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Marketing Strategy Fundamentals Explained

A marketing strategy is a plan to concentrate limited resources on opportunities to increase sales and achieve a competitive advantage. There are three types of strategies: radical strategies achieve quick growth but not long-term value; rational strategies create significantly superior products; and robust strategies build long-term customer relationships. Marketing involves creating value for customers, managing relationships, and organizational culture, strategy, and tactics. The goal is to understand customer wants and how the company can meet them.

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Muhammad Umer Shabbir
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197 views11 pages

Marketing Strategy Fundamentals Explained

A marketing strategy is a plan to concentrate limited resources on opportunities to increase sales and achieve a competitive advantage. There are three types of strategies: radical strategies achieve quick growth but not long-term value; rational strategies create significantly superior products; and robust strategies build long-term customer relationships. Marketing involves creating value for customers, managing relationships, and organizational culture, strategy, and tactics. The goal is to understand customer wants and how the company can meet them.

Uploaded by

Muhammad Umer Shabbir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

MARKETING

STRATEGIC
MANAGEMENT
Chapter 1
Marketing Strategy
 A strategy is a plan of action designed to achieve a
vision.

 Marketing strategy is a process that can allow an


organization to concentrate its limited resources on
the greatest opportunities to increase sales and
achieve a sustainable competitive advantage.
Types of Strategies (Doyle 1997)
 Radical Strategies: achieve spectacular growth in sales and profits
but do not create long term shareholder value e.g., acquisition
based and media hype.

 Rational Strategies: achieve high short term performance by


creating new products that are significantly superior or cheaper to
competitors i.e. major innovations in technology (Direct lines by
financial services).

 Robust Strategies: steady performance over the long term by


creating superior customer value and building long term
relationships i.e. Johnson & Johnson and Toyota.
Marketing Concept

 Marketing is an organizational function and a set of processes


for creating, communicating and delivering value to customers
and for managing customer relationships in ways that benefit
the organization and its stakeholders – AMA

 Important points of focus: value, process and customer


relationship

 Marketing involves organizational culture, strategy & tactics.


Market Orientation
 Market orientation refers to the organization wide
generation, dissemination, and responsiveness to
market intelligence.

Market led
organizational
culture
Views of Marketing
 Product Push Marketing: myopic view of company to focus
activities on existing products and look for ways to encourage
consumers to buy like IBM in 1980’s.

 Customer led Marketing: the goal is to find what customers


want and how can the company meet their wants like P&G 35
variants of Bounce fabric conditioner.

 Resource based view of Marketing: marketing strategies on


equal consideration of the requirements of the market and
company’s ability to serve. Middle ground between Product
push & Customer led marketing.
Organizational Stakeholders

 Shareholders

 Employees

 Managers

 Customers

 Suppliers

 Distributors
Marketing & Performance Outcomes

Mark Market Fina


et ing
resour ncial
orien
ted
ces & perf
Market
cultu perfor orm
re mance ance
Marketing Fundamentals

 Principle 1: Focus on the customer

 Principle 2: Only compete in markets where you


can establish a competitive advantage

 Principle 3: Customers do not buy products


Marketing Fundamentals (Cont’d)

 Principle 4: Marketing is too important to leave to


the marketing department (even if there still is one)

 Principle 5: Markets are heterogeneous

 Principle 6: Markets and customers are constantly


changing
The role of marketing in leading strategic management

 Identification of customers requirements

 Deciding on the competitive positioning to be


adopted

 Implementing the marketing strategy

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