Chapter Strategic Marketing A Intoduction Marketing’s Role in the Organization (TM 2-1) Definition of Marketing Strategy (TM 2-2) Characteristics of Strategic Marketing (TM 2-3) B Marketing Strategy Formulation Three Strategic Cs (TM 2-4) Key Elements of Marketing Strategy Formulation (TM 2-5) Strategic Marketing Decisions (TM 2-6) Test of a Good Marketing Strategy (TM 2-7) Future of Strategic Marketing (TM 2-8) C Strategic Marketing and Marketing Management Major Differences Between Strategic Marketing and Marketing Management (TM 2-9) D Organizational Context of Strategic Marketing Profess of Strategic Marketing (TM 2-10) E Strategic Marketing Implementation Failings in Strategic Marketing (TM 2-11) Addressing the Failings (TM 2-12) 169 170 CHAPTER 2: Strategic Marketing 2-1 MARKETING’S ROLE IN THE ORGANIZATION ORGANIZATIONAL ROLE OF FORMAL LEVEL MARKETING NAME Corporate Provide customer and Corporate competitive perspective for marketing corporate strategic planning Business Unit Assist in the development of Strategic strategic perspective of the marketing business unit to direct its future course Product/market Formulate and implement marketing programs Marketing management CHAPTER 2: Strategic Marketing 171 2-2 DEFINITION OF MARKETING STRATEGY Marketing strategy is an endeavor by a business unit to differentiate itself positively from its competitors, using its relative corporate strengths to better satisfy customer needs, in a given environmental setting 172 CHAPTER 2: Strategic Marketing 2-3 CHARACTERISTICS OF STRATEGIC MARKETING • Emphasis on long-term implications • Corporate inputs • Varying roles for different products/markets • Organizational level • Relationship to finance CHAPTER 2: Strategic Marketing 173 2-4 STRATEGIC Cs • Customer • Corporation • Competition 174 CHAPTER 2: Strategic Marketing 2-5 KEY ELEMENTS OF MARKETING STRATEGY FORMULATION CHAPTER 2: Strategic Marketing 175 2-6 STRATEGIC MARKETING DECISIONS • Where to compete—i.e., definition of the market • How to compete—i.e., means for competing • When to compete—i.e., timing of market entry 176 CHAPTER 2: Strategic Marketing 2-7 TEST OF A GOOD MARKETING STRATEGY • A clear market definition • A good match between corporate strengths and the needs of the market • Superior performance, relative to competition, in the key success factors of the business CHAPTER 2: Strategic Marketing 177 2-8 FUTURE OF STRATEGIC MARKETING Strategic marketing is increasingly becoming important because of: • Battle for market share • Deregulation in many industries • Packaged-goods companies entering nonmarketingoriented industries • Shifts in channel structure • Competition from overseas • Fragmentation of markets • Getting to the market quickly • Conceive and create new and uncontested market spaces • Demographic shift in American society 178 CHAPTER 2: Strategic Marketing 2-9 MAJOR DIFFERENCES BETWEEN STRATEGIC MARKETING AND MARKETING MANAGEMENT POINT OF DIFFRENCE STRATEGIC MARKETING MARKETING MANAGEMENT Time frame Long-range; i.e., decisions have long-term implications Day-to-day, i.e., decisions have relevance in a given financial year Orientation Inductive and intuitive Deductive and analytical Decision process Primarily bottom-up Mainly top-down Relationship with environment Environment considered ever- Environment considered changing and dynamic constant with occasional disturbances Opportunity sensitivity Ongoing to seek new opportunities Ad hoc search for a new opportunity Organizational behavior Achieves synergy between different components of the organization, both horizontally and vertically Pursues interests of the decentralized unit Nature of job Requires high degree of creativity and originality Requires maturity, experience, and control orientation Leadership style Requires proactive perspective Requires reactive perspective Mission Deals with what business to emphasize Deals with running a delineated business CHAPTER 2: Strategic Marketing 179 2-10 180 CHAPTER 2: Strategic Marketing 2-11 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 CHAPTER 2: Strategic Marketing 181 2-12 ADDRESSING THE FAILINGS • Develop attainable goals and objectives • Involve key operating personnel • Avoid becoming engrossed in current problems that may affect strategic planning • Don’t keep marketing strategy separate from the rest of management process • Avoid formality in strategy formulation • Create climate conducive to strategic planning • Avoid delegating strategy development to a planner • Avoid intuitive and conflicting decisions [...]...CHAPTER 2: Strategic Marketing 179 2- 10 180 CHAPTER 2: Strategic Marketing 2- 11 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 CHAPTER 2: Strategic Marketing 181 2- 12 ADDRESSING THE FAILINGS • Develop... goals and objectives • Involve key operating personnel • Avoid becoming engrossed in current problems that may affect strategic planning • Don’t keep marketing strategy separate from the rest of management process • Avoid formality in strategy formulation • Create climate conducive to strategic planning • Avoid delegating strategy development to a planner • Avoid intuitive and conflicting decisions ... CHAPTER 2: Strategic Marketing 173 2- 4 STRATEGIC Cs • Customer • Corporation • Competition 174 CHAPTER 2: Strategic Marketing 2- 5 KEY ELEMENTS OF MARKETING STRATEGY FORMULATION CHAPTER 2: Strategic. .. emphasize Deals with running a delineated business CHAPTER 2: Strategic Marketing 179 2- 10 180 CHAPTER 2: Strategic Marketing 2- 11 FAILINGS IN STRATEGIC MARKETING • Too much emphasis on “where” to compete... in American society 178 CHAPTER 2: Strategic Marketing 2- 9 MAJOR DIFFERENCES BETWEEN STRATEGIC MARKETING AND MARKETING MANAGEMENT POINT OF DIFFRENCE STRATEGIC MARKETING MARKETING MANAGEMENT Time