An Advanced Approach Appendix : Summary

1. Task 1/3
Presenter : Maleeha Fakhar

2. The Role of Marketing :
It was in 1976, The Charted Institute of Marketing defined marketing ; “
Marketing is the management process responsible for identifying, anticipating
and satisfying customer requirements profitably”. It was then in 2007, CIM put
forward a new updated definition of Marketing in a paper titled ; ‘Tomorrow’s
Word ; Re- evaluating the role of Marketing (Shape the Agenda)’ ; “ The
strategic business function that creates value by stimulating, facilitating and
fulfilling customer demand. It does this by building brands, nurturing innovation,
developing relationships, creating good customer service and communicating
benefits. With a customer- centric view, marketing brings positive return on
investment, satisfies shareholders and stakeholders from business and the
community, and contributes to positive behavioural change and a sustainable
business future”.

3. Marketing is an essential yet mandatory component for the prosperity
of any organisation. There are five different concepts of marketing
each of which has a distinct function to perform.

4. Production Concept:
This is a bygone concept when the competition did not have a fierce
existence. It implies to the idea that customers prefer to opt for
commodities that are easily available and have a cheaper rate
(affordable cost). Thus the business primarily concentrates more towards
maximum volume of output (not towards quality) and hence, such a
business sets a goal to maximise profits through the execution of
economies of scale. In such scenario, the main focus or priority of the
business is to produce in huge volumes followed by second ranked
priority i.e. customer’s needs. Such mind-set is sought to fecund when a
business performs its functions in very high growth markets or perhaps
where there are noteworthy economies of scale. It is inevitable that the
businesses in such milieu would face troublesome situations from
customer’s end due to their inability for providing qualitative products.

5. Example :
FORD is an example of such era when this concept was widely
prevalent, hence it faced barely any competition. The company
now has major competitors like : FIAT Chrysler Automobiles,
General Motors, Honda Motors, Volkswagen etc.

6. Product Concept:
This product opposes the production concept is more sided towards consumers
as they are seen as characters who prefer quality, performance and innovative
features over quantity. This picture lies true with product niches such as ;
electronics and handsets. A dilemma has been associated with product concept
i.e. marketing myopia (A theory coined in 1960 by Theodore Levitt, editor of the
journal ‘Harvard Business Review’. This theory contradicts the traditional way of
marketing in which the company and its ability to produce products are
emphasised rather than creating products those are capable of negotiating the
existing marketing conditions Hence, under this concept, the businesses are
instructed to have a more research- oriented nature which means the marketers
should be enticed towards comprehending the existing marketing conditions and
alter the organisation and its commodities accordingly. As a result, the companies
need to consider innovation and specifications earnestly and prioritise the
customers over other aspects.

7. Selling Concept:
Under this concept, it is promised that the organisations or consumers would
not buy enough of the organisation’s commodities unless persuaded i.e.
selling effort. Hence, the route to organisation’s success, seems to make its
way through selling and promotion. According to this concept the consumers
are required to be given a pull towards a product’s successful selling by
converting the consumer’s stagnant need into a buying move. This approach
is thought to be executed in cases of unsought goods, for instance ; life
insurance, fire extinguisher, etc. As such industries are deemed to have a
strong network of sales force hence this concept is pertinent for firms those
overproduce and so require to get rid of what they produce rather than
cooperating with customer’s realistic needs.
A major flaw with this concept is that customer is not expected to speak ill of
the product (if disappointed) for which he/ she was persuaded to be bought.
Thus, many businesses fail due to such negligence of winning customer
loyalty and a sound repute.

8. Marketing Orientation Concept:
This concept underlies the rule that the firms in order to succeed they depend
upon marketing efforts in such a way that they deliver better value proposition
in its own target than those of the competitors. The marketing concept enjoys
itself to be most followed ideology by top companies. It is because today’s
world has well- informed and knowledgeable customers than the ones in
previous epoch, hence the organisations under this concept are bound to
produce what consumers actually need or want. As a consequence, market
research is a vital component of this concept to be adopted. As the customers
are the driving force of this ideology, so the organisation integrates all its
different departments to give utmost value to them and ultimately satisfy them
as well to the fullest.

