1. What is strategy?
• "Strategy is the direction and scope of an
organization over the long-term:
• Which achieves advantage for the organisation
through its configuration of resources within a
challenging environment,
• To meet the needs of markets and to fulfill
stakeholder expectations".

2. In other words, strategy is about:
• Where is the business trying to get to in the long-term
(direction)
• Which markets should a business compete in and what kind
of activities are involved in such markets? (markets; scope)
• How can the business perform better than the competition in
those markets? (advantage)?
• What resources
(skills, assets, finance, relationships, technical
competence, facilities) are required in order to be able to
compete? (resources)?
• What external, environmental factors affect the businesses'
ability to compete? (environment)?
• What are the values and expectations of those who have
power in and around the business? (stakeholders)

3. LEVELS OF STRATEGY
• Organizations have to formulate strategies at
three major levels:
• Corporate,
• Business and
• Functional.

4. Corporate Strategy
• Determines the business or businesses in which the firm
will or should compete and how it will fundamentally
conduct the business or businesses.
• Corporate strategy answers these questions:
• Does the organization have a strategic advantage?
• Does the company want to compete or find a niche?
• Does the company seek to concentrate on one product
or product line, or on multiple products or products
line?
• Will the corporation be innovative?
• Does the company want or need to
grow, stabilize, reduce its investment, turn company
fortunes around, or defend itself against a takeover?

5. Business (SBU) Strategy:
• Answers the question, how do we compete in
this business?
• Once the organization has determined what
business it wants to be in and how it will
conduct each business that is once it has
formulated its corporate strategy, then it must
determine how it will compete each business-
its business strategy.

6. Functional level strategies
• Supports other strategies and answers the
question,
• How do we obtain the most effective and efficient
use of our resources?
– Economic Functional strategies
• Marketing
• Operations-production or service generation
• Finance
• Human Resource management
• Information Systems/Research and Development/Other
significant areas

7. Organizational level Role of marketing Formal name
Corporate Provide customer & Corporate marketing
competitive perspective
for corporate strategic
planning
Business unit Assist in the Strategic marketing
development of strategic
perspective of the
business unit to direct its
future course
Product/market Formulate &implement Marketing management
marketing programs

8. Marketing
Strategy
University Assessment
MMS(Marketing)
SEM-III

9. SYLLABUS
• Marketing strategy – Overview
• Pillars of Marketing – STPD strategies
• Market situation strategy - Leaders, challengers, followers, nichers
• Competition analysis – Porter's 5 forces model for competitive
environment, Benchmarking exercise, understanding competitive moves
and postures
• Sustainable competitive advantage – Porter's generic strategies
• Portfolio models – BCG and GE McKinsey matrix
• New product strategies – Innovation, Market entry, Product line extension
• Communications strategy – Managing communications mix for products,
brands
• Advertising and sales promotion strategy - campaigns
• Brand building – FMCG, Consumer durables & Services cases
• Distribution strategy – Designing of channel systems, Managing
multichannel systems
• Pricing strategy – Value pricing, Optimisation of pricing
• Marketing Planning - Introduction, growth and mature markets, Pruning of
products

10. Reference Books
• Marketing Strategy –Boyd, Walker & Larreche
• Marketing Strategy- Stephen Schnaars
• Strategic Market Management- David Aaker
• Strategic marketing texts & cases –Cravens

11. Marketing Strategy
– An Overview

12. • A marketing strategy serves as the foundation of a
marketing plan.
• A marketing plan consists of a list of specific actions
required to successfully implement a specific marketing
strategy.
• A strategy is different from tactics .a marketing plan
has no foundation without a sound marketing strategy.
• Marketing strategies serves as the fundamental
underpinning of marketing plans designed to reach
marketing objectives.
• It is important for these objectives have measurable
results.

13. • A good marketing strategy should integrate an
organization’s marketing goals, policies and
action sequences into cohesive whole.
• The objective of a marketing strategy is to
provide a foundation from which a tactical
plan is developed.
• This allows organization to carry out its
mission effectively &efficiently.

