(Lecture 2) Marketing Strategy
To begin with understanding the marketing strategy , it becomes necessary to
understand the meaning of business strategy –
It is about the relationship between an entity and its environment.
It is looking into a future that can be foreseen but is unknowable. Strategy
making is speculative. It needs a business to look into the future before planning
anything.
It is about expectations, options, choices and instrumentality (means and
ends).
It is about composing scenarios, forecasts and horizon scanning.
It is about allocating resources with a view to achieve future ends.
The nature of strategic decisions --
Entail resource commitments that are usually large and costly to reverse – This
means that strategies bound often bound the business with commitments. These
commitments can be costly to reverse.
Commitments are made with a long term outlook under conditions of
uncertainty – Strategy making involves risk as the future in uncertain
Entail choices, trade-offs and compromises – The decision involves making
choices from a variety of options. The decision has opportunity costs and might
involve sacrificing other choices.
Are made in the context of other commitments and in light of the inter-
dependencies between them – The entire scenario of the existing business is
considered before making any decision. The factors that can be affected by the
decision are considered.
Are (generally) made at higher levels in an organisation – Generally taken up
by the higher authorities in the organization.
PREVIEW SECTION
To begin with understanding the marketing strategy , it becomes necessary to
understand the meaning of business strategy –
It is about the relationship between an entity and its environment.
It is looking into a future that can be foreseen but is unknowable. Strategy
making is speculative. It needs a business to look into the future before planning
anything.
It is about expectations, options, choices and instrumentality (means and
ends).
It is about composing scenarios, forecasts and horizon scanning.
It is about allocating resources with a view to achieve future ends.
The nature of strategic decisions --
Entail resource commitments that are usually large and costly to reverse – This
means that strategies bound often bound the business with commitments. These
commitments can be costly to reverse.
Commitments are made with a long term outlook under conditions of
uncertainty – Strategy making involves risk as the future in uncertain
Entail choices, trade-offs and compromises – The decision involves making
choices from a variety of options. The decision has opportunity costs and might
involve sacrificing other choices.
Are made in the context of other commitments and in light of the inter-
dependencies between them – The entire scenario of the existing business is
considered before making any decision. The factors that can be affected by the
decision are considered.
Are (generally) made at higher levels in an organisation – Generally taken up
by the higher authorities in the organization.
PREVIEW SECTION
