Group 2 Members:

 Shello Desales
 Mariane Bano
 Catleya Dagatan
 Reniel Lozañes
 Angel Faith Marcelo
 JoyMae Arcega
 Argem Nelmida
 Justine Ferraris

P9| Objectives
At the end of the chapter, the learners are able to:
1. Internalize the nature of strategy including its meaning, components and
hierarchy;
2. Develop corporate strategies in relation to marketing;
3. Critique business strategies in relation to marketing;
4. Diagnose the nature of marketing strategy;
5. Illustrate the implementation and control of marketing strategy; and
6. Design a marketing plan.
A marketing strategy is an explanation of the goals needed by a company to
accomplish its marketing efforts. It is shaped by the company's business goals and
objectives. Business goals and objectives plus marketing strategy should go hand-in-
hand. A marketing plan is how the company is going to attain those marketing goals
and objectives. It is the application of strategy, serving as a roadmap that will guide a
company from one point to another.
Strategy is the thinking and planning is the doing., However, most companies try to
set out to achieve the "how" (planning) without first knowing the "what" (strategy).
Time and money are both wasted in here. In marketing, it is vital to identify the
"what" first and then dig deeper into the "how".
THE NATURE OF STRATEGY
Strategy is derived from the ancient Greek word *strategos". Its plain translation
meant
"the general's art." In the past it referred chiefly to military affair of an overall nature
such as a major campaign or the general conduct of a war. The 1950's and 1960's
witnessed the word being applied to business operations by managers and
academics who had served in the United States (US) Army Air Force. v
In his 1955 work, The Practice of Management, Peter Drucker made the distinction
between tactical decisions and strategic decisions. Others such as Kenneth R.
Andrews, H.
Igor Assoff, Alfred D. Chandler and Michael Porter developed structures, approaches,
conventions and procedures for corporate strategy. Marketing strategy, too
developed during this period which standardized terms and concepts such as target
marketing and segmentation.
Although strategy first became a popular business catch word during 1960's it
continues to be subject of broadly differing definitions an interpretations. Strategy is
not a thing but rather an ongoing process. It is a way of thinking about a business, of
assessing its strengths, of
1

MARKETING MANAGEMENT
diagnosing its weaknesses, of envisioning its possibilities. The simplest definition of
strategy has been provided by Ohmae, a famous Japanese strategy guru who devised
The Strategic Triangle of 3C's, who sees strategy "as paying attention to customer
needs and avoiding direct competition". However, the definition by Walker, Mullins,
Boyd and Larrenche in their book Marketing Strategy: A Decision- Focused Approach
(2003) successfully describes the term as:
"A strategy is fundamental pattern of present and planned objectives, resource
develoments, and interactions of an organization with markets, competitors, and
other environmental factors"
It says that a strategy should always be able to specify:
1. What - Objectives to be accomplished
2. Where - As in, on which industries and product markets to focus
3. How - To allocate resources and activities, so as to meet environment
opportunities and threats in each product-market and also gain a competitive
advantage
Components of Strategy
Strategy is a design or plan for achieving a company's policy goals and objectives. It
settles on how the goals and objectives of a company are to be accomplished, the
operational units that will be used to accomplished them, and how would those
operational units be prepared. It is also strategy that decides what resources will be
necessary and how these resources will be obtained and employed to attain goals
and objectives of the company.
Strategy is therefore a design or plan that defines how policy is to be reached.
1. Scope - The scope of a company is the extensiveness of its strategic sphere such as
the number and types of industries, product line, and market segments it competes
in or pans to penetrate. Decisions about a company's strategic scope must mirror
management 's view of the organization's purpose or mission. This common line
among its different activities and product-market describes the fundamental nature
of its business is all about and what it should be.
2. Goals and objective - Strategies need also to specify preferred levels of
accomplishment on one or more facets of performance such as volume growth,
profit contribution, or return on investment over particular time frame for each of
those businesses and product-markets and for the entire company.
3. Resource deployments - Every organization has restricted financial and human
resources.
Formulating a strategy also entails coming to a decision how those resources are to
be acquired and apportioned, across businesses, product-markets, functional
departments, and activities in every business or product-market.
Identification of a sustainable competitive advantage - One vital part of any strategy
is a plan of how the company will participate in each business and product-market
within its industry. Another area of concern in strategy is how a company would
position itself to develop and maintain a differential advantage over present and
possible competitors. In order to do this, managers must study the market
opportunities in every business and
product-market and the company's unique competencies or strengths comparable to
its
competitors.
5. Synergy - Synergy is present when the company's businesses, product-markets,
resource deployments, and competencies balance and strengthen one another.
Synergy makes possible the overall performance of the related businesses to be
greater than it would otherwise be, in other words the whole turns greater than the
summation of its parts.
Hierarchy of Strategies
Most organizations do not have single comprehensive strategy any more these days.
In fact, hierarchy in strategies originated in 1920s, when some of the largest
companies in the United States began to diversify strategy. So, companies nowadays,
have a hierarchy of interrelated strategies, which are created at a different level of
the company. According to Walker et al. (2006), the three major levels of strategy in
most large, multiproduct organizations are:
1. Corporate strategy - The corporate strategies are managed by the corporate level,
which is the top level in any organization. Corporate managers are concerned with
the issues of entire company, and their decisions r actions influence all other
organizational levels.
2. Business level strategy - The business level consists of smaller units within the
whole organization that are commonly administered as self-contained businesses.
The idea behind this is to slice up a big and multifaceted company into smaller units
that can profitably operate like self-governing businesses. This the level at which
competition happens. In other words, business units typically compete against
competitor business units and not corporate levels.
3. Functional Strategies - The functional level comprises all the different functional
areas within a business unit. Most of the work of a business unit is completed in its
diverse functional units. Marketing forms a vital part of this level and therefore,
functional level is often also termed as marketing level. Marketing strategy, as a
functional strategy, can be subdivided into promotion, sales, distribution, pricing
strategies with each sub-function Strategy contributing to functional strategy.
CORPORATE STRATEGIES AND MARKETING
Often, corporate strategies and marketing strategies coincide or overlap. This is for
the reason that, opposing to popular belief, a key focus on marketing comprises the
strategic planning aspects of developing, pricing and distributing a product. The two
disagree when corporate strategy has less to do with profitability plans. L
The executive in management of a company must stay in close contact with their
marketing department to find out if any corporate strategies they desire to practice
support the company's marketing strategies. For instance, a corporate cost-control
strategy that consists of using most economical materials to make the company's
product may harm an expensive brand the business relies on to sustain its pricing,
distribution and brand strategies. If a fashionable women's shoe company buys a
bargain-brand women's footwear company, the marketing

department will almost certainly suggest that management not to merge the two
companies.
Instead let them operate in detach brands using centralized administrative services.
If the company is to combine the two and trade both products under the identical
name, it would puzzle consumers and harm both brands.
What is Corporate Strategy?
Corporate strategy focuses primarily on profitability. Corporate strategies include
creating on organizational structure, debt reduction to improve the company's
balance sheet, diversifying the product or service line to increase profits or decrease
dependence on one product, merging with or buying another business to create
economics of scale, accessing new technology and increasing sales volume, reducing
overhead costs to increase profit margin, retooling to decrease production costs and
reducing overall operating expenses.
Creating a company strategy is the final step in this process. Defining the vision and
mission is critical before starting on strategic elements. Nothing will the strategy
achieve without any company mission. In addition to the mission is the embodiment
of the vision.
Some organizations put additional steps between forming the vision and mission and
creating the strategy. For example, many choose to create an overall list of
objectives and goals first, and then to use those as the basis for their company
strategy.
A company strategy should include short- and long-term goals and should explain
how those goals will be achieved it is focused on present actions and outcome
needed to move closer to achieving the mission. Company strategy evolve and are
updated over time to adjust current factors such as local economic conditions and
company needs.
Corporate Mission
An organization exists to accomplish something such as to make cars, lend money,
provide a night's lodging, and so on. The company's specific mission or purpose is
usually clear when the business starts. Over time the mission may change, to take
advantage of new opportunities or respond to new market conditions. Amazon.com
changed its mission from being the world's largest online bookstore to aspiring to
become the world's largest online store.
Similarly eBay changed its mission from running online auction for collectors to
running online auctions covering all kinds of goods.
A corporate mission traditionally acted as a way to tell potential shareholders and
investor more about a company and its purpose. It is also used by leaders
throughout the organization. However, nowadays it is as much a statement for
employees and customers.
Mission statements allows companies to define and establish their brand, telling the
reader precisely what the company does and how in as concise and specific way as
feasible.
Mission should be concrete and include goal-oriented language. It should include
measurable objectives. Every person within the organization can evaluate whether
his own