14. Any organization requires strategy:
• When resources are finite
• When there is uncertainty about competitive
strengths & behavior
• When commitment of resources is irreversible
• When decisions must be coordinated between
far-flung places & over time,
• When there is uncertainty about control of the
initiative

15. • Marketing strategy deals essentially with the
interplay of three forces known as the strategic
three C’s –
• The customer,
• The competition, &
• The corporation.

16. • All three C’s are dynamic, living creatures with
own objectives to pursue.
• Based on the interplay of the strategic three C’s
formation of marketing strategy requires three
decisions:
• Where to compete – definition of market
• How to compete -in terms of product either new
product or existing
• When to compete- timing of market entry either
first in market or waiting for primary demand to
be established

17. • Marketing strategies focus on ways in which
the corporation can differentiate itself
effectively from its competitors, capitalizing
on its distinctive strengths to deliver better
value to its customers.

18. Marketing strategy- Definition
• A strategy that integrates an organization's
marketing goals into a cohesive whole. Ideally
drawn from market research, it focuses on the
ideal product mix to achieve maximum profit
potential.
• The marketing strategy is set out in a
marketing plan.

19. Types of Marketing Strategy
• One of the most important concepts of the
marketing planning process is the need to
develop a cohesive marketing strategy that
guides tactical programs for the marketing
decision areas.
• In marketing there are two levels to strategy
formulation:
• General Marketing Strategies
• Decision Area Strategies

20. General Marketing Strategies
• These set the direction for all marketing efforts by
describing, in general terms, how marketing will
achieve its objectives. There are many different General
Marketing Strategies, though most can be viewed as
falling into one of the following categories:
• Market Expansion
• Market Share Growth
• Niche Market
• Status Quo
• Market Exit

21. Market Expansion
Grow Sales
with Existing
Market Products
Expansion Grow Sales
with New
Products

22. Market Expansion
• With this strategy marketer’s look to grow overall sales
in one of two ways:
• Grow Sales with Existing Products – With this
approach the marketer seeks to actively increase the
overall sales of products the company currently
markets.
• This can be accomplished by:
• Getting existing customers to buy more
• Getting potential customers to buy (i.e., those who have
yet to buy)
• Selling current products in new markets.

23. • Grow Sales with New Products – With this
approach the marketer seeks to achieve objectives
through the introduction of new products. This
can be accomplished by:
• Introducing updated versions or refinements to
existing products
• Introducing products that are extensions of
current products
• Introducing new products not previously
marketed.

24. Market Share Growth
• This strategy looks to increase the marketer’s
overall percentage or share of market.
• In many cases this can only be accomplished
by taking sales away from competitors.
• Consequently, this strategy often relies on
aggressive marketing tactics.

25. Niche Market
• This strategy looks to obtain a commanding
position within a certain segment of the overall
market.
• Usually the niche market is much smaller in
terms of total customers and sales volume than
the overall market.
• Ideally this strategy looks to have the product
viewed as being different from companies
targeting the larger market.

26. Status Quo
• This strategy looks to maintain the marketer's
current position in the market, such as
maintaining the same level of market share.

27. Market Exit
• This strategy looks to remove the product from
the organization’s product mix. This can be
accomplished by:
• Selling the product to another organization
• Eliminating the product the company's product
offerings

28. Decision Area Strategies
• These are used to achieve the General
Marketing Strategies by guiding the decisions
within important marketing areas
(product, pricing, distribution, promotion, targ
et marketing). For example, a General
Marketing Strategy that centers on entering a
new market with new products may be
supported by

29. Decision Area Strategies that include:
• Target Market Strategy – employ segmenting
techniques
• Product Strategy – develop new product line
• Pricing Strategy – create price programs that
offer lower pricing versus competitors
• Distribution Strategy – use methods to gain
access to important distribution partners that
service the target market
• Promotion Strategy – create a plan that can
quickly build awareness of the product

30. • Achieving the Decision Area Strategies is
accomplished through the development of
detailed Tactical Programs for each area.
• For instance, to meet the Pricing Strategy that
lowers cost versus competitors’ products, the
marketer may employ such tactics as: quantity
discounts, trade-in allowances or sales volume
incentives to distributors.

