Strategic Marketing Management
Chapter 1 : Strategic Marketing Management - An Introduction
Marketing
Concepts in Marketing
Role of Marketing in Business
Definition of Strategy
Components of a Strategy
Levels of Strategy
Evolution of Strategic Management
Phase I
Phase II
Phase III
Phase IV
Components of Strategic Management
Strategic Marketing
Advantages of Strategic Marketing
Strategic Marketing Process
Chapter Summary
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Marketing is the process of identifying and developing products that suit the
needs of the customer even as the organization makes profits. The marketing
mix is a unique combination of the four P's of marketing namely product,
price, place, and promotion. After taking into consideration the other
factors that affect business, another three P's – people, physical evidence,
and process management have been added to the four P's.
There are five basic concepts in marketing namely the production concept,
product concept, selling concept, marketing concept, and the societal
marketing concept. Production-oriented organizations focus on low cost and
high availability of products. These organizations feel that high
availability creates its own demand. Product-oriented organizations focus on
the quality of the product. These organizations believe that buyers prefer
quality products to low cost products. Selling-oriented organizations
believe that products need to be advertised and aggressively sold. |
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These organizations believe that when left alone, buyers do not purchase
enough of an organization's products. They therefore focus on the selling
concept. The marketing concept focuses on customer satisfaction and customer
requirements. The societal marketing concept focuses on the ethical issues
of an organization while marketing. For an organization to be successful the
marketing plan has to be aligned with corporate strategy.
Strategy means to lead. Strategy helps an organization to use the resources
optimally. Business strategy helps to plan with the objective of achieving
long-term objectives. A good strategy answers the questions of what needs to
be achieved, where it needs to be achieved, and how it needs to be achieved.
The components of a well-defined strategy are size, goals, resource
utilization, sustainable competitive advantage, and synergy. There are three
levels of strategy namely corporate level strategy, business level strategy,
and functional level strategy. Corporate strategy deals with strategy
formulation and planning at the top level. It is about coordinating
activities across various businesses. Business level strategy deals with the
strategies that allow a company to deal with competition in its industry or
business. Functional level strategy deals with the strategy for a particular
product or market. The strategic management process involves strategic
analysis, strategic choice, and strategic implementation.
Strategic marketing is the process of strategy development by regularly
considering the marketing environment and customer satisfaction. It gives an
organization the competitive advantage over its rivals. Marketing strategy
involves identifying the marketing objectives and developing and
implementing marketing programs. The strategic marketing process involves
the marketing analysis, analysis of the marketing situation, formulating a
marketing strategy, market program development, and implementing and
managing marketing strategy.
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Short Case Studies / Caselets