Description
Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.
Dictionary Meaning? plan (noun) -set of things to do in order to achieve something. (Hindi Yojana) ? strat.egy (noun) -a plan intended to achieve a specific purpose. (Game plan, Hindi- Vishesh uddeshya ke liye
tayyar yojana)
?
tac.tic (noun) –particular method we use to achieve something. (Hindi Chaal, Ran-niti)
2-2
?
?
Strategies are plans to achieve organization goals.
( Profitability, Turnover, Maximizing Shareholder value)
Strategies describe the general direction in which an organization plans to move to achieve its goals. ? A firm develops its strategies by matching its core competencies with industry opportunities.
2-3
?
Strategy formulation is a process that management uses to evaluate a company’s strengths and weaknesses in the light of the opportunities and threats present in the environment and then decide on strategies that fit the company’s core competencies with environmental opportunities.
Environmental Analysis MICRO- Customer, Competitor, Supplier MACRO- Political, Economic, Social, Technological, Legal, Environmental Internal Analysis Manufacturing, Technology, Marketing, Distribution, Logistics expertise
Opportunities & Threats IDENTIFY OPPORTUNITIES
Strengths & Weaknesses IDENTIFY CORE COMPETENCY
Match Internal Competency with External Opportunity
Decide Firm’s Strategy
2-4
?
Strategies can be at two levels i) Strategy for the whole organization ( Tata Group, ADAG etc.) ii) Strategy for the division/ BU ( Tata Motors, Reliance Comm.)
Strategy Level Key Strategic Issues Generic Strategic Options
Single Industry Related Diversification
Pictorial Examples representation of strategy McDonalds P&G
Are we in the right mix of industries?
Corporate Level What industries should we be
in ?
What should be the mission of the BU?
Unrelated Diversification
Build, Hold, Harvest, Divest Type of differentiation
Tata
Business Unit Level How should the BU compete
to realize it’s mission ?
2-5
?
An organization exists to accomplish some objectives- that is the company’s mission. Ex to make cars, lend money etc. Peter Drucker’s guidelines to define our missionWhat is our business ? Who is the customer? What is the value to the customer? What will our business be? What should our business be?
?
? ? ? ? ?
?
Mission Statements reflect a vision that provides a direction for the company for the next 10 to 20 years.
Vision
Everyone should have access to personal portable sound Deliver mail anywhere in the US by 10.30 AM next day
? Person
Akio Morita Fred smith
Product
Walkman FedEx
D Ambani
Kar Lo Duniya Muthi Mein
R Com
2-6
Infosys “To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large .” Google “To organize the world’s information and make it universally accessible and useful.” Tata Group At the Tata group, our purpose is to improve the quality of life of the communities we serve. We do this through leadership in sectors of national economic significance, to which the group brings a unique set of capabilities...
2-7
? ? ? ? ?
BU strategy deals with how to create and maintain competitive advantage in that industry. BU strategy depends on its mission and competitive advantage. To develop the most appropriate mission for the BU, the most widely used models are1) Boston Consulting Group’s 2x2 growth share matrix 2) GE McKinsey 3x3 industry attarctiveness-business strength matrix.
2-8
HOLD
Alto M 800
Ritz Versa
BUILD
HARVEST
DIVEST
2-9
? ? ? ?
Question Mark- Build- The mission is to increase market share, even at the expense of short term earnings and cash flow. Star- Hold- The mission is to maintain the market share and competitive position. Cash Cow- Harvest- The mission is to maximize short term earnings and cash flow, even at the expense of market share. Dog- Divest- The mission is to withdraw from the business.
2-10
The methodology differs from BCG model in the following aspects? Industry Attractiveness- BCG uses Market Growth Rate. This includes weighted judgments about market size, market growth, entry barriers etc.
?
Business strength- BCG uses Relative Market Share. This includes market share, distribution strengths, engineering strengths etc.
2-11
2-12
? ?
Igor Ansoff's growth strategy matrix was first presented in the Harvard Business Review in 1957. The matrix presents four main strategic choices, ranging from an incremental strategy in which current products are sold to existing customers to a revolutionary strategy in which new products are sold to new customers.
?
2-13
Market penetration. In this quadrant, the company markets existing products to existing customers. The products remain unchanged and no new customer segments are pursued; instead, the company repositions the brand, launches new promotions or otherwise tries to gain market share and accordingly, increase revenue. ? Market development. Here, the company markets existing products to one or more new customer segments. These customers could represent untapped verticals, virgin geographies or other new opportunities. ? Product development. This quadrant involves marketing new products to existing customers. The company grows by innovating, gradually replacing old products with new ones. ? Diversification. This quadrant entails the greatest risk; here, the company markets new products to new customers. There are two types of diversification: related and unrelated. In related diversification, the company enters a related market or industry. In unrelated diversification, the company enters a market or industry in which it has no relevant experience. 2-14
?
doc_919258806.pptx
Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.