9. Pepsi and Coke both have similar products and thrive on the marketing
concept but what further distinguishes them under this concept is the value
proposition. Pepsi focuses on youth whereas Coke upholds a holistic
approach.

10. Societal Marketing Orientation/ Concept:
Under this concept, the marketers are called- upon to take social and ethical
considerations into the marketing practices and maintain a balance between
company’s profits, consumer want, satisfaction and public interest. Some
companies have succeed in terms of increased sales and profit gains by
practising the marketing concept yet some companies carry- out a form of this
concept known as relative marketing. Pringle and Thompson defined this as
“activity” by which a company with an image, product, or service to market builds
a relationship or partnership with a ‘cause’, or a number of ‘causes’, for mutual
benefit.
In societal marketing concept, the company makes an effort to give back to the
society unlike in cause related marketing.

11. Relationship between Marketing
Strategy and Corporate Strategy :
The word “strategy” is devised by Greeks who have endowed the concept with a
military implication. As devised from the Greek word, “stratego”, it means ; a
general or plan to destroy enemies through the effective use of resources. The
term strategy has no specific definition and has had several meanings, different in
scale and complexity. But there are plenty of definitions of ‘strategy’ in
organizational contexts.

12. “Strategy is a set of rules for decision making under
conditions of partial ignorance. Strategic decisions
concern the firm's relationship with its ecosystem”
Ansoff (1979)
“Strategy is a set of offensive or defensive actions to
create a defensible position in an industry, to cope
successfully with competitive forces and thus get a
higher return on investment” Porter (1985)

13. A marketing strategy is an essential segment of the business activity that focuses on
setting and achieving marketing goals, which usually consist of understanding and
winning over a specific target market with a well-planned and immersive marketing
program.
Generally, marketing strategies are devised and undertaken to attract target customers,
and spread awareness of the brand and its products after conducting various kinds of
research, advertisement and promotional activities. Marketing strategies operate on the
same SWOT factors employed in corporate strategies, and they tend to focus on
presenting the company and its products/services with a strong value proposition by
highlighting its strengths, making distributions convenience and offering value pricing
schemes. (Cravens et al., 2009)
On the other hand, corporate strategy defines and sets goals to position a small scale or
a multinational firm in the local, regional and global market. Corporate strategies are
devised after taking into account the core competencies of an organization. These
competencies involve all the factors that determine the operating strategies of an
organization, such as its innovative plans, customers and costs. (Porter, 1980)

14. How Marketing Strategy leads to
Competitive Advantages ?
Marketing strategies are devised and planned to drive the business
strategy of organizations, as these marketing resources are essential to aid
the organization in gaining a competitive advantage over its customers,
and improve its performance and profitability. Researchers employ
various theoretical perspectives to examine the marketing resources and
assets of an organization, and the effect of its marketing strategies on
stakeholder value, innovative, and brand image, along with long-term
success and profitability. (Srivastava, Shervani, & Fahey, 1998)

15. An organization is not limited to use just one competitive positioning strategy
but may use a number of them depending on upon its business life cycle and
current requisites.
Porter (1985) highlights the role of generic strategies in gaining competitive
advantage, and this requires the firm to undertake a choice that is required to
achieve a competitive advantage, and depends on the kind of advantage it
seeks, and the scope within which it will achieve it. Porter (1985) outlines four
generic strategies that influence competitive positioning of an organization:
• Cost Leadership: Becoming a low-cost producer in the industry.
• Differentiation: Seeking to be unique in the industry.
• Focus: Focusing on one segment or segment group.
• Differentiation Focus: Seeking differentiation in target segment. (Porter,
1985)

16. The Ansoff Matrix developed by H. Igor Ansoff is essential for strategic
marketing planning where it can be used to look at revenue growth
prospects by developing new commodities or ‘tapping into’ new markets.
Also known as the Product- Market Mix , this model was first published in
the Harvard Business Review (1957) in an article titled “ Strategies for
Diversification”.
This model is extensively used due to its emphasis on growth. Following
strategic questions must be answered when using this matrix :
Market Penetration: How to sell more of your existing products or
services to your existing customer base?
Market Development: How to enter new markets?
Product and Development: How to develop existing products or
services.
Diversification: How to move into new markets with new products or
services, increase your sales with your existing customer base as well as
acquisition

