1. MARKETING STRATEGY Learning objectives:
By the end of this lesson, students should be able to understand the following key issues:
What is strategy and what is marketing strategy
Why is strategy important
The various different marketing strategies
Strategy and planning
Strategic management framework.
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2. MARKETING STRATEGY
A marketing strategy serves as the foundation of a marketing plan. A marketing plan contains a list of specific actions required to successfully implement a specific marketing strategy
Without a sound marketing strategy, a marketing plan has no foundation
Marketing strategies serve as the fundamental underpinning of marketing plans designed to reach marketing objectives. It is important that these objectives have measurable results.
A good marketing strategy should integrate an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. The objective of a marketing strategy is to provide a foundation from which a tactical plan is developed. This allows the organization to carry out its mission effectively and efficiently
Marketing strategies are partially derived from broader corporate strategies, corporate missions, and corporate goals. They should flow from the firm's mission statement. They are also influenced by a range of micro environmental factors.
Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.
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3. BUSINESS AND MARKETING STRATEGIES
BUSINESS STRATEGY
Ansoff Matrix
Porters generic strategy
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4. Stuck with no clear strategy
MARKETING STRATEGIES
PORTERS GENERIC STRATEGY MODEL
Differentiation
Stuck with no clear strategy
Cost leadership
Focus
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5. STRATEGIES ANSOFF MATRIX MARKET PENETRATION PRODUCT DEVELOPMENT
Existing
New
MARKET PENETRATION
PRODUCT DEVELOPMENT
MARKET DEVELOPMENT
DIVERSIFICATION
Existing
New
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6. MARKETING Strategies Segment 1 MARKETING MIX Segment 2
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MARKETING Strategies
Segment 1
MARKETING MIX
Segment 2
Concentrated strategy/marketing
Segment 3
Segment 1
MARKETING MIX 1
Segment 2
MARKETING MIX 2
MARKETING MIX 3
Segment 3
Differentiated strategy/marketing
Whole market
MARKETING MIX
Undifferentiated strategy/marketing

7. CORPORATE STRATEGIES ATTACH STRATEGIES
Direct challenge – differential advantage
Direct attack – distinctive competence
Direct attack – market share
Flank attack
Encirclement
Bypass
Guerrilla
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8. DEFENCE STRATEGIES MARKETING STRATEGY Position defence
Pre-emptive defence
Counter-offensive
Mobile defence
Flanking defence
Contraction defence
By-pass
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9. COMPONENTS OF A MARKETING PLAN
EXECUTIVE SUMMARY
BUSINESS MISSION
MARKTING AUDITING
SWOT ANALYSIS
MARKETING OBJECTIVES
BUSINESS OBJECTIVES
MARKETING STRATEGIES
BUSINESS STRATEGIES
MARKETING MIX
IMPLEMENTATION
EXPECTED RESULT
MONITORING
CONTROLLING
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10. STRATEGY AND PLANNING
Corporate or visionary planning that provides a mission and structure for evaluating and allocating resources to business
Business planning which involves long-range planning for positioning the company and its products to best serve its target markets
Functional planning including marketing planning which is generally annual planning involving specific goals and plans over one year.
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11. CORPORATE STRATEGY
Strategies are formulated as a response to the various
factors in the company’s environment- and these may
come from both external and internal sources:
External
Internal
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12. Organizational Stance and Positioning
Leaders
Followers
Nichers
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13. What is a Mission Statement.
Marketing fundamentals - UNIT 2: MARKETING PLANNING AND BUDGETING THE BUSINESS MISSION Learning Objectives
What is a Mission Statement.
What are the components of a mission statement.
What is the importance of a mission statemement.
What are the characteristics of a Mission Statement
Examples of Mission Statements: M&S, Asda, Tesco, Sainsbury, BT & Npower.
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14. What is the marketing audit What are its components
Marketing fundamentals - UNIT 2: MARKETING PLANNING AND BUDGETING The Marketing Audit Learning Objective
What is the marketing audit
What are its components
What is the importance of the marketing audit.
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15. What is the SWOT Analysis
Marketing fundamentals - UNIT 2: MARKETING PLANNING AND BUDGETING THE SWOT ANALYSIS Learning Objectives
What is the SWOT Analysis
What is the importance of carrying out a SWOT Analysis.
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16. Marketing fundamentals Marketing planning and budgeting.
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17. PRODUCT PORTFOLIO PLANNING AND ANALYSIS
Business Portfolio: The collection of businesses and products that make up the company.
Portfolio analysis: A tool by which management
identifies and evaluates the various businesses that
make up the company
Strategic business unit (SBU): A unit of the company that has
a separate mission and objectives and that can be planned
independently from other company businesses. A SBU can be
a company division, a product line within a division, or
sometimes a single product or brand.
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18. PORTFOLIO ANALYSIS BOSTON CONSULTING GROUP MATRIX
Framework of the BCG Matrix
High 20 10
Market growth
0.1x
Low
10x 1x
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Market share

