The Nature of Strategy Pertemuan 19 & 20 Mata kuliah: INTEGRATED MARKETING COMMUNICATION Tahun : 2009/2010

Bina Nusantara University 3 What is STRATEGY?  Marketing Communication Strategy Integrated and drive all the communication tools in a single purposeful direction.

Bina Nusantara University 4 Forward or Backward Strategy  Igor Ansoff makes strategy out to be a carefully planned, heavily analyzed, prescriptive activity far removed from the details of tactical creativity.  Henry Mintzberg suggest that strategy is an emergent pattern in organizational actions to which managers give legitimacy by ascribing the label of strategy to what has already happened

Bina Nusantara University 5 SOSTAC planning system  Situation, where are we now?  Objectives, where do we want to be?  Strategy, summaries how we are going to get there  Tactics, details of strategy  Action, means implementation  Control, means measurement, monitoring, reviewing, updating and modifying

Bina Nusantara University 6 SOSTAC planning system  This means that strategy should come before tactics  Strategy should drive the tactics in an overall direction otherwise the tactics can drift anywhere  Strategy summaries how the objectives will be achieved.

Bina Nusantara University 7 Definitions of Strategy Dictionary definitions  Strategy: the science of planning and directing military operations; a plan or action based on this; skill in managing or planning esp. by using stratagem (Collins Pocket Dictionary, 1986)  Stratagems: a trick or plan for deceiving an enemy in war, any trick or scheme (Collins Pocket Dictionary, 1986)

Bina Nusantara University 8 Marketers’ Definitions Here is how strategy has been defined by marketing professionals: A big picture A longer-term view A way of achieving objectives A summary of tactics A guideline for tactics A platform for integrating the marketing mix A platform for integrated communications A platform for combining the positioning, segmentation and the mix A way of making things fit better.

Bina Nusantara University 9 Mintzberg’s 5Ps of Strategy He listed 5 definitions of strategy :  Plan; ‘… a unified, comprehensive, integrated plan designed to ensure objectives are achieved’  Play: ‘… a maneuver to attack or threaten to attack a competitor.. Threatening to enter a market, cut prices or launch lower priced “fighting brands”

Bina Nusantara University 10  Pattern: the summary of a series of action (consistency in behavior whether or not intended).  Position: how the organization or brand wants to be seen in the market place and whether it wants to be a leader or a follower in a niche or not.  Perspective: permeates internally–within the organization so that all employees see the strategy and feel part of it… the corporate culture.

Bina Nusantara University 11 (1) Corporate Strategy ( 2) Marketing Strategy (3) Marketing Communications Strategy THE THREE LEVELS OF STRATEGY:

Bina Nusantara University 12 Three Levels of Strategy  Corporate Strategy; Long term moves made to achieve corporate plans and objectives. Corporate strategy involves senior management decisions, eg. choosing what business to be in!

Bina Nusantara University 13 Three Levels of Strategy  Marketing Strategy/operational strategy: can cover manufacturing system, eg. McDonald’s strategy was to systematize the franchisingsystem so that it could deliver a consistent level quality, service, cleanliness and value around the world!

Bina Nusantara University 14 Three Levels of Strategy  Marketing Communications Strategy: involves the whole marketing mix and marketing communication tools and choice of target markets, exploiting competitive advantage,eg. reposition the product as up-market, state of the art, priced accordingly and distributed through exclusive retail stores, and supported by a major above the line campaign.

Bina Nusantara University 15 Types of Strategy  Product Strategy: determines and guides decisions about product development, eg to expand the range instead of restrict the range, focus on product enhancements only, utilize miniaturizations.

Bina Nusantara University 16 Pricing strategy (PS) PS : determines prices and pricing structures, eg. adopt a premium pricing strategy (skimming the market) instead of a cut price strategy (penetrating the market)

Bina Nusantara University 17 Distribution strategy  Distribution strategy; determines the routes for distribution eg to distribute directly through mail order instead of retail outlets or to develop multi-level channels instead of single-level channels

Bina Nusantara University 18 Marketing Communication Strategy  Marketing communications strategy: determines the message or sequence of messages which should be shared with specific target audiences through the optimum communications mix (eg. advertising or direct mail)

Bina Nusantara University 19 Advertising strategy:  Advertising strategy: determines the message or sequence of messages which should be shared with specific target audiences through the optimum media mix (eg televisions or press advertisement).

Bina Nusantara University 20 The Benefits of Strategy  Each tactical activity is able to build on the others to create strength through continuity and consistency  Tactical planning is that much easier and quicker when clear strategic direction is agreed  Marketing communications strategy creates many more benefits through integration.

Bina Nusantara University 21 The components of marketing strategy :  Products  Markets/customers  Strengths/competitive advantage  Scope/scale  Objectives  Resources  Timing

Bina Nusantara University 22 Tips for strategy makers  Adopt SOSTAC  Do your homework  Develop some options  Know your resources  Win seniors management support  Do not hurt your market or environment  Put everything in place before making a move.

Bina Nusantara University 23 Good Luck! Be Happy with Your daily Activity!