Marketing function

and strategy
By: MOHD IZWAN BIN HASSAN
MOHD IZRUL BIN ABDULLAH
ZULHILMI BIN BAKAR

Definition of marketing
Marketing is a process of planning and executing conception,
pricing, promotion and distribution of ideas, goods and services
to create exchanges that satisfy individual and organizational
objectives
(The American Marketing Association, 1985)

Marketing can be defined as the actions of firm to plan and
execute the design, pricing, distribution and promotion of
products
(Madura, 2007)

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Functional Strategy
The approach a functional area takes to achieve
corporate and business unit objectives and strategies by
maximizing resource productivity

Key Goals
To achieve corporate and business unit objectives and strategies
by maximizing resources productivity
To develop and nurture a distinctive competence to provide a
company competitive advantages.

Functional Strategy
Objectives
1. Profitability- producing at a net profit in business
2. Market share- gaining and holding a specific share of a product
market.
3. Human talent- recruiting and maintaining a high-quality workforce.
4. Financial health- acquiring financial capital and earning positive
returns.
5. Cost efficiency- using resources will to operate at low cost.
6. Product quality- producing high-quality goods or services.
7. Innovation- developing new products and processes.
8. Social responsibility- making a positive contribution to society.

Marketing Strategy

Pricing
Selling
Distribution
Marketing Strategy
Product development
Line extension
Using a successful brand name to market other products
It is a good way to appeal to a companys current customers

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Marketing Strategy


Advertising and promotion
Push strategy
Spending a large amount of money on trade promotion in order to gain or
hold shelf space in retail outlets
Pull strategy
Advertising pulls the products through the distribution channels
A company will spend more money on consumer advertising designed to
build brand awareness so that shoppers will ask for the product

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Marketing Strategy
Pricing
Skim pricing
Penetration pricing
Dynamic pricing

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R&D Strategy Deals with product
and process innovation and
improvement
Technological leader
Technological follower
Open innovation
A new approach in which a firm uses alliances and connections with
corporate, government and academic labs to learn about new
developments

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Purchasing Strategy Deals with obtaining the
raw materials, parts, and supplies needed to
perform the operations function

Multiple sourcing
A purchasing company orders a particular part
from several vendors
Sole sourcing
Relies on only one supplier for a particular part
Just-in-time (JIT)
Having the purchased parts arrive at the plant just
when they are needed rather than keeping
inventories.

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Logistics Strategy Deals with the flow of
products into and out of the
manufacturing process
Centralization
Outsourcing
Internet

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HRM Strategy Addresses the issue of whether a company or
business unit should hire a large number of low-skilled
employees who receive low pay, perform repetitive jobs, and
most likely quit after a short time or hire skilled employees who
receive relatively high pay and are cross-trained to participate
in self-managing work teams


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Operations Strategy Determines
how and where a product or service
is to be manufactured
Job shop
Connected line batch flow
Flexible manufacturing systems
Dedicated transfer lines
Mass production
Continuous improvement system
Modular manufacturing

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Outsourcing errors
Activities that should not be outsourced
Wrong vendor selection
Writing poor contract
Overlooking personnel issues
Hidden costs of outsourcing
Failing to plan exit strategy
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Proposed Outsourcing Matrix

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Strategies to Avoid

3 Follow the leader
Hit another home run
Arms race
Do everything
Losing hand

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Growth Strategies --
External mechanisms

Mergers

Acquisitions

Strategic alliances

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Subjective Factors Affecting
Decisions --
Managements attitude toward risk
Pressures from stakeholders
Pressures from corporate culture
Needs and desires of key managers

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Strategic Choice

Avoiding the Consensus Trap --
Devils Advocate

Dialectical Inquiry

Evaluation of Strategic Alternatives --
Mutual exclusivity
Success
Completeness
Internal consistency

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