Topic 2: Introduction to Strategic Marketing

Week 1Week 1

Topic 2: Introduction to Strategic

Marketing

“If you fail to plan, you are planning to fail.”

Strategic Planning:

The process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing marketing opportunities.

Topic 2: Topic 2: Introduction to Strategic Marketing Introduction to Strategic Marketing

1. Mission Statement

Should be market oriented rather than product oriented Focus on basic needs Should be realistic and specific. Based on distinctive competencies. Should be motivating.

2. Setting company objectives and goals.


3. Designing the business portfolio

Analyze the current business portfolioDevelop growth strategies for adding new products to the portfolio.

a. Portfolio analysis: tools to identify each SBU and evaluate the attractiveness of various SBUs.Two dimensions – attractiveness and strength.BCG Matrix or Growth Share Matrix: SBUs follows life cycle.

b. Marketing must identify, evaluate and select market opportunities and lay down strategies for capturing them.Product market expansion grid.


4. Planning cross-functional strategies

Marketing’s role in strategic planning Guiding philosophy Providing input Designing strategies

Marketing and the other business functions

Cross-functional conflict


The Marketing Process

1. Situational analysis of the marketing environment2. Setting marketing goals3. Selection of the marketing strategy4. Marketing plan implementation


Situational Analysis of the Marketing Environment

The dimensions of a situation analysis include:1.The broad product market2.Competitor activity and offerings3.Firm’s own activity and offerings


Setting Marketing Goals

To be effective, the goals should be stated as specifically as possible.

Include timeframe and magnitude.


Selection of the Marketing Strategy

A marketing strategy comprises two tiers:

A general competitive marketing strategy – the upper tierFour specific sets of strategies related to each of the elements of the marketing mix (product, price, place, and promotion) – the lower tier


Competitive Position and corresponding strategies include:

Market leader strategiesMarket challenger strategiesMarket follower strategiesMarket nicher strategies


General Competitive Marketing Strategies include:

Product differentiationOverall cost leadershipMarket focus


Marketing Plan Implementation and Feedback

It is important to link strategic and tactical marketing Need to link low-tier marketing strategies


Market control

Operating controlStrategic controlMarketing audit


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Education

Topic 2: Introduction to Strategic Marketing