Slide 1: Marketing strategies and marketing planinng
Slide 2: Turbulent and dynamic marketplace in 20 & 21 century.
Successfully competing in global business environment requires market-driven strategies that are responsive to customers´ needs & wants.
Designing effective business & marketing strategies is critical to global Why Managing Strategic Marketing?
Why Strategic Market Management? : Why Strategic Market Management? Precipitate the consideration of strategic choices.
Force a long-range view.
Make visible the resource allocation decision.
Aid strategic analysis and decision making.
Provide a strategic management and control system.
Provide both horizontal and vertical communication and coordination systems.
Help a business cope with change. Implementation and Control
Slide 4: 1. Dynamics business arena – market changes – creating of opportunity and avoiding threats = key success requirement (cheap or safe tires?)
Demographic changes,
New segments & new needs
World marketplace – more opportunities
Time as a competitive advantage – to be faster (Bako,1982)
Change as opportunity (chaos is not problem, it is opportunity) –
It needs scanning and understanding of customer needs, supplier, demographic & technological trends
It needs establish more adoptive & flexible organization
It needs to have good vision
It needs market awareness of managers Requirements for designing effective business and marketing strategies
Slide 5: 2. Creating closer to the customer – customer's satisfaction requires understanding his needs
Making customer satisfaction a top priority
Improving customer communication & knowledge
Beefing up service support & field linkage
Implementing a customer oriented philosophy
Successful company has satisfied customers
Customer satisfaction requires monitoring of needs Requirements for designing effective business and marketing strategies
Slide 6: 2. Creating closer to the customer – customer's satisfaction requires understanding his needs
Factors impacting customer satisfaction
Product/service delivery system – good integrated and coordinated distribution chains – all members must...
Product/service performance & reliability (quality) = customer satisfaction
Brand/firm image – good experience of customer with brand = competitive advantage
Price/value relationship – Lexus vs. BMW v USA
Employees´ level of performance – way for achieving of customer satisfaction
Competitor advantages & weaknesses = how to be better Requirements for designing effective business and marketing strategies
Slide 7: 2. Creating closer to the customer – customer's satisfaction requires understanding his needs
Finding competitive advantage (CA):
Start with customer needs & wants, different strategy for different segment
Define how satisfy these needs & wants – the rule of all employees
To meet firm objectives by deliver customer satisfaction
CA – higher value – with higher price & equivalent benefits or unique benefits with higher price Requirements for designing effective business and marketing strategies
Slide 8: 3. Product/service innovation
Understanding of the product/service characteristics that customer want & need
Analyzing customer needs
Characteristics of innovative company:
Creation of new value & new satisfaction of customer is the company objective
Innovation extends not only from R&D, but from all firm
Regular evaluation of existing products
Not always is profit as result of innovation
Improving of product quality = one of critical competitive issue Requirements for designing effective business and marketing strategies
Slide 9: 4. Developing strategies for CA
Strategy is:
a plan - action agenda, an integrated course of action (strategy for restructuring)
a pattern of apparent behavior that emerges from a series of action (Quality is No. 1 = Ford's strategy)
a position or match between an organization & a product-market area (product differentiation strategy)
describes perspective of an organization – concept (company is customer-driven or an innovator)...
Strategy includes ability to decide WHERE, WHEN and HOW to compete. These decision require knowledge of market trends, competition & CA of firm. Requirements for designing effective business and marketing strategies
Slide 10: 5. Competing in global markets
Global market – new competitive issues, new opportunities
Opportunity for growth – if we have resources
Opportunity is not only for industry giants
Maintaining of competition position requires knowledge of the key competitors in global marketplace
Strategic alliances – speed, resources & MIS (inf. about competitor's strategies & strengths) and = higher performance Requirements for designing effective business and marketing strategies
Slide 11: 5. Competing in global markets
Global market – rapidly developing world (EU, Asia, China...) – new competition
PC – nets, new forms of sale,
New strategies for changing world
National boundaries and regulations tend to be irrelevant, corporate headquarters might be anywhere
Global industry structures that are developing: tires, PC, chemicals, brewing, appliance, MNC – new organization, PPP, protection of market, deregulation of industries, support of research, support of domestic corporation from government...
Must we wait for changes or to create future? Requirements for designing effective business and marketing strategies
Slide 12: How to analyze market?
