Strategic Marketing Management

1. Lecture 1
Strategic Marketing Management
-Prof. Amit Bobhate

2. “Marketing’s job is never done. It’s about perpetual motion. We must
continue to innovate every day.”
– Beth Comstock, GE

3. Definitions of Marketing:
According to management guru Peter Drucker, ‘ the aim of
marketing is to know and understand the customer, so well
that the product or service fits him and sells itself.’
The American Marketing Association (AMA) has defined
marketing as the organizational activities of creating,
communicating, and delivering value to the customers and its
stakeholders.

4. IMPORTANCE OF MARKETING
• To respond to customers needs and wants.
• Marketing is the way the company does business.
• It includes all of the various actions of the organization that are
aimed at achieving customer satisfaction
(R&D, technology, innovation, production, finance,
administration, HR).

5. Concepts in Marketing
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept

6. WHAT IS STRATEGIC
This is an over used word in management and business circles
Strategy is a word borrowed from military.
It has something to do with winning plan of a General in the army in the
war.
Strategy in business means “ making major decisions affecting the
long term direction of the business” ( as against tactical which is
short term)
Strategy involves Analysis, formulation and implementation

7. Definition of Strategy
• Walker in 2003 defined strategy as a “fundamental pattern
of present and planned objectives, resource deployments
and interactions of an organization with markets, competitors,
and other environmental factors.”
• Michael Porter defined strategy as Strategy helps a
business to develop and sustain its competitive advantage,
build a brand image, enhance performance, define market
position, and create a unique selling proposition (USP).

8. STRATEGY IN PRACTICE
• Anticipate and adapt to change in the external environment
• To develop a sustainable competitive advantage/s
• Integrate different functions of the business achieve a common
goal
• Maintain a consistency in approach in strategy (tactical activities
may change to respond to the market but strategic direction should
be firm)

9. Levels of Strategy
• Corporate Level Strategy
• Business Level Strategy
• Functional Level Strategy
• Operational Strategy

10. THE STRATEGY-MAKING
PYRAMID(DIVERSIFIED COMPANY)
Corporate strategy
Business Strategy
Functional Strategy
Operating Strategy

11. Diversified
Company
A diversified company is a company that has multiple, unrelated
businesses.
Unrelated businesses are those who
(1) require unique management expertise,
(2) have different end customers and
(3) produce different products or provide different services.
One of the benefits of being a diversified company is that it
buffers a company from dramatic fluctuations in any one
industry sector.

12. CORPORATE
STRATEGY
 Game plan for companies with multiple BU or diversified
company.
 Moves to strengthen the position of the company
 Strategic issues dealt with:
o Which business we are in,
o What business we should entre
o Quantify the resource allocation to different BU

13. Four initiatives of Corporate Strategic
• Diversifying:
Depends on:
1. No. of businesses
2. Type of business a company presently in
3. What business we should entre in
Acquisition or New establishment
Choice of acquiring- a. market leader, b. emerging company or
c. company making losses but having potential

14. • Coordination between various BU:
• Focus on strengthening the position of the company throughout its
Businesses & focus on improving the overall performance of the
company.
• Help its subsidiary companies in the financial, operating and
managerial aspects, apart from sharing resources, knowledge and
expertise.
• Employ rapid growth strategies for its most promising businesses.
• Identifying strategic fit to find a competitive advantage:
• How well a company’s objectives and strategies match with its
competencies and external environment.
• In case of diversify company can gain advantage of related
technologies, common distribution channel and operational
characteristics.

15. • Identifying priorities for allocating the resources:
• Identify profitable BUs to make decisions to allocate resources to such
BUs
• Identify BUs which are unproductive or operating in an increasingly
unattractive industry-divest them

16. BUSINESS
STRATEGY
 Its POA to compete within industry.
 It concerns the actions and approaches to produce successful
performance in one specific line of business.
 The central business strategy issue is how to build stronger long-
term competitive position or sustainable competitive advantage
(Thomson & Strickland, 2001).

