MF strategic marketing strategic role of marketing


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MF strategic marketing strategic role of marketing

  1. 1. Strategic Role of Marketing Session 3 Jan 21, 2010 Salma Rahman
  2. 2. Role of Marketing Strategic marketing Marketing management Marketing philosophy execution Analysis & information Corporate, Business & marketing strategy decisions Develop product Marketing plans Execute product Marketing plans
  3. 3. The Primary Purpose of Marketing To create long-term and mutually beneficial exchange relationships between an entity and the publics (individuals and organizations) with which it interacts.
  4. 4. Expanding Responsibilities of Marketing Managers Expanded responsibilities include: Charting the direction of the organization Contributing to decisions that will create and sustain a competitive advantage and affect long- term organizational performance They no longer function solely to direct day-to-day operations. They must make strategic decisions as well.
  5. 5. “The Marketing Manager Is the most significant Functional contributor to the strategic planning process, with leadership roles in defining the business mission analysis of the environmental, competitive, and business situations; developing objectives, goals, and strategies; and defining product, market distribution, and quality plans to implement the business’s strategies. This involvement extends to the development of programs and operational plans that are fully linked with strategic plan.”
  6. 6. Corporate Planning Strategic Planning Operational Planning Marketing Planning Short Range or Tactical Planning Long Range Planning Marketing Strategy Adapted from Greenley (1989)
  7. 7. Processes in Strategic Marketing Management 1. Defining the organization’s business, mission, and goals 2. Identifying and framing organizational growth opportunities 3. Formulating product-market strategies 4. Budgeting marketing, financial, and production resources 5. Developing reformulation and recovery strategies
  8. 8. Tasks of Corporate Strategic Management Strategic vision and mission Establishing SBUs Setting Objectives Resource allocation
  9. 9. Business Definition By defining a business from a customer or market perspective ………… an organization is appropriately viewed as: a customer - satisfying endeavor a product-producing or service delivery enterprise. not Products and services are transient, as is often the technologies or means used to produce and deliver them. Basic customer needs are more enduring.
  10. 10. An organization should define a business by: (Product Market Scope) The type of customers it wishes to serve The particular needs of those customer groups it wishes to satisfy The means or technology by which the organization will satisfy the customer needs “What business are we in?”
  11. 11. Tasks of Corporate Strategic Management Mission Industry scope Products and application scope Competence scope Market scope Vertical scope Geographical scope
  12. 12. Most statements describe: the organization’s purpose customers, products/services, markets, philosophy, and technology Business Mission Underscores the scope of an organization’s operations apparent in its business definition Reflects management’s vision of what the organization seeks to do
  13. 13. Generally Stated Mission Statement Saturn Corporation, a division of general Motors “Markets vehicles developed and manufactured in United States that are world leaders in quality, cost, and customer satisfaction through the integration of people, technology, and business systems and to transfer knowledge, technology, and experience through out General Motors.” Specifically Stated Mission Statement “ Henderson Electronic Corporation aspires to serve the discriminating purchasers of home entertainment products who approach their purchase in a deliberate manner with heavy consideration of long term benefits. We will emphasize home entertainment products with superior performance, style, reliability, and value that require representative display, professional selling, trained service, and brand acceptance – retailed through reputable electronic specialists to those consumers whom the company can most effectively service.”
  14. 14. Benefits of Mission Statements 1. Crystallizes management’s vision of the organization’s long-term direction and character 2. Provides guidance in identifying, pursuing, and evaluating market and product opportunities 3. Inspires and challenges employees to do those things that are valued by the organization and its customers 4. Provides direction for setting business goals or objectives
  15. 15. Marketing Myopia  Taken up by Theodore Levitt  Is defined as: “Management’s failure to recognize the scope of its business”. • Should focus on customer rather than the product. • Organizational goals should be oriented toward customer needs. • Example, Revlon – “In our factory we make perfume; in our advertising we sell hope”.
  16. 16. Marketing Myopia - Examples Company Myopic Description Marketing -oriented description Cingular “We are a telephone company.” “We are a communications company.” JetBlue Airways “ We are in the airline business.” “We are in the transportation business.” Morgan Stanley “We are in the stock brokerage business.” “We are in the financial services business.” Sony “ We are in the video game business.” “We are in the entertainment business.”
  17. 17. From transaction-based Marketing to Relationship Marketing  One-to-One Marketing  Developing Partnerships and Strategic Alliances