activities will serve to help the company achieve its mission. The mission combines
forward thinking with present goals. It may be modified over time, but should always
stay true to the company vision and values.
Examplt gicture
Table 1 Example Mission Statements of Philippine Companies
Company
Philippine Long
Distance Telephone
Co. (PLDT)
Cebuana Lhuillier
Philippine National
Bank (PNB)
Bench
MERALCO
Mission Statements
PLDT will be preferred full service provider of voice, video and data at the most
attractive level of price, service quality, content and coverage, thereby bringing
maximum benefit to the Company's stakeholders.
To enable more Filipinos to have access to financial solutions.
We are a leading dynamic Filipino financial services group with a global presence
committed to delivering a whole range of quality products and services that will
create value and enrich the lives of our customers, employees, shareholders, and the
communities we serve.
When we create, we inspire, When we make, we innovate, When we lead, we serve.
Our mission is to provide our customers the best value in energy, products and
services.
Defining the Corporate Mission
A mission statement is a statement of the organization's reason for being, its
purpose
or what it wants to achieve in the largest environment. It explains why the
organization does what it does. It says what, in the end, the company wants to be
remembered for. A clear mission statement acts as an invisible hand that guides
people in the organization.
An effective statement clearly defines who the customer is and what services that
products the business intends to offer. It also serves as a direction for day-to-day
operations and as the foundation for future decision-making.
Good mission statements have three major characteristics:
Mission statements focus on a limited number of goals. The statement, "We want
produce the highest-quality products, offer the most service, achieve the widest
distribution, and sell at the lowest prices" says too much.
2.)
Mission statements highlight the company's major policies and values. They taper
the range of individual discretion so that employees act consistently on important
issues.
3. Missions statements defined the major competitive spheres within which the
company will operate:
a. The range of industries in which a company will operate - Some companies will
operate in only one industry. Several others only in a set of related industries. A few
of them only at industrial goods, consumer goods, or services. While various
companies take part in any industry. For example, Jollibee foods prefer to be active
in the food market. Whereas Metro Specific Investment Corp is operating in the
infrastructures and power distribution markets. San Miguel Company gets into
almost any industry where it can make money as being one of the Philippines' largest
and most diversified conglomerates.
b.
The range of products and applications a company will supply - the mission/vision of
De La Salle University is "a leading learner-centered and research university bridging
faith and scholarship, attuned to a sustainable, specially the poor and marginalized".
c.
The range of technological and other core competencies that a company will master
and leverage - Cherry mobile has built its core competencies in product portfolio that
ranges from smartphone, feature phones, and tablet computers. Cherry Mobile is a
Philippines-based mobile phone maker founded in 2008. The smartphone company
imports phones from china and sells them under its brand. Cherry mobile partnered
with Google to become one of the first companies to launch the Android one
initiative in Philippines.
The type of market or customers a company will serve- For example, Enfant serves
primarily the baby market.
The number of channel levels from raw material to final product and distribution in
which a company will participate - At one are companies with a large vertical scope.
Del Monte is one of the world's leading vertically integrated producers, marketers
and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a
leading producer and distributer of prepared fruit and vegetables, juices and
beverages and snacks. It has its own vast field of pineapples covering around 9000
hectares of land in Manolo Fortich, Bukidnon. At the other end are hollows
corporations or pure marketing companies consisting of a person with a phone, fax,
computer, and desk who contracts out for every service, including design,
manufacture, marketing, physical distribution.
The range of regions countries, or country groups in which a company will operate in
a specific city or state. For instance, in 1988 Cebuana huillier, one of the strongest
financial services companies, started its operation only in Cebu. In another end, it
could operate in numerous places. A good example is Bank of the Philippine Island
(BPI). Having been established in 1851, BPI is known as the first bank in the
Philippines and in the southeast Asian region. It has a network of 825 branches in the
Philippines, Hong Kong, and Europe.
The mission statement should be brief, express the organization's purpose in a way
that inspires support and ongoing commitment, set the tone of the company, and to
outline tangible goals. A good mission statement answers several key questions
about the business such as:
1. What are the opportunities or needs that the company addresses?
2. What is the business of the organization? How are these needs being addressed?
What level of service is provided?
What principles or beliefs guide the organization?
Find answer

Elements of the Mission Statement

According to Mintzberg,
"a mission statement describes the organization's basic function in
society, in terms of the products and services it produces for its customers".
What should a good mission statement contain? A clear business mission should
have each of the following elements:
VI. A purpose - Why does the business exist? Is it to create wealth for shareholders?
Does it exist to satisfy the needs of all stakeholders including employees, and society
at large?
2. A strategy and Strategic Scope - A Company's strategic scope defines the
boundaries of its operations. These are set by management. The decisions
management make about strategic scope define the nature of the business. A
mission statement provides the commercial logic for the business and so defines two
things.
a. The Products or services it offers and its competitive position
The competences through which it tries to succeed and its method of competing
Policies and standards of behaviour - A mission needs to be converted into everyday
actions. For illustration, if the business mission includes delivering " outstanding
customer service", then policies and standards should be formed and monitored that
check delivery.
These might consist of monitoring the speed with which telephone calls are answer
in the sales call center, the number of complaints received from customers or the
extent of positive customer feedback via questionnaires.
4. Values and culture - The values of a business are the fundamental, frequently
implicit, beliefs of the people who work in the business.
These would comprise:
a. Business principles - social policy, commitments to customers
b. Loyalty and commitment - employees inspired to sacrifice their personal goals for
the good of the business as a whole; does the business demonstrate a high level of
commitment and loyalty to its staff.
c. Guidance on expected behaviour - a strong sense of mission helps create a work
environment where there is a common purpose
Figure 2 Elements of the Mission Statement
Example gictur
Purpose
Why the business exists

Figure 2 Elements of t he Mission Statement

- Purpose: Why the business exists
- Values: What management believes in
- Standards and Behaviours: The rules that guide how the business operates
- Strategy and Scope: What business and how

1o watch
MARKETING MANAGEMENT
Source: www. tutor2u. net/business/reference /marketing-planning-what-is--a-
mission-statement
What role does the mission statement play in marketing panning? In practice, a
strong mission statement can help in three main ways:
It provides an outline of how the marketing plan should seek to fulfil the mission.
It provides a means of evaluating an screening the marketing plan; marketing
decisions must be consistent with the mission.
3? It provides an incentive to implement the marketing plan.
Characteristics of a Mission
Organizations legitimize themselves by performing some function that is valued by
society.
A mission statement defines the basic reason for the existence of that company.
Such a statement reflects the corporate philosophy, identity, character, and image of
an organization. It may be defined explicitly or could be deduced from the
management's actions, decisions, or the chief executive's press statements. When
explicitly defined, it provides enlightenment to the insiders and outsiders on what
the company stands for. In order to be effective, the following characteristics of
mission statement need to be resent in an organization:
1. It should be feasible. A mission should always aim high but it should not be an
impossible statement. It should be realistic and achievable; its followers must find it
to be credible.
Except that feasibility depends on the resources available to work towards a mission.
"To serve great tasting food, bringing the joy of eating to everyone" is the mission of
Jollibee ever since it started in 1975. It was a feasible mission even having great
competition with world player then McDonalds. It was not hard for Jollibee to
ultimately realize this mission because f having tight control over operations
management, which allowed it to rice below its competitor and having the flexibility
to cater to the tastes of its local consumers.
It should be precise. A mission statement should not be so narrow as to restrict the
company's activities. Nor should it be too broad to make itself meaningless, For
instance,
"Manufacturing motorcycles" is a narrow mission statement since it severely limits
the company's activities into producing such product only. While "mobility business"
is too broad a term, as it does not identify the reasonable outline within which the
company could operate.
3. It should be clear. A mission should be clear enough to lead to action. It should not
be a hyperbolical set of clichés mean for promotion purpose. Many companies do
espouse such statements. However, most likely they do so for emphasizing their
identity and character.
For example, the mission of Facebook which is "to give people the power to share
and make the world more open and connected "gives a clear description of what is
does.
4. It should be motivating. A mission statement should motivating for members of
education and of society, and they should feel it meaningful working for such a
company or being its customers. A bank, which lays great emphasis on customer
service, is likely to motivate its employees to serve its customers well and to attract
clients. Customer service therefore is an important purposeand responsibility for a
banking institution. The bank of the Philippine Island (BPI) Credo represent this
institution as it says:

