Chapter 3

Strategy What to do—strategic How to do it—tactical Long term vision Led by a slogan  Microsoft: anywhere anything what do you want to do today  Starbucks A cup at a time  Wal-Mart Everyday low prices  Morgan Stanley We serve one client at a time  Disney Land The happiest place on earth

Strategy (Cont.) Good company  Unconsciously capable  Good strategy

A Good Strategy Should Be Feasible Directional Easy to understand

Business Strategy v.s. Marketing Strategy Business strategy  What to do from business point of view Marketing strategy  What to do to support business strategy

Business Strategy Linked to Marketing Strategy Goal alignment Resources alignment Activity alignment Implementation alignment

Steps to Develop Marketing Strategy Segmentation—meaningful and actionable based on demographics  Xbox  Male young adults from 18 to 29  Female young adults from 18 to 29 Targeting—based on profitability, cost to serve, growth potential  Male young adults only or a few segments Positioning—product to be perceived as  Style, delivery: Starbucks, life style  Happiness, fun: Disney Land  Status vs Car: Mercedes  Comparison: Hertz—we work harder  Purchase vs Informational web: cars.com, ford.com

Mustang (MU) Matrix (MA) Victoria (V) MFMFMF HobbyMU Repeating buyers MA VV First timeMA

Pure play vs. Brick & Mortar Products Digital vs. Physical TransactionDigital vs. Physical DeliveryDigital vs. Physical online Male Female B&M Male Female