Transcript MARKETING STRATEGY

Strategic Marketing Planning and
Market Orientation
Chapter 1
Slides developed by:
Peter Yannopoulos
7/20/2015
© 2006 by Nelson, a division of Thomson Canada Limited
1-1
Marketing Strategy
Marketing strategy is about
satisfying valuable customers
in a superior way
© 2006 by Nelson, a division of Thomson Canada Limited
1-2
Marketing is about …..
Choosing a certain course of action and
rejecting other alternatives after careful
consideration
© 2006 by Nelson, a division of Thomson Canada Limited
1-3
The objective of marketing is…
To focus on those marketing
strategies that are more in line
with the organizational goals
and capabilities
© 2006 by Nelson, a division of Thomson Canada Limited
1-4
Components of Marketing Strategy
Market
segment
strategy
Promotion
strategy
Components
of Marketing
Strategy
Distribution
strategy
© 2006 by Nelson, a division of Thomson Canada Limited
Positioning
strategy
Product
strategy
Pricing
strategy
1-5
The Strategic Marketing Planning
Corporate Vision, Mission,
and Goals
Corporate Strategy
Market Definition
Situational Analysis
Business-Level Strategy
Market Segmentation and
Target Marketing
Strategic Positioning
Product
Strategy
Pricing
Strategy
© 2006 by Nelson, a division of Thomson Canada Limited
Distribution
Strategy
Promotion
Strategy
Implementation and
Control
1-6
Corporate Vision
A mental image of a desirable
future state of an organization
© 2006 by Nelson, a division of Thomson Canada Limited
1-7
Properties of Effective Corporate
Visions
Informed
Grounded
in reality
Effective
Corporate
Visions
Intent
to win
© 2006 by Nelson, a division of Thomson Canada Limited
Shared
1-8
Corporate Mission
It identifies what the firm stands for
and its operating philosophy
It is a multi-dimensional concept that
consists of several components
© 2006 by Nelson, a division of Thomson Canada Limited
1-9
Components of Corporate Mission
 It reflects the values of the
organization
 It reflects the true purpose of the
business
 It includes the policies and operational
standards of the organization
 It includes the firm’s competitive
position and competitive advantage
© 2006 by Nelson, a division of Thomson Canada Limited
1-10
Competing on the Edge
It involves taking action, observing
what happens, and adopting the
course of action that seems to work
best
© 2006 by Nelson, a division of Thomson Canada Limited
1-11
Deliberate Strategies
Strategies that are the result of a
formal planning process
© 2006 by Nelson, a division of Thomson Canada Limited
1-12
Emergent Strategies
Strategies that occur from
responses to customer requests,
manufacturing problems,
competitive threats, and
technological advances
© 2006 by Nelson, a division of Thomson Canada Limited
1-13
Market Orientation
Customer
Orientation
Market
Orientation
Competitor
Orientation
Interfunctional
Coordination
© 2006 by Nelson, a division of Thomson Canada Limited
1-14
Customer Orientation
 Intimate knowledge of customer needs
 Strong customer commitment
 Creation of superior customer value
 Superior market sensing capabilities
 Develop customer relationships with
valuable customers
 Segment markets and choose the most
attractive segments
© 2006 by Nelson, a division of Thomson Canada Limited
1-15
Competitor Orientation
 Know direct and indirect competitors
 Monitor competitor activity
 Regularly analyze competitor strategies
 Benchmark performance against
competitors
 Respond rapidly to competitor actions
© 2006 by Nelson, a division of Thomson Canada Limited
1-16
Interfunctional Coordination
Regularly collect market information
Market information is shared among
functions
All functions contribute to meeting
customer needs
There is a strong coordination of all
functions
© 2006 by Nelson, a division of Thomson Canada Limited
1-17
Some Strategic Advantages of Market
Orientation
Encourages behaviour needed to create
superior customer value
Helps design a superior marketing
strategy to guide marketing actions
Outperform competitors
Create loyal customers
Charge higher prices
© 2006 by Nelson, a division of Thomson Canada Limited
1-18
Strategic Interdependence
 The outcome of a firm’s strategy depends on
the strategy it chooses but also on the
strategy chosen by its rivals
 Firms must be aware of the possible moves
and countermoves of competition and adjust
their marketing plans to reflect such moves
 The process of strategic interaction forces
firms to continually improve the quality of
their products and lower prices
© 2006 by Nelson, a division of Thomson Canada Limited
1-19
Major Influences on Marketing
Strategy Formulation
Globalization
Major
Influences on
Marketing
Strategy
Marketing
Convergence
Triple Bottom
Line
© 2006 by Nelson, a division of Thomson Canada Limited
1-20
Triple Bottom Line
Social
Financial
Triple
Bottom
Line
Environmental
© 2006 by Nelson, a division of Thomson Canada Limited
1-21