1. Marketing Strategy

2. What is marketing strategy? O The positioning and relating of the firm/organisation to its environment in a way which will assure its continued success and make it secure from surprises Igor Ansoff (1918-2002)

3. Key strategic models O Ansoff’s matrix O Porter’s Low cost v. Differentiation O Porter’s 5 forces

4. Ansoff’s matrix

5. Ansoff O Can address degree of risk, but can oversimplify level of risk O Strategies are not mutually exclusive – a company can do all 3! O Useful tool for deciding on strategic direction, but it does not take competitors into account

6. Market penetration O Or:- O Consolidation O Withdrawal O Do nothing

7. Porter’s Generic Strategies

8. Porter’s generic strategies O Low cost v. Differentiation O Search for sustainable competitive advantage O Cost leadership O Differentiation O Focus (target particular market segment)

9. Effectiveness of marketing strategies - Porter O Is there a significant advantage to the business? O Lower costs compared to competitors O Clear differentiation O Can strategy be maintained over a long period of time? (sufficient time to reap reward?) O Does strategy appeal to sufficient numbers of customers for business to reach targets O Is there conflict within the organisation? O Remember external (exogenous) factors

10. Porter’s 5 Forces O New entrants O Substitute products O Power of buyers O Power of sellers O Level of competition between firms

11. Entering international markets O Restrictions to free trade O E.g. NAFTA – North American Free Trade Agreement O Exchange rate movements O Different cultures O Political situation O Accessing information O Finance & regulatory systems

12. Effectiveness of marketing strategies O Degree of conflict within the organisation O Barriers to communication, leadership, etc. O Cost of entering markets O Industry standards, regulation, quality control issues O Quality of market analysis O Internal communications O Exogenous (external) factors O Economy, government change, new legislation, weather, competitors’ response, interest rate changes, etc.