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STRATEGIC MARKETING STRATEGY IS THE PROCESS OF CONVERTING A FIRM’S VISION INTO LONG TERM GOALS FOR SUSTAINABLE COMPETITIVE ADVANTAGE MARKETING IS THE PROCESS OF CREATING, SERVICING AND RETAINING CUSTOMERS WITHIN A FIRMS BUSINESS ENVIRONMENT MARKETING STRATEGY INVOLVES ACHIEVING A SUPERIOR COMPETITIVE POSITION WITHIN A DEFINED MARKET(SEGMENTATION, POSITIONING, AND SUPERIOR DELIVERY MARKETING STRATEGY FOCUSES ON ONE STAKEHOLDER VIZ. THE CUSTOMER WHEREAS ORGANIZATIONAL STRATEGY FOCUSES ON ALL THE EIGHT STAKEHOLDERS STRATEGIC MARKETING IS FOCUSING ON LONG TERM MARKETING OBJECTIVES AS PART OF OVERALL STRATEGY AND SUBSUMES SHORT AND MEDIUM TERM MARKETING

TACTICAL IS 3 YEARS TO 5 YEARS.M. M. . TACTICAL AND STRATEGIC OPERATIONAL TIME FRAME IS 1 YEAR.S IS PART OF S. AND M. STRATEGIC IS 25 YEARS THE EMPHASIS THEN HAS TO BE ON THOROUGH THOUGHTFUL PLANNING WITHIN THE ABOVE LIMITS.M. THE DISTINGUISHING ELEMENT IS THE TIME FRAME IN STRATEGIC MANAGEMENT WE DISTINGUISH BETWEEN.EXPLAINING S.S. MEDIUM TERM AND LONG TERM CORRESPONDINGLY THE ACTION TERMS ARE OPERATIONAL. SHORT TERM.

.O. MARKET STRATEGIC MARKETING TO EMPLOY DIRECT MARKETING AND MASS CUSTOMIZATION TO ACHIEVE ITS STRATEGIC ENDS TACTICS: TO WORK OUT OF LOWEST COST MANUFACTURING AREAS AND TO EMPLOY SUPERB LOGISTICS BACKED BY OUTSTANDING INFORMATION SUPPORT. COST REDUCTION.Y. INCREASE IN SALES. IMPROVED MARKET SHARE OVER BRANDED RIVALS BOTH TACTICAL AND OPERATIONAL PLANS ARE PART OF MARKETING STRATEGY.TWO EXAMPLES DELL COMPUTERS: STRATEGY TO GAIN AND RETAIN LEADERSHIP IN THE GLOBAL P.C. PROVIDE VARIETY ON STANDARD BASE OPERATIONAL PLANS INCLUDE Y.

TOYOTA THE WORLDS LARGEST CAR COMPANY STRATEGY TO ACHIEVE GLOBAL LEADERSHIP IN AUTOMOBILE INDUSTRY STRATEGIC MARKETING FOCUS ON PASSENGER VEHICLES THROUGH PROGRESSIVE ENTRY INTO NEW SEGMENTS AND NEW COUNTRY MARKETS.U.O. . IMPROVING MARGINS Y. SAFETY AND CONVENIENCE) OPERATIONAL TARGETS INCLUDE SALES AND MARKET SHARE INCREASE.’S) FINALLY BECOME THE TECHNOLOGY LEADER(CLEAN EFFICIENT FUEL USE.Y. REDUCED COSTS. TACTICS AND OPERATIONAL PLANS ARE PART OF MARKETING STRATEGY. TACTICS FIRST ACHIEVE CREDIBILITY AND STRENGTH IN LOW PRICED SEGMENTS(COROLLA AND CAMRY) THEN ENTER PREMIUM MARKET(LEXUS) AND OTHER SEGMENTS(S.V.

