STRATEGIC MARKETING

BY
M. EKHLAQUE AHMED

Change is the essence of life. Be willing

to surrender what you are for what you
could become
 CALL FOR URGENCY
• Sudden, fierce, business-destroying competition

• Current strategies aren’t working

• One or more of some strategic initiatives currently underway are not

delivering results or living up to expectations

• Why aren’t we getting a better multiple?

• How can we improve our poor performances?

• Leaders, proactively, want to take new challenges

• Employees too focused on executing day to day operations

• “Growth Culture” in a already Profitable company

 Session: 1

Marketing in the Backdrop of Strategic

Management
 INTRODUCTION – STRATEGIC MARKETING

MARKETING – FUNCTIONAL DEFINITION

“Marketing is the management process for identifying, anticipating

& satisfying customer requirements profitably”.

“Marketing is the process of planning & executing the conception,

promotion and distribution of ideas, goods & services created to
satisfy individual & organization’s objectives”.

 Marketing as a functional process.

 Marketing is increasingly being conceptualized as an organizational
philosophy or an approach to doing business.
 INTRODUCTION – TO STRATEGIC MARKETING

MARKETING – FUNCTIONAL DEFINITION

The marketing concept is managerial orientation
which recognize that success primarily is dependent
upon identifying changing customer need and
developing products and developing products and
services which match these better than competition

To look at customer needs from competition’s eye!

 INTRODUCTION TO STRATEGIC MARKETING

MARKETING IN STRATEGIC TERMS

• Marketing is a management process whereby the
resources of the whole organization are utilized to
satisfy the needs of selected customer groups in order
to achieve the objectives of both parties. Marketing,
then is first and foremost an attitude of mind rather
than a series of functional activities.
• Marketing is so basic that it cannot be considered a
separate function on a par with others such as
manufacturing or personnel. It is first a central
dimension of the entire business. It is the whole
business seen from the point of view of its final result.
That is, from the customer’s point of view.
 STRATEGIC MARKETING

CONCEPT OF MARKETING:

• Past Three Decades, the Concept of Marketing has

changed dramatically.
• Evolved from:-
 Focus on Product
 Making a “Better” Product
 Where “Better” was internal standards and values.
 Objective was Profit and the means to achieving the
objective was selling or persuading the potential
customer.
 STRATEGIC MARKETING

NEW CONCEPT OF MARKETING (1960)

• Shift of focus from product to customer

• Objective was still profit but means of
achieving objective expanded to include
entire Marketing Mix (Four Ps)
 STRATEGIC MARKETING
STRATEGIC CONCEPT OF MARKETING (1990s)
• New concept of Marketing was outdated
• Shift from customer or product to the customer in the context of
broader external environment.
• Marketers must know the customer in a context including competition,
govt. rules & regulation, broader economy, evolution of market etc.
• Objectives from profits to stakeholders benefit i.e.
 Employees & Management
 Customers
 Society & Govt.
• Profits are reward for Performance.
• Employee commitment to continuing innovation and quality.
• Means of strategic marketing is strategic management.
 STRATEGIC MARKETING
STRATEGIC CONCEPT OF MARKETING (1990s)
• Senior Management integrates marketing with other
management functions.
• Profits are still a critical objective and measure of
marketing success but it is not an end in itself.
• Aim of marketing is to create value for stakeholders (Key
being customer)
• Shift from microeconomics maximization paradigm to a
focus of Managing Strategic Partnership and Positioning
the firm between vendors and customers in the value
chain (Boundary less Marketing)
• 5 Ps of Marketing – Product, Price, Place, Promotion,
Probe
 STRATEGIC MARKETING
ESSENCE OF MARKETING – THE THREE
PRINCIPLES OF MARKETING:
1. Customer Value & Value Equation
 Create customer value greater than competition
 V = B/P, V = Values, B = Perceived Benefits / Perceived
Costs
P = Price

2. Competitive & Differential Advantage

Total Offer vis-a-vis Competition

3. Focus
Focusing or customer needs.
 STRATEGIC MARKETING

GUIDING PRINCIPLES OF THE

MARKETING COMPANY
1. The Principle of the Company:
Marketing is a Strategic Business Concept.
 A good CEO should also be a good CMO
 Marketing is too important to be handled by a
Marketing Department alone
 Business has only two basic functions: Marketing
& Innovation. Marketing and Innovation produce
results, the rest are cost.
 STRATEGIC MARKETING

