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 kinds 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) Strategy at Different Levels of a Business Strategies exist at several levels in any organization -ranging from the overall business (or group of businesses) through to individuals working in it. 0 Corporate Strategy -is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the Business Unit Strategy is concerned more with how a business competes successfully in a particular market.
It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc. 0 Operational Strategy -is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc. Strategy is the process of planning & executing various maneuvers or actions IANA attempt to reach a goal.
Strategy is often associated with business, politics,& military planning, but individuals can also strategies towards achieving their career, health . Strategy is essentially akin to planning but implies a minimization of resources with logical thinking, intelligence(acquired knowledge) & leverage Strategy is differentiated from tactics in that tactics are micro strategies that contribute to large goal. Opening a successful business would fall under strategy achieving financing or an important client would be considered tactics towards strategy. Sac’s Product Customer alee Promotion Communication PriceCostPlaceConveniencePeopleCapableProcessCon apprenticeships Evidence Conductive Issues for marketing strategy Product What product do customers use now? What benefits does consumer want from the product? Promotions What promotions appeals would influence consumer to purchase & use of our product? What advertising claims would be effective for our product? Pricing How important is price to the consumer in various target markets? What effect will a price change have on purchase behavior? Place Where do consumers buy this product?
Would a different distribution system change nonuser purchasing behavior? What type of people is desired by the consumer to deliver the service? Would differentiation by people help in gaining competitive advantage? Process Would different procedure, mechanism, routine, and helps in satisfying the customer needs? Physical Evidence Can we have different physical evidence….. 1. 2 Marketing Strategy Achieving objectives requires the marketer engage in marketing decision-making which indicates where resources (e. G. , marketing funds) will be directed.
However, before spending begins on individual marketing decisions (e. G. , where to advertise) he marketer needs to establish a general plan of action that summarizes what will be done to reach the stated objectives. Tactical Programs -Marketing strategy sets the stage for specific actions that will take place. Marketing tactics are the day-to-day actions that marketers undertake and involve the major marketing decision areas. As would be expected, this is the key area of the Marketing Plan since it explains exactly what will be done to reach the organization’s objectives.
Marketing Budget -Carrying out marketing tactics almost always means that money must be spent. The marketing judged lays out the spending requirements needed to carry out marketing tactics. While the marketing department may request certain level of funding they feel is required, in the end it is upper-management that will have final say on how much financial support will be offered. Types of Marketing Strategy: One of the most important concepts of the marketing planning process is themed to develop a cohesive marketing strategy that guides tactical programs for the marketing decision areas.
In marketing there are two levels to strategy formulation: 2. Decision Area Strategies. 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 : This strategy looks to grow overall sales in one of two ways: 0 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: 1) getting existing customers to buy more; 2) getting potential customers to buy (I. . , those who have yet to buy accomplished by: 1) introducing updated versions or refinements to existing products; 2) introducing products that are extensions of current products; ROR) introducing new products not previously marketed. Market Share Growth -This strategy looks to increase the marketer’s overall percentage or share of market.