Strategic Marketing Management PDF

UNIT 4: STRATEGIC MARKETING MANAGEMENT 1. Introduction: Marketing and levels of strategic management Strategy: Coordinated set of actions and choices that managers use to achieve organizational goals by effectively using resources. It involves selecting a unique, valuable position supported b...

UNIT 4: STRATEGIC MARKETING MANAGEMENT 1. Introduction: Marketing and levels of strategic management Strategy: Coordinated set of actions and choices that managers use to achieve organizational goals by effectively using resources. It involves selecting a unique, valuable position supported by a system of hard-to-replicate activities. Strategic planning: Process of developing and maintaining a strategic fit between the organization´s goals and capabilities, and its changing marketing opportunities. 1. Define company 2. Set objectives and 3. Design business 4. Plan marketing and mission goals portfolio other functional strategies Mission statement: Statement of the organization´s purpose: What it wants to accomplish in the larger environment. Once the mission statements and objectives are defined, there are difficult decisions about what businesses and products will make up the company, now and in the future. Business portfolio: A collection of businesses and products that make up the company. Complicated task the bigger the business. Actual vs future portfolio. Portfolio analysis: A process by which management evaluates and plans for future products and businesses that make up the company. Mayor part in strategic planning. The best-known portfolio-planning method is the now-classic Boston Consulting Group (BCG) approach. - Stars are high-growth, high-share businesses or products requiring heavy investment to finance rapid growth. They will eventually turn into cash cows. - Cash cows are low-growth, high share businesses or products that are established and successful SBUs requiring less investment to maintain market share.  - Question marks are low-share business units in high-growth markets requiring a lot of cash to hold their share. - Dogs are low-growth, low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash. 2. The marketing planning process: concept and stages. Marketers need to identify, evaluate and select market opportunities and establish strategies for capturing them. Product/market extension grid is a tool that helps identifying company growth opportunities through different strategies. - Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviours and who might require separate products or marketing mixes. - Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts. - Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. - Differentiation begins the positioning process. - Positioning is arranging for a product to occupy a clear, distinctive and desirable place relative to competing products from competing brands and give them the greatest advantage in their target markets.  4Cs of customer centric marketing: Customer – Cost – Convenience – Communication 3. Measurements of the impact of the Marketing Plan of profitability ROI: Return on Investment. Net return from a marketing investment divided by the cost of the marketing investment (measurement of the profits generated by investments in marketing activities).