The BABM Programme

Unit 5
Marketing Strategy

MKT306 Module
 Lecture 5

Formulating the
Marketing Strategy

L5-1
– Aim and Objectives
◻ Aim
฀ By the end of this lecture, week students will have
knowledge of formulating a marketing strategy
◻ Objectives
 How to critically evaluate the marketing strategy
of an organisation?
 How do organizations establish their marketing
objectives?
 How the formulation of a marketing strategy
leads to a marketing mix?
 DETERMINING THE
MARKETING STRATEGY
• Strategy is determined by the market share and
the power that the organization desires
• Four market strategies:

• Leader – biggest market share, dominates the market so

strategy aims to maintain this domination
• Challenger – challenge the market leader
• Follower – strategy is to maintain balance within the market
• Nicher – Aims to maximize profit but not necessary market
share
L5-4
 Linking the Strategic Planning
Models (marketing implications)
5

Unit 2
PORTER’S GENERIC STRATEGIES

Porter (2004) argues that organizations can follow three

simple strategies:

• Differentiation – aims to differentiate from competitors

by offering a product with a value that customers are
willing to pay for.

• Cost Leadership –competes based on lowest cost

• Focus – tend to focus on establishing, maintaining and

enhancing long-term customer relationships by
tailoring their offering to a particular target group.
L5-6
 INNOVATION STRATEGIES

Strategies relies upon constant innovation of new

products to achieve a competitive advantage:

• Three types of innovation strategy:

• Pioneers – organizations that deliver the first-to-the-
market innovative products
• Close followers – organizations that quickly copy the
pioneer’s innovation and entry into the market
• Late followers – organizations that lack the resources to
be innovators and enter the market only when it is
financially feasible to launch a new product
L5-7
 GROWTH STRATEGIES

Typically, there are four approaches to growth:

• Horizontal integration – buying out competitors

• Vertical integration – buying out your suppliers / distribution
outlets
• Diversification – diversifying into new markets, often
unrelated to existing products
• Intensifications – focus on what the organization does best
and producing more of this, in differing formats

L5-8
 Putting All Together

◻ Introduction to Marketing Strategy

◻ How an Organisation creates competitive
advantages
- BCG, Porter’s 5 Forces models (internal environment)
- PESTEL (external environment)
◻ How an Organisation conducts a SWOT analysis
- SWOT analysis (internal & external environments)
◻ STP
◻ Developing the Marketing Strategy
 Workshop Activity
◻ Choose a brand in the industry (of your choice) and conduct
the following analysis in order to develop a clear marketing
strategy

◻ What are the key internal & external environmental factors

impacting its business?
◻ What are the key challenges and opportunities?
◻ What are its Unique Selling Points (USPs) and who should it
target?
◻ What are the generic strategies it should pursue & why?

Your findings will be used to produce a presentation in this

lecture’s workshop.
Marketing Strategy & Plan

The Marketing Strategy provide the strategic direction while

the Marketing Plan (ie 7 Ps of Marketing Mix) will support
the implementation:

• Product
• Price
• Place
• Promotion
• People
• Process
• Physical Evidence
L5-9
REFLECTIONS

Questions & Answers

L5-10
The BABM Programme
Unit 5
Marketing Strategy

MKT306 Module