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Strategic MarketingManagement

INTRODUCTION

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Marketing Strategy•  The primary focus of marketing strategy is to

eectivey aocate an! coor!inate resources an!activities to accompish the "rm#s o$%ectives &ithina speci"c pro!uct market'

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 Therefore( the critica issue concerning the scope ofa marketing strategy is specifying the target market)s* for a particuar pro!uct or pro!uct ine'

• Ne+t( "rms seek competitive a!vantage an!synergy through a &e,integrate! program of

marketing mi+ eements )primariy the -.s ofpro!uct( price( pace( an! promotion* taiore! to thenee!s an! &ants of potentia customers in thattarget market

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Market Orientation• 0 market orientation entais )1* one or more

!epartments engaging in activities geare!to&ar! !eveoping an un!erstan!ing ofcustomers# current an! future nee!s an! the

factors aecting them( )/* sharing of thisun!erstan!ing across !epartments( an! )*the various !epartments engaging in activities!esigne! to meet seect customer nee!s'

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In other &or!s( a market orientation refers tothe organi2ation,&i!e generation(!issemination( an! responsiveness to marketinteigence

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Organisationa stakeho!ers• Shareho!ers

• 5mpoyees

• Managers

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Customers• Suppiers an! !istri$utors

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Strategic Marketing 7un!amentas

• .rincipe 13 7ocus on the customer• .rincipe /3 Ony compete in markets &here

you can esta$ish a competitive a!vantage

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.rincipe 3 Customers !o not $uy pro!ucts• .rincipe -3 Marketing is too important to

eave to the marketing !epartment

• .rincipe 63 Markets are heterogeneous

• .rincipe 83 Markets an! customers areconstanty changing

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 The roe of marketing in ea!ingstrategic management

• I!entify an! communicate customer &antsan! nee!s throughout the organisation

• Determine the competitive positioning tomatch the nee!s of the customers &ithcompany capa$iities

• Marsha a reevant organisationaresources to !eiver customer satisfaction

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Strategic Marketing vsMarketing Management

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Time Frame3 Decisions have ong termimpications for SM an! for MM !ecisionshave reevance in a given year'

Decision process3 7or SM it is primariy a$ottom,up approach an! for MM it is mainytop,!o&n

Relationsip !it "nvironment# 7or SMit is consi!ere! !ynamic an! for MM it isconsi!ere! fairy constant &ith occasiona!istur$ances'

$ature of %o 7or SM it re;uires high

!egree of creativity an! originaity an! forMM it re uires maturit ( e+ erience an!

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 The .rocess of 7ormuating an!Impementing Marketing Strategy

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Corporate o$%ectives an! strategy

=usiness,eve o$%ectives an! strategy

Market opportunity anaysisUn!erstan!ing market opportunities

7orecasting an! market kno&e!ge

Customer anaysis( segmentation( an!targeting !ecisions.ositioning !ecisions

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7ormuating strategies for speci"c marketsituationsStrategies for ne& market entriesStrategies for gro&th marketsStrategies for mature an! !ecining marketsStrategies for the ne& economy

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Impementation an! controImpementing $usiness an! marketing

strategies

Controing marketing strategies an!programs

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Contents of a Marketing .an

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"'ecutive Summar(3 .resents a shortovervie& of the issues( o$%ectives( strategy(an! actions incorporate! in the pan an!their e+pecte! outcomes for ;uick

management revie&Current Situation and trends3

Summari2es reevant $ackgroun!information on the market( competition an!

the macro environment( an! tren!s therein(incu!ing si2e an! gro&th rates for theovera market an! key segments

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)erformance revie! )for an e+istingpro!uct or service ony*3 5+amines the pastperformance of the pro!uct an! theeements of its marketing program )e'g'(

!istri$ution( promotion( etc**e( Issues# I!enti"es the main

opportunities an! threats to the pro!uctthat the pan must !ea &ithin the coming

year an! the reative strengths an!&eaknesses of the pro!uct an! $usinessunit that must $e taken into account infacing those issues'

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O&+ectives# Speci"es the goas to $e accompishe!in terms of saes voume( market share( an! pro"t'

Marketing Strateg(# Summari2es the overastrategic approach that &i $e use! to meet thepan#s o$%ectives

,ction )lans3 This is the most critica section of theannua pan for heping to ensure eectiveimpementation an! coor!ination of activities acrossfunctiona !epartments' It speci"es

 The target market to $e pursue!?hat speci"c actions are to $e taken &ith respect to

each of the - .s

?ho is responsi$e for each action

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?hen the action &i $e engage! in@o& much &i $e $u!gete! for each

action

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)ro+ected prot-and-loss statement# .resents the e+pecte! "nancia payo fromthe pan

Controls# Discusses ho& the pan#s

progress &i $e monitore!' It may presentcontingency pans to $e use! if performancefas $eo& e+pectations or the situationchanges

Contingenc( plans# Descri$es actions to$e taken if speci"c threats or opportunitiesmateriai2e !uring the panning perio!'