strategy in mktg and selling
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Strategic Planning
forMarketing & Selling
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What is Strategic Planning?
An organized and documented method onsetting objectives and defining how theywill be accomplished
It describes how an organization or anindividual will get to where he wants to go
AND
It describes how one will know whetherhe got there any time
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What are the benefits ofStrategic Planning?
Improves Organizational Performance
Provides Focused and Realistic Direction
Clarity about where we are going and how we willget there
Improve Resource Development Efforts
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Strategic planning process
Assess strengths, weaknesses,Opportunities and Threats
Define Goals and Objectives
Establish SMART Action Plans tomeet identified Goals and objectives
Evaluate Progress
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Strategy
Strategy isplanningthat allows youto get more business than yourincidental share.
Strategy is about getting customersand keeping them.
Drucker: The purpose of abusiness is to create a customer.
Build it and they will come.
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STRATEGY IN ACTION
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Strategy
Theprocessof strategy includes:
Analysis
Formulation
Implementation
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Strategic Planningand Analysis
Planning how to get more than your fairshare involves:
Scanning the overall environment
Scanning and researching the industryenvironment
Researching direct competitors
Researching skills and resources
Analyzing current strategy
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Operational EffectivenessIs Not Strategy
Operational effectiveness is necessary to competebut not sufficient to win.
A company can outperform others and win only if itcan establish a difference that it can sustain adifferential competitive advantage.
In the past barriers to entry were the primary competitive
advantage.
Operational effectiveness means doing thingsbetterthan competitors, strategic positioningmeans doing things differentfrom competitors.
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Strategy Rests OnUnique Activities
The essence of strategy is choosing toperform activities differently than rivalsdo.
Strategic positions can be based oncustomers needs, customers accessibility,or the variety of a companys products orservices.
Change is happening too fast.
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Generic Strategies
There are three generic (primary)strategies:
Differentiation
Focus (niche marketing) Cost leadership
These definitions characterize strategicpositions at the simplest and broadestlevels.
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Secondary Strategies
Within the three basic strategies, there areseveral secondary strategies:
Defense: Block competition to avoid losing marketshare.
Offense : Attack competition head on.
Flanker Brand : Establish new position.
Fighting Brand : Create a new brand to compete
with competitive new brand.
Guerrilla Marketing: Force competition to respond
with small resources.
Ambush Marketing
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Determining Strategy
To determine strategy, answer the following questions:
Which of our products/services are the most distinctive?
Which of our products/services are the most profitable?
Which of our customers are the most satisfied?
Which customers, channels, or purchase occasions are mostprofitable?
Which of the activities in our value chain are the mostdifferent and effective.
How can we make everything better? Now!
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Potential Traps
Meaningless differentiation
Getting greedy
Throwing money at a problem
Lack of commitment
Innovation stagnation
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Profit is Important
Profit is the key to a successful strategy
Compromises and inconsistencies in thepursuit of growth will erode thecompetitive advantage a company.
Keep an eye on profitable growth.
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FROM THE EXPERT
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Must have a clear and simple strategy.
Must define how to get more than a fair share.
Must be committed to strategic moves andsignal commitment to competitors.
Must follow through on commitmentscontinually and retaliate quickly andaggressively to counter moves.
Must continually innovate
SUMMARY
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What is Marketing??
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
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Marketing = ?
Marketing is the process of planning
and executing the conception, pricing,
promotion, and distribution of ideas,goods, services to create exchanges
that satisfy individual and
organizational goals
American Marketing Association
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Marketing = ?
Marketing management is the
art and science of choosing
target markets and getting,
keeping, and growing customers
through creating, delivering, andcommunicating superior
customer value.
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Simple Marketing System
(a collection
of sellers)
(a collection
of Buyers)
Communication
Information
Goods/services
Money
M k ti ?
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Marketing = ?
Marketing is the sum of all activities that takeyou to a sales outlet. After that sales takes
over.
Marketing is all about creating a pull, sales isall about push.
Marketing is all about managing the four Ps
product
price
place
promotion
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The 4 Ps &4Cs
Marketing
Mix
Product
Price Promotion
Place
Customer
Solution
Customer
Cost
Communication
Convenience
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Sales
Trying to get the customer to want
what the companyproduces
Marketing
Trying to get the company producewhat the customerwants
Difference Between - Sales & Marketing ?
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Who is a Customer ??
Anyone who is in the market
looking at a product / service for
attention, acquisition, use or
consumption that satisfiesa want
or a need
C
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Customer
CUSTOMER has needs, wants, demands
and desires
Understanding these needs is starting pointof the entire marketing
These needs, wants arise within aframework or an ecosystem
Understanding both the needs and theecosystem is the starting point of a longterm relationship
How Do Consumers Choose Among
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How Do Consumers Choose AmongProducts & Services?
Value - the value or benefits the customers
gain from using the product versus the cost
of obtaining the product.
Satisfaction - Based on a comparison of
performance and expectations.
Performance > Expectations => Satisfaction
Performance < Expectations => Dissatisfaction
C t P bl S l ti
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Customers - Problem Solution
As a priority , we must bring to ourcustomers WHAT THEY NEED
We must be in a position to UNDERSTANDtheir problems
Or in a new situation to give them a chance
to AVOIDthe problems
Cl ifi ti f S i
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Classification of Services
Materials / Components
Computers
Major Product withMinor Services
Product = Service
Major Service with
Minor ProductBusiness Hotels
Good Transportation
Banking Pure IntangibleService
Major Characteristic of Services
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Intangibility Services are intangible - cannot be
seen, tasted, felt, heard or smelled beforepurchase.
Inseparability - Services are produced and
consumed simultaneously.
Variability or Heterogeneity Services are highly
variable
Perishability Services cannot be stored.
Non Ownership - Services are rendered but there
is no transfer of title
Major Characteristic of Services
Great Words on Marketing
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Great Words on Marketing
1. The purpose of a company is to create a
customerThe only profit center is the customer.
2. A business has twoand only twobasic functions:
marketing and innovation. Marketing and innovationproduce results: all the rest are costs.
3. While great devices are invented in the Laboratory, greatproducts are invented in the Marketing department.
Competition Cent ic/C stome Cent ic
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The range of products has emerged from beingcompetition-centric.
Technology alone does not deliver, helps people do.
Customers need to be educated too
Customers are not only present where competition is.
Advertising will only sell, Not retain customers.
Selling focuses on the needs of the seller; marketing on
the needs of the buyer.
Trust is not a differentiator at all
it is the very minimum that the customer expects!!
Competition Centric/Customer CentricSelling Plan
So what will the differentiators be :
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Technology ?
Brand ?
So what will the differentiators be :
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The real differentiator of
customer centricity in a
commoditised world of financialproducts -
Customer Service !