31. SYLLABUS
• Marketing strategy – Overview
• Pillars of Marketing – STPD strategies
• Market situation strategy - Leaders, challengers, followers, nichers
• Competition analysis – Porter's 5 forces model for competitive
environment, Benchmarking exercise, understanding competitive moves
and postures
• Sustainable competitive advantage – Porter's generic strategies
• Portfolio models – BCG and GE McKinsey matrix
• New product strategies – Innovation, Market entry, Product line extension
• Communications strategy – Managing communications mix for products,
brands
• Advertising and sales promotion strategy - campaigns
• Brand building – FMCG, Consumer durables & Services cases
• Distribution strategy – Designing of channel systems, Managing
multichannel systems
• Pricing strategy – Value pricing, Optimisation of pricing
• Marketing Planning - Introduction, growth and mature markets, Pruning of
products

32. Contents:
• Section 1 : Market Scope Strategy
• Section 2 : Market Entry Strategy
• Section 3 : Product Strategy
• Section 4 : Promotion Strategy
• Section 5 : Distribution Strategy
• Section 6 : Pricing Strategy

33. Section 1
Market Scope Strategy
• Single Market Strategy
• Multi Market Strategy
• Total Market Strategy

34. Single Market
Strategy
MARKET Multi Market
SCOPE Strategy
STRATEGY
Total Market
Strategy

35. Single Market Strategy
• Concentration of efforts in a single segment.
• Requirements:
• Serve the market wholeheartedly despite initial
difficulties
• Avoid competition with established
firms.

36. Multi Market Strategy
• Serving several distinct markets.
• Requirements:
• Careful selection of segments to serve
• Avoid confrontation with companies serving
entire market.

37. Total Market Strategy
• Serving the entire spectrum of the market by selling
differentiated products to different segments in the
market.
• Requirements:
• Employ different combinations of
price, product, promotion, and distribution strategies
in different segments
• Top management commitment to embrace entire market
• Strong financial position.

38. Section 2
Market Entry Strategy
• First In Strategy
• Early Entry Strategy
• Laggard Entry Strategy

39. Market Entry
Strategy
First In Early Entry Laggard Entry
Strategy Strategy Strategy

40. First In Strategy
• Entering the market before all others.
• Requirements:
• Willingness and ability to take risks
• Technological competence
• Strive to stay ahead
• Heavy promotion
• Create primary demand
• Carefully evaluate strengths

41. Early Entry Strategy
• Entering the market in quick succession after
the leader.
• Requirements:
• Superior marketing strategy
• Ample resources
• Strong commitment to challenge market
leader.

42. Laggard Entry Strategy
• Entering the market toward tail end of growth phase
or during maturity phase. Two modes of entry are feasible:
• Imitator - Entering market with me-too product (b)
Initiator
• Initiator - Entering market with unconventional marketing
strategies.
• Requirements-Imitator
• Market research ability
• Production capability .
• Requirements-Initiator
• Market research ability,
• Ability to generate creative marketing strategies

43. Section 3
Product Strategy
• Product Positioning Strategy
• Product Repositioning Strategy
• Product Scope Strategy
• Product Design Strategy
• New Product Strategy

44. Product Strategy
Product Product
Positioning Product Product
Repositioning Scope Design New Product
Strategy Strategy Strategy
Strategy Strategy

45. Product Positioning Strategy
• Placing a brand in that part of the market where it
will have a favorable reception compared with
competing brands.
• Requirements:
• Successful management of a single brand requires
positioning the brand in the market so that it can
stand competition from the toughest rival and
maintaining its unique position by creating the
aura of a distinctive product.

46. Product Positioning Strategy
• Successful management of multiple brands
requires careful positioning in the market so
that multiple brands do not compete with nor
cannibalize each other

47. Product Repositioning Strategy
• Reviewing the current positioning of the
product and its marketing mix and seeking
a new position for it that seems more
appropriate.

48. Product Repositioning Strategy
• Requirements:
• If this strategy is directed toward existing customers ,
repositioning is sought through promotion of more
varied uses of the product
• If the business unit wants to reach new users , this
strategy requires that the product be presented with a
different twist to the people who have not been
favorably inclined toward it.
• In doing so, care should be taken to see that, in the
process of enticing new customers, current ones are not
alienated

49. Product Repositioning Strategy
• If this strategy aims at presenting new uses of
the product , it requires searching for latent
uses of the product, if any.
• Although all products may not have latent
uses, there are products that may be used for
purposes not originally intended.

