1 Marketing: Planning and Strategy

2 Strategy: Definition A pattern of major objectives, goals, essential policies and plans that define the current or future firm’s business and the kind of company the firm is now or is to become.

3 Why do we need to “Strategize” Finite resources Uncertainty about competitive strengths Irreversible commitment of resources Coordinated decisions Uncertainty about control of initiative

4 Elements of Marketing Strategy Formulation

5  Strengths  Weaknesses  Opportunities  Threats SWOT Analysis internal external

6 Identifying and Framing Organizational Growth Opportunities  What might we do? - environmental opportunity  What do we do best? - distinctive competency  What must we do? - success requirements Converting Environmental Opportunities into Organizational Opportunities

7  Product strategy  Promotion/Communication strategy  Placement/Distribution/Channel strategy  Pricing strategy The Marketing Mix

8 ExistingNew Existing New Market Penetration Market Development New Offering Development Diversification Markets Offerings Formulating Product-Market Strategies

9 Market Penetration Strategy  greater dominance is key Market Development Strategy  exporting  licensing  joint venture  direct investment

10 Formulating Product-Market Strategies Product-Development Strategy  product innovation  product augmentation  product line extension  cannibalism Diversification

11 Drafting a Marketing Plan  Context and Scope of Marketing Effort  Focus: Business, Product, Brand  Time Dimension: Short-run, Long-run

12 Decisions About Competing Where (markets) When (Entry) How

13 Problems in Strategic Marketing Too much emphasis on where to compete Too little emphasis on how to compete when to compete adaptability uniqueness

14 Implementation: Common Problems Simplify marketing strategies More focus on uniqueness and adaptability Improve speed and flexibility