MARKETING MANAGEMENT
"We believe our first responsibility is to our clients. If we understand and address
our clients' financial needs, we will be trusted with their most important
transactions, and we will build lasting relationships. We do well when our clients do
well.
We believe in our responsibility to our people. We seek to hire the best people for
each job provide them with the means to perform at a high level and reward them
fairly. We value integrity, professionalism, and loyalty. We promote a culture of
mutual respect, meritocracy, performance, and teamwork. We strive to be the
employer of choice among Philippine financial institutions.
We believe in our responsibility to our shareholders. We treat capital as a most
valuable asset, and seek to generate superior returns while being prudent in risk
taking. spending and investment.
We believe in our responsibility to our country. Our prosperity is greatly dependent
on the well-being of our nation. We aim to be inclusive and responsible in nation
building.
Through BPI Foundation, we are committed to the welfare and sustainability of the
communities we serve."
5. It should be distinctive. A mission statement, which is indiscriminate, is likely to
have little impact. Starbucks for years has created an important distinction in the
public mind with its mission of "to inspire and nurture the human spirit one person,
one cup and one neighborhood at a time."
6. It should indicate major components of strategy. A mission along with the
organizational purpose should indicate the major components of the strategy to be
adopted. "Empower Filipinos everywhere with customer-focused digital innovations
that unlock and share their infinite potential" is the mission of Philippine Long
Distance Telephone Co. (PLDT). This statements indicates that the is likely to follow a
combination of innovation and growth strategies in the future.
It should indicate how objectives are to be accomplished. A mission statement
should indicate the broad strategies to be adopted. It must also provide clues
concerning the approach in which the objectives in which are objectives to be
achieved. Within a given time period.
Missions may need to be revised every few years in response to every new twist in
the economy. A company must redefine its mission if that mission has lost credibility
or no longer defines the best possible path for the company. Without the mission
statement, a company is mislaid, and will float in the proportion to the pressures of
the business environment. The basic problem, known as mission creep, has been the
diffusion of focus. This is the inclination of successful organizations to attempt to
extend their influence away from the limits of their core capability.
Corporate Vision
A company vision seeks to outlet where the company is headed and what values are
guiding that journey. It tells the company's purpose by focusing on the future and
what organization exist to accomplish.
MARKETING MANAGEMENT
The vision statement should not need revising often. It is the foundation of the
company's core beliefs. A lot of companies choose to list their vision statement.
Purposely, if this is the direction, the list ought to be short and easy to communicate
with at most five items. This deep-rooted core values must be constant all
throughout the company, since often it influences the company culture and
expectations, further they should be independent on the current profit level, sales
cycle and business climate.
A vision statement can be written as simple as a single sentence or can be lengthy as
a short paragraph. All effective vision statement describe the center principles that a
provide a business form and direction despite individual details and nuances. Vision
statement also provides a powerful means to and direct employees.
Example Picture
Table 2 Example Vision Statements of Philippine Companies
Company
Philippine Long
Distance Telephone
Co. (PLDT)
Cebuana Lhuillier
Vision Statements
Lead and inspire Filipinos to create a better tomorrow.
Philippine National
Bank (PNB)
To be the best and preferred micro-financial and business-to-business solutions
partner with a heart.
To be the most admired financial services organization in the country in terms of:
1. Financial performance - rank #1 or #2 in its business in terms of return on equity
2. Innovativeness - in products, services, distribution and the use of cutting-edge
technology
3. Customer perception a.
The preferred financial services provider
b.
The customer-centered organization with a passion for services excellence
4. Social responsibility - the employer of choice, a good corporate citizen and partner
in nation building
5. Long-term vision - developing competitive advantage on a sustained basis by
anticipating changes in customer's preferences and in the manner of doing business
To be a recognized world brand among the best world brands.
Our vision is to be a world-class company and a service provider of
Bench
MERALCO
Here are a few common rules that pretty much all good vision statement should
follow:
It should be short with two sentences at an absolute maximum. It is fine to expand
on the vision statement with more detail, but must be a version that is punchy and
easily memorable.
MARKETING MANAGEMENT
2. Need to be specific to the business and describe a unique outcome that only the
company can provide. Generic vision statements that could apply to any organisation
would not cut it.
3. Do not use words that are open to interpretation. For instance, writing the vision
such as to "maximize shareholder return" does not actually mean anything unless
specify what it actually looks like.
4. Keep it simple enough for people both inside and outside the organization to
understand.
No technical jargon, no metaphors and no business buss-words if at all possible.
It should be ambitious enough to be exciting but not too ambitious that it seems
unachievable. It is not really a matter of time-framing the vision, because that ill vary
by organization, but certainly anything that has a timeframe outside of 3 to 10 years
should be challenged as to whether it is still appropriate.
6
It needs to align to the values that a company wants its people to exhibit as they
perform their work. Once values are created later on, the company should revisits its
vision to see how will they stick together.
Corporate Objectives
Setting up the objective is the first task done by the marketing managers. For
running a successful marketing campaign, it is very essential that what the team is
going to do. Here the making the right decision is the key to achieve the goal.
Managers should do SWOT analysis and then what requires to develop the present
market or how to increase the present value of the company. Then everything
should go through in a proper way by the analysis and make the objectives from the
requirements or opportunities from the above analysis.
Marketing objectives set out what a business wants to achieve from its marketing
activities. They need to be consistent with overall aims and objectives of the
business. They also need to be consistent with the purpose of marketing. What
makes a good marketing objective? It is often said that an effective marketing
objective meets the SMART criteria:
Table 3 SMART Objectives
Example ple pr
S
SPECIFIC
Detalls exactly what you needs to be done

MEASURABLE
Achlevement or progress can be measured

Marketing objectives set out what a business wants to achieve from its marketing
ies. They need to be consistent with overall aims and objectives of the business. They
eed to be consistent with the purpose of marketing. What makes a good marketing
ve? It is often said that an effective marketing objective meets the SMART criteria:
Table 3 SMART Objectives
Example
SPECIFIC
Detalls exactly what you needs to be done

MEASURABLE
Achlevement or progress can be measured
A ACHIEVABLE
REALISTIC
TIMED

MARKETING MANAGEMENT
some examples of marketing objectives which meet these criteria would:
1. To increase company sales by 25% by 2018.
2. To attain a market share Of 30% for Product C within 3 years of launch.
3.
Richure tre
To increase the percentage of customers who rate service as "excellent " from 80%
to 85% within 18 months.
Through applying this SMART formula to the inbound marketing strategies a
company will be able to form marketing objectives that are not only within reach but
also gainful.
Benefits of Setting Marketing Objectives.
There are lot of important benefits from having and monitoring progress against
objectives.
Relevant and achievable objectives place real direction to competing in the business
world.
Marketing objectives provide a planned and focused direction when things begin to
get rough.
Having clear marketing objectives keep the business right on course regardless of
what will happen.
For most people, the terms goal and objective are identical. While they are very
much related, there is a distinct distinction between the two. A goal takes on a much
broader view and is typically the focus of the primary outcome. An objective, on the
other hand, is a step that may be taken to reach that goal. An easy approach to look
at it is for instance the goal may be to establish a business as an industry leader in its
field. Its objective may be to gain a definite percentage of the market share. The
marketing objective should be designed to support the specific company's goals for
the future.
Here are some benefits of setting marketing objectives:
1. Marketing objectives are vital to marketing success
2. Enable a company to control is marketing plan
3. Provide a way to measure company's progress
4. Set out what a company wants to achieve from its marketing activities.
5. Help a company to develop products and services that meet the needs of target
market
Competitive Advantage
A competitive advantage is a gain over competitors achieved by offering consumers
greater value, either by means of lower prices or by providing greater benefits and
service that justifies higher prices. It is a set of unique features of a company and its
products that are perceived by the target market as significant and superior to the to
the competition. It is the reason behind brand loyalty, and why customers prefer one
product or service over another.
Competitive strategy concerns how to form competitive advantage in each of the
businesses in which concerns how to form competitive advantage in each of the
business in which the company battles. Corporate strategy concerns two different
questions, namely what business the corporation should join and how the corporate
office should deal with the range of business
13

units there are different types of competitive advantages that companies can
actually use, which could be in the form of:
Cost competitive advantage - it is when a company is able to utilize its skilled
workforce. inexpensive raw materials, controlled costs, and efficient operations to
create maximum value to consumers. Pure gold uses the cause advantage strategy
through offering a very big
Costs can be kept at a minimum in numerous different means. Some companies, like
Hapee Toothpaste, have years of experience manufacturing toothpastes in a very
cost-effective manner, other companies make use of offshore manufacturing to keep
the cost of their products down. The current trend is for companies to cut down on
the extras they offer to customers. For instance, the airline company Cebu Pacific is
continuing their strategy of "unbundled fares" and cutting out frills, like in-flight food
service and drive down ticket costs. This maybe an intense method of cost cutting;
however companies need to endure in a recession. Companies may also receive
government subsidies, which help to pass on lower costs on to their customers.
There are a few other important ways used by technical companies that cost can be
kept lower to use as cost competitive advantage, such as:
a.
Product design - this is important to companies that utilized advanced technology.
Through constantly improving products design that make use of technology
advancements, Intel is able to remain microchip processor prices low.
b. Reengineering- This is use by companies that are capable to slash costs by means
of redesigning and creating improvements to their products, for instance Apple. A
company that discovers ways to make its technology better and more reasonably
priced will become successful.
New delivery method- this is created by some companies for their product or
service, resulting in great cost savings that they are able to share with their
customers.
Nowadays, many airline companies have installed self-check-in kiosks and
supermarkets that offer self-checkout lanes.
2. Product/service differentiation- This is another way that companies can have a
competitive advantage in the marketplace. This is offering a unique product or
service. If a company's product or service has a valuable, exceptional and inimitable
offering for its consumers, then loyalty and product/ service differentiation can take
place. With the introduction of a new competitor or new technology, cost
competitive advantages can simply vanish. It is very difficult to sustain an edge in the
market founded on price only. The company must present something to the
consumer further than just a low price.
Corporate Growth Strategies
All companies have plans to grow their business and increase sales and profits.
However. there are certain methods company uses to expand its business is largely
contingent upon its financial situation, the competition and even government
regulation. Some common growth strategies in business include the following:
14

