Marketing Strategy

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

- Peter Drucker)

Welcome to Case Study Based Lectures

(First Lecture: Introduction)
Prof. V. K. Chhabra

You are at the cross road( strategic decision) Make your career plan, select the path & move in that direction

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 learn to apply and use them to resolve orgnisational strategic marketing issues and attain long term objectives..

Determine your own career marketing strategy ?

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

Identify target market and position yourself at suitable place( marketing, sales, finance, retailing, operations, HR etc) Promote your self as a good product and develop core competencies(capabilities) Provide value and get your market price

What is strategy ?
Vision is the art of seeing things invisible.

Strategy is concerned with the relationships between ends and means OR It is the relationship between the results we seek and utilisation of resources at our disposal. Business has only two basic functions - marketing and innovation. In terms of the three key players (competitors, customers, company), 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.

Bridge the gap between the Ends and Means

Strategy is concerned with deploying the resources at your disposal whereas tactics is concerned with employing them

Overview of the Strategic Plan

Strategic plan

Key functions

strategic Production planning

Strategic Finance planning

Strategic Marketing plan

strategic Human resource plan

What to produce & how much

Funds required & how to raise it

What to sell & how to sell

Man power planning & development

Distinctions between strategy and tactics

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

Aspects
Scale of the Objective Scope of the Action Guidance Provided

Strategy
Grand Broad and General General and ongoing

Tactics
Limited Narrowly Focused Specific/ situational

Degree of Flexibility

Adaptable but not easily changed

Quick to adjust

Timing in Relation action Focus of resource utilization

Before Action

During Action

Deployment

Employment

What is marketing strategy ?

A marketing strategy is usually an integral part of a business strategy that provides broad direction to all functions.

It is a combination of target markets and marketing mixes. MS is the selection of a course of action from among several alternatives that involves specific customer groups, communication methods, distribution channels, and pricing structures.
The strategy provides decisions and direction regarding variables: Marketing decisions(4Ps)

Market growth & opportunities (PEST & BCG) STP (customer-segmentation, targeting & positioning) Customer relationship management( customer loyalty ladder) Competition( Michael Porters Model)

Sustained competitive advantage ( SCA) Case studies

Strategic marketing is a decision making process (long & Medium term)

Stage1 Where are we now (Beginning)

Stage 5 How can we ensure arrival (Control)

Stage 2 Where we want to be (End)

Stage4 Which way is best (Evaluation)

Stage 3 how might we get there (Means)

Strategic Marketing vs. Marketing Management

Marketing strategy focuses on New markets to be served Marketing management deals with marketing mix(4 Ps) to serve the

New product launch

Timing of market entry/ exit Competition to be tackled Customers to be serviced

designated markets

Strategic Marketing vs. Marketing Management (Seven Differentiating factors) Marketing management
1. Mission

Strategic marketing
1. Mission

Deals with delineated business 2. Leader ship style

Deals with what business to emphasize and why 2. Leader ship style

Requires reactive perspective Requires proactive perspective 3. Decision process Bottom up 3. Decision process Mainly top down 4. Opportunity search Ready to seek new opportunities

4. Opportunity search
Ad hoc search for new opportunities

Difference between strategic marketing vs. marketing management

Marketing management
5. Relationship with environment Environment considered with occasional disturbances 6. Time frame Day to day

Strategic marketing
5. Relationship with environment Environment considered ever changing and dynamic
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

The 10 Elements of a Good Marketing Plan

1. Describe Your Business(what is your product, how is it different and benefit customers, market opportunities and profitability projections) Conduct a Situation Analysis( situation analysis of internal/external factors that influences marketing strategy, SWOT) Define Your Customer( STP) Strategize Your Market Entry( identify your competitors, what they do, market share) Forecast your Sales or Demand Measurement( total market potential, market shares, estimate sales forecast) Define Your Marketing Budget( estimates of sales, cost of marketing campaigning , measuring the effectiveness) Integrate Your Marketing Communication Identify Sales Channels(retail, wholesale, telemarketing ,sales force planning) Track Marketing Activities( tracking each type of marketing activity and benefits) Evaluate Your Progress (against your goals and objectives)

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Marketing Strategy Case Studies: Success Stories

1. Tata Motors entry from commercial motors to passengers cars like Indica , Nano and luxury cars(entry of leading global auto companies in India) LG, Samsung, Sony, Panasonic emerging as the leaders in home appliances/electronic goods beating old players like Videocon, Voltas, Godrej, Onida, etc Revolutionary growth of Indian telecom sector with over 700 million subscribers and boom for mobile sector Success stories of FMCG companies like ITC, HUL, P&G, Colgate, PepsiCo in India

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Low cost airlines( Indigo, Spice jet, Go air) a great success story in the Indian aviation sector Marketing & HRM are key functional areas in service sectors of Information Technology, BPOs, Call Centers, Banks, hotels, tourism, etc

Put on thinking cap for Marketing Strategy lectures

Thanks for your participation!