Marketing Planning and Practice
Marketing Planning and Practice UMKDQD-15-2 Week 5 Lecture 5.2
Presented by
Michelle Jackson
Module Leader
w/c 8 March 2021
Strategy Models
Strategy gives us general direction for a brand/product range
Webinar will explore and apply Ansoff’s growth matrix
There are other models you can use instead of this or to supplement it
application
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Porter’s Generic Strategies
Porter suggested that an organisation should adopt a clear and meaningful basis for strategic thinking
Competitive advantage
| Cost leadership | Differentiated leadership |
| Low cost focus | Differentiated focus |
No. of separate
segments
Source of competitive advantage
Cost
Differentiation
Many
segments
Few
segments
Porter (1980) suggested that an organisation should adopt a clear and meaningful basis for strategic thinking. Three generic strategies:
Cost leadership – cost efficiencies
Differentiation – value added
Focus – specialist, one strategy
Generic strategy developed into specific, sustainable competitive advantage
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Bowman’s Strategic Clock
Relative positioning within the marketplace
Expands beyond generic strategies of differentiation, niche and low-cost competition
Bowman & Faulkner, 1997
Also Slack (1994) organisations can compete towards (one or more) of five performance objectives. Quality (do it right), Speed (do it fast), Dependability (do it on time), Flexibility (do it differently), Cost (do it cheaply).
Cost – high productivity - low price, high margin or both
Dependability – reliable processes - on time in its delivery
Flexibility – ability to change - frequent new product and services, wide range
Quality – error free processes – on specification products/services fit for purpose
Speed – fast throughput – short delivery time
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Segmentation, Targeting and Positioning
Organisations can improve their competitive advantage by effective segmentation
Must be financially viable
Measurable - data
Accessible – resource to exploit
Substantial – size relative to organisation
Unique – specifically identified
Appropriate – support brand values
Stable – future returns
Situational Analysis
Market Segmentation
Targeting
Product Positioning
Develop the Marketing Mix
Market segment: ‘A group of individuals or organisations sharing one or more similar characteristics that cause them to have relatively similar product needs and buying characteristics.’ Dibb et al. (2006).
Market Segmentation – identify the segmentation variables and segment the market. Develop profiles for each segment.
Targeting – evaluate the potential and attractiveness of each segment. Select the target market segment(s).
Product Positioning – identify the position within each target segment. Select and develop the appropriate positioning concepts.
Establish a position in the minds of customers vs competition
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STP
No target market is required to be identified for the marketing plan for this module assignment
In a standard marketing plan you would be expected to outline your proposed target market
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Final Thoughts
Business strategy, marketing strategy – literature can be confusing
Strategy has to deliver the objectives set
Objectives that are perceived by staff as impossible or unrealistic will simply not be attempted, but equally an objective that does not take account of the realities of the external environment will not be achievable
The strategy you choose must link to the objectives you have identified
The literature can be confusing due to the interchangeability of terms goals, strategies and objectives. Take your time to SMARTen your objectives, it is often easier to write out what you want to achieve and then re-write. It can take a few goes to get it to read how you want it to.
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