Intensive Growth Strategies- intensive growth is when a company grows by

expanding its product line or its market reach. Thus, if a company introduces a new
product, enters a new market, or further develops its own competency, than the
business is undergoing intensive growth. Intensive growth strategies are likely to
help the firm grow in the market faster and make the company stronger.
a. Market Penetration- One growth strategy is market penetration. A company uses
a market penetration strategy when it decides to market current products within the
same market it has been using. This is a least risky growth strategy for any company
which needs just to simply sell more of its current product to its current customers,
it is a strategy perfected by large consumer goods companies. Looking for new ways
for customers to use a product such as turning baking soda into a deodorizer for
refrigerator is a form of market penetration.
Market Development- This strategy is to devise a way to sell more of current product
to an adjacent market. This means offering a product or service to customers in
another city or province, for instance. New users can be found in new geographic
segments, new demographic segments, new institutional segments or new
psychographic segments. A company have to use various promotional tactics as well
as implement a marketing strategy to cover the new market. Many of the great fast-
growing companies of past few decades relied on market development as their main
growth strategy, For example, when Jollibee Food Corp made an aggressive
international expansion in China, Thailand, USA, Vietnam, Hong Kong, Saudi Arabia,
Qatar and Brunei, it made use of market development as strategy.
С.
Alternative Channels- This growth strategy involves pursuing customers in a different
way such as selling products online. A lot of companies particularly those belonging
to the apparel are now selling through the Internet, so they are adopting this type of
strategy. Using the internet as a means of customers to access products or services
in a new way, like adopting a rental model or software as a service, is another
example.
Product Development- A classic strategy, it involves developing new products to sell
to both current and new customers. Given a choices, a company would ideally like to
sell its new products to current customers. That is because selling products to
current customers is far risky.
е.
Diversification - intensive growth strategies in business also include diversification,
where a company will sell new products to new markets. A company will need to
plan carefully when using this strategy. marketing research is essential because a
company will need to determine if consumers in the new market will potentially like
the new products. A good example of a diversified company in the Philippines is San
Miguel Corporation (SMC). SMC is among the largest and most diversified Philippines
conglomerates. Its wide range of business include beverages, food, packaging, fuel
and oil, infrastructure, mining, real state and aviation.
Integrative Growth Strategies - integrative growth strategy is used for growth in
which a company acquires some other element of the chain of distribution of which
it is a

MARKETING MANAGEMENT
member. Integration strategies such as mentioned below are used to cross-train
management and employees, reduce ineffective communication and cut supplier
costs.
Strategies Corporate Resources
These are the corporate resources that a business needs to put in place to pursue its
chosen strategy. business resources can usually be grouped under several
categories:
1. Financial Resources - financial resources concern the ability of a business too
finance its chosen strategy. for example, a strategy that requires significant
investment in new products, distribution channels, production capacity and working
capital will place great strain on the business finances. Such a strategy needs to be
very careful ly manage from a finance point-of-view. An audit of a financial resources
would include assessment of the following factors: a.
Existing finance funds
і.
Cash balances
i i.v
Bank overdraft
Bank and other loans
Shareholders' capital
v.
Working capital (e.g. stocks, debtors) already invested on the business
vi.
Creditors (suppliers, government)
b.
Ability to raise new funds
і.
Strength and reputation of the management team and the overall business
її.
iii.
Strength of relationships with existing investors and lenders
Attractiveness of the market in which the business operates (i.e. is it a market that is
a attracting investment generally?)
IV.
Listing on a quoted Stock Exchange? If not, is the realistic possibility?
2. Human Resources - the heart of the issue with human resources is the skills-base
of the business. What skill that the business already possess? Are they sufficient to
meet the needs of the chosen strategy? Could the skills-base be flexed / stretched to
meet the new requirements? An audit of human resources would include
assessment of the following factors:
a. Existing staffing resources
Numbers of staff by function, location, grade, experience, qualification,
remuneration
ії.
iii.
iv.
Existing rate of staff loss ("natural wastage")
Overall standard of training and specific training standards in key roles
Assessment of key intangible such as morale, business culture
Changes required to resources
і.
What changes to the organization of the business are included in the strategy (such
as change of locations, new locations new products)?

MARKETING MANAGEMENT
ії.
іїї.
What incremental human resources are required?
How should they be sourced? (alternatives, include employment, outsourcing, joined
ventures and others)
Physical Resources - the category of physical resources covers wide range of
operational resources concerned with the physical capability to deliver a strategy.
these include:
a. Production facilities
Location of existing production facilities; capacity; investment and maintenance
requirements
ії.
ili.
Current production processes - quality; method and organization
Extent which production requirements of the strategy can be delivered by existing
facilities
b.
Marketing facilities
Marketing management process
ії.
Distribution channel
Information technology
IT systems - integration with customers and suppliers
BUSINESS STRATEGIES AND INFORMATION
The decisions a company makes on its way to creating, maintaining and using
competitive advantages are business-level strategies. After evaluating the company's
product line, target market and competition, a business owner can better identify
where his competitive advantages line. A company, for example, might find that it
cannot compete on price; larger corporation often enjoy economies of scale that
keep costs low. Instead, a small business would choose a differentiation strategy,
emphasizing freshness, quality ingredients or some other attribute consumers will
value highly enough to pay extra. Business strategy will affect the small company's
functional decisions such as the selection on its of its promotions and distribution
channels.
A company's relative position within its industry decides whether a company's
profitability is above or below the industry average. The fundamental foundation of
above average profitability in the long run is sustainable competitive advantage.
a suggested four generic business strategies that could be adopted in order to
achieve competitive advantage. The strategy relates to the extent to which the scope
of a company' activities are narrow versus broad and the extent to which a business
seeks to differentiate its products.
The differentiation and costs leadership strategies seek competitive advantage in a
broad range of market or industry segments. By contrast the differentiation focus
and cost focus strategies are adopted in a narrow market or industry.

The strategies that porter suggested are fitting to seek competitive advantage are
summarize in the figure below:
Figure 4 Porter's Generic Strategies
Competitive advantage
Lower Cost
Differentiation
Competitive Scode
Broad
Target
1. Cost leadership
2. Differentiation
Narrow Target
3a. Cost Focus
3b. Differentiation
Focus
Source: http://www.ifm.eng.cam.ac.uk/research/dstools/posters-generic -
competitive-strategies/
Cost Leadership
Using the cost leadership as strategy, the objective is to become the lowest-cost
producer in the industry. The conventional way to achieve this objective is to
produce on a large scale which enables the business to exploit economies of scale.
Cost leadership potentially is so important. Many or perhaps all market segments in
the industry are supplies with the weight placed on minimizing costs. If the achieved
selling price can at least equal or nearly the average for the market, then the lowest-
cost producer will supposedly benefit from the best profits. This strategy is typically
related with large-scale business offering standard products with somewhat little
differentiation that are willingly acceptable to the majority of customers. Rarely a
low-cost leader will also discount its products to maximize sales, particularly if it has
a significant cost advantage over the competition. In doing so, it can further increase
its market share.
A strategy of cost leadership needs close cooperation between all the functional
areas of a business. In order to be the lowest-cost producer, a company is possible to
be achieve or use several of the following:
1. high levels of productivity
2. high capacity utilization
3. apply of bargaining power to bargain the lowest prices for production inputs
4. lean production method such as JIT
5. effective application of technology in the production process
6. access to the most effective distribution channels
18

7. access to the capital needed to invest in technology that will bring costs down
8. very efficient logistics
Puregold has been successful using its strategy of everyday low prices to draw
customers. The thought of everyday low prices is to offer products at a cheaper rate
than competitors such as Save More and Shopwise on a constant basis, rather than
relying on sales. Puregold is able to achieve this due to its large scale and efficient
supply chain.
They source products from cheap domestic suppliers and from low-wage foreign
markets. This allows the company to sell their items at low prices and to profit off
thin margins at a high volume.
Cost Focus
Cost focus exploits differences in cost behavior in some segments. Here a business
seeks a lower-cost advantage in just one or a small number of market segments.
Simply, in this the focuser concentrates on a narrow buyer segment and out-
competes rivals on the basis of lower cost.
The product will be basic. It is perhaps a similar product to the higher-priced and
featured market leader, but acceptable to sufficient consumers. Such products are
often called "me-too's".
Another important point is that the nature of the narrow target market varies across
firms that use a cost focused cost leadership strategy. in some cases, the target
market is defined by demographics. Zagu, for example, seeks to appeal to shoppers
of groceries and supermarkets.
Zagu's used of a focused cost leadership strategy has been very successful. The
company
today has150 outlets nationwide, where 50% of which are franchised outlets.
In other cases, the target market is defines is defined by the sales channels used to
reach customers. Most pizza shops offer sit-down service, delivery, or both. I
contrast Lot's A Pizza's sells pizzas that are all take-out. It is the only Pinoy style pizza
to provide the best value for money offers to a young budget conscious urbanite that
prefers out offering in order to feel rewarded and satisfied. This business model is
possible because Lot's A Pizza does not offer indoor seating to its customers. Its
utility cost are lower, and fewer employees are needed. This savings allow the
company to offer tasty pizzas at very low prices and still remain profitable.
Differentiation Leadership
Using the differentiation leadership, the business targets much larger markets and
aims to attain competitive advantage across the whole of an industry. This strategy
involves choosing one or more decisive factors used by buyers in a market and then
positioning the business uniquely to meet those factors. This strategy is typically
coupled with charging the premium price for the product. This is frequently to reveal
the higher production costs and extra value-added features afforded for the
consumer.

