1. Marketing Strategy

2. What is marketing strategy?
The positioning and relating of the firm/organisation to its environment in a way which will assure its continued success and make it secure from surprises
Igor Ansoff ( )

3. Key strategic models Ansoff’s matrix
Porter’s Low cost v. Differentiation
Porter’s 5 forces

4. Ansoff’s matrix

5. Ansoff Can address degree of risk, but can oversimplify level of risk
Useful tool for deciding on strategic direction, but it does not take competitors into account

6. Market penetration
Or:-
Consolidation
Withdrawal
Do nothing

7. Porter’s Generic Strategies

8. Porter’s generic strategies
Low cost v. Differentiation
Search for sustainable competitive advantage
Cost leadership
Differentiation
Focus (target particular market segment)

9. Effectiveness of marketing strategies - Porter
Is there a significant advantage to the business?
Lower costs compared to competitors
Clear differentiation
Can strategy be maintained over a long period of time? (sufficient time to reap reward?)
Does strategy appeal to sufficient numbers of customers for business to reach targets
Is there conflict within the organisation?
Remember external (exogenous) factors

10. Porter’s 5 Forces New entrants Substitute products Power of buyers
Power of sellers
Level of competition between firms

11. Entering international markets
Restrictions to free trade
E.g. NAFTA – North American Free Trade Agreement
Exchange rate movements
Different cultures
Political situation
Accessing information
Finance & regulatory systems

12. Effectiveness of marketing strategies
Degree of conflict within the organisation
Barriers to communication, leadership, etc.
Cost of entering markets
Industry standards, regulation, quality control issues
Quality of market analysis
Internal communications
Exogenous (external) factors
Economy, government change, new legislation, weather, competitors’ response, interest rate changes, etc.