17. Aspects considered while formulating Business Level Strategy
• Responding to changes in the environment
• Attaining sustainable competitive advantage
• Developing distinctive competencies
• Coordinating strategic initiative of various functional units
• Dealing with the strategic issues of the business

18. FUNCTIONAL
STRATEGY
 It concern on executing functional activities or process within a
business such as marketing, finance, production, manufacturing,
and etc.
 Managers work closely with subordinates and give priority to
each activity performed by the functional unit.
 It focuses on developing and enhancing the competencies that
play a vital role in strengthening the company’s position

19. OPERATIONAL
STRATEGY
 It concerns on executing operating tasks and daily operations.
 Examples executing advertising campaign through television for
the first two weeks of January 2024

20. Evolution of Strategic Management
• Phase I : Financial Planning
• Forecast about cost, revenue and required capital
• Yearly forecast
• The process was often based on past trends and assumed
incremental development

21. • Phase II: Forecast based Planning.
• Large organizations have to consider the number of products,
target markets and the level of technology used in planning.
• Trend analysis, regression models and simulation models
• Basics of strategic planning.
• Focus is more on how to deal with the strategic issues.
• A strategic issue can be identified by sensitivity analysis, gap
analysis, or contingency planning.
• Optimal allocation of resources- Portfolio Analysis Tool is used

22. • Phase III: Externally Oriented Planning
• Analysis of the internal and external environments and
competitive strategies of the business.
• The allocation of resources is dynamic.
• Look for creative ways to develop a business.
• Identify Opportunities to make business successful
• Develop new alternatives, provide innumerable alternatives.

23. • Phase IV: Strategic planning and management
• Planning becomes integral part of management
• Effort made to relate strategic planning with decision making at
the operational level.
• A well-defined strategic planning framework
• Requires a negotiation of objectives based on reasonable
alternatives
• A performance review system plays important role.

24. What Is Strategic Marketing
Management?
• Strategic Marketing Management Definition:
Strategic marketing management is a systematic method of
establishing an organization’s business, mission, and goals;
recognizing and outlining opportunities; developing product-
market strategies; budgeting monetary and operational
resources; and reconceptualization.

25. • Strategic marketing management is carrying out your overall
mission through particular and strategic processes to maximize
your present marketing strategy.
• It is, in essence, the process of making strategic decisions inside
a marketing plan to improve that plan.

26. What Are the Principles of Strategic
Marketing Management?
• The principles of strategic marketing management are basic
guidelines for your approach.
• There are four principles of strategic marketing management:
1.Specialization
2.Differentiation
3.Segmentation
4.Conceptualization

27. Specialization
• The first principle to keep in mind is to decide where you want to
specialize.
• What is the domain, product, service, client, or market on which you want
to concentrate your efforts?
• Let’s understand with an example from Subway.
• A Subway consumer is someone who wants to eat healthily but quickly. He
values hygiene, efficiency, and value for money.
• As a result, Subway is continually looking for things that will appeal to
these people and continue to provide for them. They would never do
anything outside of their area of expertise.
• You can always experiment with offering variety. But specialization gives an
identity to your brand and makes for a natural value proposition.

28. Differentiation
• What is your distinct competitive advantage? What makes you
unique and superior to the competition?
• Customers need an incentive to buy from you rather than your
competitors.
• Customers are constantly looking for the most fabulous offer;
nothing personal about this. They simply want the most outstanding
product at the best price.
• What is the unique selling point of a company? “Quality, quality, and
quality!”.
• But that’s only possible if your rival offers almost zero quality.
• Whoever says “quality service” has no clue why anyone should buy
from him and is possibly a liability to your organization if he is an
employee.

29. Segmentation
• Today’s strategic marketing management is all about marketing
segmentation.
• Segmentation entails determining which customers in the
market value my distinctiveness and are willing to pay more for
your area of specialization.
• We need to segment and discover those clients who are most
likely to buy from you.
• Here are a few questions to consider: who are the clients who
value your area? What is their demographic? What words would
you use to define your ideal customer?

30. Concentration
• A strategy is useless if you don’t focus on people. The final,
most crucial principle of strategic marketing management is
concentration.
• Once you’ve identified your most significant market segments
where you do exceptionally well, you devote all of your
efforts, resources, budgets, and time to obtaining and
retaining customers in these areas.
• Product management tools come in handy for team
alignment and generating customer feedback.