Differentiation is about charging a premium price that more than covers the
additional production costs and about providing customers obvious reasons to desire
product over other, less differentiated products. There are several ways in which this
can be achieved, though it is not simple and it needs sizeable and continuous
marketing investment. The methods include:
1. superior product quality that includes features, benefits, durability, reliability
2. branding that consist of strong customer recognition and desire, brand loyalty
industry-wide distribution across all major channels, meaning the product or brand is
an essential item to be stocked by retailers
4. good research, development and innovation
5. effective sales and marketing, so that the market understands the benefits offered
by the differentiated offerings
A great example of a differentiation leadership include global brand Mercedes. The
dedication of Mercedes-Benz to cutting-edge technology, styling, and safety
innovation has made the company's vehicles prized by those who are rich enough to
afford them. This appeal has existing for many decades. In 1970, acid-rocker Janis
Joplin recorded a song called
"Mercedes Benz" that highlighted the automaker's magnetism. Since then
Mercedes-Benz has used the song in numerous television commercials, including
during the 2011 Super Bowl. Its business and brand are built on convincing
customers to turn into brand loyal and paying a premium for its product.
Differentiation focus
In the differentiation focus strategy, a business aims to differentiate within just one
or a small number of target market segments. The special customer needs of the
segment mean that there are opportunities to provide products are clearly different
from competitors who may be targeting a broader group of customers.
For important issue for any business adopting this strategy is to ensure that
customers really do have different needs and wants - in other words that there is a
valid basis for differentiation - and that existing competitor products are not meeting
those needs and wants.
Differentiation focus is the classic niche marketing strategy. Many small businesses
are able to establish themselves in a niche market segment using this strategy
achieving higher prices than un-differentiated products through specialist expertise
or other ways to add value for customers.
There are many successful examples of differentiation focus. A good one is Kopi
Luwak.
When it comes to uniqueness, few offerings can stop Kopi luwak coffee beans. High-
quality coffee beans often sell for $10 to $15 a pound.in contrast, Kopi Luwak coffee
beans sell for hundreds of dollars per pound. This price is driven by the rarity of the
beans and their rather peculiar nature. These beans are found in the droppings of
the civet, a nocturnal, furry, long-tailed catlike animal that prowls Southeast Asia's
coffee-growing lands for the tastiest, ripest
20

MARKETING MANAGEMENT
coffee cherries. The civet eventually excretes the hard, indigestible innards of the
fruit, omain acts are ofe a pa Treat on ate they have on, crocoa in trevin te
any bitter aftertaste.
Although many consumers consider Kopi Luwak to be disgusting, a relatively small
group of coffee enthusiasts has embraced the coffee and made it a profitable
product. This illustrates the products the essence of a focused differentiation
strategy; effectively serving the specialized needs of a niche market create great
riches.
Adaptive Strategies and the Environment
The market perspective on strategy suggests that a major focus of strategic decision-
making is how best to guarantee an effective fit between organization and its
environment.
However, that fit is not fixed. The challenge is constantly to keep an eye on and
forecast changes in the business environment and to adapt the organization and its
strategy accordingly.
Miles and Snow's adaptive strategies approach is based on the strategies that
organizations use to successfully adapt to their uncertain competitive environment.
They identify four strategic postures which are prospector, defender, analyzer, and
reactor.
Defender Strategy
Organizations applying a defender strategy endeavor to shield their market from
new competitors. As consequence of this narrow focus, these organizations rarely
require to make key adjustments in their technology, structure, or methods of
operation. As a substitute, they allot primary attention to improving the efficiency of
their current operations. This cost efficiency orientation makes them not likely to
innovate in new areas. Defenders can be successful especially when they exist in a
declining industry or a stable environment.
Defenders are less pro-active, and can be seen as being protection oriented, seeking
stability by maintaining current market positions and defending against disturbance
by other companies. Defenders, unlike prospectors, engage in little or no new
product or market development. Their strategic actions seek to preserve market
share by minimizing the impact of competitor's initiatives. BIC Corporation used
defender strategies, despite its history as an innovative company (the original BIC
"crystal" and the BIC "biro" pen were significant innovations in the writing
instruments industry). Since the late 1970's, with the maturity of the market for
writing instruments, BIC has adopted a less aggressive, less entrepreneurial style of
management and has chosen to defend its substantial market share in the industry.
It has done this by emphasizing efficient manufacturing and customer satisfaction.
Often a company implementing a prospector strategy will switch to a defender
strategy.
This happens when the business successfully creates a new market or business and
then attempts to protect its market from competition. Mrs. Fields Inc. was one of the
first companies
21

pioneer high quality, high-priced cookies. Mrs. Fields sold its product in special
cookie stores and grew very rapidly. This success, however, encouraged numerous
other companies to penetrate the market. Increased competition, plus reduced
demand for high-priced cookies, has threatened Mrs. Field's market position. To
maintain its profitability, the company has slowed its growth and is now focusing on
making its current cookie operation more profitable.
Prospector Strategy
Organizations implementing a prospector strategy are innovative, seek out new
opportunities, take risks and grow. To implement this strategy, organizations need to
encourage creativity and flexibility. They regularly experiment with potential
responses to up-and-coming environmental trends. Thus, these organizations often
are the creators of change and uncertainty to which their competitors have to
respond. In such an environment, creativity is more essential than efficiency.
Prospectors maintain an entrepreneurial attitude, and explore their competitive
environments with aim of developing new product and market opportunities.
Prospectors are companies with fairly broad product lines that focus on product
innovation and market opportunities. This sales orientation makes them somewhat
inefficient.
3M is an excellent example of a company that uses prospector strategies. Over the
years, it has prided itself on being one of the most innovative major corporations in
the world. Employees at 3M are constantly encouraged to develop new products and
ideas in a creative and entrepreneurial way. This focus on innovation has led 3M to
develop a wide range of products and markets, including invisible tape, post-it and
anti-stain fabric treatments.
Analyzer Strategy
Organizations implementing analyzer strategies attempt to maintain their current
businesses and to be somewhat innovative in new businesses Some products are
targeted toward stable environments, in which an efficiency strategy designed to
retain current customers is employed. Others are targeted toward new, more
dynamic environments.
Analyzers are somewhere between prospectors and defenders, balancing the
opportunity-seeking nature of prospectors against the risk aversion of defenders.
Analyzers seek to maintain their position the marketplace, waiting for the in market's
reaction to new product or new entrants into the marketplace. Once the market's
reaction is analyzed, they pursue the opportunity, having identified the key success
factors. Thus, like prospectors, analyzers seek to exploit new market opportunities,
but they will also tend to draw most of their revenue from a stable portfolio of
products.
Analyzers are corporations that operate in at least two different product-market
areas, one stable and one variable. In the stable areas, efficiency is emphasized. In
the variable areas, innovation is emphasized. An example is a major food products
company, Proctor & Gamble (P&G) which has established numerous name brand
products, such as Crest toothpaste, Tide laundry detergent, and Sure deodorant. It is
important for P&G to continue to invest in its successful products, in order to
maintain financial performance. However

P&G also needs to encourage the development of new products and brand names. In
this way, it can continue to expand its market presence and have new products to
replace those whose market falls off. Through these efforts, P&G can continue to
grow.
Reactor Strategy
While the strategies of prospectors, defenders, and analyzers are to some extent
proactive, the strategies used by reactors are characterized by inconsistencies and a
reactionary response to environmental change. Simply, reactors do not have a
distinct strategy, reality they just react to environmental changes. Thus, the reactor
strategy is not considered a practical one. Companies pursuing such a strategy would
either have to adopt one of the other three types of strategy or face ultimate
decline. Sometimes these companies are innovative, sometimes they attempt to
reduce costs, and sometimes they do both.
Reactors are organizations in which top management often identify change and
uncertainty taking place in their organizational environments but are incapable to
respond effectively. For that reason, failed organizations often are the result of
reactor strategies.
Nokia entering into the smart phone segment with Windows 8 and Lumia is an
example of a reactive strategy adopted due to declining market share in the higher
end mobile phone segment.
THE MARKETING STRATEGY
A marketing strategy can serve as the foundation of a marketing plan. A marketing
plan contains a set of specific actions required to successfully implement a marketing
strategy.
Developing a marketing strategy is vital for any business. Without one, any efforts to
attract customers are likely to be haphazard and inefficient. The focus of the strategy
should be making sure that products and services meet customer needs and
developing long-term and profitable relationships with those customers. To achieve
this, there is a need to create a flexible strategy that can respond to changes in
customer perceptions and demand. It may also help identify whole new markets that
can successfully target. The purpose of marketing strategy should be to identify and
then communicate the benefits of the business offering to its target market. Once
created and implemented the strategy, it needs to be monitored for its effectiveness
and make any adjustments required to maintain its success.
In companies that are marketing oriented, the marketing strategy on a functional
level influences the other functions and their strategies. A typical marketing strategy
is to determine customer needs in an area where the company has a natural
competitive advantage. Such advantages might be in location, facilities, reputation or
staff staffing. Once the marketing strategy has identified the kind of product
customers want, it passes the information to

MARKETING MANAGEMENT
operations to design and produce such a product at the required cost. The
advertising department must develop a promotional strategy, sales must sell the
product and customer service must support
it.
Th
e marketing strategy forms the basis for the strategies of these other
departments. The non-marketing functional strategies must support the marketing
strategy that, in turn, is a component of the overall business strategy.
The effectiveness of strategy implementation determines the outcome of marketing
planning. The management of the planning process may enhance implementation
effectiveness by building commitment and ownership of the plan and its execution.
For example actively managing the participation of different functions and
executives from different specializations may improve the fit between the plan and
the company's real capabilities and resources and avoid implementation barriers.
Planning and execution are interdependent parts of strategic change.
Implementation Process
Marketing managers increasingly function as boundary spanners both inernally
between functional areas and externally with suppliers, organizational partners and
customers.
Additional efforts to make the strategy implementation process more effective are a
high concern in a lot of companies.
Estimates imply as many as 70% of new strategic initiatives in companies are
unsuccessful at the implementation stage.
Many companies now recognize that implementation capabilities
are an important corporate capability that requires detailed management attention.
A good implementation process spell out the-
1. Activities to be implemented;
Who is in - for implementation;
3. The time and place of implementation; and
4. HOW IMPLEMENTATION WILL BE COMPLETED.
Barriers to Effective Implementation of a Marketing Strategy
There are many barriers that stand in the way of successful implementation of
marketing strategy, some obvious, some not. The barriers fall generally into three
independent categories.
1. External pressures of the company - These are pressures originating from the
company's
2.
external environment such as social, legal, economic, political and technological.
Internal pressures on the marketing function - These are pressures from inside the
company.
These are:
a. Leadership - The ultimate success and implementation of any strategic plan will
depend on the degree to which top management buys into the process. This is
particularly apparent where strategic thrust of the plan involves any type of major
change. The organization's leadership may be against the objectives of the marketing
plan for a number of reasons such as they may be from non-marketing disciplines,
may feel that the need for change is not yet obvious or simply be more contented
with steady slate management style. No matter what reasons, unless strong leaders
are brought in to the vision and strategy wholly, little progress is expected to be
made.