Dictionary Meaning? plan (noun) -set of things to do in order to achieve something. (Hindi Yojana) ? strat.egy (noun) -a plan intended to achieve a specific purpose. (Game plan, Hindi- Vishesh uddeshya ke liye
tayyar yojana)
?
tac.tic (noun) –particular method we use to achieve something. (Hindi Chaal, Ran-niti)
2-2
?
?
Strategies are plans to achieve organization goals.
( Profitability, Turnover, Maximizing Shareholder value)
Strategies describe the general direction in which an organization plans to move to achieve its goals. ? A firm develops its strategies by matching its core competencies with industry opportunities.
2-3
?
Strategy formulation is a process that management uses to evaluate a company’s strengths and weaknesses in the light of the opportunities and threats present in the environment and then decide on strategies that fit the company’s core competencies with environmental opportunities.
Environmental Analysis MICRO- Customer, Competitor, Supplier MACRO- Political, Economic, Social, Technological, Legal, Environmental Internal Analysis Manufacturing, Technology, Marketing, Distribution, Logistics expertise
Opportunities & Threats IDENTIFY OPPORTUNITIES
Strengths & Weaknesses IDENTIFY CORE COMPETENCY
Match Internal Competency with External Opportunity
Decide Firm’s Strategy
2-4
?
Strategies can be at two levels i) Strategy for the whole organization ( Tata Group, ADAG etc.) ii) Strategy for the division/ BU ( Tata Motors, Reliance Comm.)
Strategy Level Key Strategic Issues Generic Strategic Options
Single Industry Related Diversification
Pictorial Examples representation of strategy McDonalds P&G
Are we in the right mix of industries?
Corporate Level What industries should we be
in ?
What should be the mission of the BU?
Unrelated Diversification
Build, Hold, Harvest, Divest Type of differentiation
Tata
Business Unit Level How should the BU compete
to realize it’s mission ?
2-5
?
An organization exists to accomplish some objectives- that is the company’s mission. Ex to make cars, lend money etc. Peter Drucker’s guidelines to define our missionWhat is our business ? Who is the customer? What is the value to the customer? What will our business be? What should our business be?
?
? ? ? ? ?
?
Mission Statements reflect a vision that provides a direction for the company for the next 10 to 20 years.
Vision
Everyone should have access to personal portable sound Deliver mail anywhere in the US by 10.30 AM next day
? Person
Akio Morita Fred smith
Product
Walkman FedEx
D Ambani
Kar Lo Duniya Muthi Mein
R Com
2-6
Infosys “To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large .” Google “To organize the world’s information and make it universally accessible and useful.” Tata Group At the Tata group, our purpose is to improve the quality of life of the communities we serve. We do this through leadership in sectors of national economic significance, to which the group brings a unique set of capabilities...
2-7
? ? ? ? ?
BU strategy deals with how to create and maintain competitive advantage in that industry. BU strategy depends on its mission and competitive advantage. To develop the most appropriate mission for the BU, the most widely used models are1) Boston Consulting Group’s 2x2 growth share matrix 2) GE McKinsey 3x3 industry attarctiveness-business strength matrix.
2-8
HOLD
Alto M 800
Ritz Versa
BUILD
HARVEST
DIVEST
2-9
? ? ? ?
Question Mark- Build- The mission is to increase market share, even at the expense of short term earnings and cash flow. Star- Hold- The mission is to maintain the market share and competitive position. Cash Cow- Harvest- The mission is to maximize short term earnings and cash flow, even at the expense of market share. Dog- Divest- The mission is to withdraw from the business.
2-10
The methodology differs from BCG model in the following aspects? Industry Attractiveness- BCG uses Market Growth Rate. This includes weighted judgments about market size, market growth, entry barriers etc.
?
Business strength- BCG uses Relative Market Share. This includes market share, distribution strengths, engineering strengths etc.
2-11
2-12
? ?
Igor Ansoff's growth strategy matrix was first presented in the Harvard Business Review in 1957. The matrix presents four main strategic choices, ranging from an incremental strategy in which current products are sold to existing customers to a revolutionary strategy in which new products are sold to new customers.
?
2-13
Market penetration. In this quadrant, the company markets existing products to existing customers. The products remain unchanged and no new customer segments are pursued; instead, the company repositions the brand, launches new promotions or otherwise tries to gain market share and accordingly, increase revenue. ? Market development. Here, the company markets existing products to one or more new customer segments. These customers could represent untapped verticals, virgin geographies or other new opportunities. ? Product development. This quadrant involves marketing new products to existing customers. The company grows by innovating, gradually replacing old products with new ones. ? Diversification. This quadrant entails the greatest risk; here, the company markets new products to new customers. There are two types of diversification: related and unrelated. In related diversification, the company enters a related market or industry. In unrelated diversification, the company enters a market or industry in which it has no relevant experience. 2-14
?
doc_919258806.pptx