1. BUAD 307—MARKETING FUNDAMENTALS
MARKETING STRATEGY

2. Learning Objectives Identify The scope of strategic decisions
Tradeoffs that firms must make in their decisions
Cumulative and “spill-over” effects of strategic decisions and the need for consistency
The need for industry balance and firm unit cash flow balance

3. Strategy
Plan
To achieve desired objectives (e.g., profit, market share)
Based on available resources (e.g., financial, patents, trademarks, people, brand name/image , distribution channels)
Subject to choices made (e.g., willingness to take risk, short run vs. long run goals)

4. MARKETING STRATEGY STRATEGY RESOURCES ENVIRONMENT PRIORITIES/
OPPORTUNITY
COSTS
EXPERIMENTATION/
EXPRIENCE

5. Market Balance A WELL BALANCED
GADGET INDUSTRY
Different firms should attempt to offer different forms of value, appealing to different customer segments—otherwise, competition is likely to degenerate into price competition
EASYTECH, LTD.
EASE OF
USE
TROJAN CREATIONS,
INC.
PERFORMANCE
BRUIN PRIDE, INC.
LOW
PRICE
MICROGEEKS, LTD.
SMALL
SIZE
PATIENCE-IS-STUPID,
INC.
SPEED

6. Core Competencies
Broad, fundamental capabilities—not readily imitated by competitors— in which an organization excels
Deployable across a variety of products and situations
E.g., stylish design of electronics (Apple)
E.g., economies of scale and broad assortment of online merchandise (Amazon)

7. Examples of Objectives
Profit level
Profit growth
Total unit sales
Growth in unit sales
Growth in dollar sales
Total dollar sales
Brand perception by customers
Value
Quality
Innovativeness
Reliability
Brand name recognition
Brand name recognition by product category
Product availability
Availability across retailers and other distributors
Store placement
Percentage of products sold at full price
Percentage of revenue from new products
Affordability of product
Elimination of unsafe product ingredients
Certain objectives must be accomplished (e.g., brand awareness, distribution coverage) before others can be effectively attempted (e.g., sales volumes).

8. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis
INTERNAL
TO FIRM
EXTERNAL
STRATEGY
WEAKNESSES
OPPORTUNITIES
Note that merely listing each factor has limited use. We need to analyze:
How to take advantage of strengths and opportunities
How to address weaknesses and threats
How to use strengths and opportunities to counter weaknesses and threats
THREATS

9. Compensating for Weaknesses and Threats
STRENGTHS
OPPORTUNITIES
PERFORMANCE
STRENGTHS
OPPORTUNITIES
THREATS

10. SWOT Deciding where to concentrate resources
Taking advantage of strengths and opportunities
Addressing weaknesses and threats
Using strengths and opportunities to compensate for weaknesses and threats

11. SWOT—Apple Strengths Weaknesses Opportunities Threats
Market leading/dominating position
Strong brand name
Financial strength
Strong R&D
Strong demand for iPhone
Weaknesses
Legal problems (loss of several patent lawsuits)
Product recalls
Dependence on the legacy of Steve Jobs for brand image
No major recent new product types
Opportunities
ApplePay
New product introductions
Increasing global demand for smart phones
Threats
Android devices (free operating system)
Counterfeiting and industrial espionage
Competition—both on low cost and on innovative features
Declining desktop and laptop markets in developed countries
Unstable world economy
Increased import tariffs
Foreign trade barriers placed in retaliation for possible U.S. barriers
Source: “Apple,” Global Markets Direct SWOT Reports (from Business Essentials), June 1, 2016