b.
Organization culture rere market tooeds of organization cuture and in reality. few of
these are customer or market focused. In company with non-market oriented
culture, the odds of successfully implementing a true marketing strategy must be
limited. Marketing in this type of company tends to be all about marketing services
often linked or even submissive to all important sales functions. In product or
production-oriented company, the marketer's role is to supply sales materials,
product information and market analysis to help the sales and production functions
of the company-
The marketer customer-oriented organization is the only one that witnesses the
marketer's role as the catalyst ad change agent to center all of the organization's
activities or the one activity that truly is vital to the customers.
C.
Organizational processes - In numerous organization's the current company
processes are basically not intended to be able to convey the planned marketing
strategy as is proposed. To many processes are designed for the handiness and
administrative relieve of those that work in them. They are being designed to
facilitate delivery of satisfaction to customers. It is impractical to propose customer -
focused marketing strategy without spending a little bit looking at the organization's
processes and ability to deliver to the customers what may be promised. When
dealing with companies, it is significant to reflect on the "soft" cultural elements
such as style, skills, staffing and shared values in addition to the traditional "hard"
values.
d.
Functional policies - How the companies' staff manages daily business activities is
determined by functional policies and procedures. The planned marketing strategy
may go amiss of these best practice functional processes and stumble upon an
obstacle on course of implementation.
e.
Resources - The proposed marketing strategy may necessitate either the distribution
of major supplementary resources to some functions or even the allocation of
resources into various areas of the company. Victorious implementation will rely on
these resources being accessible. The possible difficulty here is expected to be either
the resources merely not being obtainable or that senior management thinks that
other causes are more worthy. Implementation takes place in an environment that is
prone to changes hence it is imperative to be flexible and incorporate an up to
standard level of contingency in any implementation strategy.
f.
Evaluation and control procedures - Short of fitting monitoring and evaluation
procedures in a company will be a considerable lump to the successful
implementation of any strategy. What gets measured gets measured gets
completed.
Control makes certain that what is thought to be done is in reality done. Smart
management should create effective control systems.
Pressures contained in the marketing function itself - These are a number of aspects
of the marketing department or function which can also work as likely obstruction to
the progress and implementation of marketing strategy such as:
a. Marketing interface with other functions - How marketing interrelates with other
functions will decide the successful implementation of the strategy.
The role of marketers - The responsibility played by marketers in their company
establishes the intensity of implementation of strategy. In a market/ customer -
oriented

MARKETING MANAGEMENT

company, the role of the marketer is to name, foresee and satisfy customer needs
profitability. Doing this requires more than a comprehensive knowledge of
advertising and promotional methodology and techniques, the marketer's vital area
of responsibility is to know the company's customers and to feed this information
back to the company and other functions so that people are able to do it
profitability.
Marketing feedback - Successful implementation of marketing strategy relies on how
much, how applicable and how good information is and how will it is unified and
acted upon. Information is critical. Information and feedback on plan's progress is
not at all 100% precise but it does operate to decrease certainty in planning at the
same time perk up the quality of action. Customer's information is the marketing
powerbase, although hardly any marketing professionals utilize as it such.
Building Implementation Effectiveness
Managers are essential facilitators in the implementation process. Some managers
are better implementers often have dissimilar strengths and weaknesses. An
effective planner may not be good at implementing plans. Desirable implementation
skills consist of:
1. The ability to understand how others feel and good bargaining skills - The vigor to
be strong and reasonable in putting people and resources where they will be most
effective.
2. Effectiveness in focusing on the vital aspects of performance in managing
marketing activities - the ability to generate an indispensable informal organization
or network to go with each problem with which they are faced.
On top to skilful implementers, some factors make easy the implementation process.
These comprise:
1. Organizational structure - some types of organizational structure support
implementation. Product managers or multifunctional coordination teams are
helpful implementation methods. Management may form implementation teams
including representatives from various functions and/or marketing activities
concerned. Flat, flexible organization structures present several advantages in
implementation, since they promote inter-functional cooperation and
communication. These designs are quick to respond to changing conditions.
2. Incentives - a variety of rewards may facilitate in accomplishing successful
implementation. Special incentives, for instance contests, recognition and extra
compensation, are employed to persuade salespeople to sell new products. Since
implementation regularly engages teams of people, conception of team incentives
may be essential. Performance standards must be just incentives ought to hearten
something more than standard performance. Focusing incentives on the attainment
of plan goals in general not just individual efforts is chiefly appropriate.
Communications - speedy and correct movement of information through the
organization is essential in implementation. Both vertical and horizontal
communication are needed in linking together the people and activities involved in
implementation.
Meetings, status reports and informal discussions help to transmit information
26

throughout the organization. Computerized information and decision support

systems like corporate intranets help to improve communication speed and
effectiveness.
Problems often occur during implementation and may affect how fast and how well
plans are put into action. Examples include competitor's actions, internal resistance
between departments, loss of key personnel, supply chain delays affecting product
availability (such as supply, production and distribution as problems) and changes in
the business environment.
Corrective actions may require appointing a person or team for trouble shooting the
problem, increasing or shifting resources or changing the original plan.
Strategy Control
Control means attempting to make certain that behavior and systems match and
support predetermined corporate objectives and policies. The foundation of control
is ability to evaluate.
It compares what should take place with what in reality took place or is likely to take
place.
Having known the importance of measurement, a propensity exists to measure what
is simple to measure rather than what is vital. Project managers must lookout
against this and focus on the key areas. Good control systems frequently discover
and resolve problems before they become large and managers ought to keep in
mind that prevention is better than cure. It is significant to be proactive rather than
reactive.
The control process entails the following steps:
1. Set targets - ideally this is incorporated into overall marketing planning
2. Predetermining the method of measurement - performance assessment
3. Measured results are contrasted with the predetermined targets and corrective
action if necessary is carried out.
Control should be undertaken in the inputs as well as the outputs. This assists
management to optimize the process and take strategic outlook. Typical inputs
include the following:
1. Finance-such as investments, working capital and cash.
2. Operatives-such as capacity, usage, efficiency and application of machines,
systems and other assets.
3. People-such as numbers, quality and skills of staff.
trom the brin oreiteredy end efecters ystem performance. Performance is resultant
1.
2.
Efficiency - This is about how well inputs are utilized. It pertains to the maximum use
of finances, minimize cost and function at optimal levels of capacity.
Effectiveness - This is about doing the right things. This relates to real performance
and will embrace sales revenue, profit, market share and measures of customer
satisfaction.
It is better to practice effectiveness. Control systems necessitate careful design.
Generic principles are present which are common to all effective control mechanism.
It is imperative to maintain a degree of flexibility and common sense. Six principles
to ensure effective control are here:
a. Involvement - It is attained through promoting participation in the process.
Management can realize most wanted results through consultation.
Staff could contribute to setting targets. Their development needs could be reflected
on together with the necessary tasks. Correctly applied, this boosts morale,
encourages ownership and develops skill base of employees.

MARKETING MANAGEMENT
b. Target setting - The target criteria should be objective and quantifiable.
How this is evaluated needs to be communicated and agreed beforehand.
Targets needs to be tough but feasible.
Focus - It recognizes the disparity between the symptoms and the cause of the
problem. While it may be practical to heal the symptoms, attempting to know the
source of the problem should remove it once and for all.
Effective - The tendency exists to appraise efficiency in contrast to effectiveness.
Efficiency is the usage and productivity of assets. Effectiveness is about doing right
things. In reality people are likely to apply efficiency measures to areas easiest to The
system should quantify what is essential not what is simple to
quantity. The measurement should be precise, legitimate and reliable.
Management by exception - Management interest is directed to areas of need.
Identifying what comprises exclusion to the standard is a helpful exercise in its own
The process consists of setting tolerance and yardsticks for customary. operations.
Management action becomes a main concern when pre-set limits are
Problems of Control
Three problems are commonly connected with the control systems.
1. The system can be expensive - The benefits of control and succeeding
improvements are overshadowed by the cost of the control mechanism. This open
relates to be bureaucratic system where layer upon layer of administration is built
upon each. This is self-serving rather than customer-focused, often absorbing
resources that would be more effectively installed in core activities.
2. Control systems repress effort and creativity - such systems endorse consistency
and conformance to pre-set targets. They develop into barriers to innovation.
Control promotes an outlook of inspection as opposed to developments - systems
frequently take care of the symptom rather than the cause of the problem this leads
to continuous fire fighting and looking for nippy fixes in contrast to developing a
better method of operation in general. The effect is to sort out and/or hold back
information from those with the power to completely renovate a poor system.
The Marketing Plan
The marketing plan is a business document outlining the marketing strategy and
tactics. It is often focused on a specific period of time (over the next 12 months) and
covers a range of marketing-related details, such as costs, goals, and action steps.
A marketing plan is not a static document. It needs to change and evolve as the
business grows, and as new and changing marketing trend develop.
The importance of a detailed marketing plan cannot be overstated. Marketing is as is
important as the product or service being provided. Without marketing, consumers
cannot find out about the company. If they do not know about the company, they
cannot buy from it, and as the result, it would not make money.
A marketing plan:
1. Gives precision to who the market is. It is easier to find customers if the company
knows who they are.

