2. WHAT IS STRATEGY?
• The word “strategy” is derived from the greek word “stratçgos”; stratus (meaning army) and “ago”
(meaning leading/moving).
• Strategy is the blueprint of decisions in an organization that shows its objectives and goals, reduces the key
policies, and plans for achieving these goals, and defines the business the company is to carry on, the type of
economic and human organization it wants to be, and the contribution it plans to make to its shareholders,
customers and society at large.
• Features of strategy:
• It is significant because it is not possible to foresee the future. Without A perfect foresight, the firms must be ready
to deal with the uncertain events which constitute the business environment.
• Deals with long term developments rather than routine operations, i.e. It deals with probability of innovations or
new products, new methods of productions, or new markets to be developed in future.
• It is created to take into account the probable behavior of customers and competitors. Strategies dealing with
employees will predict the employee behavior.
3. WHAT IS STRATEGIC MARKETING CONCEPT
Strategic marketing as seen as a process consisting of:
• Analyzing environmental, market competitive and business factors affecting the corporation
and its business units
• Identifying market opportunities and threats and forecasting future trends in business areas of
interest for the enterprise
• Participating in setting objectives and formulating corporate and business unit strategies.
- PETER DRUCKER
4. ROLE OF STRATEGIC MARKETING:
• Which markets to compete in (where to compete).
• What the basis of the firm’s competitive advantage is going to be (how to compete), and
• When and how the firm will enter each market (when to compete)
5. THREE PHASES OF STRATEGIC MARKETING
PROCESS:
Planning phase : Analyzes internal strengths and weaknesses, external competition, changes in technology, industry culture shifts and
provides an overall picture of the state of the organization.
a) SWOT analysis:
b) Marketing program:
c) Set marketing and product goals:
d) Market-product focus and goal setting:
Implementation phase: The action portion of the process. If the planning was adequately and competently structured, then the
program can be put into effect through a sales forecast and a budget, using the following four components.
a) Obtaining resources
b) Designing marketing organization
c) Developing planning schedules
d) Executing the marketing plan
6. CONTD…
Evaluation/ control phase: the evaluation phase is the checking phase. This process
involves ensuring that the results of the program are in line with the goals set. A few
ways to evaluate the effectiveness of your marketing strategy include paying attention to:
a) Strategy versus tactic – strategy defines goals and tactic defines actions to achieve goals.
b) Measurable versus vague – have milestones that define when you’ve achieved your goals.
c) Actionable versus contingent – according to inc.Com: “A strategic goal should be achievable
through the tactics that support it, rather than dependent upon uncontrollable outside forces.”
d) Marketing strategy should be backed by a business plan with tactical moves to accomplish
goals, or it is useless.
7. WHAT IS THE STRATEGIC MANAGEMENT?
Strategic management is a continuous process:
• That evaluates and controls the business and the industries in which an
organization is involved
• Evaluates its competitors
• sets goals and strategies to meet all existing and potential competitors
• Then reevaluates strategies on a regular basis to determine how it has been
implemented and whether it was successful or does it needs replacement.
8.
9. SCOPE OF THE STRATEGIC MANAGEMENT:
• Defining business, stating a mission, & forming a strategic vision
• Setting measurable objectives
• Crafting a strategy to achieve objectives
• Implementing & executing strategy
• Evaluating performance, reviewing new developments, & initiating corrective
adjustments
10. BENEFITS OF STRATEGIC MANAGEMENT:
• There are many benefits of strategic management and they include
identification, prioritization, and exploration of opportunities.
• Financial benefits: it has been shown in many studies that firms that engage in
strategic management are more profitable and successful than those that do not
have the benefit of strategic planning and strategic management.
• Non-financial benefits: firms that engage in strategic management are more
aware of the external threats, an improved understanding of competitor
strengths and weaknesses and increased employee productivity.
