Communicating & Delivering Value • Marketing is most dynamic function Overview of Strategic Management Strategic Marketing • SM refers to an identification of one or more competitive advantages a firm has in markets it serves & the allocation of resources to exploit them. • It’s a market driven process of strategy development that considers constantly changing business environment & the need to deliver superior customer value.
In a strategic role, marketing aims to transform corporate objectives
and business strategy into a competitive market position Importance of Strategic Marketing • Making Strategic choices • Coping with Changes 1. Co SM in vo 2. An lecting info lves- l • Long term business level strategy a r 3. Id lysing info mation e rmati • Resource allocation decision 4. Ap ntifying O on plying & T creati vity • Aid in decision making • Sustainable competitive advantage
Where to compete, How to compete & When to compete
Process of Strategic Marketing Portfolio analysis The process by which management evaluates the products and businesses that make up the company. The first step is identifying the strategic business units (SBU) that are vital to the company. The well-known model of the Boston Consulting Group (BCG) sorts the SBUs into a growth-share matrix, leading to four types of SBUs: 1.Stars: high growth and high share units, in need of investment. 2.Cash cows: low-growth, high share units, producing cash. 3.Question marks: low-share units, in high-growth markets. Require cash, but can turn out to be unprofitable. 4.Dogs: low-growth, low-share units, which are not very profitable. Future outlook • Market penetration: company growth by increasing sales of current products to current market segments without changing the product. • Market development: company growth by identifying and developing new market segments for current company products. • Product development: company growth by offering modified or new products to current market segments. • Diversification: company growth through starting up or acquiring businesses outside the company’s current products and markets Managing Customer along PLC Thank You!!