2. The Principle of the Community:

Marketing is Everyone’s Business
A flat and layerless organization structure
All departments are marketing departments
and all functions are marketing functions.
Everyone is a marketer, responsibility and
tasks of acquiring, satisfying and retaining
customer lie on shoulders of everyone.
New Roles are – Accounting – Marketer,
Operations Marketer, R&D – Marketer etc.
 STRATEGIC MARKETING

3. The Principle of Competition:

Marketing war is about Value War

Marketing Company does not pursue short
term profits, it creates customer value for
long term relationship
Increase customer value to win marketing
war.
 STRATEGIC MARKETING

4. The Principle of Integration:

Concentrate on Differences, Not just on

Averages.
All customers are not created equal.
Customers are uniquely different. Their
needs are distinctively diversified.
There are no average customer and to build
customer loyalty, concentrate on
differences, not just on average.
 STRATEGIC MARKETING

5. The Principle of Anticipation:

Concentrate on pro activity, not just on

reactivity.
Be ready for change to integrate with
customers.
Anticipate change proactively,
Pro-activity is Responsibility.
Be a change agent, change driver or even
change surpriser.
 STRATEGIC MARKETING
6. The Principle of Brand:

Avoid the commodity like trap.

Brand is the value indication
It is determined by the Company’s new
product development, customer satisfaction
or retention and value chain management.
With brand, the company is able to liberate
itself from the supply-demand phenomena.
 STRATEGIC MARKETING

7. The Principle of service:

Avoid the Business Category Trap.
Service refers to service with a big ‘S’ not a
small ‘s’.
It is the answer to Peter Drucker’s question!
“What business are we in?”
There is only one business category‘
service, Why ?
Because service means ‘Solution’!
 STRATEGIC MARKETING

8. The Principle of Process:

Avoid the Function-Orientation Trap
It refers to the process of creating value to
customers.
It reflects the product quality, cost, and
delivery of a company to customers.
It is the value enabler of a company.
 STRATEGIC MARKETING

9. The Principle of Differentiation:

Integrate Your Content, Context and
Infrastructure
Differentiation as “integrating the content,
context and infrastructure of our offers to
customer.
 STRATEGIC MARKETING

10. The Principle of Totality:

Balance your Strategy, Tactic and Value

The Marketing Company should be able to
balance the strategy, tactic and value in the
implementation.
Marketing tactic is about how to win the market
share.
Marketing value is about how to win the heart
share.
Together, they will win the mind, heart and
market share.
 STRATEGIC MARKETING
11. The Principle of Agility:
Integrate Your What, Why and How
An agile company continually engages in three main
activities:-
i) First, it constantly monitors the competitors’
movement and consumer behavior (what). It has
marketing intelligence and information systems to
take a picture of the business environment.
ii) Second, it continuously uses and analyzes the
information gathered from the first activity to get a
useful insight about the environment (why).
iii) Third, the gathered and analyzed information is
incorporated in its strategy and tactic development
process (how).
 THE PRINCIPLE CHALLENGES

THE PRINCIPLE CHALLENGES

• High and rising levels of competition across all markets
• Far higher levels of price competition
• An increasing emphasis upon and need for customer
service
• A demand for higher levels of product quality
• Higher rates of product innovation
• Changing and less predictable customer needs
• The emergence of new market segments
• The growing power of distribution channels
• Growing environmental concerns
 INTRODUCTION TO STRATEGIC MARKETING

THREE MOST SIGNIFICANT CHANGES

• The consolidation of competition as fewer but larger players emerge
• Changing customers and their demands, and
• The globalization of markets and competition
The response:
Marketing would no longer be the isolated concern of a few people, but of
staff throughout the business.Thus the concept of integrated marketing emerges.
The implications of marketing is:
 The leading business philosophy
 The knowledge and wisdom center of the company that provides all
organizational members with concepts and findings about customers and
tools for measuring and forecasting customer behavior and models and
decision-support systems for improving the quality of marketing and
business decisions and;
 The growth engine that, through creative marketing strategies and utilize
technology and mobilize the other business functions of the company,
stimulates the top line growth of the company.
 INTRODUCTION TO STRATEGIC MARKETING

