Marketing is merely a
civilized form of warfare in
which most battles are won
with words, ideas and
-----Albert W. Emery-----
Concept of Strategic Marketing
The strategic role of marketing is Quite
different from Marketing Management,
which deals with:
To achieve DESIGNATED DESTINATIONS
MARKETING ROLE IN THE ORGANIZATION
Role of Marketing
Provide customer & competitive
perspective for corporate strategic
Assist in the development of strategic
perspective of business unit to direct its
Formulate and implement marketing
The above table shows the role that the marketing function plays at
different levels in the organization.
At Corporate level: Marketing inputs like Competitive analysis, market
dynamics, environmental skills) are essential for formulating a Corporate
Marketing represents the boundary between the
marketplace and the company, and knowledge
of current & emerging happenings in the
marketplace is extremely important in any
strategic planning exercise.
On the other hand Marketing Management deals
with the formulation and implementation of
marketing programs to support the perspective of
strategic marketing referring to marketing strategy
of a product/market
MARKETING STRATEGY IS DEVELOPED
AT BUSINESS UNIT LEVEL
Marketing Strategy Triangle
n m ic
In the Business environment Marketing Strategy
interplays with three(3)forces also known as
strategic three Cs:
Marketing Strategies focus on the ways in which
the corporation can differentiate itself effectively
from its Competitors ,Preserving their distinctive
strengths to deliver better value to its customer.
THE STRATEGIC Cs
All the three Cs i.e. customer, corporation and
competition –are living dynamic creatures with their
own objectives to pursue.
If ,what the customer wants does not match with
the needs of the corporation than it does not last for
Positive matching of the needs and objectives of
customer & corporation is required for a long lasting
In other words the matching of needs between
Customer and the Corporation must not only be
positive ,it must be better or stronger than the
match between the customer and the competitor.
When the Corporation’s approach to the
customer is identical to that of competition ,the
customer cannot differentiate between them. This
results in “PRICE WAR” that may satisfy the
customers but not the corporation.
MARKETING STRATEGY In these terms of three Cs
can be defined as an attempt by a CORPORATION
to differentiate itself POSITIVELY from its
competitors ,using relative corporate strengths to
better satisfy customer needs in given environment
Based on the dimensions of the three Cs, formation of
marketing strategies requires the following three decisions:
1. Where to Compete? (for example : competing across the
entire market or in one or more segments.)
2. How to Compete ? (for example: introducing a new
product to meet a customer need or establishing a new
position for an existing product.)
3. When to Compete? (For example: First in the market to
enter or waiting until the primary demand is fulfilled)
Example is Gillette Company for the introduction of its new
shaving product MACH -3 in April 1998
(where to compete)
(how to compete)
(when to compete)
Gillette decided to introduce
MACH 3 throughout the U.S. on
the same day.
Gillette decided to offer MACH 3 as a
premium product with 35% high price
as compared to its other product.
Gillette reasoned “People never
remember what they used to pay, but
they want to feel they are getting
value for money.”
Gillette decided to introduce new
product before the retirement of its
CEO ,Mr.Al Zein.As much of the
attributed to Mr.Zein so the company
wanted MACH 3 to be adequately
setteled in a dominant position before
This strategy resulted in
• In just 7 months there was reasonable Increase
in Sales up to 28% in the US Market.
• The company still has to introduce the product in
Europe where it has 71% of market share and
also to the developing countries like India where
they have 69% of the market.
Importance of Strategic Marketing
Importance,Characterstics,origin,and future of
Marketing plays an vital role in the strategic
management process of a firm. It has been
noticed that many strategic planning fails due
to lack in marketing support.
Characteristics of Strategic marketing
Strategic Marketing holds different perspective
from those of marketing management. The main
characteristics of marketing strategy is described
1. Emphasis on Long term Implications: A
strategic marketing is a commitment, not an act.
Strategic marketing decisions usually are farreaching implications. For example: A strategic
marketing decision would not be a matter of
simply providing an immediate delivery to a
favorite customer but of offering 24-hour
delivery service to all customers.
In year 1980 the Goodyear Tyre company
made strategic decision to continue its focus
towards tyre business. At a time when other
members of the industry were de-emphasizing
tires, Goodyear opted for opposite routes.
This decision had wide ranging implications for
the company over the years. Looking back,
Goodyear strategy worked and in 1990s
also it continues to be a globally dominant
force in the TYRE INDUSTRY.