How to prepare successful strategy?
How techniques and methods use in corporate and marketing strategic planning?
Which segment will be target market?
How will be product, price, distribution or promotion strategy?
Have we finance and other resources to achieve the marketing strategy?
... WE HAVE THREE DAYS plus... Requirements for designing effective business and marketing strategies
Strategic Market Management:A Historical Perspective : Strategic Market Management:A Historical Perspective Budgeting - before
Long-Range Planning
Strategic Planning
Strategic Market Management - today
Slide 14: OUR VISION To be recognised as the leadingprovider of value for customers,employees and shareholders in our field
Marketing aims and objectives? : Marketing aims and objectives? Marketing analysis Strategy Identification, Selection and Implementation
Marketing aims and objectives? : Marketing aims and objectives? Build up market position for product
Increase market share
Defense of the market
Introduction of new product
Harvesting from declining
Maxim. profit from product line
Market entry with product on market – but HOW?
Slide 17: A Business Strategy Where to Compete
The product-market investment decision How to Compete
Value Assets & Function area
proposition competencies strategies and programs A Business Strategy
What is strategy? : What is strategy? Imagination about the way how to achieve objectives.
- who? – how markets, how customers (need-demand) - position
- HOW? (M. mix – supply, M operations, intensity of operations, relation to competition...)
„Game plan - design“ – mix of manoeuvres, which give possibility to firm achieve and keep projected position and objectives. (What to do when will be change?
Slide 19: Strategy is:
a plan - action agenda, an integrated course of action (strategy for restructuring)
a pattern of apparent behavior that emerges from a series of action (Quality is No. 1 = Ford's strategy)
a position or match between an organization & a product-market area (product differentiation strategy)
describes perspective of an organization – concept (company is customer-driven or an innovator)...
Strategy includes ability to decide WHERE, WHEN and HOW to compete. These decision require knowledge of market trends, competition & competitive advantage of corporation. Marketing strategy
Slide 20: Implementation and Control “Strategy is the creation of a unique and valuable position, involving a different set of activities.”
Michael Porter
“What is Strategy?”
Harvard Business Review “In terms of the three key players (competitors, customers, company) strategy is defined as the way in which a corporation endeavors to differentiate itself positively from its competitors, using its relative corporate strengths to better satisfy customer needs.”
-Kenichi Ohmae
“The Mind of the Strategist”
Strategic marketing decisions : Strategic marketing decisions Strategic – long time and resources
Sometimes creation of add slogan is strategic decision
Strategic tasks in marketing planning:
environmental analysis, identification of opportunity and threats, objectives formulating, definition of market position, USP, creation of marketing plans, organizing and marketing management, selection of people, SBU, financing, creation of distribution channels, branding... To identify competition advantage
Market. strategy & competition advantage : Market. strategy & competition advantage Competition advantage – why customer will buy our product, not other.
Question: How we compete? By what tool? – customers needs are without borders
We must have unimitated advantage (None competitive advantage is permanent.)
Competition - me too
Sometime is enough lower price – but not for long time and not for all customers.
Better is non price competition (based on product – beer alcohol free, on services, communication, people, innovation...)
Slide 23: How & where (market) and when... to compete?
Company resources and market supply for consumer needs – possibility for competiting – ground for marketing strategy
How to?
Exploitation of resources:
Cost increasing? Decreasing?
Focus of resources for actual supply? Supply new product? New market? Now? Later? If yes – how resources?
Pull down actual supply from market? Now? When?
How to entry in foreign market??? Market.strategy & competition advantage
Slide 24: Shareholders interests Shareholders values Personal values of managers Vision MISSION Long term goals Market/customer orientation
Market exchanges Customer definition Company aims Company strategy Company strategic position S W Competition opportunity O T Structural opportunities Audit of resources Environment analysis Industry analysis 5P Selfdefinition Who/Where we are? What we must/can make? Competition strategy Competition advantage Competition analysis
Slide 25: Company strategic position Definition of target market Market quantification Gap analysis Market entrance Envolvement level Market segmentation Customer behaviour Market research Market atractivity Marketing goals Marketing strategy Finacial goals and strategies Personal goals and strategies Production goals and strategies Organisation structure
Slide 26: Suplay policy Brand policy Product diferentiation Product lines Portfolio analysis Price policy Distribution policy People Place policy Communi-cation plan Processes Marketing plan and programs Operative plans Marketing strategy Feed back
Slide 27: Product – elimination, diversification, PLC,
Price – status quo, unique price, upper/lower competition, penetration, skimming, line price, INCOTERMS, complementary products, two-element...