50. Product Scope Strategy
• The product-scope strategy deals with the
perspectives of the product mix of a company.
• The company may adopt a single- product
strategy, a multiple- product strategy, or a
system-of- products strategy.

51. Product Scope Strategy
• Requirements:
• Single product company must stay up-to-date
on the product and even become the
technology leader to avoid obsolescence
• Multiple products Must complement one
another in a portfolio of products
• System of products : company must have a
close understanding of customer needs and
uses of the products

52. Product Design Strategy
• The product-design strategy deals with the
degree of standardization of a product.
• The company has a choice among the
following strategic options:
• Standard product,
• Customized product, and
• Standard product with modifications.

53. Product Design Strategy
• Objectives:
• Standard product to increase economies of
scale of the company
• Customized product : to compete against mass
producers of standardized products through
product-design flexibility
• Standard product with modifications : to
combine the benefits of the two previous
strategies.

54. New Product Strategy
• A set of operations that introduces within the
business-
• A product new to its previous line of products on
the market ,
• A product that provides a new type of satisfaction.
• Three alternatives emerge from the above :
• Product improvement/modification ,
• Product imitation , and
• Product innovation.

55. New Product Strategy
• Requirements:
• A new-product strategy is difficult to
implement if a new product development
system does not exist within a company

56. New Product Strategy
• Five components of this system should be
assessed:
• Corporate aspirations toward new products
• Organizational openness to creativity
• Environmental favor toward creativity
• Screening method for new ideas, and
• Evaluation process.

57. Section 4
Promotion Strategy
• Promotion Mix Strategy
• Media Selection Strategy
• Advertising Copy Strategy

58. Promotion Mix
Strategy
Promotion
Media Selection
Strategy
Strategy
Advertising
Copy Strategy

59. Promotion Mix Strategy
• Determination of a judicious mix of different
types of promotion.
• Requirements :
• Product factors:
• Nature of product
• Durable versus nondurable
• Perceived risk
• Typical purchase amount

60. Promotion Mix Strategy
Customers Marketing mix
Market factors Budget factors
factors factors

61. Promotion Mix Strategy
• Market factors:
• Position in the life cycle,
• Market share,
• Industry concentra-tion,
• Intensity of competition, and
• Demand perspectives
• Customers factors:
• Household versus business customers,
• Number of customers,and
• Concentration of customers

62. Promotion Mix Strategy
• Budget factors:
• Financial resources of the organization and
• Traditional promotional perspectives
• Marketing mix factors:
• Relative price/relative quality,
• Distribution strategy,
• Brand lifecycle, and
• Geographic scope of the market

63. Media Selection Strategy
• Choosing the channels
(newspapers, magazines, television, radio, outd
oor advertising, transit advertising, and direct
mail) through which messages concerning a
product/service are transmitted to the targets.

64. Media Selection Strategy
• Requirements:
• Relate media- selection objectives to
product/market objectives
• Media chosen should have a unique way of
promoting the business
• Media should be measure- minded not only in
frequency, in timing, and in reaching the target
audience but also in evaluating the quality of the
audience

65. Media Selection
Strategy
• Base media selection on factual not artificial
grounds,
• Media plan should be optimistic in that it takes
advantage of the lessons learned from
experience
• Seek information on customer profiles and
audience characteristics.

66. Advertising Copy Strategy
• Designing the content of an advertisement.
• Objective:
• To transmit a particular product/service
message to a particular target.

67. Advertising Copy Strategy
• Requirements:
• Eliminate "noise" for a clear transmission of message
• Consider importance of :
• Source credibility
• Balance of argument
• Message repetition
• Rational versus emotional appeals
• Humor appeals
• Presentation of model's eyes in pictorial ads
• Comparison advertising.

68. Section 5
Distribution Strategy
• Distribution Scope Strategy
• Multiple Channel Strategy

69. Distribution
Distribution Scope Strategy
Strategy
Multiple
Channel
Strategy

70. Distribution Scope Strategy
• Establishing the scope of distribution, that is, the
target customers.
• Choices are –
• Exclusive distribution (one retailer is granted
sole rights in serving a given area),
• Intensive distribution (a product is made
available at all possible retail outlets), and
• Selective distribution (many but not all retail
outlets in a given area distribute a product).