This is Strategic planning on the basis of long
The long term orientation of strategic
marketing requires great concern for the
market environment/conditions.In other
words ,in the short run, one may assume
that the environment will remain stable ,but
this assumption is not at all likely in the
Proper monitoring of the environment requires
intelligence differs from traditional marketing
research in requiring much deeper probing. For
example: S ply knowing that com
petitor has cost advantage is
not enough, S
trategically one has to find that how m
flexibility the com
petitor has in further reducing price.
Corporate Culture refers to the Style ,traits, customs and
rituals of the top management, that over the time period
have come to be accepted as basics to the corporation.
Corporate Publics refers to the various stakeholders with
an interest in organization. Customers, employees, vendors,
govt. & societies typically constitute an organization’s
Corporate Resources this includes the Human, Financial,
Physical, and Technological assets of a company.
Corporate inputs set a degree of freedom a
marketing strategist has in deciding which
market to enter ,which business to divest,
which business to invest in etc…
The use of corporate-wide inputs in
formulating marketing strategy also helps to
maximize overall benefits of the organization.
3.Changing Roles For Different Products/Markets.
Strategic Marketing Starts from the premise that different
products have varying roles in the company. It has also
been noticed that all the products exert effort to maximize
profitability. For example in PLC
Some products may be in growth
phase or maturity phase or in
introduction phase. Each position in
the life cycle requires different strategy
and affords different expectations.
Products in growth stage need extra
investment, in maturity phase it
generate cash surplus
PRODUCT LIFE CYCLE
The lead in this regard was provided by Boston Consulting Group
and developed a matrix called as Portfolio Matrix in which Products
are positioned on a two-dimensional matrix of market share and
growth rate, both are measured on a continuous scale from high to
The Portfolio Matrix has two properties:
It ranks diverse businesses according to uniform criteria
It provides a tool to balance a company's resources by showing
which business are likely to be resource providers and which are
The practice of strategic marketing seeks:
To examine each product/market before determining its actual role.
Different products/markets synergistically related to maximize total
Each Product/market is paired with a manager who has the proper
background and experience to direct it.
4.Organizational Level : Strategic Marketing is
conducted primarily at major business unit level in
Examples: At GE, major appliances are organized
into separate business units for which strategy is
At Gillette Company for Duracell Batteries is
developed at the batteries business unit level.
5.Relationship to Finance: Marketing and finance
deptt. in any organization is always maintaining a
close relationship. The reason is that strategic
marketing decisions are closely related to the finance
Origin of Strategic Marketing
Strategic marketing originated in the year 1970s to
counter the difficult situations and the managers were
forced to develop strategic plans for more centralize
control of resources.
In brief, while marketing initially got lost in the
emphasis on strategic planning ,currently the role of
marketing is better understood and has emerged in the
form of strategic marketing.
Strategic Marketing & Marketing Management
Long Range, i.e.
decisions have long
Day to day ,i.e. decisions
have relevance in a given
inductive & intuitive or
deductive & analytical
Ongoing to seek new
Ad-hoc search for new
Nature of Job High level of creativity &
Deals with what
business to emphasize
Deals with running a
Strategic marketing Implementation
Failings in Strategic marketing: The following common
problem associated with marketing strategy formulation and
Too much emphasis on “where” to compete and not
enough on “how” to compete.
Eg: Mc Donalds view QSC&V is how to compete strategy.
C=Cleanliness, V=Menu that provides Value
a. Too Little focus on uniqueness and
adaptability in strategy: Most Mkt. Stg lacks
uniqueness. But today easy access to information often
leads companies to follow identical strategies.
Inadequate emphasis on “when” to compete: Because of the
heavy emphasis on where to compete and how to compete ,many
Mkt. Stg’s give inadequate attention on “WHEN” to compete.
Any move in the market place should be adequately TIMED. Timing
has also strategy implementations significance .It serve as a guide for
different managers in the firm to schedule their activities to meet the
timing requirement. Decision on timing should be guided by the
Market Knowledge: Adequate information is required of the
Competition: Major & Minor competition is to be identified &
accordingly it should be worked out.
Company Readiness: For variety of reasons the company may
not be ready to compete. These reasons could be lack of financial
resource, labour problems etc.
Addressing the problems of Strategic Marketing:
Having the ability to do all the right things ,any numbers of
pitfalls may spoil the best strategic planning, to counter this
the following concerns should be addressed:
Develop attainable goals & objectives.
Involve key operational personnel.
Avoid becoming so engrossed in the current problems that
strategic marketing is neglected an thus become
discredited in the eyes of others.
Don’t keep marketing strategies separated from rest of the
Avoid formally marketing strategy formulation that restrains
flexibility and inhibits creativity.