IMPLICATIONS FOR ORGANIZATIONAL STRUCTURE & CULTURE

• Break hierarchies and reorganize around flatter structures
• Organize around smaller business units
• Develop self managing teams
• Re-engineer
• Focus upon developing networks and alliances
• Become a true learning organization
• Emphasize account management in order to integrate specialist
expertise across the organization for the benefit of the customer
• Low cost fast paced innovative products
• Rethink the way in which the board of directors operates so that it
focuses to a far greater extent upon strategic direction rather than
control and day-to-day management
 STRATEGIC BUSINESS PLANNING

• Besides good operational management a business needs

high quality strategic management to ensure lasting
success.
• Strategic management focuses on strategic choices.
• Operational management focuses on actions and results.
• The business planning process should be an intensive
group (management team) process, based on sharing of
visions and facts, comparison of alternative scenario’s,
agreeing on choices and translating all into consistent
and interlinked action plans.
• A qualified business plan is recognized by its:
 creative content and consistent structure
 implementation and deployment planning
 management ownership
• STRATEGIC management focuses on DECISIONS

VALUES

INFO LOGIC DECISION

While
OPERATIONAL Management focuses on RESULTS

PLAN ACTION RESULTS

 Entrepreneurial management: A Balancing Act

OPERATIONAL MANAGEMENT
QUALITY
of POOR GOOD
STRATEGIC MANAGEMENT

POOR GAME OF
ALMOST HAZARD
CERTAIN
DISASTER
SUSTAINABLE
GOOD
CHANCE
TO WIN
THEORY OF BUSINESS

• “HOW TO DO” TOOLS

VS
• “WHAT TO DO”
DIRECTION MATRIX:

WTW WTR

RTW RTR

Doing things fruitlessly!

 RESPONSIVENESS TO CHANGE

• “Plans are nothing, planning is everything”.

(Dwight D. Eisenhower)
• Neither dogmatic / rigid against change, nor
drifting with the changes.
• But a well considered standard / yardstick for
reflection and a starting point for flexible
response towards changes.
 MAKETING STRATEGY INTERFACE
BUDGETING, LONG-RANGE PLANNING, STRATEGIC
PLANNING AND STRATEGIC MARKET MANAGEMENT
• Budget: (Control deviation and manage complexity)
• Long Range Planning: Past trend will continue, anticipate growth &
manage complexity
• Strategic Planning:
 Strategic adjustment
• Focuses on the market environment facing the firm
• Strategic Market Management:
 Cope with strategic surprises and fast developing threats and
opportunities
 Proactive and future oriented
 MARKETING STRATEGY INTERFACE
• Distinctive and farsighted view rather than a
conventional and reactive view about the future
• Senior Management focuses on regenerating core
strategies rather than re-engineering core processes
• Competitors view the company as a rule maker rather
than a rule follower
• The company’s strength is innovation and growth
• The company is mostly out in front rather than catching
up
• Try to influence the environment as well as respond to it
 MARKETING STRATEGY INTERFACE
PROCESS OF STRATEGIC DECISION MAKING

1. STRATEGIC ANALYSIS:
 Environment (Change / Effects)
 Resources (To deal with the changes)
 Expectations, Objectives and Powers.

2. STRAGEGIC CHOICE:
 Strategic Option (Beyond Obvious)
 Evaluation (Exploit Strengths and Overcome Weaknesses)
 Selection of Strategy

3. STRATEGIC IMPLEMENTATION:
 Resource Planning
 Organization Structure
 People and System
BUSINESS PLAN – BASIC FORMAT

BUSINESS SCOPE OPERATIONAL PLAN

BUSINESS ENVIRONMENT
OPERATIONAL PLAN

INTERNAL ANALYSIS
OPERATIONAL PLAN
BUSINESS OBJECTIVES
OPERATIONAL PLAN
KEY ISSUES
OPERATIONAL PLAN
OVERALL STRATEGIC DIRECTION
SUPPORTING CONDITIONS

FINANCIAL PROJECTION