Introduction Flashcards
What is Strategy?
Strategy is the direction & scope of an organization over the long term, which achieves advantage for the organization- Johnson & Scholes, Exploring Corporate Strategy, 2002
What is Strategic Marketing? (Chartered Institute of Marketing)
“ The management process responsible for identifying, anticipating and satisfying customer requirements profitably”
What is Strategic Marketing? (Peter Drucker)
“Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customer’s point of view….Business success is not determined by the producer but by the customer”
What is Strategic Marketing? (Kotler et al)- almost q’s
What customers will we serve?
&
How can we serve these customers best?
Why is Strategic Marketing Important?
- ‘Marketers influence demand by making the product/service appropriate, attractive, affordable, and easily available to target consumers’ e.g. needds, demands, wants
- Megatrends are changing the environment e.g. Uncertain economic environment, Digital Age, Rapid globalisation, Call for more social responsibility, Growth of NFP marketing,Etc
- Changes in Consumers’ Demands, Markets & Competition
e. g. New needs & wants, New ways of communicating, information gathering & purchasing, Market boundaries changing, Strategic groups changing
Losers of Strategic marketing e.g. woolworths, blockbusters, thomas cook
Missed opportunities, Let New Entrants in, Strategic Drift
Winners of Strategic marketing e.g. Amazon
Redefine market, Build strong brands
Why is Strategic Marketing Important? (4 views)
- Precipitate the consideration of strategic choices
- Force a long-range view
- Aids strategic analysis & decision-making
- Helps a business cope with change
Production Orientation
- Belief that consumers will favour products that are available and highly affordable
- Focus on improving production and distribution efficiency
- Henry Ford / Lenovo
- Risk of marketing myopia
Product Orientation
- Belief that consumers will favour products that offer the -most quality, performance and features
- Focus on continuous product improvements with little/no customer input
- Gillette started making crazy products- dollar shave club taking over with affordable simple razors
- Risk of marketing myopia
Selling Orientation
- Belief that consumers will not buy sufficient volumes without large-scale selling and promotional effort
- Focus identifying prospects and aggressive selling
- Double glazing (half price if you buy this week)
- Risk of customer backlash and long term brand damage
Marketing Orientation
- Belief that profits flow from customer satisfaction
- Focus on knowing needs and wants of target markets and delivering desired satisfactions better than competition
- Burger King / Airbnb
- Risk of customer not knowing their needs/wants (Steve Jobs)
Societal Orientation
- Belief that marketing decisions should consider consumers’ wants, company requirements, consumers’ long term interests and society’s long term interests
- Focus on sustainable marketing
- UPS CSR Mission / Unilever
- Risk of getting balance wrong
Marketing Orientation components (5 elements)
- Customer Orientation - Understanding customers well enough continuously to create superior value for them
- Competitor Orientation - Awareness of short and long term capabilities and actions of competitors
- Focus on long term - Profit focus is long term, not short term
- Interfunctional Coordination - Organising all company resources to create value for target customers.
- Market led Organisational Culture - The marketing process is not simply the responsibility of the marketing department
Customer Orientation (MO Elements)
- Customers do not want products, they want to address needs
- Needs, not products, define markets
- Vital to understand customer needs