MUCH TALK AND LITTLE ACTION CONSIDERING THE TIME SINCE TALK BEGAN THE CONVENTIONAL APPROACH IS TO TREAT THE RURAL CUSTOMER THE SAME AS THE URBAN CUSTOMER WITH A LOCATIONAL DIFFERENCE THE REALITY IS THAT THE RURAL CUSTOMER HAS DIFFERENT EXPECTATIONS DEPENDING PARTLY ON HER SOCIO ECONOMIC IDENTITY ONLY COMPANIES LIKE ASIAN PAINTS HAVE UNDERSTOOD THIS TO THEIR LONG STANDING ADVANTAGE .SOME THOUGHTS ON STRATEGIC MARKETING STRATEGIC MARKETING WOULD DEVELOP PLANS FOR NEW PRODUCTS AND UNEXPLORED MARKET SEGMENTS AND SEGMENT-REGIONS A GOOD EXAMPLE IS THE INDIAN RURAL MARKET.

APPLE’S P. IPOD. STRIVES TO EXPLORE AND THEN EXPLOIT THE SAMENESS IN A BUSINESS AND IN THE UNIVERSAL MARKET. SALES PROMOTIONS.M. S.SOME CRITICAL DIFFERENCE BETWEEN STRATEGIC MARKETING AND SHORTER TERM MARKETING SHORT TERM MARKETING INVOLVES NEW PRODUCTS FOR A COMPANY S. .G.M. SHORT TERM MARKETING INVOLVES AD CAMPAIGNS. INVOLVES NEW PRODUCTS FOR THE INDUSTRY E.M. STRESSES EXPANSION OF EXISTING MARKETS AND CREATION OF NEW ONES. ITV.C. PRICE DISCOUNTS WHILE S. INVOLVES POSITIONING OF A PRODUCT OFFERING AS IN REEBOK STRESSING DESIGN AND FASHION AGAINST NIKE’S PERFORMANCE IN SPORTS WEAR SHORT TERM MARKETING STRESSES TAKING MARKET SHARE FROM COMPETITORS. AND FINALLY MICROSOFT’S WINDOWS WHICH WAS A CONFIGURATION DIFFERENCE.M. FINALLY SHORT TERM MARKETING STRIVES TO FIND DIFFERENCES. S.

In both methods. An SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. and (2) Develop growth strategies for adding new products and businesses to the portfolio.it all depends on how the company is organised. The company must: (1) Analyse its current business portfolio and decide which businesses should receive more or less investment. The diagram below illustrates some of the possible elements that determine market attractiveness and competitive strength by applying the McKinsey/GE Matrix to the UK retailing market: .strategy . The McKinsey / General Electric Matrix The McKinsey/GE Matrix overcomes a number of the disadvantages of the BCG Box. Firstly. The best business portfolio is one that fits the company's strengths and helps exploit the most attractive opportunities. competitive strength replaces market share as the dimension by which the competitive position of each SBU is assessed. Secondly.portfolio analysis . and includes a broader range of factors other than just the market growth rate. a product line or even individual brands . the first step is to identify the various Strategic Business Units ("SBU's") in a company portfolio. The two best-known portfolio planning methods are the Boston Consulting Group Portfolio Matrix and the McKinsey / General Electric Matrix (discussed in this revision note).ge matrix The business portfolio is the collection of businesses and products that make up the company. whilst at the same time deciding when products and businesses should no longer be retained. An SBU can be a company division. market attractiveness replaces market growth as the dimension of industry attractiveness.

These are listed below: Market Market growth Market profitability Pricing trends Competitive intensity / rivalry Overall risk of returns in the industry Opportunity to differentiate products and services Segmentation .Access to financial and of assets and competencies strength share loyalty competitors) strength innovation Size Market Customer position (cost structure Distribution of technological other investment resources Relative brand compared or with other Other Strategy Revision Notes: .g. there are several factors which can help determine attractiveness.Distribution structure (e.Factors that Affect Market Attractiveness Whilst any assessment of market attractiveness is necessarily subjective. retail. direct. wholesale Factors that Affect Competitive Strength Factors to consider include: Strength Relative cost Record .