71. Exclusive
distribution
Distribution
Intensive
Scope Strategy
distribution
Selective
distribution

72. Distribution Scope Strategy
• Requirements: Assessment of :
• Customer buying habits gross margin/
turnover rate
• Capability of dealer to provide service carry
full product line
• Product styling

73. Multiple Channel Strategy
• Employing two or more different channels for
distribution of goods and services.
• Multiple-channel distribution is of two basic
types :
• Complementary (each channel handles a
different non-competing product or market
segment) and
• Competitive (two different and competing
channels sell the same product).

74. Multiple Channel Strategy
• Requirements:
• Market segmentation,
• Cost/benefit analysis.
• Use of complementary channels prompted by
• Geographic considerations,
• Volume of business,
• Need to distribute non-competing items, and
• Saturation of traditional distribution channels.
• Use of competitive channels can be a response to
environmental changes.

75. Section 6
Pricing Strategy
• Pricing Strategies for New Products
• Pricing Strategies for Established Products
• Price Flexibility Strategy
• Price Leadership Strategy

76. Pricing Strategy
Pricing
Pricing Strategies for
Price
Price Flexibility
Strategies for Established Strategy
Leadership
New Products Products Strategy

77. Pricing for New Products
• Skimming Pricing Strategy
• Penetration Pricing Strategy

78. Skimming
Pricing Strategy
Pricing for New
Products
Penetration
Pricing Strategy

79. Skimming Pricing Strategy
• Setting a relatively high price during the
initial stage of a product's life.
• Objectives:
• To serve customers who are not price
conscious while the market is at the upper end
of the demand curve and competition has
not yet entered the market

80. Skimming Pricing Strategy
• To recover a significant portion of promotional
and research and development costs through a
high margin

81. Skimming Pricing Strategy
• Requirements:
• Heavy promotional expenditure to introduce
product, educate consumers, and induce early
buying
• Relatively inelastic demand at the upper end of
the demand curve
• Lack of direct competition and substitutes.

82. Penetration Pricing Strategy
• Setting a relatively low price during the initial
stages of a product's life.
• Objective:
• To discourage competition from entering the
market by quickly taking a large market share
and by gaining a cost advantage through
realizing economies of scale

83. Penetration Pricing Strategy
• Requirements:
• Product must appeal to a market large enough
to support the cost advantage
• Demand must be highly elastic in order for the
firm to guard its cost advantage.

84. Pricing for Established Products
• Maintaining the Price
• Reducing the Price
• Increasing the Price

85. Maintaining the
Price
Pricing for
Established Reducing the
Products Price
Increasing the
Price

86. Maintaining the Price
• Objectives:
• To maintain position in the marketplace
(i.e., market share, profitability, etc.)
• To enhance public image.

87. Maintaining the Price
• Requirements:
• Firm's served market is not significantly
affected by changes in the environment
• Uncertainty exists concerning the need for or
result of a price change
• Firm's public image could be enhanced by
responding to government requests or public
opinion to maintain price.

88. Reducing the Price
• Objectives:
• To act defensively and cut price to meet the
competition
• To act offensively and attempt to beat the
competition
• To respond to a customer need created by a
change in the environment.

89. Reducing the Price
• Requirements:
• Firm must be financially and competitively
strong to fight in a price war if that becomes
necessary
• Must have a good understanding of the
demand function of its product

90. Increasing the Price
• Objectives:
• To maintain profitability during an inflationary
period
• To take advantage of product differences, real
or perceived
• To segment the current served market.

