1. West, Ford & Ibrahim: Strategic Marketing
Chapter 2: Marketing strategy: analysis and perspectives

2. Structure C. WHERE DO WE WANT TO BE? B. WHERE ARE WE NOW?
A. INTRODUCTION
1. Overview and Strategy Blueprint
2. Marketing Strategy: Analysis &
perspectives
B. WHERE ARE WE NOW?
3. Environmental & Internal Analysis:
Market Information & Intelligence
C. WHERE DO WE WANT TO BE?
4. Strategic Marketing Decisions,
Choices & Mistakes
5. Segmentation, Targeting
& Positioning Strategies
6. Branding Strategies
7. Relational & Sustainability
Strategies
E. DID WE GET THERE?
14. Strategy Implementation, Control
& Metrics
D. HOW WILL WE GET THERE?
8. Product Innovation & Development
Strategies
9. Service Marketing Strategies
10. Pricing & Distribution
11. Marketing Communications
12. E-Marketing Strategies
13. Social and Ethical Strategies

3. Learning Objectives To introduce the concept of strategy
To illustrate the hierarchy of strategy
To describe the purpose and role of ‘strategy’
To review the linear models for strategy making process
To discuss the relationship between corporate and marketing strategy 3

4. The concept of ‘strategy’
Generic
a plan of attack for winning
a plan for beating the opposition
Organisational
a plan for achieving organisational goals
a plan for securing a competitive advantage in a given market 4

5. Strategy definition
“the direction and scope of an organisation over the long(er) term, which ideally matches its resources to its changing environment and, in particular its markets, customers or clients so as to meet stakeholder expectations”
Johnson & Scholes (1999) 5

6. Business (Division Level) Strategy
Hierarchy of strategy
Corporate Strategy
Corporate Headquarters
Business (Division Level) Strategy
SBU SBU SBU
Functional Strategy
Manufacturing Finance Marketing R&D HRM
* Strategic management may be initiated at any or all of these hierarchical levels of an organisation. 6

7. Three levels of strategy
Corporate
The overall goals of the business; often expressed in financial terms
Competitive/Business (SBU)
How to compete in individual product-markets and support the corporate strategy
Functional
Functional strategies for the organisation’s functional areas in support of SBUs and corporate strategies 7

8. Purpose of strategy To set the future direction for the organisation
To state how it is to create value to customers
To identify what product/s and in which markets the firm will invest its resources
To describe how it is to perform better than competition 8

9. Strategy help in: Defining the scope of business
Finding ‘Strategic Fit’ between the organisation and its external environment
Identifying a Sustainable Competitive Advantage (SCA)
Guiding the allocation of resources 9

10. The interrelationship between marketing and corporate strategy
Specifying the organisation’ mission
Allocation of resources across the whole organisation
Portfolio of activities for the organisation
Defining organisational objectives
Guides
Directs
Controls
Co-ordinates
Informs
Achieves
operationalises
Marketing Strategy
Competing in a product market
Selecting market segments
Designing the mix
Brassington Frances and Stephen Pettitt (2006) 10

11. Operational vs strategic marketing
Operational Marketing
Action-oriented
Existing opportunities
Non-product variables
Stable environment
Reactive behaviour
Day-to-day management
Marketing department
Strategic Marketing
Analysis-oriented
New opportunities
Product market variables
Dynamic environment
Proactive behaviour
Longer range management
Cross-functional 11

12. Marketing orientation
Marketing orientation is a state of mind, or a philosophy, that guides the strategic vision and future direction of companies. Marketing-orientated firms adopt a proactive search for market opportunities, use market information as a base for analysis and organisational learning, and adopt a long-term strategic perspective on markets and brands. 12

13. Does marketing orientation contribute to company success? 13

14. Marketing orientation and business performance
INPUTS
OUTPUTS ?
Performance 14

15. Conclusion
Strategy can be simply defined as a plan for securing a competitive advantage in a given market.
Strategy exists at multiple levels in an organisation: corporate, business unit, and functional levels.
The marketing concept has a significant role to play in strategy development and corporate success.
Competitive marketing strategy aims to establish a profitable competitive position for the firm against all forces that determine industry competition.
Strategy making process has been discussed in the literature in such terms as strategic market planning and strategic market management. 15