mod 2 strategic implications

8/10/2019 Mod 2 Strategic Implications

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MARKETING IMPLICATIONS TO STRATEGY

Module 2


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MARKETINGS STRATEGIC ROLE

Market orientation vs. product/production

orientation

Factors affecting:

Competitive conditions

Levels of economic development and different

business philosophies

Strategic inertia (automatic continuation ofstrategies successful in the past, regardless of

changing conditions)


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PRODUCT ORIENTATION VS. MARKET ORIENTATION

Company Product Market

Missouri-Pacific

Railroad

We run a railroad We are a people-

and-goods mover

Xerox We make copying

equipment

We improve office

productivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain

people


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STRATEGY

A fundamental pattern of present andplanned objectives, resource deployments,and interactions of an organization with

markets, competitors, and otherenvironmental factors (Hofer & DanSchendel, 1978)

Should specify:

What

Where

How


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COMPONENTS OF STRATEGY

Scope

Goals and objectives

Resource developments Identification of a sustainable competitive

advantage

Synergy (complement/reinforcement)


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HIERARCHY OF STRATEGIES

Corporate

Business-level

Functional

What business are we in?

What business shouldwe be in?

What portion of our total resources

should we devote to each of thesebusinesses to achieve overall

goals and objectives?


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Corporate

Business-

level Functional

Critical focus: how a business

unit competes within the

industry.

Sustainable competitiveadvantage

Appropriate scope: how many

and which market segments to

compete in


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Corporate

Business-level

Funct ional

Marketing strategy

Focus: effectively allocate and

coordinate marketing resources and

activities to accomplish the firmsobjectives within a specific product-

market.


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PHASES OF VALUE CREATION AND DELIVERY

Choosing the value

Providing the value

Communicating the value


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WHAT IS THE VALUE CHAIN?

The value chainis a tool for identifying

was to create more customer value

because every firm is a synthesis of

primary and support activitiesperformed to design, produce, market,

deliver, and support its product.


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PRIMARY ACTIVITIES

Inbound logistics

Operations

Outbound logisticsMarketing and sales

Service


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SUPPORT ACTIVITIES

Procurements

Technology development

Human resource mgmt Firm infrastructure


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CORE BUSINESS PROCESSES

Market-sensing process Gathering and acting upon info about the market

New-offering realization process

Research, develop, launch new offerings Customer acquisition process

Define target and prospecting for new customers

Customer relationship management process

Build better understanding, relations, and offerings

Fulfillment management process Receiving and approving orders, shipping,

collections


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CHARACTERISTICS OF CORE COMPETENCIES

A source of competitive advantage

Applications in a wide variety of markets

Difficult to imitate


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MAXIMIZING CORE COMPETENCIES

(Re)define the business concept

(Re)shaping the business scope

(Re)positioning the companys brand identity


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WHAT IS HOLISTIC MARKETING?

Holistic marketingsees itself as

integrating the value exploration, value

creation, and value delivery activities

with the purpose of building long-term,mutually satisfying relationships and

co-prosperity among key stakeholders.


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QUESTIONS TO ADDRESS IN HOLISTIC MARKETING

What value opportunities are available?

How can we create new value offerings

efficiently?

How can we delivery the new offeringsefficiently?


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THE STRATEGIC PLANNING, IMPLEMENTATION, AND

CONTROL PROCESSES


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MASTER MARKETERS


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WHAT IS A MARKETING PLAN?

A marketing planis the

central instrument for

directing and coordinatingthe marketing effort.

It operates at a strategic and tactical

level.


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LEVELS OF A MARKETING PLAN

Strategic

Target marketing

decisions

Value propositionAnalysis of

marketing

opportunities

Tactical

Product features

Promotion

Merchandising Pricing

Sales channels

Service


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CORPORATE HEADQUARTERS

PLANNING ACTIVITIES

Define the corporate mission

Establish strategic business units (SBUs)

Assign resources to each SBUAssess growth opportunities


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GOOGLE


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MAJOR COMPETITIVE SPHERES

Industry

Products

Competence

Market segment

Vertical channels

Geographic


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DIMENSIONS THAT DEFINE A BUSINESS

Customer Groups

Customer Needs

Technology


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CHARACTERISTICS OF A SBU

It is a single business or collection of related

businesses

It has its own set of competitors

It has a leader responsible for strategic

planning and profitability


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THE STRATEGIC PLANNING GAP


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WHAT IS CORPORATE CULTURE?

Corporate culture is the

shared experiences, stories, beliefs,

and norms thatcharacterize an organization.


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THE BUSINESS UNIT STRATEGIC PLANNING

PROCESS


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SWOT ANALYSIS

Strengths

Weaknesses

Opportunities

Threats


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MARKET OPPORTUNITY ANALYSIS (MOA)

Can the benefits involved in the

opportunity be articulated convincingly to

a defined target market?

Can the target market be located andreached with cost-effective media and

trade channels?

Does the company possess or haveaccess to the critical capabilities and

resources needed to deliver the customer

benefits?


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MARKET OPPORTUNITY ANALYSIS (MOA)

Can the company deliver the benefits better

than any actual or potential competitors?

Will the financial rate of return meet or

exceed the companys required threshold forinvestment?


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OPPORTUNITY AND THREAT MATRICES


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GOAL FORMULATION AND MBO

Units objectives must be hierarchical

Objectives should be quantitative

Goals should be realistic

Objectives must be consistent


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PORTERS GENERIC STRATEGIES

Overall cost leadership

Differentiation

Focus


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CATEGORIES OF MARKETING ALLIANCES

Product or service alliance

Promotional alliance

Logistics alliances

Pricing collaborations


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MCKINSEYS ELEMENTS OF SUCCESS

Strategy

Structure

SystemsStyle

Shared values

Staff

Skills


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MARKETING PLAN CONTENTS

Executive summary

Table of contents

Situation analysisMarketing strategy

Financial projections

Implementation controls


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EVALUATING A MARKETING PLAN

Is the plan simple?

Is the plan specific?

Is the plan realistic?

Is the plan complete?

mod 2 strategic implications

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