Welcome

To
the course on
Strategic
Marketing
Management

Dr. R.Venkataraman

PhD in
Business
Administration
2015

MSc Logistics
2005

Malaysia

PGDBA
1971

R
T
BSc 1966

L
I
A

39 years in Logistics
industry
2 years in surface transport industry
20 years in the aviation industry.
17 years in the shipping industry.

(18 years in Singapore)

The beginning Tyre

sales
1967 - 1969

A knowledge
break
1969 -1971

1971

Manager
Madras
airport

Reservation
s manager

Manageme
nt trainee
1971

Country
Manager
Singapore
1991

1991 2014
Board member and Strategy adviser

STRAITS SHIP SERVICES PTE LTD

Singapore

Was admitted as Chartered Fellow

FCILT
BY

2007-2009
Director

Bangalore

Since 2009 Visiting faculty

@

Programmes
In Asia

Please
Bear With
me
If It was
too loud

Why do some organizations succeed

while others fail?
Strategy adopted
An action managers take to achieve one
or more of an organizations goals

Superior Strategic management

process
The process by which managers choose
a set of strategies that will allow a
company to achieve superior
performance
14

Marketing Strategy is ..
Where are we now?
Where do we want to go?

Businesses to be in
Market positions to stake out
Buyer needs and groups to serve
Outcomes to achieve

How will we get there?

A companys answer to how
will we get there? is its strategy

15

Firm-Specific Performance and

Profitability
Competitive advantage
A firms profitability is greater than the
average profitability for all firms in its
industry

Sustained competitive advantage

A firm maintains competitive advantage for
a number of years

Business model
Managements model of how strategy will
allow the company to gain competitive
advantage and achieve superior
profitability
16

THE INTER-RELATIONSHIP BETWEEN

MARKETING AND CORPORATE
STRATEGY

INFORMS
DIRECTS
GUIDES
CONTROLS

Corporate Strategy
Specifying the
organisations mission
Allocating resources
Defining Organisational
objectives

Marketing Strategy
Identifying product market/s to
compete in
Selecting market segments to
target
Developing the marketing mix

ACHIEVES
SUPPORTS
OPERATIONALISE

Corporate objective

OPERATIONAL vs STRATEGIC MARKETING

Operational Marketing
Action-oriented
Existing opportunities
Non-product variables

Stable environment

Reactive behaviour

Day-to-day management

Marketing department

Strategic Marketing
Analysis-oriented
New opportunities
Product market variables
Dynamic environment
Proactive behaviour
Longer range management
Cross-functional
organisation

The six Qs for creating a dynamic strategy.

Profitability rests on six solid answers to
these question
profitability

Who are our

customers
&
How do we serve
them

How do we define
our business and
the market

What is our
marketing mix
Growth
and Where is the Competition
life cycle of our
Alliances
product

What is our
leverage
cost-vis- vis price
and which market
segment will we
serve
How do we
execute our
marketing strategy
and how do we
measure it
20

Defining the Business is very

important for marketing strategy

Source: D. F. Abell, Defining the Business: The Starting Point of Strategic

Planning (Englewood Cliffs, Prentice Hall, 1980), p. 7.
21

Beyond
agri
busines
s

22

Business redefined

Haula
ge

23

24

Understanding competition and the

marketing warfare

Guerilla

Defense
Strategy

Position Defense
Least successful of the
defense strategies
e.g. Mercedes was using a
position defense strategy
until Toyota launched a
frontal attack with its
Lexus.

Defense Strategy

Mobile Defense
By market broadening and
diversification
For marketing broadening,
there is a need to
Redefine the business
(principle of objective), and
Focus efforts on the
competition (the principle
of mass)
e.g. Legend Holdings, the top
China PC maker Legend has
announced a joint venture
with AOL to broaden its
business to provide Internet
services in the mainland

Defense
Strategy

Flanking Defense:
Secondary markets (flanks)
are the weaker areas and
prone to being attacked
Pay attention to the flanks
e.g. Regional low cost
airlines

Defense
Strategy

Contraction Defense
Withdraw from the most
vulnerable segments
and redirect resources to
those that are more
defendable
By planned contraction
or strategic withdrawal
e.g. Indias TATA Group
sold its soaps and
detergents business
units to Unilever in 1993

Defense
Strategy

Pre-emptive Defense
Detect potential attacks
and attack the enemies
first
Let it be known how it
will retaliate
Product or brand
proliferation is a form of
pre-emptive defense
e.g. Seiko has over
2,000 models

Defense
Strategy

Counter-Offensive Defense
Responding to
competitors head-on
attack by identifying the
attackers weakness and
then launch a counter
attack
e.g. Toyota launched the
Lexus to respond to
Mercedes attack

Market
Challenger
Strategies

The market challengers

strategic objective is to
gain market share and to
become the leader
eventually
How?
By attacking the market
leader
By attacking other firms of
the same size
By attacking smaller firms

Market
Challenger
Strategies

Types of Attack
Strategies
Frontal attack
Flank attack
Encirclement attack
Bypass attack
Guerrilla attack

COMPETITIVE POSITION TACTICS

35

One needs look at the following

in solving business problems

Creativity -> Ideas -> Innovations -> Success -> Profits

Successful
marketing
strategy
37

 Cognitive
biases
Prior hypothesis bias
Escalating
commitment
Representativeness
Illusion of Control
Hubris hypothesis
38

There need to be a business plan that leads to the Marketing Plan

SCM
, ops
resources

39