2. Helps a company crafts marketing messages that will generate results. Marketing
Is about knowing what the company's product or service can do to help a target
market. Its messages need to speak directly to its market.
3. Provides focus and direction. Email, social media, advertising, guest blogging,
direct mail, publicity, and on and on. With so many marketing choices, a company
needs a plan to determining the best course of action for its business.

Marketing Plan Outline

The exact nature of the plan, and the company's marketing situation, dictates it
contents.
A company adds detail or takes it away to suit it needs.
In the real business world a company needs to customize its outline according to
whether it is selling products or services, to business or consumers, or it is a non-
profit organization. Although the outline does change in some respects as a result,
according to Dave Lavingsky the right marketing plan identifies everything such as:
1. who target customers are
2. how will the company reach them
3. how will company will retain customers so they repeatedly buy from the company

The information below details the 15 key sections that must be included in a
marketing
plan:
1. Executive summary -This section merely summarizes each of the other sections of
a marketing plan. It will be helpful in giving the company and other constituents
(such as employees, advisors) a general idea of the plan.
Target customers - this section describes the customers a company is targeting. It
defines their demographic profile (such as age, gender), psychographic profile (like
their interests) and their precise wants and needs as they relate to the products
and/or services being offered. Being able to more clearly identify advertising (and
get a higher return on investment) and better "speak the language" of potential
customers.
3. Unique Selling Proposition (USP) - Having a strong unique selling proposition (USP)
is of serious importance as it distinguishes a company from competitors. The
trademark of several great companies is their USP. For example, FedEx's USP of
"When it absolutely, positively has to be there overnight" is well known and
resonates with customers who desire reliability and quick delivery.
4. Pricing & Positioning Strategy - The pricing and positioning strategy must e
aligned.
For example, if a company wants to be known as the leading brand in its industry,
having too low a price might discourage customers from purchasing. In this section
of a marketing plan, specifying the positioning desired and how pricing will support
it.
5. Distribution Plan - The distribution plan specifies how customers will purchase
from a company. For example, customers buy directly from a company on its
website. Or perhaps they purchase from distributors or other retailers. A company
should think through different ways in which it might be able to reach customers and
document them in this section of a marketing plan.
6. Offers of the company - Offers are special deals a company put together to secure
more new customers and drive past customers back to it. Offers may include free
trials, money-back guarantees, packages (such as combining different products
and/or services) and discount offers. While a business does not necessarily require
offers, using them will generally cause a customer base to grow more rapidly.

Marketing materials - Marketing materials are the collateral used to promote a

business to current and prospective customers. Among others, they include website,
print brochures, business cards, and catalogs. A company should identify which
marketing materials it has completed and which it needs to be created or redone in
this section of the plan.
Promotions Strategy - The promotion section is one of the most key sections of a
marketing plan and details how a company will reach new customers. There are
many promotional tactics, such as televisions ads, trade show marketing, press
releases, online advertising, and event marketing. In this section of a marketing plan,
consider each of these alternatives and choose which ones will most effectively allow
a company to get in touch with its target customers.
9. Online Marketing Strategy - Lie it or not, most customers go online these days to
find and/or appraise new products and/or services to purchase. As such, having the
correct online marketing strategy can help a company secures new customers and
gain competitive advantage. The four key components to a company's online
marketing strategy are as follows:
a. Keywords Strategy - identify what keywords to optimize the website for
b. Search Engine Optimization Strategy - document updates will make ones website
so it shows up more notably for top keywords.
c. Paid Online Advertising Strategy - write down the online advertising programs that
will be used to reach target customers.
d. Social Media Strategy - document how social media will be used as websites to
attract customers.
10. Conversion Strategy - Conversion strategies are the techniques a company
employs to turn prospective customers into paying customers. For example,
improving sales scripts can boost conversions. Similarly increasing social proof such
as showing testimonials of satisfied past customers will nearly always boost
conversions and sales. In this section of the plan, a company must document which
conversion-boosting strategies it will use.
11. Joint Ventures & Partnerships - Joint ventures and partnerships are agreements a
company forges with other organizations to help reach new customers or better
monetize existing customers.
For example, if it sold replacement guitar strings, it could
be quite profitable to partner with a guitar manufacturer who had a list of thousands
of customers to whom it sold guitars (and who probably need replacement strings in
the future). A company should reflect what customers buy before, during and/or
after they buy from itself. Many of the companies who sell these products and/or
services could be good partners. Document such companies in this section of a
marketing plan and then reach out to try to secure them.
12. Referral Strategy - A strong customer referral program could revolutionize a
company's success. For example, if every one of its customers referred one new
customer base would constantly grow. However, rarely will it get such growth unless
it has a formal referral strategy. For example, it needs to find out when it will ask
customers for referrals, what if anything it will give them as a reward, and so on. A
company must think through best referral strategy for its organization and document
it.
13. Strategy for Increasing Transaction Prices - While a company's primary goal when
conversing with prospective customers is often to secure the sale, it is also essential
to take notice to the transaction price. The transaction price, or amount customers
pay when they purchase from the company, can dictate its success. For example, if
its average customer transaction is Php100 but its, competitor's average customer
transaction is Php150, it will generate more revenues, and probably profits, per
customer.

As a result, it will be able to outspend it on advertising, and continue to gain market

share at competitor's expense. In this section of the plan, a company should think
about ways to increase its transaction prices such as by increasing prices, creating
product or service bundles/packages, and so on.
14. Retention Strategy - Too many organizations spend too much time and energy
trying to secure new customers versus investing in getting existing customers to buy
more often.
Through using retention strategies such as a monthly newsletter or customer loyalty
prove am, a company can boost revenues and profits by getting customers to buy
from it more often ultimately. It should name and document ways it can better
preserve customers here.
15. Financial Projections - The concluding part of a marketing plan is to construct
financial projections. In a company's projections, incorporate all the information
documented in its marketing plan. For example, include the promotional expenses it
expects to incur and what its expected results will be in terms of new customers,
sales and profits.
Equally, it should include its expected results from its new retention strategy. While
financial projections will never be 100% exact, use them to identify which
promotional expenses and other strategies should provide a company the highest
return on investment. In addition, by completing its financial projections, a company
will set goals (such as its goals for its referral program) for which it should make
every effort.

MARKETING EXERCISE 2
Name:
Year/Block:_
Date:
Scor:
Goggle's Vision Statement & Mission Statement
By: Andrew Thompson
Source: http:/panmore.com/google-vision-statement-mission-statement
Google's mission statement and vision statement reflect the powerful position of this
company in terms of what it wants to achieve. Founded in 1998, the company has
been following its mission statement and vision statement, leading to its current
position as one of the most valuable brands in the world. Google's mission statement
defines the strategies of the business, such as the development of new products. In a
similar way, the company's vision statement pushes the organization to achieve new
heights, such as through rapid innovation.

MARKETING MANAGEMENT
The success of Google is directly connected to the efforts of the company to fulfil its
mission statement and vision statement.
Google's Vision Statement
Google's vision statement is "to provide access to the world's information in one
click." The company's nature of business is a direct manifestation of this vision
statement. For instance, Google's most popular product is its search engine service.
This product enables people to easily access information from around the world.
Google's vision statement has three variables, namely, world's information,
accessibility, and one click. The firm fulfils the world's information component of the
vision statement by crawling webpages.
The company maintains databases containing indexes of these websites.
Google fulfils the accessibility component by offering its search engine services to
everyone around the world.
The one click component of the vision statement refers to easy access to
information. The firm fulfils this component by offering innovative products, such as
the easy-to-use Google Search. Thus, the company effectively follows its vision
statement.
Google's Mission Statement
Google's mission statement is "to organize the world's information and make it
universally accessible and useful." Ever since its beginnings, the company has
focused on developing its proprietary algorithms to maximize effectiveness. Google
continues to focus on ensuring that people access the information they need.
Google's mission statement is parallel to the company's vision statement. The
mission statement has four variables, namely, world's information, organization,
universal accessibility, and usefulness. As noted, the firm fulfils the world's
information component by crawling webpages. The company organizes the
information through its proprietary algorithms as programs. Google also fulfil the
universal accessibility component of its mission statement by offering its services
worldwide. Such processing and organizing of information also makes search results
useful. Therefore, Google effectively follows its mission statement.
Case Question:
1. Google is now offering Google Fiber and Google Glass under the same vision and
mission. Do you think there is already a need for the company to modify its current
vision and mission?
2. What will you recommend to a company that plans to diversify its products when
it comes to its vision and mission? Explain your answer.