Under the topic of Strategic Analysis we will
3.Strategic Marketing Process
In broader terms Corporate Appraisal refers to
an examination of the entire organization from
It is a measurement of readiness of the
internal culture of the corporation to interact
with the external environment. Marketing
strategies are made in business unit level
so the role of corporate wide strategy has
its own importance while framing marketing
Scope of Corporate Appraisal
1. CORPORATE PUBLICS
2. VALUE ORIENTATION OF
4. PAST PERFORMANCE OF
Business exists for people, the first consideration in
strategic process is to recognize the individuals and
groups who have an interest in the fate of corporation
and the extent and nature of their expectations.
Meaning of Corporate Public: the following groups
generally constitute the corporate publicOwners
Community in which the company is doing business
Society at large
• All the eight groups must be well served for the healthy
growth of the organization.
• The expectations of different publics provide the
corporation with a focus for working out its objectives
and goals. However a company cannot satisfy the
expectations of all the stake holders for two reasons i.e.
limited resources and conflict among the stake
• The corporate response to the stakeholders
expectations emerges in the form of its objectives
and goals ,which in turn determine corporate
2.VALUE ORIENTATION OF TOP
The ideologies and philosophies of top
management as a team and of the CEO as the
leader of the team have profound effect on
managerial policy and strategic development
The organization in the process of strategy
formulation must study the values of their
executives/ staff members.
3. CORPORATE RESOURCES
• The resources of a firm are its distinctive
capabilities and strengths.
• Resources must measured with reference to
• Resources are financial strength, HR ,raw
material reserve , engineering & production,
overall mgt., and marketing strength.
• The marketing strategist not only consider
the marketing resources but also the
financial strength of the organization.
4. PAST PERFORMANCE OF BUSINESS UNITS
It serves as an important input in formulation corporate-wide strategy.
It helps the assessment of the current situation and possible
developments in future.
Example : the profit of SBU is declining over the past 5 years , an
PRINCIPLE MEASURES OF PERFORMANCE:
Effectiveness: is measured in terms of market share or
Efficiency: It is outcome of business programs in relation to
the resources employed in implementing them.
Adaptability: It is the business success in responding over
time to changing conditions & opportunities
appraisal of current performance as satisfactory cannot be justified
assuming the trend continues.
Meaning of Competition
• Competition is a contest between individuals,
corporate, groups, nations, etc. for territory, a
niche, or allocation of resources. It arises
whenever two or more parties strive for a goal
which cannot be shared.
• Business Strategies are Competitively oriented.
Natural & Strategic Competition
• Natural Competition: It refers to the Darvin’s
Theory of “Survival of the Fittest”. Applied to the
business world , no two firms doing business across
the board the same way in the same market can
coexist forever. To survive each firm must have
something unique or superior, this is natural
• Strategic Competition: Deployment of resources
based on a high degree of insight into the
systematic cause and effect in the business
ecological system. It tries to leave nothing to
Theory of Competition
Economic Theory of Competition
There are various models of competition and the most
important model is PERFECT COMPETITION, which is
based on the fact that ,when a large number of buyers
& sellers in a market are dealing homogeneous
products, there is a complete freedom to enter or exit
the market and everyone has complete and accurate
knowledge about each other.
Enter or Exit
from the market
• The essence of industrial organization (IO) perspective is
that a firms position in the marketplace depends critically on
the characteristics of the industry environment in which it
• The industry environment consist of Structure, conduct and
Economical & Technical
1. Concentration in Industry (number & size distribution of Firms)
2. Barriers to entry in the industry
3. Product differentiation among the offerings of different firms that make
up the industry
• Conduct is basically the Strategy, refers to
firms behavior in matters like pricing,
advertising & distribution.
• Performance includes social performance
measured in terms of Profitability, technical
efficiency (cost minimization)& innovativeness.
Different Industries position themselves
to serve various customer demands as:1. Existing Demand
2. Latent Demand
3. Incipient Demand
When a product is bought to satisfy a recognized
need. Eg. Titan Watch to determine time.
Refers to a situation where a particular need has
been recognized, but no products have yet been
offered to satisfy the need. Eg. ATM’s In running
It occurs when certain trends lead to the emergence
of a need of which the customer is not yet aware.
Eg. Anti Ageing Cosmetics Products
• Competitive Intelligence is publicly available
information on competitors, that serve as an
important input in formulating marketing
• It includes information beyond industry
statistics and trade gossip. It involves close
information of competitors to learn what they
do best and why & where they are weak.
