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Marketing StrategyMarketing Strategyand Managementand Management

Asif ShahzadAsif ShahzadEmail: [email protected]

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Sessions OutlineCourse Structure

Processes in Strategic Marketing ManagementDefining the Organizations Business, Mission,and Goals

Formulating Product-Market StrategiesDrafting a Marketing PlanMarketing Ethics and Social Responsibility

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Teaching PhilosophyThe teaching philosophy is guided by thefollowing quote from Benjamin Franklin;

Tell me and I forget.Teach me and I remember.

Involve me and I learn.

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Course FocusContent:

Current researchCurrent examplesRecent cases

Delivery:Case analysisClass discussionLectures

**Your Experiences**

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Class PreparationReadings

Chapters and handouts

Case studiesPreparation questions

Lecture notesSlides on subject website

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AssessmentClass Prep & Participation (05%)

AttendancePresentation of reasoned argumentsRelevance of commentsRespect and acknowledgement of other studentscontributions

Individual Assignment (10%)Assignment on Analysis 5%Surprise Quiz 5%

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AssessmentGroup Presentation & project (20%)

A proposal outlining a new business, brand,product or service in PakistanWritten report and presentationDue in Second Last Week

Exams (65%)Mid term 25% (In week 8 / 9)Final term 40%

Contact DetailEmail: [email protected]

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Introduction to

Foundations of Marketing

Strategy and Management

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In this session, you willlearn about

1. Defining the Organizations Business, Mission, and Goals

Business Definition

Business Mission

Business Goals

2. Identifying and Framing Organizational Growth Opportunities

Converting Environmental Opportunities into

Organizational Opportunities

SWOT Analysis

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In this session, you willlearn about

3. Formulating Product-Market Strategies

Market-Penetration StrategyMarket-Development StrategyProduct-Development StrategyDiversificationStrategy SelectionThe Marketing Mix

4. Budgeting Marketing, Financial, and Production Resources5. Developing Reformulation and Recovery Strategies6. Drafting a Marketing Plan7. Marketing Ethics and Social Responsibility

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The Primary Purpose ofMarketing

To create long-term and mutually

beneficial exchange relationships between

an entity and the publics (individuals andorganizations) with which it interacts.

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Expanding Responsibilities ofMarketing Managers

Expanded responsibilities include:

Charting the direction of the organization

Contributing to decisions that will createand sustain a competitive advantage andaffect long-term organizationalperformance

They no longer function solely to direct day-to-dayoperations. They must make strategic decisions as well.

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Evolution of the MarketingManager

This has prompted the emergence ofmarketing strategy and managementmarketing strategy and managementas a course of study and practice.

From being only an implementer .to being a maker of organization

strategy.

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Processes in StrategicMarketing Management1. Defining the organizations business, mission,

and goals

2. Identifying and framing organizational growthopportunities

3. Formulating product-market strategies

4. Budgeting marketing, financial, and productionresources

5. Developing reformulation and recovery strategies

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Defining theOrganizations Business,

Mission, and Goals

Process One

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Business Definition

By defining a business from acustomer or market perspective

an organization is appropriatelyviewed as:

a customer - satisfying endeavor

a product-producing or service deliveryenterprise.

not

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An organization should define abusiness by:

The type of customers it wishes to serve

The particular needs of those customer

groups it wishes to satisfyThe means or technology by which theorganization will satisfy the customerneeds

What business are we in?

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Most statements describe:the organizations purpose

customers, products/services,markets, philosophy, and technology

Business MissionUnderscores the scope of anorganizations operations apparent inits business definition

Reflects managements vision ofwhat the organization seeks to do

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Benefits of MissionStatements

1. Crystallizes managements vision of theorganizations long-term direction andcharacter

2. Provides guidance in identifying, pursuing,and evaluating market and productopportunities

3. Inspires and challenges employees to dothose things that are valued by theorganization and its customers

4. Provides direction for setting business goalsor objectives

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Business GoalsGoals or objectives convert the organizationsmission into tangible actions and results that areto be achieved, often within a specified timeframe.

Three major categories of goals:

1. Production

2. Financial

3. Marketing

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Production Goals

Apply to the use of manufacturing andservice capacity and to product and

service quality.

Financial Goals

Focus on return on investment,return on sales, profit, cash flow, and

shareholder wealth.

Marketing Goalsmarket sharemarketing productivitysales volumeprofitcustomer satisfaction

customer value creation

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Identifying and FramingOrganizational Growth

Opportunities

Process Two

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Sources of environmental opportunity :

Unmet or changing customer needs

Unsatisfied buyer groups

New means or technology for deliveringvalue to prospective buyers

What might we do?

Converting EnvironmentalOpportunities into


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What do we do best?

Distinctive Competency describes anorganizations unique strengths or qualitiesincluding:

SkillsTechnologies

Resources

that distinguish it from other organizations.

Converting EnvironmentalOpportunities into


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What must we do?Success Requirements are basic tasksthat an organization must perform in amarket or industry to competesuccessfully.

