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Marketing Strategy.

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Presentation on theme: "Marketing Strategy."— Presentation transcript:

1 Marketing Strategy

2 What is marketing strategy?
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 ( )

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

4 Ansoff’s matrix

5 Ansoff Can address degree of risk, but can oversimplify level of risk
Useful tool for deciding on strategic direction, but it does not take competitors into account

6 Market penetration Or:- Consolidation Withdrawal Do nothing

7 Porter’s Generic Strategies

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

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

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

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

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


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