Strategic Marketing reflective paper
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Chapter1-MGMT745-StrategicMarketing.pptxStrategic Marketing
Chapter 1 – An introduction and overview
Strategy points of view
“Strategy is a framework which guides those choices that determine the nature and direction of an organization.”
- Benjamin B. Tregoe and John W. Zimmerman, “Top Management Strategy”
“Strategy is the creation of a unique and valuable position, involving a different set of activities.”
-Michael Porter, “What is Strategy?,” Harvard Business Review
“In terms of the three key players (competitors, customers, company) strategy is defined as the way in which a corporation endeavors to differentiate itself positively from its competitors, using its relative corporate strengths to better satisfy customer needs.”
-Kenichi Ohmae, “The Mind of the Strategist”
What is a business strategy?
A business strategy is defined by four dimensions—the product-market investment strategy, the customer value proposition, assets and competencies, and functional strategies and programs. The first specifies where to compete, and the remaining three indicate how to compete to win.
What is a marketing strategy?
A business strategy is more comprehensive and contains significant financial data. A marketing strategy has a narrow focus and is driven more by targeting a customer and developing a needs-satisfying marketing mix.
This book, Strategic Market Management, has a point of view that is customer-driven.
Important elements of strategy
Product-market investment—it is important to emphasize that knowing which product markets your company does NOT serve is equally as important as knowing which product markets your company does serve. Otherwise your valuable resources may be used inefficiently.
Customer value proposition—this concept of a strategy is market-driven and the value proposition is a central part of it—it also serves as an umbrella concept that summarizes the strategy.
Assets and competencies—the key to a long-term investment perspective (vs. a short-term fixation).
Functional strategies—needed to support and implement.
Strategy development approach
Strategy development needs to reflect the fact that markets are dynamic. There are implications to this reality. You need to be good at strategic analysis, innovation, managing multiple businesses, creating SCAs (sustainable competitive advantages), and developing growth platforms in the context of dynamic markets.
All markets are dynamic - In all industries it will be easy to identify areas of dynamics—there will be emerging submarkets, opportunities, threats, new competitors, changing faces of existing competitors, global realities, etc.
Strategic analysis, customer value, innovation, multiple business (to participate in emerging new markets and submarkets), SCAs (that work in dynamic times), and the need for growth platforms (that work in dynamic environments).
Measuring what success looks like
Strategies, should turn into goals that should have metrics associated with them. This ensures that you can define what success looks like and what it doesn’t look like.
Increase our retention rate by X percent by the end of the year.
Increase sell-through of a particular item by X percent by the end of the quarter.
Increase our monthly leads by X percent by the end.
Increase our open rate by X percent by the end of the week.
These goals will turn into expectations and will often have financial growth associated with them.
Discussion Question
Should marketing have a seat at the table? Why or why not? Does it matter what company or what strategy?
In Class – Activity
Consider one of the firms. Go to the firm’s website and annual report to gain an understanding of its business strategy. Look at elements such as the products and services offered, the history of the firm, and its values. What is the business strategy? What product markets does the firm serve? What are its value propositions? What assets and competencies are important to this strategy? What outstanding functional programs and strategies exist?
a. Dell
b. Zappos
c. Visa
d. A firm of your choice
