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 Definition-Marketing
 Role of Marketing
 Scope of Marketing
 Definition-Marketing Management
 Difference between Sales & Marketing
 Difference between Strategy & Tactics
 Marketing Strategy-Hierarchy Linkage
 Definition-Marketing Strategy
 What is Competitive Advantage?
 A Viable Marketing Strategy
 Key Elements of Marketing Strategy Formulation
 For designing marketing Strategy Orgnaisations need to answer
 Marketing Strategy aligned with-The Business Vision
 Market Strategy Inputs & Outputs
 Strategic Planning Process
Marketing
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy individual
and organizational goals
--American Marketing Association
Role of Marketing
 Primary Role of Marketing is to stimulate potential
aggregate demand and thus enlarge the size of the market.
 Another important role which marketing plays is that it
helps in the discovering of entrepreneurial talent.
Scope of Marketing
 Task of creating, promoting and delivering goods and
services to consumers & businesses.
 Marketers are skilled in stimulating demand for company’s
products.
 Marketing managers seek to influence the level, timing,
and composition of demand to meet the organization’s
objective.
Scope of Marketing….
 Marketing people are involved in marketing 10 types of
entities
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Ideas
Goods
Services
Experience
Events
Persons
Places
Properties
Organisations
Information
Marketing Management
Marketing management is the art and science of
choosing target markets and getting, keeping, and
growing customers through creating, delivering, and
communicating superior customer value.
Difference Between- Sales & Marketing
•
•
•
•
Sales-trying to get the customer to want what the
company produces
Marketing-trying to get the company produce what
the customer wants
Marketing is all about creating a pull, sales is all about
push.
Marketing is all about managing the four P’s –
product
price
Place
promotion
Difference between Strategy and Tactics
 Strategies-Companies long term plan.
 Tactics-Companies Short term plans
Strategic Plan
 Outlines the broad framework and guidelines for the
business
 Tactical Plan
 Presents the Operational Details or implementation
aspects for reaching strategic goals
Marketing Strategy-Hierarchy Linkage
Hierarchy of goals and objectives
Organizational Goals and Objectives
Marketing Goals and Objectives
Marketing Mix Goals and Objectives
Marketing Mix Element Goals and Objectives
Marketing Strategy-Defined
 A statement of how a brand will achieve its objectives. The
strategy provides decisions and direction regarding
variables such as the segmentation of the market,
identification of the target market, positioning, marketing
mix elements, and expenditures. A marketing strategy is
usually an integral part of a business strategy that provides
broad direction to all functions.
(Source: American Marketing Association)
 “Marketing Strategy is a series of integrated actions leading
to a sustainable competitive advantage.”-John Scully
What is Competitive Advantage?
 Resources+Capabilities = Competitive Edge
Competitive Advantage
 “Competitive advantage is a company’s ability to
perform in one or more ways that competitors
cannot or will not match.”
--Philip Kotler
A Viable Marketing Strategy
 Must have a clearly defined market
 Must have a good match between corporate
strengths and market needs
 Must have significant positive differentiation in
the key success factors of the business
Key Elements of Marketing Strategy
Formulation
 The strategic 3 Cs
• Customers, Competitors & the Corporation
 Environment analysis -- PEST
 Strategic Marketing Decisions
• Where to compete
• How to compete
• When to compete
For Designing Marketing StrategyOrganisations need to answer
 What is our business?
 What is the value to the customer?
 What will be our business
 What should be our business
As connoted by Peter Drucker
Marketing Strategy aligned with-The
Business Vision
Core
Value
Core
Purpose
Business
Vision
Mission
(Action)
Vision & Mission Linkage-Marketing
Strategy
What business are you in?-Mission
Mission statement-Alignment of Marketing Strategy
Statement of marketing strategy
Indicates product, market scope
Shows growth factor
Shows differential advantage
Shows management orientation
Market Strategy Inputs & Outputs
External Analysis
Internal Analysis
• Customer Analysis
• Performance Analysis
• Competitor Analysis
• Determinants of strategic options
• Market/submarket Analysis
• Environmental Analysis
Strategic Analysis inputs
Strategy Identification, Selection,
and Implementation
Step to Strategic Management
 Strategic Planning
 Strategic Implementation
 Strategic Evaluation & Control
6 Steps to Strategic Planning
Situational Analysis
Development of Corporate
Mission & Objectives
Determining Business
Composition
Forming & Analysing
Strategic Business Units
Business Unit Objectives
and Strategy
Preparing Business Unit
Strategic Plan-Developing
the marketing Strategy
Situational Analysis (SWOT)
Threats/Opportunities
Speculative
Business
Troubled
Business
Ideal
Business
Mature
Business
Developing the Corporate Mission
After SWOT Organization needs to figure out where it wants to go and what it wants to do?
