MARKETING

STRATEGIC
MANAGEMENT
Chapter 1
Marketing Strategy
 A strategy is a plan of action designed to achieve a
vision.

 Marketing strategy is a process that can allow an

organization to concentrate its limited resources on
the greatest opportunities to increase sales and
achieve a sustainable competitive advantage.
Types of Strategies (Doyle 1997)
 Radical Strategies: achieve spectacular growth in sales and profits
but do not create long term shareholder value e.g., acquisition
based and media hype.

 Rational Strategies: achieve high short term performance by

creating new products that are significantly superior or cheaper to
competitors i.e. major innovations in technology (Direct lines by
financial services).

 Robust Strategies: steady performance over the long term by

creating superior customer value and building long term
relationships i.e. Johnson & Johnson and Toyota.
Marketing Concept

 Marketing is an organizational function and a set of processes

for creating, communicating and delivering value to customers
and for managing customer relationships in ways that benefit
the organization and its stakeholders – AMA

 Important points of focus: value, process and customer

relationship

 Marketing involves organizational culture, strategy & tactics.

Market Orientation
 Market orientation refers to the organization wide
generation, dissemination, and responsiveness to
market intelligence.

Market led
organizational
culture
Views of Marketing
 Product Push Marketing: myopic view of company to focus
activities on existing products and look for ways to encourage
consumers to buy like IBM in 1980’s.

 Customer led Marketing: the goal is to find what customers

want and how can the company meet their wants like P&G 35
variants of Bounce fabric conditioner.

 Resource based view of Marketing: marketing strategies on

equal consideration of the requirements of the market and
company’s ability to serve. Middle ground between Product
push & Customer led marketing.
Organizational Stakeholders

 Shareholders

 Employees

 Managers

 Customers

 Suppliers

 Distributors
Marketing & Performance Outcomes

Mark Market Fina

et ing
resour ncial
orien
ted
ces & perf
Market
cultu perfor orm
re mance ance
Marketing Fundamentals

 Principle 1: Focus on the customer

 Principle 2: Only compete in markets where you

can establish a competitive advantage

 Principle 3: Customers do not buy products

Marketing Fundamentals (Cont’d)

 Principle 4: Marketing is too important to leave to

the marketing department (even if there still is one)

 Principle 5: Markets are heterogeneous

 Principle 6: Markets and customers are constantly

changing
The role of marketing in leading strategic management

 Identification of customers requirements

 Deciding on the competitive positioning to be

adopted

 Implementing the marketing strategy