corporate and marketing strategy
TRANSCRIPT
Corporate and marketing strategy
01/24/05
Goals, Strategy and tactics GOAL
What you want to accomplish
STRATEGY Specific plan of action designed to accomplish
objective. Characterized by
a specified target market and a marketing program to reach it.
TACTICS Logistics necessary to execute strategy
Goals Well-stated goals should be:
Realistic Measurable Specific Time Period Consistent Prioritized
Levels of strategy in organizations
Corporate Strategy Corporate Vision Corporate Culture Business mission
Product Versus Market Oriented Business Definitions
Company Product oriented Market oriented
Amazon.com
We sell books, videos, CDs, toys, consumer electronics, hardware, housewares and other products
We make the Internet buying experience fast, easy and enjoyable – we’re the place where you can find and discover anything you want to buy online
Disney We run theme parks We create fantasies – a place where America still works the way its supposed to
Portfolio planning
CurrentProducts
NewProducts
1. Market penetration strategy
3. Product development strategy
2. Market development strategy
4. Diversification strategy
CurrentMarkets
NewMarkets
Market product analysis
RetainProducts Harvesting Retrenchment
RetainMarkets
EliminateMarkets
EliminateProducts
Pruning Divestment
Market product analysis
Consolidation strategies Harvesting
The use of a gradually decreasing share of the company’s resources to support the product or business. However, the product or business is retained as long as it is profitable
Pruning The attempt to continue serving the same market but not all the
segments within that market Retrenchment
An organization continues to offer the same product line but retreats to its strongest core markets
Divestment The selling off of a business or a product line to another company
because there is a weak “fit” between its mission and competencies and the requirements for making the product successful
Marketing Strategy For this course, strategy simply is how you
combine the Four P’s of marketing to achieve your stated goals
Strategy should be determined after environmental analysis is completed
The Four P’s should:– Fit the Five C’s of the micro environment– Should be internally consistent with each other
Planning phase
Situationalanalysis
Goalsetting
Marketingprogram
Implementationphase
Controlphase
Step 1 Step 2 Step 3
Marketing plan
Results Co
rrec
tive
act
ion
s
The strategic marketing process
Situation Analysis Situation Analysis
Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s plans and the external factors and trends affecting it.
A short-hand summary of the situation analysis is the SWOT ANALYSIS
SWOT Analysis How can we:
Build on key competencies (strengths) Correct glaring problems (weaknesses) Exploit significant opportunities
(opportunities) Avoid disaster (threats)
Strengths and weaknesses deal with the internal environment
Opportunities and threats deal with the external environment