91. Increasing the Price
• Requirements:
• Relatively low price elasticity but relatively
high elasticity with respect to some other
factor such as quality or distribution,
• Reinforcement from other ingredients of the
marketing mix

92. Pricing
Flexibility Strategy
• One Price Strategy
• Flexible Pricing Strategy

93. One Price Strategy
• Charging the same price to all customers under
similar conditions and for the same quantities.
• Objectives:
• To simplify pricing decisions
• To maintain goodwill among customers

94. One Price Strategy
• Requirements:
• Detailed analysis of the firm's position and
cost structure as compared with the rest of the
industry
• Information concerning the cost variability of
offering the same price to everyone

95. One Price Strategy
• Knowledge of the economies of scale
available to the firm
• Information on competitive prices; information
on the price that customers are ready to pay

96. Flexible Pricing Strategy
• Charging different prices to different
customers for the same product and quantity.
• Objective:
• To maximize short-term profits
and build traffic by allowing upward and
downward adjustments in price depending
on competitive conditions and how much the
customer is willing to pay for the product.

97. Flexible Pricing Strategy
• Requirements:
• Have the information needed to implement the
strategy.
• Usually this strategy is implemented in one
of four ways:
• By market
• By product
• By timing
• By technology

98. Flexible Pricing Strategy
• Other requirements include :
• A customer-value analysis of the product,
• An emphasis on profit margin rather than just
volume, and
• A record of competitive reactions to price
moves in the past.

99. Price Leadership Strategy
• This strategy is used by the leading firm in an
industry in making major pricing moves,
which are followed by other firms in the
industry.

100. Price Leadership Strategy
• Objective:
• To gain control of pricing decisions within an
industry in order to support the leading firm's
own marketing strategy (i.e., create barriers to
entry, increase profit margin, etc.).

101. Price Leadership Strategy
• Requirements:
• An oligopolistic situation
• An industry in which all firms are affected by
the same price variables (i.e., cost,
competition, demand),
• An industry in which all firms have common
pricing objectives

102. Warfare based Strategies
• This scheme draws parallels between
marketing strategies and military strategies.
• There are many types of marketing warfare
strategies, but they can be grouped into:
• Offensive Marketing Warfare Strategies
• Defensive Marketing Warfare Strategies
• Flanking Marketing Warfare Strategies
• Guerrilla Marketing Warfare Strategies

103. COMPETITIVE MARKETING
STRATEGIES
• Developed from customer’s point of view
rather than competitors.
• They have roots of Military strategy. The aim
of military strategies is to exert well over the
enemy.
• Kotler has identified-
• Five offensive and
• Five defensive competitive strategies named
after military terms.

104. COMPETITIVE
MARKETING
STRATEGY
OFFENSIVE DEFENSIVE

105. FIVE OFFENSIVE STRATEGIES
• Frontal attack
• Flank attack
• Encirclement attack
• Bypass attack
• Guerrilla Warfare

106. FIVE OFFENSIVE STRATEGIES
(General attack strategy for
challenger).
• Frontal attack: attacking strengths rather than
weaknesses. In a pure frontal attack, the attacker
matches its opponent’s product, advertising, price
and distribution. Example: Razor-blade
manufacturer in Brazil attacked Gillette the
market leader.
• Flank attack: You are engaging in competitors
market where they are weak or no presence at all.
Flanking is in the best tradition of modern
marketing, which holds that the purpose of
marketing is to discover needs and satisfy them.

107. • Encirclement attack: This is an attempt to capture a
wide slice of the enemy’s territory through a blitz. It
involves launching a grand offensive on several fronts.
Example: Seiko Company who has 400 watch types
and 2300 models worldwide.
• Bypass attack: No confrontation with competitors but
moving into new uncontested markets and product.
This is most indirect assault strategy.
• Diversifying into unrelated products
• Diversifying into new geographical markets
• Guerrilla Warfare: small attack in different market
segment. Intermittent attacks to harass and demoralize
the opponent. They use both conventional and
unconventional means of attack.

108. FIVE DEFENSIVE STRATEGIES
• Position defense
• Mobile defense
• Flank position defense
• Preemptive defense
• Counteroffensive defense

109. FIVE DEFENSIVE STRATEGIES
(Leader defending market share)
• Position defense: retaining market share. Coca Cola
• Mobile defense: It spreads through market broadening
and market diversification.
• Flank position defense: In this position you should
occupy position of potential feature. Create position for
counterattack.
• Preemptive defense: Take the imitative and move the
first into the market. Attack before the enemy starts its
offense.
• Counteroffensive defense: If the competitors reduce
their price you should do this.