If what must be done is inconsistent with what canbe done to capitalize on an environmental

opportunity, an organizational growth opportunitywill fail to materialize.

Converting EnvironmentalOpportunities into Organizational

Opportunities

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SWOT Analysis

S trengths

W eaknesses

O pportunities

Threats

internal

external

A formal framework for identifying and framingorganizational growth opportunities

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SWOT Analysis

Framework for focusing attention on the fact that anorganizational growth opportunity results from

a good fit between an organizations

INTERNAL CAPABILITIES(Strengths & Weaknesses)

and

its EXTERNAL ENVIRONMENT

(Opportunities & Threats)

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Pose dangers to the welfare ofthe organization

Threats

Developments or conditions inthe environment that havefavorable implications for theorganization

Opportunities

What an organization lacks ordoes poorly relative tocompetitors

Weakness

What the organization is goodat doing or a characteristic thatgives it an important capability

Strength

SWOT Analysis

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Questions to be asked onceSWOT has been identified

1. Which internal strengths representdistinctive competencies? Do thesestrengths compare favorably with what arebelieved to be market or industry successrequirements?

2. Which internal weaknesses disqualify theorganization from pursuing certainopportunities?

3. Does a pattern emerge from the SWOT?

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FormulatingProduct-Market Strategies

Process Three

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DiversificationMarket

Development

MarketPenetration

ProductDevelopment

Existingproducts

Newproducts

Existingmarkets

Newmarkets

Product-Market Strategies

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Seeking a larger market share in a market inwhich organization already has an offering

This strategy involves:

Attempts to increase present buyers

usage or consumption rates of theoffering

Attracting buyers of competing offerings

Stimulating product trial among potentialconsumers

Market PenetrationStrategy

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Introducing its existing offerings to marketsother than those that the organization is

currently serving.

Reaching new markets requires:

Carefully considering competitor strengthsand weaknesses and competitor retaliationpotential

Modification of the basic offering

Different distribution outlets

Change in sales effort and advertising

Market DevelopmentStrategy

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LicensingExporting

Joint Venture orStrategic Alliance

DirectInvestment

Market Development inthe International Arena

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Creating new offerings for existing markets.

This approach may be taken for:

Product Innovation develop totally newofferings

Product Augmentation enhance thevalue to customers of existing offerings

Product line extension broaden theexisting line of offerings by adding differentsizes, forms, flavors, etc.

Product DevelopmentStrategy

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Development or acquisition of offerings new tothe organization and introducing those offerings

to publics not previously served by theorganization.

Growing trend in recent years

High-risk strategy because both the

offering and market served are new to

the organization

Diversification Strategy

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Market-penetrationstrategy

Market-developmentstrategy

Estimated profit of $1 million


Action Response Outcome

Aggressivecompetition

Passivecompetition

Aggressivecompetition

Passivecompetition

Strategy Selection Sample Decision Tree



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The Marketing Mix

Customer

ChannelStrategy

ProductStrategy

PriceStrategy

CommunicationsStrategy

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Budgeting Marketing,Financial, and Production

Resources

Process Four

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A formal, quantitative expression of anorganizations planning and strategy

initiatives expressed in financial terms

A well-prepared budget meshes andbalances an organizations

Financial,

Production, and

Marketing Resources

so that overall organizational goals orobjectives are attained.

The Budget

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1. Operating Budget

Also referred to as a pro formaIncome Statement

Focuses on an organizations incomestatement

2. Financial BudgetFocuses on the effect that theoperating budget and other initiativeswill have on the organizations cashposition

Components of a Budget

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Developing Reformulationand Recovery Strategies

Process Five

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Comprehensive, systematic, independent, and

periodic examination of a companys marketingenvironment, objectives, strategies, and activities to

recommend a plan of action to improve the

companys marketing performance.

The Marketing Audit

Helps answer the questions:

Are we doing the right things?

Are we doing things right?

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Focus can be on a business, product, or brand

Time Dimension can be short-run (typically oneyear) or long-run (multi-year)

A formal written document that describes the contextand scope of an organizations marketing effort to

achieve defined goals or objectives within a specifiedfuture time period.

The Marketing Plan

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Marketing Ethics andSocial Responsibility

Marketing decisions reflect anorganizations orientation toward thepublics with which it interacts

The marketplace is populated byindividuals with diverse value systems

Their actions will be judged publiclyby others with different values

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Sessions Take Away

Marketing strategy and management is the cap-stone course

for most marketing degrees. In this course we will furtherdevelop theory and concepts that have been covered inprevious marketing courses and apply them to a real lifebusiness situation. You will be introduced to the principlesof strategy and learn how to take advantage of marketopportunities to generate sustainable business growth.Additionally, you will be exposed to cutting-edgeknowledge that will allow you to understand how toformulate and assess strategies and business models withregards to relevant organizational contexts.

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Next Sessions

Cases studies

Aldi in Australia

David Austin Roses

Additional readings

The seven questions of marketing strategy

Innovation from the inside out BOP

The right game: Use game theory to shapestrategy

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Documents