19. PORTFOLIO ANALYSIS Stars Cash cows Question marks Dogs Low-growth
High-share businesses or products
Established and successful units that generate cash that the company uses
to pay its bills and support other business units that need investment
Question marks
Low-share business units in high-growth markets
Dogs
High –growth
High market share (High-share businesses)
Products often require heavy investment to finance their rapid growth
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20. BCG MATRIX : BCG CLASSIFICATION OF PRODUCTS
High 20
Dogs
Question marks
Stars 10
Market growth
Cash cows
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Low 1x
10x
0.1x
Market share

21. BCG MATRIX- CASH POSITION FOR PRODUCTS
Stars
Revenue
Investment
Question marks
Revenue
Investment -
Cash cows
Revenue
Investment –
+ +
Dogs
Revenue +
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22. PORTFOLIO STRATEGIES
Build
Hold
Harvest
Divest
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23. PRODUCT PORTFOLIO PLANNING AND ANALYSIS
Business Portfolio: The collection of businesses and products that make up the company.
Portfolio analysis: A tool by which management
identifies and evaluates the various businesses that
make up the company
Strategic business unit (SBU): A unit of the company that has
a separate mission and objectives and that can be planned
independently from other company businesses. A SBU can be
a company division, a product line within a division, or
sometimes a single product or brand.
Jude
Asongwe
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24. PORTFOLIO ANALYSIS BOSTON CONSULTING GROUP MATRIX
Framework of the BCG Matrix
High 20 10
Market growth
0.1x
Low
10x 1x
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Market share

25. PORTFOLIO ANALYSIS Stars Cash cows Question marks Dogs Low-growth
High-share businesses or products
Established and successful units that generate cash that the company uses
to pay its bills and support other business units that need investment
Question marks
Low-share business units in high-growth markets
Dogs
High –growth
High market share (High-share businesses)
Products often require heavy investment to finance their rapid growth
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26. BCG MATRIX : BCG CLASSIFICATION OF PRODUCTS
High 20
Dogs
Question marks
Stars 10
Market growth
Cash cows
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Low 1x
10x
0.1x
Market share

27. PORTFOLIO STRATEGIES
Build
Hold
Harvest
Divest
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28. GENERAL ELECTRIC MATRIX
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29. THE GENERAL ELECTRIC MATRIX BY MCKINSEY
The GE matrix / McKinsey matrix is a model to perform a business portfolio analysis on the Strategic Business Units of a corporation.
A business portfolio is the collection of Strategic Business Units that make up a corporation. The optimal business portfolio is one that fits perfectly to the company's strengths and helps to exploit the most attractive industries or markets.
A Strategic Business Unit (SBU) can either be an entire mid-size company or a division of a large corporation, that formulates its own business level strategy and has separate objectives from the parent company.
Jude
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30. PRODUCT PORTFOLIO PLANNING AND ANALYSIS
Business Portfolio: The collection of businesses and products that make up the company.
Portfolio analysis: A tool by which management
identifies and evaluates the various businesses that
make up the company
Strategic business unit (SBU): A unit of the company that has
a separate mission and objectives and that can be planned
independently from other company businesses. A SBU can be
a company division, a product line within a division, or
sometimes a single product or brand.
Jude
Asongwe
Created by

31. PORTFOLIO ANALYSIS BOSTON CONSULTING GROUP MATRIX
Framework of the BCG Matrix
High 20 10
Market growth
0.1x
Low
10x 1x
Jude
Asongwe
Created by
Market share

32. GENERAL ELECTRIC MATRIX
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33. THE GENERAL ELECTRIC MATRIX BY MCKINSEY
The GE matrix / McKinsey matrix is a model to perform a business portfolio analysis on the Strategic Business Units of a corporation.
A business portfolio is the collection of Strategic Business Units that make up a corporation. The optimal business portfolio is one that fits perfectly to the company's strengths and helps to exploit the most attractive industries or markets.
A Strategic Business Unit (SBU) can either be an entire mid-size company or a division of a large corporation, that formulates its own business level strategy and has separate objectives from the parent company.
Jude
Asongwe
Created by

34. PRODUCT PORTFOLIO PLANNING AND ANALYSIS
Business Portfolio: The collection of businesses and products that make up the company.
Portfolio analysis: A tool by which management
identifies and evaluates the various businesses that
make up the company
Strategic business unit (SBU): A unit of the company that has
a separate mission and objectives and that can be planned
independently from other company businesses. A SBU can be
a company division, a product line within a division, or
sometimes a single product or brand.
Jude
Asongwe
Created by

