BUSINESS MARKETING

TOPIC 2: STRATEGIC MARKETING

HOLISTIC MARKETING CONCEPT
MARKETING’S ROLE IN THE
ORGANIZATION
Name Role of marketing

Provide customer and competitive

Corporate marketing perspective for corporate strategic
planning.

Assist in the development of

strategic perspective of the
Strategic marketing
business unit to direct its future
course.

Formulate and implement

Marketing management
marketing programs.
 MARKETING MANAGEMENT VS
STRATEGIC MARKETING
Point of difference Strategic Marketing Marketing
Management

Time frame Long-term Day-to-day

Decision process Bottom-up Top-down

Relationship with Environment Environment

environment considered as ever- considered as constant
changing
Opportunity sensitivity Ongoing to seek new Ad hoc search for new
opportunities opportunities

Organizational Achieve synergy Pursue interest of

behavior between different decentralized unit
departments
Leadership style Requires proactive Requires reactive
perspective perspective
WHAT IS MARKETING STRATEGY?

It is a blueprint by which the firm plans

to compete, with the objective of
creating sustainable competitive
advantage by providing a superior
customer value.
MARKETING STRATEGY INVOLVES …

Selecting a target market

Determining positioning of product

Specifying the plan for the

marketing activities to achieve the
desired positioning.
MARKETING STRATEGY
Long-term oriented – not short-term
cost savings and profit enhancements
(e.g. Wholesalers of genuine products
vs. fake products)

Market readiness (proactive vs.

reactive)
MARKETING STRATEGIES
 Focus on ways in which the corporation
can differentiate itself effectively from its
competitors,

 Capitalizing on its distinctive strengths to

deliver better value to its customers.
CHARACTERISTICS OF GOOD
MARKETING STRATEGY
A clear market definition.

A good match between corporate

strengths and the needs of the market,

 Superior performance, relative to the

competition, in the key success factors of
the business.
FORMATION OF MARKETING
STRATEGIES – 3 MAJOR DECISIONS
 Whereto compete? (define the target market, e.g.
competing across an entire market or in one or
more segments)

 Howto compete? (means of competing, e.g. new

product or new position of existing product)

 When to compete? (timing of market entry, e.g.

being first in the market or waiting until primary
demand is established)
THE CHALLENGES OF MARKETING
STRATEGY
 Unending Change “VUCA - Volatility, Uncertainty, Complexity
Ambiguity” world
 People-Driven Nature of Marketing
 Lack of Rules for Choosing Marketing Activities
 Increasing Customer Expectations
 Declining Customer Satisfaction and Brand Loyalty
 Competing in Mature Markets
 Increasing commoditization
 Little real differentiation among product offerings
 Aggressive Cost-Cutting Measures
KEY ELEMENTS OF MARKETING STRATEGY
FORMULATION
ELEMENTS OF MARKETING STRATEGY
FORMULATION - 5 CS
Customer

Context Corporation

Collaborators Competition
 ELEMENTS OF MARKETING STRATEGY
FORMULATION - 5 CS
Customer

Context Corporation

Collaborators Competition

Customer Needs: what needs do we seek to satisfy?

 ELEMENTS OF MARKETING STRATEGY
FORMULATION - 5 CS
Customer

Context Corporation

Collaborators Competition

Company Skills: What special competence do we possess to meet

those needs?
 ELEMENTS OF MARKETING STRATEGY
FORMULATION - 5 CS
Customer

Context Corporation

Collaborators Competition

Competition: Who competes with us in meeting those needs?

 ELEMENTS OF MARKETING STRATEGY
FORMULATION - 5 CS
Customer

Context Corporation

Collaborators Competition

Collaborators: Who should we enlist to help us and how do we

motivate them?
 ELEMENTS OF MARKETING STRATEGY
FORMULATION - 5 CS
Customer

Context Corporation

Collaborators Competition

Context: What cultural, technological and legal factors limit what is

possible?
FAILINGS IN STRATEGIC MARKETING
 Too much emphasis on “where” to
compete and not enough on “how” to
compete.

 Too little focus on uniqueness and

adaptability in strategy

 Inadequate emphasis on “when’’ to

compete
ADDRESSING THE PROBLEMS OF
STRATEGIC MARKETING
1. Develop attainable goals and objectives.
2. Involve key operating personnel.
3. Avoid becoming so engrossed in current problems that strategic
marketing is neglected and thus becomes discredited in the
eyes of others.
4. Don’t keep marketing strategy separate from the rest of the
management process.
5. Avoid formality in marketing strategy formulation that restrains
flexibility and inhibits creativity.
6. Avoid creating a climate that is resistant to strategic marketing.
7. Don’t assume that marketing strategy development can be
delegated to a planner.
8. Don’t overturn the strategy formulation mechanism with
intuitive, conflicting decisions.
REVIEW QUESTIONS