Lecture 3 Marketing Strategy Flashcards
What is the principle focus of strategic marketing planning?
Identify and create competitive advantage
Identify and capitalise on opportunities
What is strategy?
This is the way in which an organisation achieves its goals
How long is a strategic plan?
3-5 years
How long is a tactical plan?
1 year
What do Kotler and Armstrong define strategic planning as?
“Strategic planning is the process of developing and maintaining a strategic fit between the organisation goals and capabilities and its changing market opportunities”
What are the 4 questions involved in strategic planning?
Where are we now?
Where do we want to be?
How do we get there?
How do we know we are there?
What are the 4 phases of strategic planning according to McDonald?
Phase 1- goal setting
Phase 2- situation analysis
Phase 3- strategy formation
Phase 4- resource allocation/ implementation
What does Phase 1 involve?
1- vision/ mission
2- corporate objectives
What does Phase 2 involve?
3- marketing audit
4- SWOT analysis
5- assumptions
What does Phase 3 involve?
6- marketing objectives and strategies
7- estimate expected results
8- identify alternative plans and mixes
What does Phase 4 involve?
9- budget
10- 1st Year Implementation Plan
Define vision
A statement about what an organisation wants to become. It should give shape and direction to an organisation’s future
Define mission
A broad statement of intention, which sets out an organisation’s purpose and direction, what it wishes to achieve in the long term
Define organisational values
Must be in line with the mission and vision; define how people behave in the organisation and govern and guide the behaviour of individuals within the organisation
Define organisational goals
The desired outcomes of the organisation’s various activities. These may be articulated in terms of profit, market share, share value, return on investment or numbers of customers served.
Define corporate strategy
The means by which the resources of the organisation are matched with the needs of the environment in which the organisation decides to operate. Bringing together the HR, logistics, production, operations, marketing, IT and so on. The marketing strategy supports and reinforces the corporate strategy
What does vision describe?
The desired identity of the organisation (Martin, 20080
It partly describes the desired identity of an organisation as manifested in the daily work of the managers and the staff
According to Kantabutra (2008) what does the vision statement do?
It provides a competitive advantage to the organisation; it is fundamental for leadership and strategy implementation, and forms an important tool for decision making during periods of change or transformation.
What strategic market analysis is involved in the external environment?
PESTLE
Environmental scanning
What strategic analysis is involved in the performance environment?
5 Forces
Competitor and supplier analysis
What strategic analysis is involved in the internal environment?
Resource analysis
When is SWOT analysis involved?
This is involved when all of the information derived from the environmental analysis is assimilated and put into a form that can be easily understood
Define intensive growth
When a firm grows by expanding its product line or market reach
Define integrative growth
This occurs where an organisation continues to work with the same products and same markets but starts to perform some of the activities in the value chain that were previously undertaken by others
Define diversification
This refers to developments outside the current chain of value adding activities. This type of growth brings new value chain activities because the firm is operating with new products and in new markets
What does the ANSOFF matrix allow firms to consider?
Whether new or established products are to be delivered in new or established markets
If the product is present and the market is present, according to the ANSOFF matrix, what strategy should be carried out?
Market penetration
If the product is new but the market is present, according to the ANSOFF matrix, what should be done?
Product development
If the product is present but the market is new, what should be done?
Market development
If the product is new and the market is new, what should be done?
Diversification
What are the 5 areas in Porter’s Generic Strategy Mix?
Competitive advantage Generic strategies Competitive positioning Strategic intent Market planning
Define competitive advantage
This is achieved when an organisation has an edge over its competitors when attracting buyers. It has superior value preposition.
Define generic strategies
There are three generic strategies:
- overall cost leadership
- differentiation
- focus
Define competitive positioning
Four main positions can be identified; market leader, market challenger, market followers and market nichers
Define strategic intent
Strategic competition and warfare, strategic cooperation intent and relationships
Define market planning
Organising and implementing strategic action
What strategy is used when there is broad competitive scope but low cost?
Overall cost leadership
What strategy is used when there is competitive scope but a higher cost?
Differentiation
What strategy is used when there is a narrow competitive scope but low cost?
Cost focus
What strategy is used when there is a narrow competitive scope but a higher cost?
Differentiation focus
Define cost leadership
This doesn’t mean having a lower price, its about having a lower cost structure an organisation can offer standard products at acceptable levels of quality yet still generate above average profit margins
Define differentiation
Differing oneself from the competitors, product, price, design etc.
Define focus strategies
Seek gaps in broad market segments or find gaps in competitor ranges. Seek out unfulfilled market needs
What does Porter believe?
In order to achieve competitive advantage, organisations must achieve one of these three generic strategies
Define market leader
has the single largest share of the market and has to attack the market and create new customers and frequency of use but at the same time, defend the market share
Define market challengers
Products that aspire to be the leadership position, actively seek market share and use aggressive strategies to take share from their rivals; attack the market leader with pricing, advertising spend e.g ASDA
Define market warriors
Low market shares and don’t have the resources to be serious competitors, pose no threat to the challengers or leader, avoid the hostile attacks on rivals, focus on differentiation and profits, not market share
Define market nicher
Specialists, select small segments within target markets that the larger companies do not want to exploit; geographic, product, service, customer groups etc.
