7. strategy vs tactics (only ppt)

8/4/2019 7. Strategy vs Tactics (Only Ppt)

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Strategy and Tactics

Swati Vispute


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Introduction

Vicks came with a new liquid cold remedy whichcleared up scratchy throats and running eyes,unfortunately it also put you to sleep. This was a

problem if you wanted to drive or go to work. They came up with a brilliant idea. If the

product puts you to sleep, lets position it as anighttime cold remedy.

The first nighttime remedy is an advertisingtactic that will work on the proven principle thatof being first.


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What is a Tactic

Tactic is an idea .

When you look for Tactic, you look for an idea.

Tactic is a competitive mental angle.


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Tactics Dictate Strategies

A tactic must have a competitiveangle inorder to have a chance of success.

This does not mean necessarily a betterproduct or service, but rather there mustbe an element of differentness

It could be smaller, bigger, lighter,heavier, cheaper, more expensive. It couldbe a different distribution system


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Tactics dictate strategies-cont

A tactic must be competitive in the total marketingarena, not just competitive in relation to one or twoother products or services

Eg: Volkswagens decision in the late fifties to introduce thefirst small car. At the time General Motors was manufacturingnothing but big, heavily chromed patrol boats. The BEETLE was arunaway success.

The VW Beetle was not the first small car on themarket. But it was the first car to occupy the smallposition in the mind. It made a virtue out of its size,while the others apologised for their small size.

Think Small said the VW ads.


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Tactic - cont

A Tactic must have a competitive mental angle.

The battle takes place in the mind of the prospect.

There were plenty of pizza places with home delivery operations when TomMonaghan launched Dominos. But nobody owned the home delivery position inthe mind.

A competitive mental angle is the point in the mind that allows your marketingprogram to work effectively. Thats point to leverage to achieve results.

A Tactic alone is not enough. To complete the process, tactic must be turnedinto a strategy. Need both to establish a position in the mind.


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. Strategy

Strategy is not a goal.

Like life itself, a strategyought to be focused on the

journey, not the goal.Strategy is a coherentmarketing direction


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Strategy - cont

A Strategy is coherent in the sense that it isfocused on the tactic that has been selected.

VW had a big tactical success with the small car, but it

failed to elevate this idea to a coherent strategy. Itforgot about small and instead elected to bring intothe U.S. market a family of big, fast, and expensiveVWs. But these tactics had already been preemptedby other car manufacturers. This opened the way forthe Japanese to take over the small car idea.


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Strategy - cont

A Strategy encompassescoherent marketing activities.

Product, Pricing, distribution,

advertising-all the activities thatmake up the marketing mix must becoherently focused on the tactic.


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Strategy - cont

A strategy is a coherent marketingdirection. Once the strategy has

been established, the directionshould not be changed.

The purpose of strategy is to mobilize your

resources to preempt the tactic. Bycommitting all your resources to onestrategic direction you maximize theexploitation of the tactic .


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Tactic vs Strategy

1. A tactic is a singular idea or angle.

A strategy has many elements, all of which are focused on the tactic

2. A tactic is an angle that is unique or different.

A strategy may well be mundane

3. A tactic is independent of time and relatively constant.

A strategy unfolds over a period of time. A sale is a Tactic used bymost retailers at one time or another. A store that has a sale everydayis a discount store, which is a strategy.


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Strategy vs Tactic

4. A tactic is a competitive advantage.

A strategy is designed to maintain thatcompetitive advantage.

5. A tactic is communications oriented.

A strategy is product, service or companyoriented.


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Strategy vs Tactic-cont

6. A tactic can be a rather small advantage.

The tactic exploited by Tom Monaghan atDominos was to focus on the home delivery of

pizza only. In itself, not a tremendously excitingidea. But it was unique as no one else wasdoing it. Dominos tactic was just one tactic,not a collection of tactics. The idea was built

around home- delivery -only. Not home deliveryplus take away plus dine in plus burgers plushot dogs etc. By building a nation wide home-delivery-only chain they could guarantee pizza

in 30 mts. Concept.


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The purpose of Strategy

There are no good strategies.

Just strategies that work tactically andthere are strategies that dont worktactically.

Then what is the purpose ? The purpose of strategy is to keep the

competition from adversely affecting yourtactics. (to preserve your tactics)


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Purpose of Strategy -Cont

Dominos home delivery unit could have beeneasily have been neutralized by market leaderPizza Hut.

With the strategy of expanding into nationwidechain of home delivery units, Dominoseffectively drove a powerful wedge into thecompetition.

The tactic is the angle that producesresults. The strategy is the organisation ofthe company to produce the maximum

tactical pressure.


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Purpose of Strategy-cont

The tactic dictates the strategy, thenthe strategy drives the tactic.

The relationship between the two iscrucial to the success of marketing.

7. strategy vs tactics (only ppt)

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