35. PORTFOLIO ANALYSIS BOSTON CONSULTING GROUP MATRIX
Framework of the BCG Matrix
High 20 10
Market growth
0.1x
Low
10x 1x
Jude
Asongwe
Created by
Market share

36. PORTFOLIO ANALYSIS Stars Cash cows Question marks Dogs Low-growth
High-share businesses or products
Established and successful units that generate cash that the company uses
to pay its bills and support other business units that need investment
Question marks
Low-share business units in high-growth markets
Dogs
High –growth
High market share (High-share businesses)
Products often require heavy investment to finance their rapid growth
Jude
Asongwe
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37. BCG MATRIX : BCG CLASSIFICATION OF PRODUCTS
High 20
Dogs
Question marks
Stars 10
Market growth
Cash cows
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Low 1x
10x
0.1x
Market share

38. THE GENERAL ELECTRIC MATRIX BY MCKINSEY
The GE matrix / McKinsey matrix is a model to perform a business portfolio analysis on the Strategic Business Units of a corporation.
A business portfolio is the collection of Strategic Business Units that make up a corporation. The optimal business portfolio is one that fits perfectly to the company's strengths and helps to exploit the most attractive industries or markets.
A Strategic Business Unit (SBU) can either be an entire mid-size company or a division of a large corporation, that formulates its own business level strategy and has separate objectives from the parent company.
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39. THE GENERAL ELECTRIC MATRIX BY MCKINSEY
The aim of a portfolio analysis is to:
1) Analyze its current business portfolio and decide which SBU's should receive more or less investment, and 2) Develop growth strategies for adding new products and businesses to the portfolio
3) Decide which businesses or products should no longer be retained. The BCG Matrix (Boston Consulting Group Matrix) is the best-known portfolio planning framework. The GE / McKinsey Matrix is a later and more advanced form of the BCG Matrix.
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40. THE GENERAL ELECTRIC MATRIX BY MCKINSEY
Typical (external) factors that affect Market Attractiveness: - Market size - Market growth rate - Market profitability - Pricing trends - Competitive intensity / rivalry - Overall risk of returns in the industry- Entry barriers - Opportunity to differentiate products and services- Demand variability - Segmentation - Distribution structure- Technology development 
Typical (internal) factors that affect Competitive Strength of a Strategic Business Unit: - Strength of assets and competencies - Relative brand strength (marketing) - Market share- Market share growth - Customer loyalty - Relative cost position (cost structure compared with competitors)- Relative profit margins (compared to competitors) - Distribution strength and production capacity - Record of technological or other innovation- Quality - Access to financial and other investment resources- Management strength 
Jude
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41. THE GENERAL ELECTRIC MATRIX BY MCKINSEY
The aim of a portfolio analysis is to:
1) Analyze its current business portfolio and decide which SBU's should receive more or less investment, and 2) Develop growth strategies for adding new products and businesses to the portfolio
3) Decide which businesses or products should no longer be retained. The BCG Matrix (Boston Consulting Group Matrix) is the best-known portfolio planning framework. The GE / McKinsey Matrix is a later and more advanced form of the BCG Matrix.
Jude
Asongwe
Created by

42. THE GENERAL ELECTRIC MATRIX BY MCKINSEY
Typical (external) factors that affect Market Attractiveness: - Market size - Market growth rate - Market profitability - Pricing trends - Competitive intensity / rivalry - Overall risk of returns in the industry- Entry barriers - Opportunity to differentiate products and services- Demand variability - Segmentation - Distribution structure- Technology development 
Typical (internal) factors that affect Competitive Strength of a Strategic Business Unit: - Strength of assets and competencies - Relative brand strength (marketing) - Market share- Market share growth - Customer loyalty - Relative cost position (cost structure compared with competitors)- Relative profit margins (compared to competitors) - Distribution strength and production capacity - Record of technological or other innovation- Quality - Access to financial and other investment resources- Management strength 
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43. A six-step approach to implementation of portfolio analysis (using the GE / McKinsey Matrix) could look like this: 1. Specify drivers of each dimension. The corporation must carefully determine those factors that are important to its overall strategy 2. Weight drivers. The corporation must assign relative importance weights to the drivers 3. Score SBU's each driver 4. Multiply weights times scores for each SBU 5. View resulting graph and interpret it 6. Perform a review/sensitivity analysis using adjusted other weights (there may be no consensus) and scores.
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44. Some important limitations of the GE matrix / McKinsey Matrix are:
- Valuation of the realization of the various factors
- Aggregation of the indicators is difficult
- Core competencies are not represented
- Interactions between Strategic Business Units are not considered
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45. CHANGES IN PRODUCT/STRATEGIC BUSINESS POSITION
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46. CONCLUSION
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47. GENERAL ELECTRIC BUSINESS SCREEN (GE)
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48. Jude
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49. Key terms and definitions
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50. Questions for revision
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