U’S PERFORMED BETTER HARVARD MANAGEMENT SCIENCE INSTITUTE TOOK OVER THE MOVEMENT IN THE LATE 60’S. IN THE 1960’S COMMENCED THE MOVEMENT TO STUDY WHY SOME G. AND EFFFICACIES OF STRATEGIES IMPLEMENTED . S.B.PROFIT IMPACT OF MARKETING STRATEGY(PIMS) HISTORY: SIDNEY SCHOEFFLER AT G.E.B.E. PRODUCTS SERVING THESE MARKETS. SINCE THE 1970’S THE MOVEMENT HAS BEEN LED BY AMERICAN STRATEGIC PLANNING INSTITUTE BETWEEN 1970 AND 1983 DATA FROM 200 FIRMS WITH OVER 3000 S.U’S WERE COLLECTED AND ANALYSED INFORMATION SOUGHT INCLUDED MARKETS.

WE EXCLUDE THEM . MANNINGHAM AND ASHFORD SEVERAL OTHERS HAVE COMMENTED AND EVEN PRAISED PIMS INCLUDING THE NOTORIOUS TOM PETERS.AREAS ADDRESSED BY PIMS WHAT IS THE TYPICAL PROFIT RATE OF A BUSINESS? GIVEN CURRENT STRATEGIES WHAT ARE THE FUTURE OPERATING RESULTS LIKELY TO BE? WHAT STRATEGIES ARE LIKELY TO IMPROVE FUTURE OPERATING RESULTS THIS SUMMARY FOLLOWS THE WORK OF LANCASTER.

IT IS THE RELATIONSHIP TO THE MARKET AND THE CONTEXT THAT WOULD DETERMINE THE VALIDITY OF CONCLUSIONS . SOME ARE RELATED BUT NOT COMPLEMENTARY AS IN MARKET SHARE AND MARKET GROWTH IN BRIEF WHILE EACH OF THE VARIABLES ARE RELEVANT. INVESTMENT INTENSITY.VARIABLES FOUND TO ACCOUNT FOR BUSINESS SUCCESS MARKET SHARE. COSTS MARKETING EXPENSES TO SALES RATIO AND LOW REQUIREMENT FOR CAPITAL INVESTMENT SOME OF THESE AS THE INVESTMENT VARIABLES ARE CONTRADICTORY. MARKET GROWTH. PRODUCT QUALITY.

I. MARKET SHARE AND PROFITABILITY 4. THE STUDIES WERE BIASED TOWARDS METAL WORKING COMPANIES SPEC.G. 1. AUTO COMPANIES 2. THE STUDIES WERE BIASED LARGER MORE BUREAUCRATIC COMPANIES SMALLER MORE ENTREPRENEURIAL ONES LESS WEIGHTAGE 3. NOT ENTIRELY USELESS BUT OF LIMITED USE AT BEST AND DANGEROUSLY MISLEADING AT WORST . RESPONDENTS DEFINING MARKETS CONVENIENTLY TO MAKE THEIR CO’S LOOK GOOD IN THE STUDIES OVERALL THIS IS ONE MORE FLAVOUR OF THE DECADE MANAGEMENT TALISMAN.S.M. MISTAKING CORRELATION FOR CAUSATION E.OFFICIAL CRITIQUE ELEMENTS OF P.

