Download - Intro. to Marketing Strategies
Foundations of
Strategic Marketing
ManagementNicole Howatt
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The Primary Purpose of Marketing
To create long-term and mutually
beneficial exchange relationships
between an entity and the publics
with which it interacts.
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Expanding Responsibilities of Marketing Managers
Expanded responsibilities include:
Charting the direction of the organization
Contributing to decisions that will create and sustain a competitive advantage & affect long-term organizational performance
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Evolution of the Marketing Manager
This has prompted the emergence of
strategic marketing management as
a course of study and practice.
From being only an
to being a
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Processes in Strategic Marketing Management
1. Defining the organization’s business, mission, and goals
2. Identifying and framing organizational growth opportunities
3. Formulating product-market strategies
4. Budgeting marketing, financial, and production resources
5. Developing reformulation and recovery strategies
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1. Business Definition
By defining a business from a customer or market perspective…
What Business are we in?An organization should define a business by:
•The type of customers it wishes to serve•The needs of those customer groups •The means or technology by which the organization will satisfy the customer needs
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Most statements describe:
Benefits:1. Crystallizes management’s vision 2. Provides guidance 3. Inspires and challenges employees 4. Provides direction
Business Mission
Management’s vision of what the organization seeks to do
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Business GoalsGoals or objectives convert the organization’s mission into tangible actions and results that are to be achieved, often within a specified time frame.
Three major categories of goals:
Production GoalsFinancial Goals
Marketing Goalsmarket share
marketing productivitysales volumeprofitcustomer satisfactioncustomer value creation
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Identifying and Framing
Organizational 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 delivering
value to prospective buyers
Converting Environmental Opportunities into
Organizational Opportunities
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What do we do best?
Distinctive Competency describes an
organization’s unique strengths or qualities
including:
Skills
Technologies
Resources
Converting Environmental Opportunities into
Organizational Opportunities
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The 5 C Strategic Analysis Framework
• Customers
• Company
• Competitors
• Context
• Collaborators
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Consumer Behavior Analysis
• Identify decision making unit.– Who is involved in the purchase?– What role does each play?
• Possible roles:
User
Decider
Initiator
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Consumer Behavior Analysis• Decision Making Process
– Information search– Criteria of evaluation– Importance of attributes
• Purchase and Consumption patterns– Where does the consumer buy?– How is the product used?
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Consumer Behavior Analysis
• Answer questions like:– What are the benefits sought?– Likes and dislikes about current offers?– Image and perceptions of available brands?– Price sensitivity?
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Company Analysis: SWOT• Internal
– Strength– Weaknesses
• External– Opportunities– Threats
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SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
A formal framework for identifying and framing organizational growth opportunities
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Company Analysis: Goals
• Business goals should be– specific– actionable– measurable– time-bound
• What is problematic with the following goals?
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Competitor Analysis: Basics
• Comparison of costs, capabilities, methods and strategies.
• Do SWOT on your competitors
• Analyze the competition!
• Objective factors:– Size of sales force– Plant capacity– Price and Performance
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Competitor Analysis:Strategic
• Strategic analysis– Future Goals: What drives the competition?– Assumptions: What do competitors believe
about the market?– Current Strategy: What are the competitors
doing?– Capabilities: What can the competitors do?
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Context: Macro Economic, Technology, Industry Analysis
• Traditional industry analysis– Size, growth, profitability, concentration,
business cycles, technology etc.
• Historical trend analysis
• Demographics and economic trends
• Technology discontinuities and market turbulence
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Industry Attractiveness:Porter’s Five Forces Model
Threat of New Entrants
High or low barriers
High or low threats
Industry Competition
Numerous?
Slow or fast growth?
Low or high differentiantion
High or low exit barriers
Intense treat?
Buyer Power
Plentiful alternatives
Low switching costs
Intense threat?
Supplier Power
Switching costs?
Threat of forward
Integration
High or low threat
Threat of Substitutes
Similar function
Shifting preferences
Intense threat?
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Collaborator
• Downstream channels
• Upstream suppliers
• Industry level alliances
• Technology alliances
• Market alliances
• Financial linkages
• International linkages
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Formulating
Product-Market Strategies
Process Three
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Existingproducts
Newproducts
Existingmarkets
Newmarkets
Product-Market Strategies
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Seeking a larger market share in a market in
which organization already has an offeringhttp://video.msn.com/v/us/v.htm?f=msn-l
This strategy involves:
Attempts to increase present buyer’s usage or consumption rates of the offering
Attracting buyers of competing offerings
Stimulating product trial among potential consumers
Consider??
Market Penetration Strategy
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Introducing its existing offerings to markets other than those that the organization is
currently serving.
Reaching new markets requires:
Carefully considering competitor strengths and weaknesses and competitor retaliation potential
Modification of the basic offering
Consider?
Market Development Strategy
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This approach may be taken for:
Product Innovation – develop totally new offerings
Product Augmentation – enhance the value to customers of existing offerings
Product line extension – broaden the existing line of offerings by adding different sizes, forms, flavors, etc.
Product Development Strategy
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Development or acquisition of offerings new to the organization and introducing those offerings to publics not previously
served by the organization.
Diversification Strategy