Distribution – intensive, selective, exclusive...
Promotion – pull vs. push M – mix strategies
Competition strategies : Competition strategies - According position – attack/defend
Cost leadership – Deavo, KIA
Nicher – positionalist - Victorinox
Challenger
Me too – to be the 2nd
Focus – R&R
Differentiation - McD...
Competitive Advantage and Strategies : Competitive Advantage and Strategies M. PORTER
Cost Leadership
Differentiation
Niche or market wide
Slide 30: Marketing strategy and BCG ? ? ? ? Selecion of
segments Invest - development Keep position-harvest Invest–selective Fall back - deinvest
Promotionhigh low : Select invasion
(slow skiming) Price
low high Promotionhigh low Intensive
marketing
(fast skiming) Pasive
marketing
(slow penetration) Wide invasion
(fast penetration) Entry strategies for new product
Marketold new : Market
development
s20/c400 PRODUCTnew old Marketold new Penetration
s50/c100 DIVERSIFICATION
s5/c1400 PRODUCT
developmnet
s33/c800 Conso- lidation Ansoff´s development strategies
Evaluation of strategies : Evaluation of strategies Criterions:
1. Synergy effect from M-mixu - (1+1=3)
2. Is strategy clear for customer
3. Is S helping to company (profit, turnover...)
4. Market share is increasing?
5. Possibility to find good market position
6. Feasibility in company condition (resources, skills...)
Slide 34: Criteria for Strategy Selections
Consider scenarios suggested by strategic uncertainties and environmental opportunities/threats
Generate an attractive ROI
Features of strategic process
Pursue a sustainable competitive advantage
- Exploit organizational strengths or competitor weaknesses
- Neutralize organizational weaknesses or competitors strengths
Slide 35: Criteria for Strategy Selections
Be consistent with organizational vision/objectives
- Achieve a long-term return on investment
- Be compatible with vision/objectives
Be feasible
- Resources are available
- Be compatible with the internal organization
Consider the relationship to other strategies within the firm
- Foster product portfolio balance
- Consider flexibility
- Exploit synergy
Functional Strategies and Programs : Functional Strategies and Programs Manufacturing strategy
Distribution strategy
Brand-building strategy
Communication strategy
Information technology strategy
Foreign market entry strategies Global strategy
Segmentation strategy
Slide 37: Failure Success Rescue Implementation
bad good Strategy – idea
correct incorrect Struggle Key Issues3:
Risks in strategy process
Slide 38: The Marketing Plan:
PURPOSE & NATURE
Implementation no successful until who, why, where & when specified
Also, how much & specifically what (tasks)
The marketing plan gives all these details to the key employees hence should summarise all the key points from the planning process
Marketing action plan
Slide 39: The Marketing Plan as a Document (Content):
Executive Summary
Key Marketing Audits Issue & Impacts
Marketing Objectives
Marketing Strategy
Contingency Plan
Marketing Tactics
Action Plan
Budget
“Plans are nothing,planning is everything.”- Dwight D. Eisenhower
Slide 40: Marketing Organisation:
Before my arrival marketing did not exist in this firm...
Marketing activities was dispersed in many positions...
Customer´s higher knowledge press to firm
The function of marketing department...
Structure must fellow strategy!
Organisation based on customer's needs!
Slide 41: Marketing Organisation:
Is marketing only fashion?
We are selling without TV ad too.
Marketing Department without power (authority)
Integration function of Marketing Department
Bad coordination of marketing activities
Production orientation of firm
Marketing myopia...
Slide 42: Marketing Organisation:
Organisation of marketing activities according...
Territory, products, customers (matrix)... or combination?... life stage of the firm, company level (banks)...
Activities of Mark. Dep. – analysis, planning, trends, communication, research...level of company (banks)...
Marketing specialists – product manager, brand manager, sales manager, budget manager, event manager, regional manager, project manager, CRM manager, PR, controlling...
Or outsourcing? – cooperation with agencies
Mark. Dep. vs. other departments (research, production, cleaning, finance... – different interests and goals