and also to develop a broader marketing decision -making orientation to recast tactical day-to-day operations in line with macro environmental changes.PGDM PROGRAMME COURSE OUTLINE I. Xavier. Strategic Marketing. The concept of marketing as the creation. Needs. Marketing Strategies.S Institute of Management 46. Peter Schmaars. 2 3&4 Unit – I . demand. Free Press. servicing and retention of Customers and Markets Basic concepts of marketing. 2. New York 2. M. Understanding technology as the driver to meeting these universal expectations. John Ensor –Butterworth Heinemann Reference Books: 1.To develop an appreciation for the macro view of the emerging marketing opportunities & difficulties.J. The stakeholder concept. wants. 1 Session 1&2 Unit Unit – I Topic Introduction to Strategy as the process of converting a firm’s vision into Long term goals to enable a firm to compete with sustained advantage in its business environment.T. Response 10% 20% 25% 45% Serial No. Strategic Marketing Graeme Drummond. Greater Noida Course Title : Strategic Marketing PGDM : 2007-2008 Term : III Trimester Objectives: 1. The concept of the Universal customer and her expectations. Evaluation Quizes/ Class Activity Group Presentation/ Assignments Mid-Term Examination End Term Examination Text Books: 1. To inculcate the art of developing competitive marketing strategy in the real life business situation. Knowledge Park-III.

Major differences between Strategic Marketing and Shorter term marketing. Examples of Indian telecom Vodaphone. The practical experience of Timex in India. The reality of the rural market and what conditions are needed macro economically and for individual firms to succeed here. Need to marry Strategic and Tactical Marketing objectives and efforts Analysing the role of the other 3 Marketing P’s in Strategic Marketing viz Distribution(Place). The extremely misunderstood Indian rural market. Sony Walkman and VCR examples of Strategic marketing.e. Sony and Matsushita tactical marketers. The one firm who has understood and successfully accessed the Indian rural Market Asian Paints. Strategic Pricing has to follow the Technology curve 5 9 & 10 Unit – III 6 11 & 12 Unit – III 7 13 & 14 Unit – IV 8 15 & 16 Unit – IV .S. medium term and short term. Dell Computers and Toyota Motors. Products for the company meet shorter term marketing objectives while products for the industry meet strategic marketing objectives. Premium Pricing or Cost Leadership. Analysis of the causes. The danger of making claims which are neither relevant nor credible. 4 7&8 Unit – II Some thoughts on Strategic Marketing. The need for Communication to be relevant and credible and to reflect the real competitive proposition. Airtel.3 5&6 Unit – II Understanding what Strategic marketing is in relation to overall company strategy. The critical importance of knowing the difference between Long term. Use of the Competitive Landscape model linking Customers and Markets with Products and Services and Technology. The illustration of credibility for Timex in the U. tactical and operational marketing with two firms viz. Discussing Porter’s maxim of either one of Differential i. Imitators of these including Matsushita have achieved better results. Apple the strategic marketer. watch market The tragic case of Pepsi and Coke in India Pricing the Critical variable in Marketing. SM would explore new products for yet to be accessed markets in terms of regions as well as segments. Illustrations of strategic. Introduction of the framework of “the Diffusion of technology” in strategic marketing vis a vis the 4 P’s of Marketing. Examples of Titan and Tata Motors establishing unbeatable advantages through building excellent widespread distribution infrastructure that Global companies are unable to replicate at competitive costs The role of Promotion including Advertising in furthering the competitive cause in Strategic Marketing.

Masilamani . Toyota the great Marketing company who has leveraged its Manufacturing.logic. 10 19 & 20 Unit – V Prof. Discussion of GE and BCG matrices and PIMS. The difference between pro active pricing as a competitive weapon and reactive/responsive pricing. How technology is the final enabler and the understanding of its role is most significant in taking Pricing as well as product decisions to beat and stay ahead of the competition. The inevitability of Lowering prices progressively in a competitive market. Market leader or new entrant follower. 9 17 & 18 Unit – V Integration of the Marketing mix variables to sustain competitive advantage. The example of Kellog misunderstanding the Indian breakfast food market and MacDonald’s paying respect to it and making a strong abiding presence in the world’s most difficult market.1. Car company Global Marketing requires the vision to think Universally but act and think locally to get the best advantages of successful expansion into other country markets. R. The relative power of Place and Price over the other two variables. Marketing and Financial skills to become the world’s No.J. Technical. Examples of Honda versus Yamaha and Apple versus itself. Tactical pricing depends on the relative position of the market player viz.

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