BUSINESS AND MARKETING STRATEGIES

CORPORATE STRATEGY BUSINESS AND MARKETING STRATEGY MARKETING STRATEGY PROCESS PREPARING MARKETING PLAN

CORPORATE STRATEGY

It consists of deciding the scope and purpose of the business, its objectives, and actions and resources necessary to achieve the objectives.

CORPORATE STRATEGY

What is corporate strategy Organization change Components of strategies

What is corporate strategy

Unique competitive position for the company Activities tailored to strategy Clear trade-offs and choices viv-a-vis competitors Sustainability comes from the activity system, not the parts Operational effectiveness is a given

Components Corporate Strategy

1. 2. 3.

4.
5.

Scope, mission, and intent Objectives Development strategy Resource allocation Sources of synergy

Scope, Mission, and Intent (first component)

What business should the firm be in? What customer needs, market segment, and/or technologies should be focused on? What is the firms enduring strategic purpose or intent?

Objectives (2nd component)

What performance dimensions should the firms business units and employees focus on? What is the target level of performance to be achieved on each dimension? What is the time frame in which each target should be attained?

Development Strategy (3rd component)

How can the firm achieve a desired level of growth over time? Can the desired growth be attained by expanding the firms current business? Will the company have to diversify into new business or product-markets to achieve its future growth objectives?

Resource Allocation (4th

component)

How should the firms limited financial resources be allocated across its businesses to produce the highest returns? Of the alternative strategies that each business might pursue, which will produce the greatest returns for the investment?

Sources of Synergy (5th component)

What competencies, knowledge and customer-based intangibles might be developed and shared across the firms business? (reputation, brand recognition) What operational resources, facilities, or functions might the firms businesses share to increase their efficiency? (R&D sales force)

ORGANIZATIONAL CHANGE

Vertical Disaggregation Internal Redesign New Organization Formation

COMPONENTS OF STRATEGY

Managements long term vision for the corporation Objectives which serve as milestones toward the vision Assets, skills, and capabilities Business in which the corporation competes Structure, systems, and processes Creation of value through multi market activity

Scope, Mission, and Intent (first component)

What business should the firm be in? What customer needs, market segment, and/or technologies should be focused on? What is the firms enduring strategic purpose or intent?

Deciding Corporate Vision

1.

2.

3.

The reason for the companys existence and its responsibilities to stockholders, Employees, society, and other stakeholders The firms customers and the needs (benefits) that are to be met by the firms products or services (areas of product and market involvement) The extent of specialization within each product-market area and the geographical scope of operations

Deciding Corporate Vision

4. The amount and types of productmarket diversification desired by management 5. Managements performance expectations for the company 6. Other general guidelines for overall business strategy, such as technology to be used and the role of R&D in the corporation.

Objectives (2nd component)

What performance dimensions should the firms business units and employees focus on? What is the target level of performance to be achieved on each dimension? What is the time frame in which each target should be attained?

Corporate Objectives may be set in the following areas

Marketing (growth & Market share expectations) Innovations (improving product quality) Resources (employee training & development) Productivity (new product targets) Social responsibility (pollution standards
energy reductions)

Finance

(debts limits, ROI, earnings growth rates)

Capabilities

Capabilities offer the organization the potential to compete in different markets, provide significant value to end user customers, and create barriers to competitor duplication.

Business Composition

In a business that has two or more strategic units, decision must be made at two levels Strategic Business Units.
1) corporate management must first decide what business areas to be pursue 2) set priorities for allocating resource to each SBU.

Structure - System - Processes

How the organization controls and coordinates the activities of its various business units and staff functions

Structure - System - Processes

Structure
It determines the composition of the corporation

System
These are the formal policies and procedures that enable the organization to operate

Processes
It considers informal aspects of the organizations activities

Corporate Advantage
It looks at whether the strategy components create value through multi market activity Evaluating the extent to which a business contributes benefits somewhere in corporation, benefits costs and Whether the corporation creates more value for the business than might created by another owner.

BUSINESS AND MARKETING STRATEGY

Developing the Strategic Plan for Each Business Business Strategy and Marketing Strategy Strategic Marketing

Developing the Strategic Plan for Each Business

Diagnose the strengths and limitations of business units, and Select strategies for maintaining or improving performance
Management decides what priority to place on each business regarding resource allocation, and implements a strategy to meet the objectives for SBU

Business Strategy and Marketing Strategy

Participating in strategy formulation, and Developing marketing strategies that are consistent with business strategy priorities.

Strategic Marketing
It is a market driven process of strategy development that takes into account a constantly changing business and the need to achieve high levels of customer satisfaction.

Focus while making strategic marketing plan

Organization performance rather than on increasing sales Responsibility of entire business rather than specialized function.

MARKETING STRATEGY PROCESS

SITUATION ANALYSIS DESIGNING MARKET-DRIVEN STRATEGIC POSITIONING MARKET FOCUSED PROGRAM DEVELOPMENT IMPLEMENTING AND MANAGING MARKET-DRIVEN STRATEGY

Situation Analysis

Market Vision, Structure, and Analysis Segmenting Markets Continuous Learning and about Markets

Designing Market-Driven Strategic Positioning

Market Targeting and Strategic Positioning Relationship Strategies Planning for new products

Guide lines for new product planning

Keeping business units small Encouraging experimentation and risk taking Motivating and rewarding innovators Staying close to customers Sharing technology with other firms Avoiding killing the projects of staff advocates.

Market Focused Program Development

Product Portfolio and Strategic Brand Management 1. Developing plans for new product 2. Managing programs for successful products 3. Deciding what to do about problem products Value-chain, Price and Promotion Strategies

Implementing and Managing Market-Driven Strategy

Designing Effective Market-Driven Organizations Strategy Implementation and Control 1. Preparing the marketing plan and budget 2. Implementing the plan, and 3. Using the plan in managing and controlling the strategy on an ongoing basis.

PREPARING THE MARKETING PLAN

Planning considerations Responsibility unit Preparing the marketing plan Situation summary Describing the market Target Forecasting and budgeting International planning process.