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1. Strategy. A strategy is a fundamental pattern of present and planned objectives, resource deployments, and
interactions of an organization with markets, competitors, and other environmental factors. A strategy should
specify (1) what (objectives to be accomplished), (2) where (on which industries and product-markets to focus), and
(3) how (which resources and activities to allocate to each product-market to meet environmental opportunities and
threats and to gain a competitive advantage).
2. Components of Strategy
a. Scope. It is the breadth of strategic domain - the number and types of industries, product lines, and market
segments it competes in or plans to enter.
b. Goals & objectives. Such as volume growth, profit contribution, or return on investment.
c. Resource allocation & deployment.
d. Identification of a sustainable competitive advantage. Examine the market opportunities in each business and
product-market and the company’s distinctive competencies or strengths relative to its competitors.
e. Synergy. Synergy exists when the firm’s businesses, product-markets, resource deployments, and competencies
complement and reinforce one another.
3. Imp Terminologies
a. Marketing strategy is short-term roadmap which entails understanding the environment the business is
operating in customers, competitors, laws, regulations and then planning marketing strategy to make the
business a success. The primary focus of marketing strategy is to effectively allocate and coordinate marketing
resources and activities to accomplish the firm’s objectives within a specific product market. This level
encompasses Segmentation, Targeting & Positioning (STP). This level also includes Branding; shaping &
managing the perception of customers to achieve Brand Identity, through value addition.
b. Strategic Marketing. An approach that looks at marketing in the long term. In other words, how does the firm
best drive CLV (Customer Lifetime Value) - from the firm's installed base of customers as well as potential
customers. CLV is simply, the discounted cash flows that accrues to a firm or brand over the lifetime of a
relationship with a customer or an installed base of customers.
(External / Internal Analysis – Market-driven strategy – long-term performance & vision)
c. Marketing Driven Strategy. Which is formulated based on the customer’s needs and wants and the prevailing
envmt. It entails an org to become 1) market oriented, 2) determine distinctive capabilities, 3) match customer
value reqs to capabilities, and 4) deliver superior customer value.
d. Market Orientation. Defined as the org’s culture of wide generation of market intelligence about customer’s
current & future needs, dissemination of intelligence across depts and org’s response to it. Market-oriented
organizations tend to operate according to the business philosophy known as the marketing concept. The
marketing concept holds that the “planning and coordination of all company activities around the primary
goal of satisfying customer needs is the most effective means to attain and sustain a competitive advantage
and achieve company objectives over time”.
e. Strategic Inertia. A firm that achieved success by being in tune with its environment loses touch with its
market because managers become reluctant to tamper with strategies and marketing programs that worked
in the past. They begin to believe there is one best way to satisfy their customers. Such strategic inertia is
dangerous because customers’ needs and competitive offerings change over time.
f. Marketing Plan. A written document specifying the current situation with respect to customers, competitors,
and the external environment and providing guidelines for objectives, marketing actions, and resource
allocations over the planning period for either an existing or a proposed product or service. It includes; exec
summary, current sit & trends, performance review, key issues, objs, marketing strategy, action plans, projected
profit-loss statement, controls & contingency plans.