Formulating Marketing Strategy

The marketing program for an individual product must be consistent with the strategic direction, competitive thrust and resources allocations decided on at a higher management level. Corporate Mission Statement (qualitative, philosophical) Corporate (business) objectives (quantifies and personalities the mission statement) Functional objectives egg marketing, financial, production, engineering (quantitative, measurable) McDonald (1990) Market Opportunity Analysis: A major factor in the success or failure of a strategy at any level is whether it fits the realities of the firm’s external environment.

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Thus, the first step is to monitor and analyze the opportunities and threats posed by factors outside the organization. Competitor analysis: We must first attempt to identify and predict the impact of broad trends in the economic and social environment. 2. 2 Customer analysis: segmentation, targeting and positioning. The primary purpose of any marketing strategy is to facilitate and encourage exchange transactions with potential customers.

Hence, we need to analyses the motivations and behaviors of present and potential Not every potential customer will have the same needs, seek the same product benefits, or be influenced in the same way by the same marketing program. Hence, we must determine whether there are multiple market segments that will spend differently to our products/services and marketing programs, and how to best define, identify and appeal to those segments. Not every segment market will be equally attractive for the firm.

Hence, the next step is to target and position the product/service in the target segment relative to competitive offering. 3. Formulating strategies for specific market situations: The strategic marketing program for a particular product/market entry should reflect market demand and the competitive situation within the target market. As demand and competitive conditions should be adjusted accordingly. Implementation and Control: A final critical determinant of a strategy success is the firms’ ability to implement it effectively.

This, in turn, depends on whether the strategy is consistent with the firm’s resources, organizational structure, coordination and control systems, and skills and experience of its people. Corporate Strategy Decisions Setting Marketing Objectives Strategies Corporate Development Strategy Allocating Corporate Resources Essentially, a firm can go into major directions in seeking future growth: Гё Expansion of its current business and activities ГёDiversification into new business through either internal business or acquisition.

Expansion: 5 Market penetration Product development Market development Diversification: Vertical integration Related diversification Unrelated diversification Diversification through organizational relationship or networks Anions Matrix: (How to set marketing objectives) A firm’s competitive situation can be simplified to two dimensions only – products and markets. Simply put, Nations framework is about what is sold (the ‘product’) and who is sold to (the ‘market’). Anions Matrix (Count. ) (Four possible courses of action) Selling existing products to existing markets. Extending existing products to new markets.