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Business Marketing Planning: Strategic Perspectives

The document discusses the hierarchy of strategies for business marketing planning, which consists of 3 parts: corporate strategy, business-level strategy, and functional strategy. It provides details on each part, including that corporate strategy focuses on what businesses the company is in and how to allocate resources, business-level strategy is about how to compete in a given industry, and functional strategy is about efficiently supporting business-level strategies through resource allocation. The document also discusses the interplay between the three strategy levels and how marketing connects to other business functions like manufacturing, R&D, logistics and technical services.

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AnushkaSinha
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52 views14 pages

Business Marketing Planning: Strategic Perspectives

The document discusses the hierarchy of strategies for business marketing planning, which consists of 3 parts: corporate strategy, business-level strategy, and functional strategy. It provides details on each part, including that corporate strategy focuses on what businesses the company is in and how to allocate resources, business-level strategy is about how to compete in a given industry, and functional strategy is about efficiently supporting business-level strategies through resource allocation. The document also discusses the interplay between the three strategy levels and how marketing connects to other business functions like manufacturing, R&D, logistics and technical services.

Uploaded by

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

Business Marketing

Planning: Strategic
Perspectives
Hierarchy of Strategies – 3 parts *

 Corporate Strategy

 Business-Level Strategy

 Functional Strategy
Hierarchy of Strategies – Part 1

 Corporate Strategy
– What businesses are we in?
– What are our core competencies?
– How should we allocate resources?
– What businesses should we be in?
Hierarchy of Strategies – Part 2

 Business-Level Strategy
– How do we compete in a given industry?
– How should we position ourselves against
competitors?
Business-Level Strategy
The focus is on how firms compete in a
given industry.
Competition is not between large corporations. It
is between individual business units (SBUs) that
compete in specific markets. Each SBU needs to
develops its own business and marketing plans to
answer:
 How can we compete?
 How and what is the most efficient way to get to
the market?
 What are our distinctive skills?
Hierarchy of Strategies – Part 3
Functional Strategy
– How can we allocate resources to
most efficiently and effectively
support business-level strategies?
– How can we use resources to meet
the firm’s objectives within a specific
product market?
The interplay between the three levels of
strategic formulation:
1. Cuts across functional areas
2. Involves issues related to long term
objectives
3. Involves allocating resources across SBUs
and/or product markets
4. Includes decisions about the direction of
corporate strategy, application of
technology and choice of alliance partners
Cross-Functional Connections Explore Interrelationships
between Marketing and Four Business Functions*
9

Inter-Functional Involvement in Marketing Decision Making:


An Illustrative Responsibility Chart
Organizational Function
Decision areas Marketing Manufacturing R&D Logistics Tech. SBU Corp. Level
Services Manager Manager

Product
Design specifications
Performance character.
Reliability

Price
List/Discount

Tech. Services
Customer training

Logistics
Inventory
Customer service level

Sales Force
Training

Advertising
Message development

Channel
Selection

Decision role: R=Responsibility; A=Approval; C=Consult; M=Implement; I=Inform,


X=No Role
Vocabulary
Strategy Success

For a strategy to succeed:


 Each firm needs to have a business
concept that separates them apart
from their competition.
 There are 4 components:
1. Customer Interface
2. Core Strategy
3. Strategic Resources
4. Value Network
 Refer to Figure
Components of a Business Model*: Bridges to
Profits**

CUSTOMER INTERFACE CORE STRATEGY STRATEGIC RESOURCES VALUE NETWORK

Fulfillment & Support Business Mission Core Competencies Suppliers


Information & Insight Product/Market Scope Strategic Assets Partners
Relationship Dynamics Basis for Differentiation Core Processes Coalitions
Pricing Structure

EFFICIENT / UNIQUE / FIT / PROFIT BOOSTERS

Major business concept components are tied together by


three important “bridge” elements: customer benefits,
configuration, and company boundaries.
Value Network
A value network includes those who complement and
enrich the organization.
Do we have good relations with suppliers, partners,
vendors and other supporters?
Can we partner with others in such a way that we can
use their assets as if they were our own?
Example: Using Bluedart as shipping service
The Management System* This system allows
management to plan,
coordinate and monitor
the links between
strategy and operations.
Balanced Scorecard

Examines the performance of a business


unit from four perspectives:
1.Financial

2.Customer

3.Internal Business

4.Learning and growth

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