20-05-2006

1st Lecture

Books:
• Strategic marketing management : David aaker, John wiley
• Marketing: Keegam, moriarty & Dunlan.

Concept – Business Strategy

“Plans are nothing, planning is everything.”

Business strategy specification: It includes the following

1. The product marketing in which the business is to compete.
2. The level of investment.
3. The functional area strategies needed to compete in the selected
product marketing.
4. The strategic assets and competencies.
5. Allocation of resources.

What is business strategy?

1. The product Market in which the business is to compete:

a. Products it offers and chooses not to offer.
b. Markets it seeks to serve.
c. Competitors it chooses to compete with
d. Level of vertical integration.
2. The level of investment: i.e. why are you investing or divesting
a. Invest to grow and expand the market
b. Invest only to maintain the existing market.
c. Milk the investment by minimizing investment.
d. Recover investment in assets by liquidity or divesting the
business.
3. Functional area strategies:
a. Product line strategy.
b. Community strategy.
c. Pricing strategy: For example Ranbaxy invest 15% of profit in
R&D, whereas TATA motors invest 8% in R&D.
d. Distribution strategy
e. Manufacturing strategy
f. Segment strategy and global strategy and internet.
 4. Strategic Assets and competencies that provide sustainable
competitive advantage (SCA).
a. Strategic Assets: it is a resource that is strong relative to
competitors
b. Strategic competence: it is something that business does
exceptionally well.
c. Strategic formulation: it must consider the cost and feasibility.

Strategic Marketing Management – Strategies and Trends.

1. External Market orientation : As opposed to

a. Internally oriented
b. Goal is to develop marketing driven strategies that are sensitive
to customers. Ex: intel launches every year new processor for
different types of customers.
2. Proactive strategies: To influence events in the environment rather
than being reactive.
3. Importance of the information system.
a. How information can be obtained efficiently and effectively.
b. How best it should be analysed, processed and store.
4. Knowledge management:
5. Online analysis and decision making
6. Entrepreneurial thrust
7. Implementation.
8. Global realities: Regarding different forms of competition
emerging in different countries.
9. Longer time horizon.
10. Empirical research
11. Interdisciplinary developments.

SOURCES OF INFORMATION GATHERING.

1. Internal database.
2. Market research
a. Primary data
b. Secondary data
3. Market intelligence.