18. Examples of popular and modern models used
by organizations to stand- out in the market and
groom themselves as an entity are :
1. Smart Insights RACE Planning
2. McKinsey 7S model

19. How a marketing strategy is
developed ?

20. Marketing’s role in the
Competitive Positioning of the
Business :
In today’s volatile and competitive global market, businesses need marketing strategies and
marketing intelligence to stay abreast of all innovations and trends. Firms and businesses
need to combat various economic, social and environmental changes that occur rapidly,
and marketing prepares organizations to adapt to these changes, and use them to solidify
their competitive advantages. Marketing intelligence is essential to ensure the survival of
the organization, along with aiding organizations and employees in overcoming
environmental and economic changes. (Johns & Van Doren, 2010).

21. Organizations use perceptual or positioning maps to aid their
development of a marketing positioning strategy for their commodity.
Positioning maps show the current position of the existing products in the
market so that the enterprises can decide their desirable position of the
product. Firms opt from two options in order to execute this “map” i.e.
either position their product in a way that it fills the gap in the market or
compete against their competitor’s product position where existing firms
have positioned their product.
Hypothetically, the positioning map may have any number of lines but the
for the sake of simplicity it is usually drawn with two lines (x- axis and y-
axis). Various criteria/ combinations are used on these axis , for e.g.
price, quality, status, features, safety, reliability , safety etc.

22. Below is an example of UK chocolate confectionery Brands on a
positioning map:

23. 1. Since perceptual maps are based on buyer’s perception, so it can be a
challenging task as all buyers would not have identical perception regarding each
product.
2. The accuracy of data on map should be critically catered for as erroneous
data would lead to false results and hence unsuccessful business strategy.
3. Prior to determining to fill any gap in the market, firms need to assure that the
product is likely to be demanded while in the new position that was previously a
“gap”.

24. Range of marketing strategies that can contribute to
organisation’s competitive advantage :
Organizations operate in an environment that is constantly subjected to
transitions and changes. An organization achieves a competitive advantage
against rival firms by sustaining its profits and exceeding the average profits in
its industry. Naturally, the goal of every marketing strategy is to provide the
organization with a sustainable competitive advantage.

25. Executive Summary
Marketing is the management process at the helm of identification, anticipation
and satisfaction of customers in a profitable manner. The role of marketing has
been defined by five various concepts; product concept, production concept,
selling concept, marketing concept and societal marketing concept.
The word strategy has been derived from the Greek word, “stratego” which means
a general or plan to destroy enemies through efficient use of resources. There is an
evident relationship between marketing strategy and corporate strategy. Various
marketing decisions/ tools are put into practice under marketing strategies to
achieve marketing and promotional goals those are related with company’s
overall corporate aims like higher sales etc. Corporate strategy is a broad category
under which several strategies such as marketing strategies are often recognised.
It is not uncommon for organisations to achieve competitive advantage through
the implementation of marketing strategies.

26. In today’s era, companies are witnessed to be seen in a race/ hunt for standing-
out in their markets and among their customers. It has now become one of their
goals to achieve sustainable competitive advantage. Renowned professors have
developed various models to help companies achieve this “goal”.
Furthermore, marketing strategy has been explained in a process that is
commonly carried- out while creating a particular marketing strategy. The
process is usually comprised of five to seven steps. In addition, marketing’s role
has been discussed in the competitive positioning of the business. Aspects such
as economic conditions, social and environmental changes are essential to be
taken in consideration to attain a strong position and status in the market.
Positioning map is one of the tools for effective planning and execution of
competitive positioning of the business. Organisations perform their functions in
an environment that tends to witness transitions quite frequently.

27. An organisation could achieve a competitive advantage in an industry only
when it surpasses its profits and average profits. Hence various marketing
strategies could also be incorporated to seek organisation’s competitive
advantage.

28. References :
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https://www.mageplaza.com/blog/what-are-internal-external-environmental-factors-that-affect-
business.html
• Downey, J. (2007). Strategic Analysis Tools. 34th ed. [eBook] London: The Chartered Institute of
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29. Thank You !