New Era University

COLLEGE OF BUSINESS ADMINISTRATION

9 Central Avenue, New Era, Quezon City, 1107 Philippines
Tel No.: (632)8981-4221 to 4231/ Fax: (632)8981-4240
Web Site: http://www.neu.edu.ph

MKM 11-6 STRATEGIC MARKETING MANAGEMENT

Week 3 and 4

MODULE #2. THE STRATEGIC PERSPECTIVE AND STRATEGIC PROCESS

I. INTRODUCTION
This module discusses the role of marketing strategies in a business
operation. A big, small, old, new and leading companies need to support with
excellent business strategy approaches to overcome failures and be able to
beat competitors in the business industry. The strategic marketing
management will be done in advance of the operation to the company will not
neglect any part of its operation and will surely sustain its resources and
become a leading company in the industry.

II. COURSE LEARNING OUTCOMES

At the end of this module, students can:
1. Define Strategic Planning and Marketing Mix
2. Explain the company-wide strategic planning and its four steps
3. Discuss how to design business portfolios
4. Explain marketing’s role in strategic planning and how marketing works
with its partners
5. Describe the elements of a customer-driven marketing strategy and mix
and the forces that influence it
6. List the marketing management functions, including the elements of a
marketing plan
III. COURSE CONTENT
LESSON 1. The Strategic Planning and Marketing Mix

What is Strategic Planning?

Strategic Planning pertains to the process of developing and
maintaining the business operation through the use of relevant strategies
that fit the organization’s goal and capabilities in the changing marketing
opportunities. If you will implement potential strategies in your business it
will always be ready for any happenings in the future because Strategic
Planning is the direction towards the organization’s goals and objectives.

Take this example and analyze carefully the two great businesses
that have a strong business image to the public, the Mang Inasal and
Jollibee Corporation. These companies applied great strategies in their
operation.
The newly opened Mang-Inasal became a threat to the consistent
leading company, the Jollibee Corporation. The Jollibee Corp. made an
extraordinary solution to this problem because it didn’t want to be replaced
by an aggressive new entrant in the industry, so it decided to purchase the
Mang Inasal plus accompanied by attractive offers to Mang Inasal to
diminish a strong competitor.

After a successful move, over Mang-Inasal, it took time to develop

the marketing mix of the said company.

What is Marketing Mix?

Marketing Mix. The set of tactical marketing tools such as
Product, Price, Place, and Promotion. The firm is enabled to perform a
successful operation if these four P’s (marketing mix) blend with the four
C’s.
 4P’s 4 C’
Product Customer
Price Cost
Place Convenience
Promotion Communication

PRODUCT PRICE

Quality, style, design, Credit, allowance,

packaging, brand name, discount, price list
features, attributes, etc

PROMOTION PLACE

Advertising, personal selling, Channel of distribution,

sales management, public Transportation, Logistics,
relation, direct marketing Inventory, Location,
Marketing Intermediaries

Kotler and Armstrong discussed the 4P’s and C’s. They stated that
the four P’s of Marketing Mix completes the business operation. What
product/service to produce for the customer? How much price is going to
set for the products and services? Where should the product be placed to
make it accessible and visible to the target buyer and resellers as well?
What type of promotion is attractive and influential to encourage purchase

LESSON 2. The company-wide strategic planning and its five steps

1. The Mission statement pertains to the identity and the purpose of the
company in society. This will tell what the organization would like to
accomplish in the future.
2. Setting the Company Objectives and Goals. The list of targets the
company would like to attain in the larger environment.
3. Situation analysis tells about the current performance and the
competitive advantage of the company. SWOT analysis (Strengths,
Weaknesses, Opportunities, and Threats) is helpful to understand and
evaluate the internal and external factors that affect both the company
and the buyers. This serves as the basis for the business development
of the company.

WEAKNESSES Inside
STRENGHS Inside
the copany
the company

The firm's The firm's

positive negative
points side

These are
These are
firm's great
the negative
chances and
effects
OPPORTUNITIES
advantages
Outside the company THREATS
Outside the
company

Strengths. Examples are good points about employees and

materials, positive points of products, and service over competitors.

Weaknesses. For example, the poor performance of employees

and materials, the bad performance of the firm's products and services.