MARKETING MANAGEMENT
MARKETING CASE STUDY 2
Date:
Name:
Score:
Year/Section:
Directions: Read the case study presented here and answer the questions after it.
Uniqlo: The Strategy behind the Global Japanese Fast Fashion Retail Brand
By: Martin Roll
Source:https://martinroll.com/resources/articles/strategy/uniqlo-the strategy-
behind-the-global-japanese-fast-fashion-retail-brand/
Some of Uniqlo's key brand success factors include its unwavering commitment to
innovation and its company culture. Its Japanese founder, Tadashi Yanai is famous
for his quote "Without a soul, a company is nothing".
. This soul is reflected in the 23 Management
Principles that Tadashi Yanai has created and indoctrinated in each and every Uniqlo
employee. The essence of these principles includes putting customers first, giving
back to society and being self-disruptive.
Source: www.insideretail.com.au/wp-content/uploads/2015/01/uniqlo.jp
UNIQLO
The Uniqlo brand story
In 1972, Tadashi Yanai inherited his father's chain of 22 men's tailoring stores, Ogori
Shoji in Ube, Yamaguchi. Shortly after becoming company president in 1984, he
opened a new store - Unique Clothing Warehouse, which was later shortened to
Uniqlo. His promotion is well-documented as the catalyst for the company's rapid
expansion. Inspired by his travels to Europe and the US, where he discovered large
casual apparel chains like Benetton and Gap, Tadashi Yanai saw immense potential
for Japan's casual wear market and set goals to evolve the family's business strategy
from suiting to casual clothing, buying fashion goods in bulk at low cost. Tadashi
Yanai also discovered that many foreign fashion chains were vertically integrated,
taking control of the entire business process from design to production to retail. By
1998 he had successfully opened more than 300 Uniqlo stores across Japan.
However, one of the ain challenges faced was consumer perception of the brand - it
was perceived to be a discount retailer selling cheap and low-quality apparel to the
suburbs. This perception completely changed when the brand opened a 3-storey
store in iconic Harajuku in central Tokyo in 1998 - people started noticing Uniqlo for
its high-quality fleece jackets. The brand perception instantly shifted from being
cheap and low-quality.

MARKETING MANAGEMENT
Today, Uniqlo is a wholly-owned subsidiary of Fast Retailing Company Limited and f
1s known for providing high-quality private-label casual wear at low prices. As of
January 2018, the brand has grown to more than 1,300 stores in 15 countries across
Asia, Europe and US in just a matter of 20 years. It is the biggest apparel chain in Asia
with close to 800 retail stores.
Fast Retailing's market capitalization is over USD 31.8 billion and it employs more
than 43,3000 people globally. For the year ending2017, Fast Retailing had revenues
of USD 17.3 billion and a profit of USD 1.6 billion. The company's home market japan
contributed 44 percent to its total revenue, with one in four Japanese said to own a
Uniqlo down jacket. Fast Retailing has been growing at an incredible rate in the past
5 years and its confidence is reflected in its revenue forecast of 10.1% growth to USD
19 billion for FY2018.
According to global management magazine Forbes, Uniqlo has a brand value of USD
7 billion and is 91" on the list of the World's Most Valuable Brands. Much of it is
credited to its founder's strategy of innovation and its very customer-centric culture.
Uniqlo aims to be the world's largest clothing retailer by 2020 with a sales target of
USD 28
billion, based largely on expansion in US, China and online. If Uniqlo achieves this
ambitious target, it will dethrone Inditex (Zara's parent company) as the leader in
global apparel.
The Uniqlo brand strategy
Uniqlo's brand message encapsulates a clear vision: "Uniqlo is a modern Japanese
company that inspires the world to dress casual". The corporate strategy that has
worked for Uniqloso far is to "totally ignore fashion" instead of chasing fast-fashion
trends like its other competitors. The brand philosophy
"Made for All" positions its clothing to transcend age,
gender, ethnicity and all other ways to define people. Contrary to its name "Uniqlo",
its clothes are simple, essential yet universal, enabling the wearers to blend them
with their individualistic style.
This design driven clothing brand offers unique functional performance owing to in-
house fabric and design innovation.
The company distinguishes itself from its proce driven competitors
by branding its signature innovations with names like HeatTech, LifeWear and
AlRism. Uniqlo provides a superlative physical shopping experience by impeccably
managing its stores, inculcating a positive employee culture and through in-store
technology like video tutorials that describe product attributes.
Some of the key brand success factors for Uniqlo include the following:
Delivery system supporting a clear brand promise: Two of the biggest challenges for
any brand is to define a clear brand promise and to consistently deliver effectively on
its brand promise across all touch points of the customer experience journey.
Successful brands are those that create supportive organizational and operational
structures that facilitate the implementation of strategies to deliver on the brand
promise. On one hand, Uniqlo has indeed managed to successfully define a clear
brand promise for itself to provide high quality, performance-enhanced, universal,
basic casual wear at affordable prices. On the other hand, it has also created a strong
delivery system to deliver on this brand promise.
The company's product planning, design, manufacturing and distribution capabilities
are all in-house, which means that it is able to stay close to customer needs based on
what customers are buying in their stores, allowing them to save costs on
overproduction or unnecessary overheads. Stocks can be upgraded within a matter
of weeks or replenished within a matter of days. By focusing on core products in a
limited range of fabrics, Uniqlo is able to consolidate its fabric buys into huge orders
that give it greater negotiation power against suppliers which translate into cheaper
prices for its customer s - serving its brand promise well.
34

MARKETING MANAGEMENT
Product development approach and efficient supply chain: Tadashi Yanai is fond of
saying that
"Uniqlo is not a fashion company, it's a technology company." And indeed, the
brand's approach to making apparel has more in common with the iterative
approach to product development embraced by the technology industry than the
cyclical, trend driven rhythm of the fast fashion retail industry. While leading
competitor Zara has built the world's largest apparel business based on the rapidly
responding to fast changing fashion trends, getting items from factory to store in
approximately two weeks, Uniqlo takes the exact opposite approach, planning
production of its wardrobe essentials up to a year in advance. Unlike its competitors
who sell a large variety of trendy fashion inspired by the global runway, Uniqlo
focuses on producing a few styles of urban practical basics.
The company also runs a highly robust supply chain. Through development of a
detailed marketing strategy by the marketing department for each season,
merchandisers are able to adjust production by style to align with demand well in
advance. Concept meetings with all key product creation teams are held about a
year before a product is launched. Once a garment is in production, about 400 skilled
staff members visit production centers to ensure quality and resolve outstanding
issues.
The Uniqlo global production centers are located in Shanghai, Ho Chi Minh City,
Dhaka, Jakarta and Instanbull.
Customer concerns are also addressed by the production department which keeps
the product teams plugged into what end consumer thinks, as product and
marketing teams work closely together around strategy and execution.
Company culture and visionary leadership: In 2017, Tadashi Yanai was ranked
number no. 42 on the list over the best-performing CEOs in the world by Harvard
Business Review. Since 2002, he provided an 862 percent shareholders return, and
the market capitalization of Uniqlo has increased USD 39 billion. He is credited
widely for the huge success and explosive growth of Uniglo in the past 15 years due
to his creation of a strong company culture which focused on teamwork, innovation
and customer experience.
In the company's early days before it went international, Tadashi Yanai made a
decision considered rare in Japan - to conduct all of its operations in English. This has
definitely contribute to its global success and something other aspiring global
companies can learn from.
In terms of company culture, the organizational structure is well known to be flat
with employees greatly encouraged to provide suggestions. The values and goals of
the company are translated directly into processes and measures exhibited strongly
by employees all over the world. Company financials are completely transparent to
employees and also sales charted
micromanages every customer touch point.
and posted daily. The brand also places a huge emphasis on its retail store
experience and
Staff training is a huge priority for the company as each new employee is trained for
a remarkable 3 months - way above global industry average. Every activity
undertaken by its employees are recorded and analysed - from apparel folding
technique, to the way retail staff returns credit cards to customers with both hands
and full eve contact. Employees are also taught to interact with shoppers using six
standard phrases including "Did you find everything you were looking for?" and all
customers are welcomed with "Welcome to Uniqlo!".
managers will be trained every year.
The company is currently building a Uniqlo University in Tokyo in which 1,500 new
store
35

MARKETING MANAGEMENT
These are just some examples of how Uniqlo's unique company culture is a true
enabler of its success.
High dedication to innovation: As Peter Drucker said, innovation and marketing are
the only two functions of any organization. Uniqlo understands this well - the brandd
is well-known for its fabric innovations. The company also hires Japanese textile
masters called "Takumi", who work closely with factories in China and Japan to
continually develop new high-tech fabrics for Uniqlo.
One of Uniqlo's signature innovations is HeatTech, a fabric developed in conjunction
with Toray Industries (a Japanese chemical company) that turns moisture into heat
and has air pockets in the fabric to retain that heat. The HeatTech fabric is this,
comfortable which has enabled the brand to create stylish designs which are very
different from the standard traditional warmth clothing segment. The HeatTech
innovation keeps improving over time with new fiber technology, allowing the brand
to come up with different collections of thermal clothing. In 2003 1.5 million
HeatTech products were sold while in 2012 over 130million units were sold across
250 items.
Besides HeatTech, Uniqlo has also created AlRism a soft fabric with quick-drying
inner fabric) Life Wear (a blend between casual and sportswear) and UV Cut
(material designed to prevent 90% of ultraviolet rays from reaching the wearer)
technologies. These new fabrics are all branded and copyrighted, which poses a
struggle for competitors who want to try and attempt to match this point of
differentiation. Tadashi Yanai has been quoted to say that Apple is its largest
competitor because of the company's desire to be the most innovative company in
the world.
Case Questions:
1. What can you say about the marketing strategy employed by Uniqlo? Discussyour
answer.
2. How is the marketing strategy of Uniqlo in Japan being applied here in the
Philippines?
Is there any obvious difference? Elaborate your discussion.
3. How would you compare Uniqlo with other apparel business here in the
Philippines?
Talk about your side briefly.
36