West Ford Ibrahim Strategic Marketing Chapter 2 Marketing

West, Ford & Ibrahim: Strategic Marketing Chapter 2: Marketing strategy: analysis and perspectives

Structure A. INTRODUCTION 1. Overview and Strategy Blueprint 2. Marketing Strategy: Analysis & perspectives C. WHERE DO WE WANT TO BE? B. WHERE ARE WE NOW? 3. Environmental & Internal Analysis: Market Information & Intelligence 4. Strategic Marketing Decisions, Choices & Mistakes 5. Segmentation, Targeting & Positioning Strategies 6. Branding Strategies 7. Relational & Sustainability Strategies D. HOW WILL WE GET THERE? E. DID WE GET THERE? 14. Strategy Implementation, Control & Metrics 8. Product Innovation & Development Strategies 9. Service Marketing Strategies 10. Pricing & Distribution 11. Marketing Communications 12. E-Marketing Strategies 13. Social and Ethical Strategies

Learning Objectives Ø To introduce the concept of strategy Ø To illustrate the hierarchy of strategy Ø To describe the purpose and role of ‘strategy’ Ø To review the linear models for strategy making process Ø To discuss the relationship between corporate and marketing strategy

The concept of ‘strategy’ Generic § a plan of attack for winning § a plan for beating the opposition Organisational § a plan for achieving organisational goals § a plan for securing a competitive advantage in a given market

Strategy definition “the direction and scope of an organisation over the long(er) term, which ideally matches its resources to its changing environment and, in particular its markets, customers or clients so as to meet stakeholder expectations” Johnson & Scholes (1999)

Hierarchy of strategy Corporate Strategy Corporate Headquarters SBU Manufacturing Finance HRM SBU Business (Division Level) Strategy SBU Marketing R&D Functional Strategy * Strategic management may be initiated at any or all of these hierarchical levels of an organisation.

Three levels of strategy Corporate The overall goals of the business; often expressed in financial terms Competitive/Business (SBU) How to compete in individual product-markets and support the corporate strategy Functional strategies for the organisation’s functional areas in support of SBUs and corporate strategies

Purpose of strategy § To set the future direction for the organisation § To state how it is to create value to customers § To identify what product/s and in which markets the firm will invest its resources § To describe how it is to perform better than competition

Strategy help in: § Defining the scope of business § Finding ‘Strategic Fit’ between the organisation and its external environment § Identifying a Sustainable Competitive Advantage (SCA) § Guiding the allocation of resources

The interrelationship between marketing and corporate strategy Corporate Strategy ·Specifying the organisation’ mission ·Allocation of resources across the whole organisation ·Portfolio of activities for the organisation ·Defining organisational objectives ·Informs ·Achieves ·operationalises Brassington Frances and Stephen Pettitt (2006) ·Guides ·Directs ·Controls ·Co-ordinates Marketing Strategy ·Competing in a product market ·Selecting market segments ·Designing the mix

Operational vs strategic marketing Operational Marketing • Action-oriented • Existing opportunities • Non-product variables • Stable environment • Reactive behaviour • Day-to-day management • Marketing department Strategic Marketing • Analysis-oriented • New opportunities • Product market variables • Dynamic environment • Proactive behaviour • Longer range management • Cross-functional

Marketing orientation is a state of mind, or a philosophy, that guides the strategic vision and future direction of companies. Marketing-orientated firms adopt a proactive search for market opportunities, use market information as a base for analysis and organisational learning, and adopt a long-term strategic perspective on markets and brands.

Does marketing orientation contribute to company success?

Marketing orientation and business performance Ma rke tin g. O rie UT nta S tio n INP ? Pe rf or m OU an TP UT ce S

Conclusion • Strategy can be simply defined as a plan for securing a competitive advantage in a given market. • Strategy exists at multiple levels in an organisation: corporate, business unit, and functional levels. • The marketing concept has a significant role to play in strategy development and corporate success. • Competitive marketing strategy aims to establish a profitable competitive position for the firm against all forces that determine industry competition. • Strategy making process has been discussed in the literature in such terms as strategic market planning and strategic market management.