Types of Competitive Intelligence
Competitive Intelligence is of three(3)types:
1. Defensive Intelligence
2. Passive Intelligence
3. Offensive Intelligence
Information is gathered to
avoid being caught offbalance and also about the
structural function and to
monitor the move of the
relevant firms business
Is Ad-hoc Information
gathered for specific
Information is gathered to
identify new opportunities.
Procedure adopted to gather Competitive Intelligence
RECOGNIZE KEY COMPETITORS IN MARKET SEGMENTS
IN WHICH THE COMPANY IS ACTIVE
ANALYZE THE PERFORMANCE RECORD OF EACH COMPETITOR
STUDY HOW SATISFIED EACH COMPETITIOR APPERS TO BE WITH ITS
PROBE EACH COMPETITORS MARKETING STRATEGY
ANALYZE CURRENT AND FUTURE RESOURCES AND COMPETENCIES OF
PREDICT THE FUTURE MARKETING STRATEGY OF EACH COMPETITIOR
ASSESS THE IMPACT OF COMPETITIVE STRATEGY ON COMPANY’S
1. RECOGNIZE KEY COMPETITORS IN
MARKET SEGMENTS IN WHICH THE
COMPANY IS ACTIVE
• Here attempt is to be made to recognize all
important competitors in each segment.
• If the number of competitors is excessive
then it is sufficient to limit consideration to
2. ANALYZE THE PERFORMANCE
RECORD OF EACH COMPETITIOR
• The performance is measured by number of criteria.
As far as marketing is concerned sales growth,
market share and profitability are important
measures of success.
• Thus review of each competitors sales growth,
market share & profitability is desirable.
3. STUDY HOW EACH COMPETITOR APPEARS
TO BE WITH ITS PERFORMANCE.
• First refer to the competitors objectives for the
• If the result are in concert with the expectations
of the firm’s management , stakeholders, the
competitor will be satisfied.
• If it is not so then the competitor is most likely to
come out with a new strategy.
4. PROBE EACH COMPETITOR’S
• The strategy of each competitor can be probe from
game plans (different moves in the area of product,
price, promotion & distribution).
• For example: An competitor in the appliance
business who spend heavily on advertisement and
sell products mainly through discount stores.
• In other words the competitor is trying to reach to the
customer who want to buy a reputed brand at
discounted rates and thus creating its large sales base.
5. ANALYZE CURRENT & FUTURE
RESOURCES & COMPETENCIES OF EACH
• A checklist is prepared in which the competitors
resources and competencies are designated like:
Facilities & equipment, Personal Skills, Organization
Capabilities & Management Capabilities.
• Each area is then be examined with reference to
different functional areas like: Finance, R&D,
Operations and Marketing.
• Strength and weakness is also identified by the output.
6. PREDICT MARKETING STRATEGY OF EACH
• The above analysis provides the
information and on the basis of this we
can do predictions of the future
marketing strategy of each competitor.
7. ACCESS THE IMPACT OF STRATEGY ON
THE COMPANY’S PRODUCT /MARKET
• This is done by the senior marketing
personnel using competitive environment
and personal experiences on the job as a
• Thereafter, agreement of the larger group
of executives can be obtained on the
impact analysis performed previously.
Strategic Marketing Process
Process whereby an organization allocates it
marketing mix resources to reach its target
1. Planning- (i) Situational analysis, (ii) Marketing
objectives, (iii)Target Market, (iv) Product Positioning,
(v)Marketing Mix Programme
• This is a complete analysis of the firm’s
strengths and weaknesses and external
threats and opportunities (SWOT)
• Internal analysis (controllable factors) –
assess the firm itself to identify strengths
• External analysis (uncontrollable factors)
– assess the firm’s external environment to
identify opportunities and threats
Ben & Jerry’s: a SWOT analysis to get it
• Specific levels of performance desired for a
product or product line to be achieved by a
given date(Stated in terms of market share,
measureable, attainable, specific, and also
consistent with organizational objectives
(iii) Target Market
• One or more specific groups of potential
consumers toward which an organization
directs its marketing program.
• Market segmentation is used to identify
(iv) Product Positioning
• The process where marketers try to
create a product image or identity in the
minds of their target market relative to
the competitive products.
(v) Marketing Mix Program
• Product – goods, service, or idea to satisfy the
• Price – what is exchanged for the product.
• Promotion – means of communication between
the seller and buyer.
• Place – means of getting the product to the
Marketing mix decisions are based on the needs of the
target market and the positioning strategy.
Elements of the marketing mix that
comprise a cohesive marketing program
2. Implementation Phase
• Process of putting the marketing plan into
• Involves great attention to detail.
• Involves measuring the results of the
actions from the implementation phase
and comparing them with goals set in the
– sales analysis
– market share analysis