Opportunities. For example, large market share or potential

business location, etc.
 Threats. Shortage of supplies, issues, and problems in the
environment, etc.

TOWS in Business Analysis

THREATS OPPORTUNITIES

WEAKNESSES STRENGTHS

Some business experts proposed the TOWS analysis to determine

the actual happenings in the outside environment before the inside
environment. Many investors have been applying the SWOT analysis
which focuses on the internal factors first before the outside factors.

The Cebu Pacific sample SWOT Analysis

Strength: Weaknesses:

Internal Offered LCC (Low Cost Carrier) Travel Cost is increasing

Environment Powerful Aircraft Engine Loss his position in Air Travel
Approachable Cabin Crew and Market
Staffs Delays of flight schedules
Clean seat and restrooms Few employees (cabin crew)

Opportunities: Threats:

External Launched its first Air Bus
Environment (A321ceo)
Access to an online sales
monitoring tool
Access to CEB BIZ Fare
( corporate fair) 24/7 online
booking
Affiliated with many countries
Cancellation of flights from other
places
Fuel supply shortage
Upcoming typhoons and calamity
The fluctuation of currency rate
Accident charges
 You try to compare SWOT and TOWS, which do you think is
better to adapt by a wise investor?

4. Marketing Strategies Planning.

A. Ansoff Matrix

Market Penetration Product Development

Market Development Diversification

Market Penetration. Is a marketing strategy that uses promotes

current products or service to current customers. Its technique
is to persuade buyers through the use of the promotion.

Market Development. This strategy uses new markets for the

current products or services. For example, is multiplying the
number of outlets or branches of the store to a different location.
A Franchising strategy is a good technique as well to have more
buyers of the same products.

Product Development. This strategy creates new products for

current buyers. For example, creating new flavors, scents,
improving the style and design of the current product or service
to please the customer.

Diversification. This strategy creates new products for new

buyers. For example, a particular manufacturing company
creates different products like apparel for infants, for kids, for
adults, for men and for women, etc.
 B. Lawler Model

5. Implementation and Control.

The action and the monitoring point in the marketing process. The
implementation strategy might overwhelm in implementing the
business strategies so the manager must be careful in analyzing
things. Like for example, too much emphasis on “where” to compete
and not enough on “how” to compete. Too little focus on uniqueness,
and didn’t emphasize ”when” to compete.

To control is to measure and assess the result of the

implemented marketing strategies of the organization. The
management needs to compare the actual result from the pre result
before the implementation was held and then they need to take
corrective action for the problems to eliminate the destructions and
 hindrances in achieving the set goals. The ROI (Return of Investment
will be possibly accomplished

LESSON 3. Design Business Portfolio

Designing Business PortfolioMarketers today do not stop doing

plans for their business. Johnson and Johnson company, for example, has
been one of the leading businesses in the baby products industry because
it has strong and attractive marketing strategies. marketing business
portfolio the number of products and services offered by a company.

Let us analyze John & Johnson’s Strategic Marketing Planning

in using different Planning Techniques. Johnson & Johnson shows a
good marketing strategy. It applied different techniques in planning where
the purpose is to increase the sales of the company and make all the
products profitable.

Market Share is the percentage of a market represented by a

specific product or company. A sample market share of Johnson &
Johnson products shows which products contribute to a large market
share is also the one that gives a high profit for the company.

LESSON 4. The marketing’s role in strategic planning and how

marketing works with its partners
A. Partnering with other Company Departments or Value Chain
Value Chain. It refers to all the activities undertaken by a
company from initially purchasing raw materials and then
manufacturing a quality product. Chains are from the different
tasks from different departments,

B. Partnering with others in the Marketing System of Value Delivery

Network
Value Delivery Network. This pertains to a total delivery of
tasks from the supplier to the company where the product is being
manufactured, and to distributors to offer the products to target
customers.

LESSON 5. The elements of a customer-driven marketing strategy

and mix and the forces that influence it
Customer-Driven Marketing Strategy
Take note that there are so many people around us in our
environment. And it’s a fact that the company could not afford to meet and
provide all their needs, wants, and demands. You as a marketer it is
really hard to identify and recognize WHO among them could be possible
buyers of goods and services offered by your company. The role of the
segmentation will surely help you to identify your specific buyers.