31. Why Is Strategic Marketing
Management Important?
Strategic marketing management aims to respond to your market as it
changes. The goal is constant, but the path to it can alter.
The advantages of adopting strategic marketing management are well
known in the business sector.
Understand your market better
• The research required to apply strategic marketing management
successfully will eventually result in a deeper grasp of your specific
market.
• You will learn about domestic and international markets,
competition, and market trends.

32. Continued…
 Identify Your Strategic Direction
Strategic marketing management helps you make more
innovative judgments that link your strategy with the
company’s mission.
 Small Actions, Big Results
Strategic marketing management, when done right, may
deliver some remarkable outcomes for a company. As a result,
a company’s budget may be better managed, and its overall
longevity may rise.
Overall, there are numerous advantages to this management
approach.

33. What Does a Strategic Marketing
Manager Do?
• To identify the target market.
• They accomplish this by applying the company’s mission through strategic
planning to maximize the effectiveness of the existing marketing plan.
• Strategic marketing managers often run an organization’s marketing
division.
• Establish objectives to create a seamless and viable marketing strategy for
any business under the sun.
• Analyse sales and marketing indicators and using them to foresee market
trends.
• Establish specific marketing objectives by developing and implementing
marketing strategies that align with business objectives.

34. Continued…
• Strategic marketing managers use customer feedback
to improve customer satisfaction. They collaborate with internal
teams to build a solid, long-term digital presence.
• Following are some essential skills for all strategic marketing
managers:
Business development
Market research
Market share
Innovative product development

35. What Are the Steps Involved in the
Strategic Marketing Management
Process?
• Creating A Mission
oDefine company’s Mission
oSpeak with Stakeholder to learn more about company’s
existence.
oMake encouraging, motivating Mission Statement.
oTry to know exactly what business you’re in and why.

36. • Analyse The Situation
oAssess Internal & External Elements affecting your Company
and Market.
oAssess Strength and Obstacles.
oDo situation analysis.
oSWOT Analysis

37. • Design Your Marketing Plan
oPrioritize and plan out the opportunities you intend to pursue.
oWho are your target clients and how you will approach them,
and a projection of the expected results
oAnswer the following Questions:
• What will be your customers’ response to your marketing efforts?
• What is the cost of the plan?
• How will your competitors respond?

38. • Make Your Marketing Mix
oTime to focus on the “how” of planning at this stage of the
strategic marketing management process
o4Ps of Marketing
oHow you communicate the value of your product to your
customers
oDefine Product’s competitive advantage.
oWhat you want to sell: convenience or quality?
oWho is most likely to purchase your goods or service

39. • Implement and Control
oIt’s now time to put your strategy into action.
oDetermine how and when you will implement your strategy.
oInform and educate clients/customers about your product or
service.
oGet the resources (finance and personnel) to promote your
product position who will execute the work
oDevelop schedules to keep the job on track
oCreating monthly benchmarks and initiatives, weekly action
steps, and daily marketing appointments

40. • Spotify
• Spotify’s strategic marketing management revolves around user
experience.
• There are other streaming music services, but what distinguishes
Spotify emphasizes consumers discovering new stuff.
• Spotify deviates from traditional music streaming platforms by
providing listeners with an entirely different user experience.
• They are also pioneers in employing artificial intelligence to construct
playlists based on their users’ preferences, such as Release Radar and
Discover Weekly.

41. Examples
• GoPro
• One of their most effective marketing strategies is making it
simple for their users to share branded content.
• GoPro’s editing programs, for example, produce videos with
immediately identifiable start and end frames that include
GoPro’s logo and branding.
• GoPro then promotes these videos on social media, inspiring
more users to make and share their videos.

42. • Amazon
• Amazon uses a proactive retargeting strategy that includes emails as
well as retargeting ad campaigns on social networks that are
activated by cookies and on event reactions.
• As a result, the user is bombarded with reminders, making it tough to
forget about the purchase they left behind.
• So, that’s all you need to begin your strategic marketing
management journey. Surprisingly, product management tools Chisel
come in handy for such implementation.