Strategy MK2

Strategy MK2

1. Levels of strategy

   • Corporate strategy
     • Overall goals of the business
   • Business (Division Level) strategy
     • compete in individual markets and support corporate strategy
   • Functional strategy
     • For functional areas in support of strategic business unit and corporate
   • Strategic management helps
     • Define the scope of business
     • Find ‘Strategic Fit’ between company and its environment
     • Identify a Sustainable Competitive Advantage

2. Two perspectives of strategy

   • Functional level
     • Philosophy that guides the strategic vision and future direction of companies
       • Planning and controlling the marketing activities Planning and implementing the 4Ps/7Ps Management of customer relationship
   • Philosophy/ Orientation
     • Adopt a proactive search for market opportunities Adopt long-term strategic view on markets & brands
       • Guiding the organisation’s overall activities Play key role in strategic management process

3. Interrelationship

   • Corporate strategy
     • Allocating resources across organisation Defining objectives and specifying mission
       • Guides Directs Controls Coordinates
   • Marketing strategy
     • Competing in product market Selecting market segments Designing the mix
       • Informs Achieves Operationalises

4. Marketing strategy blueprint

   • PHASE 1 (AUDIT) Where are we now?
   • PHASE 2 (STRATEGY) Where do we want to be?
   • PHASE 3 (TRANSLATION) How will we get there?
   • PHASE 4 (EVALUATION) Did we get there?

5. Marketing strategy - Gap analysis

   • Comparison of actual performance with potential or desired performance
     • ➢ To set organisations direction and decide what products and which markets the firm should invest its resources in
     • ➢ To define how to create value to customers
     • ➢ To describe how to perform marketing activities (4Ps) better than competition
   • Strategic Fit
     • Formulate Marketing strategies
       • Internal Environment Resources & capabilities
       • External Environment Market scan & scenario

6. 4 Approaches to Marketing Strategy (The 4 are Interrelated)

   • Thinking First
     • Analysing a strategic marketing problem and developing solutions through a thought-out process
       • Works best when: issues are clear, context structured, thoughts can be pinned down, discipline can be applied
   • Doing First
     • 1. Do something 2. Make sense of it, 3. Repeat the successful parts, discard the rest
       • Work best when: situation is confusing ,complicated specifications would get in the way ,a few simple relationship rules can help move the process forward
   • Seeing First
     • Seeing the overall decision. Insight comes after a period of preparation and then verification
       • Works best: many elements have to be creatively applied, commitment to solutions, communication across boundaries are needed (e.g. in NPD)
   • Simple Rules
     • How-to, Boundary, Priority, Timing & Exit rules

7. Difference between LSE and SME

   • Resources
     • Many resources vs. Limited resources
   • Strategy/ Decision Making
     • Deliberate strategy formation vs. Entreprenuerial decision making
   • Organisation
     • Formal/ hierarchical vs. Informal/ controlled by ent
   • Risk Taking
     • Risk averse/ focus long term vs. Risk taker?/ focus short term
   • Use of info sources
     • Advanced = consultancy vs. Informal = face-face

8. Perlmutter's EPRG

   • Ethnocentric
     • • Home market needs to take precedence, Home market directs ways of doing business, controls and ignores local knowledge
       • E.G - Toshiba
   • Polycentric (multi-domestic)
     • • Each market is unique, targeted differently, Adaptation to local situations, Decentralized control and limited communication
       • E.G - Rexona
   • Regiocentric
     • • World consists of regions (e.g. Europe, Asia) Integration and coordination within the regions, not across
       • E.G - General Moters
   • Geocentric (global)
     • • Global offerings, Coordination of operations globally with local adaptation

9. Glocal

   • Global
     • Low-cost production and selling, low complexity, high speed
   • Local
     • Culturally close to consumers, flexible response to local consumer needs, regional and market penetration
   • E.G - McDonald's G = Big mac, L = Kimchi burger
   • Global Marketing - Develop global marketing strategy, based on similarities and differences To exploit high quality knowledge through worldwide diffusion and adaptations, To transfer knowledge and best practice across markets

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