A. Market Segmentation. It is a process of dividing customers into

distinct groups, characteristics, personality, and behavior. For
example, a clothing manufacturing company should find a
potential group of buyers. Some variables such as gender, age,
education, social status will help you in dividing the customers.
Market Segment? They are the specific group of buyers
 that have the same, characteristics, personality, and behavior.
For example, clothes for rich teenagers, apparel for a medical
professional, business attire for the professional business
worker. School uniform for female elementary pupils.

Market Segmentation is not a simple task. It requires the criteria to

make it effective.

Substantial. The segment that has something to do to purchase.

Measurable. Specific or limited group buyers to them well.
Actionable. A segment that is capable to purchase.
Accessible. Market segment be around the area
Responsive. Segments that are willing and ready to buy.

B. Targeting. Marketers today are very careful in choosing the

right and specific target market that is perfect for the products
and services offered by their company. So they have identified
the four basic strategies for reaching target markets these are:
Undifferentiated marketing or mass marketing, Differentiated
marketing or segmented marketing, Concentrated marketing or
niche marketing, and Micromarketing or local marketing.

1. Undifferentiated marketing or mass marketing. Is a strategy in

making or creating a product or service that is suitable for all types of
buyers. Examples such as drugstore, supermarket, gasoline, and gas
2. Differentiated marketing or segmented. Is the company strategy in
producing a product that is intended for a group. For example,
shampoo for babies, shampoo for men, shampoo for women. The
different shampoo products will be enjoyed by different segment
buyers.
3. Concentrated marketing or niche marketing. This strategy provides
 products and services that focus on a particular group of the buyer. For
example, goods for teenagers, foods for babies, school for depth and
mute, and van for the tourists.
4. Micromarketing or local marketing. The specific and smallest group
such as hobby, occupation or career, personality, etc. For example,
cactus grower, pet lover, pocketbook writer, resides at Makati City, etc.

C. Market Positioning. This refers to the business strategy that

will put the business in the mind of target buyers. The reason for
putting the business in the mind of the customer is to achieve
the company’s goals to increase the market share and add
more buyers who will patronize the products and services of the
firm.

To make your company competitive over competitors,

use a supportive, excellent, and convincing positioning strategy.
Some suggested bases for good positioning are the following:
product attributes, product quality, product edge and
advantages over competitors, prices, and benefits. The
company tagline or slogan serves the market positioning
strategy. Examples are:

Nike – “Just do it”

Apple – “Think different”
BMW – “Designed for Driving Pleasure”
McDonald- “I’m Lovin’ it”
Metrobank – “You’re in Good Hands”
Rexona – “ It won't Let You Down”
 The market positioning strategy is a simple and short
statement that tells the benefits and competitive advantage
of the product or service. Make the statement memorable
and unique, differentiate the brands, including the benefits,
and touch the feelings of the prospective buyers.

D. Marketing Mix. Let us analyze the move done by the J&J

Company applying the 4 marketing mix such as (Product, Price,
Place, and Promotion) for its successful operation.

LESSON 6. The marketing management functions

1. Marketing research
2. Marketing Plan
3. Employees to negotiate

IV. ACTIVITIES
Posted in VLE
V. ASSESSMENT/OUTPUT
Posted in VLE
VI. REFERENCES
VII.
1 Bruton, Garry D. and White, Margaret A., Strategic Management of
Technology and Innovation, Philippine Edition, Cengage Learning.
2017
2 Moutinho, Luiz and Southern, Geoff, Strategic Marketing
Management, Philippine Edition, Cengage Learning. 2016
3 Cravens, David W. and Piercy, Nigel F., Strategic Marketing 9th
Edition, International Edition, Irwin McGraw-Hill, Boston,
Massachusetts. 2016
4 Go, Josiah and Escareal-Go, Marketing Plan Building the Profitable
Preferred Brand, Philippine Setting 2nd Edition, 2016
5 Go, Josiah and Escareal-Go, Fundamentals of Marketing in the
Philippine Setting 2nd Edition, 2015
6 Online Reference: www.mansmith.net
PREPARED BY

DR. LORNA CASCO-BOUING

Marketing Management Program Head