Strategic Marketing Flashcards
McKinsey 7s Framwork.
Shared Vision in middle.
Strategy, Structure and Systems along the top.
Skills, Staff and Style along the bottom.
Uses of McKinsey 7s model?
Improve company performance.
Look at the likely effects of changes within a company
Alignment across departments, processes
Determine the viability of a strategy and how best to implement it
- a diagnostic tool to aid in implementing strategic change and evaluate it.
What is Strategy?
Johnson and Scholes (Exploring Corporate Strategy) define strategy as:
“Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations”.
Purpose of Strategy?
To set the future direction for the organisation
To state how it is to create value to customers
To identify what product/s and in which markets the firm will invest its resources
To describe how it is to perform better than competition
What challenges of a NEW ERA for Strategic Marketing are there?
Escalating globalization
Technology diversity and uncertainty
Internet dynamics
Ethical behavior and corporate social responsiveness
Describe Porter’s Five Forces.
Four factors of:
- Threat of new entry
- Buyer Power
- Threat of substitution
- Supplier Power
- Pointing towards the “competitive rivalry”. which overlaps.
What is a market driven Strategy?
Underlying logic that customers should be the starting point in the bus strategy.- Provides a company wide perspective; calls for more effective integration of activities that impact customer values.
Describe ToysRUs (TRU) case study.
Signed 2000 for 10 yr deal with amazon.
Arrangement that amazon would devote part of website to TRU’s toy/baby products + TRU would choose which products to stock.
Deal went sour w/ TRU saying amazon violated promise of them being sole seller of toys and baby products on amazon website
WHILE
Amazon claims TRU failed to deliver on promise to maintain selection on toys.
Describe Ansoffs matrix. What is it used for?
2x2 Grid with line for increasing risk along top and left side going down. Top left: market penetration, Top right: product development, Bottom left: market development, bottom right: Diversification
Is the compendium of the four growth areas in visual form.
Define CSR.
“Integrate social and environmental concerns into business operations into the company’s interaction with other stakeholders, on a voluntary basis.” Piercy and Lane (2009).
Strategic Marketing?
Market driven strategy that focuses on changing bus environment + need to deliver superior customer value.
Diff between strategy and tactics
TAC: Short term, narrow focus, structured, internal and a day-to-day marketing activity, eg) Price Discounting
STRAT: Long term, Broad focus, Defining market and competitive position, unstructured, external, speculative, eg) New product development
Describe the marketing audit.
A method of reviewing a business strategy. Often include SWOT analysis, customer/prospect research, competitor analysis, market overview(PESTLE) + Marketing overview of internal factors.
Why undertake a marketing audit?
Helps to understand where business is from marketing perspective. This aids developing a successful marketing strat + highlights requirements.
Macro and Micro environment?
Macro(outside circle): Political/Legal, Environment, Technological, Social and Economic
Micro(inside circle): Suppliers, Customers, Competitors and Distributors.