For Corporate Mission Organizations needs to answer
 Reason for Existence & Responsibility to Stake Holders
 Customer Needs
 Role of R & D
 Number of Product Offers in each Product Category
 Types of Diversification Planned by Management
Organisation must have its marketing , its innovation
objectives, its productivity objectives, profit objectives and
its social objectives
Determining the Business Composition
 Core Business
 Venture in to related areas
 Venture in to Entirely new areas
 Pursue some Business
 Sell or Hire off some business
Determining the Business Composition
Product-Market Growth Directions
Present
Products
New
Products
Present
Markets
Market
Penetration
Product
Expansion
New
Markets
Market
Expansion
Diversification
Source: H. Igor Ansoff, “Strategic
Diversification”, Harvard Business
Review, September-October 1957, pp.113-
Vertical Integration
Forming & Analyzing Strategic Business
Unit (Profit Centre)
SBU defined on Bases of
 Need the business is attempting to meet
 The end users to be served
 The product offerings that will serve customer needs
Analysis of SBU is done using some of approaches
as Boston Consulting Group Matrix
Forming & Analyzing Strategic Business Unit
(Profit Centre)
BCG Matrix
22%
Stars
Market Growth 10%
Rate
? Marks
High cash use
Some cash use
? Is to build or not
Future cash cow
Not gained foothold
Profitable in highly
Need lot of spending
Competitive Mkt
To build
Cash Cows
Dogs
Generate cash for
Low or no cash use
?, Stars
When to divest or
Profitable in
Liquidate
Declining Mkt
0%
10x
1.5x
Relative Market
.1x
(log scale)
Business Unit Objectives & Strategy
Objectives of SBU
 To Build , Maintain, Harvest or Divest
Strategies Can aim at
 Strengthening a weak business unit
 Capitalizing on a strong one
Michael Porter has suggested 3 Generic Strategies
 Overall cost leadership-aims at cutting production and
distribution cost so that prices can be brought below
competition
 Differential Strategy-concentrating on an important & desired
customer benefit. A company can be a style leader, a service
leader or a quality leader
 Focus-Concentrating on a small manageable market to achieve
cost and differentiation within a smaller group of customers
Developing the marketing Strategy
Target Market
SelectionSetting
Marketing
Objectives
Developing the
marketing
Programme
Target Market Selection
 Three Action Areas
 Whether to sell to the entire market or concentrate on a
portion
 Determining when an existing target market strategy needs
to be modified
 Deciding to stop serving a particular target market
Setting Marketing Objective
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Sales
Market Share
Contribution to profit
Getting new customer groups
Strengthening brand image
Building customer awareness & attitudes
Educating customers about brand features and uses
Demand Forecasting
 Market Potential, Market Forecast, Sales Potential, Sales
Forecast
Sales Forecasting
 Executive Judgment, Sales force Composite, Survey of Buyer
intentions, Trend Analysis
Developing the Marketing Programme
Strategic Decision Areas
Marketing Mix-4 Ps
 Product
 Price
 Place
 Promotion
The 4 Ps & 4Cs
Marketing
Mix
Place
Product
Customer
Solution
Convenience
Price
Promotion
Customer
Cost
Communication
Strategy Decision Areas
Product
Product Design
Product Development
Product Variety
Quality
Features
Packaging
Branding
Services
Warranties
Strategy Decision Areas
Price
Cost
Competitive Price
Discount & Allowances
Credit Period & Terms
Strategy Decision Areas
Place
Channel Selection
Channel Coverage
Inventory Management
Storage & Warehousing
Distribution Logistics
Strategy Decision Areas
Promotion
Advertising
Sales Promotion
Publicity
Public Relations
Personal Selling
Direct Marketing
??????
Strategy Decision Areas
 Two more P’s to Plan & watch
• Politics
• Public Opinion
Developing Marketing Programme and
Follow-up
Developing Marketing Programme
All MARCOM tools to be worked as IMC budget
 Advertising
 Sales Promotion
 Personnel Selling
 PR & Publicity
 Direct Marketing
Follow-up by
Sales Analysis
Iceberg Principle & 80/20 Principle
Marketing Cost Analysis
Profitability of Marketing Strategy
Questions
 Q 1) Define Marketing Discuss its role & Scope. Define
Marketing Management, Marketing Strategy, Competitive
Advantage, Marketing Mix?
 Q 2) What do you understanding strategic planning.
Discuss the 6 steps in strategic planning?
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