Download marketing strategy - introduction

MARKETING STRATEGY INTRODUCTION
At the end of this module the learning
outcomes are:
1. Concepts of corporate and marketing
strategy
2. Importance of marketing strategy
3. Scope and activities of marketing strategy
1
SUGGESTED READINGS
1. Strategic Marketing
by
David Cravens
Chapter 1 to 4
2. Strategic Marketing
by
Wilson & Gilligan
Chapter 1 and 2
2
•
•
•
•
•
Examples
Hindustan Lever current turnover is
more than Rs.15000 crores. How to
achieve a turnover of Rs.30000
crores in next five years?
Should Honda produce small cars?
Should Domino’s go into burger
delivery?
How should Nestle double its profits?
Should Coke enter into foods
business?
3
ISSUES CONFRONTING AN
ORGANISATION
•
•
•
•
•
•
•
What type of business should we be in?
Which market segments to attack?
What time frame?
Should we be market leaders?
Mass markets versus niche markets?
If we have many businesses how should
resources be allocated?
Of the various alternatives, which will produce
the greatest returns?
.
Many more issues confront an organization! 4
WHAT IS BUSINESS STRATEGY
•
•
Strategy is the means an organization uses to
achieve its objectives
Strategy implements management’s concept of
•
•
•
•
Business scope
Mission
Objectives
Management’s skills and vision in addressing
these issues are critical to performance of the
corporation
5
MARKETING STRATEGY
Hindustan Lever
Various businesses are
1. Beverages
- Tea, Coffee
2. Foods
- Ice-creams, Flour, Salt, Soup
6
MARKETING STRATEGY
3. Detergents
- Powder, Cake
4. Personal care products
- Soaps, Shampoos, Creams
5. Multi-level marketing
- Aviance range
7
HOW HINDUSTAN LEVER HAS
GROWN
-
-
Market expansion
. Selling soaps/tea in rural areas
New Products launched
. Surf
. Surf Excel
. Surf Excelmatic
. Surf liquid
Acquisitions
. Bought Modern Foods
. Bought ‘Kissan’ brand
. Bought Lakme
8
HOW HINDUSTAN LEVER HAS
GROWN
-
Mergers
. Ponds India
. Tomco
How all of these were planned?
9
CORPORATE STRATEGY
-
Deciding corporate mission
Corporate development alternatives
Business composition
Implementation
10
MARKETING STRATEGY
TO DEVELOP THIS
-
Understanding of business strategy is important
Marketing professionals are involved in the business
planning process in three important ways
1. Strategic analysis and planning
2. Serve with other functional managers as members of
the business unit strategy
3. Develop and implement strategic marketing plans
for the markets served by the organization
11
ROLE OF MARKETING
Marketing strategist responsibilities would
include
-
Participate in corporate strategy formulation
Develop marketing strategies that follow
corporate priorities
Assessing market attractiveness in the markets
available
Provide a customer orientation
Communicating the firm’s specific value
advantages
12
MARKETING STRATEGY IS DEFINED
AS THE ANALYSIS, STRATEGY
DEVELOPMENT AND
IMPLEMENTATION ACTIVITIES IN :
-
Selecting target market strategies for the
product-markets in each business unit
Setting marketing objectives
Developing, implementing and managing
the marketing program and positioning
strategies designed to meet the needs of
the customers in each target market.
13
STRATEGIC MARKETING FOCUS
-
-
Achieve high levels of customer satisfaction
Financial performance rather than traditional
concern about sales
Links the organization with the environment
Views marketing as a responsibility of the entire
organization rather than a specialized
function
14
STRATEGIC MARKETING PROCESS
1.
2.
3.
4.
Market situation analysis
Designing marketing strategy
Marketing program development
Implementing and controlling
marketing strategy
15
MARKETING STRATEGY
STRATEGIC DECISIONS AND NATURE
OF STRATEGY
• Scope of an organization’s activities
• Matching organization’s activities with the
opportunities of its substantive environment
• Major resource implications for
organizations-addition/disposal of capacity
16
STRATEGIC DECISIONS
STRATEGIC DECISIONS AND NATURE
OF STRATEGY
• Impact the organization’s long-term
direction
• Complex in nature, non-routine
17
LEFT-HANDED AND RIGHTHANDED ORGANIZATIONS
LEFT-HANDED
Financially driven
Planning of expenses, debt, sales
When sales slip, tendency to cut expenses to
boost profits
Typically with British and US organizations
18
LEFT-HANDED AND RIGHTHANDED ORGANIZATIONS
RIGHT-HANDED
• Market-driven organizations
• Primary objective of satisfying customers
• Business decisions flow back from an
understanding of customer rather than from a
financial requirement
• Typically with Japanese organizations
• Increasing shift towards right-handed approach
19