision making

1. Manager at lower level will be able to make day to

day decision making.

2. This ability to make decision away the higher level

can save a lot of time which might wasted in trying to
communicate with higher level people.

3. This also enhanced the capabilities of lower-level

managers.
Problem in Formulating Marketing Objectives

 Fear of Failure

If previous objective were not archived, planner may

be reluctant to define new objectives and will not
strive to achieve.
• Apathy
If the personnel in the company are demotivated for
some reason, they will not be interested in any new
objectives as they will see them as "just another ploy to
get us to work harder".
• Success

When a company is doing well, a new objective is

often seen as being unnecessary.
This is the "If it works why try to fix it?" syndrome.
Unfortunately complacency of this kind can often lead to
a company losing its market share to a competitor.
Model of formulating Marketing Strategies

• To achieve marketing objectives, strategies must be formulated for each section of the
marketing function or individual SBU. (Remember, these strategies must also be SMART.
1. S-Specific
2. M-Measurable
3. A-Achievable
4. R-Realistic
5. T -Timed
 Ansoff
 marketers have:
 existing products which they can sell to existing markets
 existing products which they can sell to new markets
 new products which they can sell to existing markets
 new products which they can sell to new markets.
 Using these combinations gives a choice, according to Ansoff, of four possible
basic strategies, as shown in Figure
Strategy 1: Market Penetration (same product/same market)
This strategy will be appropriate when a market is growing and not yet saturated.
Penetration can be achieved by:
 attracting non-users of a product
 increasing the usage, or purchasing rate, of existing customers.

Strategy 2: Market Development (same product/new market)

 This strategy is often found when a regional business wishes to expand or if new
markets are emerging because of changes in consumer habits. It can also occur when
a new use has been discovered for an existing product.
Strategy 3: Product Development (new product/existing market)
 With this strategy an organisation develops new products or services to appeal to
its existing markets. It may simply be a product "refinement", e.g. change of
packaging or taste, etc.

Strategy 4: Diversification (new products/new market)

 This strategy is sometimes introduced so that a company does not become too
dependent on its existing SBUs. It can be a form of "insurance" against potential
disasters that could occur in the event of drastic environmental changes. It can also
simply be a means of growth and expansion of power, etc.
Diversification by Integration
 Vertical Integration
This involves the acquisition of some other enterprise in the chain of distribution
between the manufacturer and the customer. It can be either "forward", i.e. towards the
customer, or "backward" towards the source of raw material.

 Horizontal integration
This is the acquisition of another organisation which has a feature that is desired, i.e.
the acquired organisation may be using similar materials or components for which
they have a monopoly of supply.
Diversification by Conglomeration
 This strategy moves the firm away from its existing product-market situation into an
entirely new area in order to satisty a primary objective. Quite often this is done as a
short-term activity that will allow an organisation to recover from a temporary
setback in market conditions.

(a) Market Penetration

 More adults used in commercials - "You can't beat the feeling theme
 Price discount and promotions (fun caps) to existing customers
 increasing sales through fast-food outlets
 Strengthened distribution network.
(b) Market Development
 Greater emphasis on China, Eastern Europe, South America, Middle East, Africa Appeal to men
with Diet Coke
 Changing image of soda from children to "family".

(c) Product Development

 New brands/ flavours
 New containers.

(d)Diversification
 Manufacturer of water treatment and conditioning equipment
 Acquiring Columbia Pictures, Embassy Communications Licensing company name for clothing range.
 Porter's Generic Strategy Model
 Michael Porter is a widely quoted authority. This model claims that there are only
three main strategies which a business can follow:
 cost leadership ditterentiation.
Strategy 1: Cost Leadership
 Following this strategy means that the company aims to produce in large
quantities, at the lowest cost possible and sell at lower prices.

Strategy 2: Differentiation
 This strategy involves offering some unique selling (service) proposition (USP)
that the competition do not have. Prices may not be too important to buyers of
products sold under this strategy and it often follows that customers become brand
or product loyal, e.g. a whisky drinker may prefer to buy Macallan whisky despite
the fact that it costs more than Bell's, or an own-label make from a supermarket.
Strategy 3: Focus
 The company aims at very select market sectors and will be charging higher prices or
offer special USPs. The company can concentrate on its key products for specific
targets, acquire a reputation for being "specialist", or can simply attack sectors of the
market which are being Shored by the competition.
Portfolio Analysis Models
 The Ansoff and Porter models can help in deciding which strategy to adopt and are
easy models to use.

(a) Boston Consultancy Group Matrix (BCG)

 The BCG matrix is as well known as Ansoff and is one which you should be fully
familiar with for your examinations. Using the variables of market share and market
growth rates, planners can plot their products/BUs onto a grid which will then
suggest certain strategies that can be used.
Question Marks (sometimes referred to as Problem Children or Wildcats)
 Question Marks are products which have low market share and are in high growth markets.
The product/SBU has not yet reached a dominant position in the market.

Stars
 If Question Marks succeed they become Stars - leaders in high growth markets. Stars are the
"providers of tomorrow" and a company with no Stars should worry.

Cash Cows
 When market growth reaches a stable level (10% is used in our diagrams as an example but
this will vary according to the particular market) Stars become Cash Cows providing they
hold a leading share of the market.

Dogs
 Dogs have weak market share in low growth or stable markets. These products can often
take up more time than they are worth. They usually produce low profits and often incur
losses. They will always consume cash, even if it is just in the time taken to manage them.
 General Electric Business Screen (GE)
 The GE matrix is an improvement on the models we have looked at so far in that it
covers more qualitative aspects. It allows for judgement on the part of the planner
and takes into account not only the nature of the market, but also the capabilities of
the company. SBUs are assessed in terms of the Attractiveness of the Industry and
the Business Strengths of the company.
 Harvest-reducing spending on an established product in order to maximize profits.
 Divest-involves a company selling off a portion of its assets,often to improve company
value and obtain higher efficiency

 Invest-involves allocating resources such as money, time, and effort to promote a product
or service. It aims to attract, engage, and retain customers, ultimately driving sales and
business growth. This can include strategies like advertising, social media campaigns,
content creation, and other initiatives to enhance brand visibility and reach the target
audience.

 Protect-means taking steps to keep your brand, ideas, and reputation safe. It involves
measures to prevent unauthorized use of your brand, defend against negative publicity, and
maintain a positive image in the eyes of customers.
Gap Analysis
 GAP analysis in marketing involves assessing the difference (or "gap") between
current performance and desired objectives. It helps identify where a business is
currently, where it wants to be, and what steps are needed to bridge the gap. In
marketing, GAP analysis can be used to evaluate factors like market share, customer
satisfaction, or brand perception, guiding strategic decisions to achieve marketing
goals more effectively.