Strategic Marketing Planning and Market Orientation Chapter 1 Slides developed by: Peter Yannopoulos © 2006 by Nelson, a division of Thomson Canada Limited 4/23/2017

Marketing Strategy Marketing strategy is about satisfying valuable customers in a superior way © 2006 by Nelson, a division of Thomson Canada Limited

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

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

Components of Marketing Strategy segment strategy Positioning strategy Promotion strategy Components of Marketing Strategy Product strategy Distribution strategy Pricing strategy © 2006 by Nelson, a division of Thomson Canada Limited

The Strategic Marketing Planning Product Strategy Pricing Strategy Distribution Strategy Promotion Strategy Implementation and Control Strategic Positioning Corporate Vision, Mission, and Goals Situational Analysis Market Segmentation and Target Marketing Market Definition Business-Level Strategy Corporate Strategy © 2006 by Nelson, a division of Thomson Canada Limited

Corporate Vision A mental image of a desirable future state of an organization © 2006 by Nelson, a division of Thomson Canada Limited

Properties of Effective Corporate Visions Informed Grounded in reality Effective Corporate Visions Intent to win Shared © 2006 by Nelson, a division of Thomson Canada Limited

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

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

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

Deliberate Strategies Strategies that are the result of a formal planning process © 2006 by Nelson, a division of Thomson Canada Limited

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

Market Orientation Market Customer Orientation Competitor Interfunctional Coordination Customer Orientation Competitor Market © 2006 by Nelson, a division of Thomson Canada Limited

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

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

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

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

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

Major Influences on Marketing Strategy Formulation Triple Bottom Line Globalization Marketing Convergence Major Influences on Marketing Strategy © 2006 by Nelson, a division of Thomson Canada Limited

Triple Bottom Line Triple Bottom Line Social Financial Environmental © 2006 by Nelson, a division of Thomson Canada Limited