MARK3082 Strategic Marketing Notes
MARK3082 Strategic Marketing Notes These are sample notes and only consist of a few samples of random topics.
PART 1: INTRODUCTION Part 1 discusses the changes that have occurred in the way marketing is practiced and conceptualised (Chapter 1) and the role of marketing within the broader organisational context of strategic planning (Chapter 2).
Chapter 1: The Changing World of Marketing Focus of this chapter: - the changes that have occurred over the years in the way marketing is conceptualised and practices - the forces that have driven these changes - the new value creation paradigm - the impact of the digital revolution on marketing thought and practice The Evolution of Marketing Thought and Practice: 1. The formative years of marketing thought and practice (late 18th century to 1950s): - Heart of philosophy of marketing is the notion of money exchange - Exchange theory: role of exchange in the creation of power relationships Rational choice theory: - Individuals are rational profit-maximisers. - The more of something an individual has, the less interested he will be to buy more of it. - The price g/s sold in free market are determined directly by the tastes of prospective buyers/sellers. - Goods more expensive from monopolist. The early practice of marketing: - Market segmentation, product differentiation, prestige pricing, style obsolescence, saturation advertising, direct mail, reference group appeals and testimonials. - Trademarks as a means of branding evolved in the 1860s e.g. Ivory Soap. - Early 1900s: market research studies, package design and personal selling became more popular (and database marketing in Germany).
Chapter 2: Strategic Thinking and Strategic Decision Making Focus of this chapter: During the 1980’s, marketing’s role was seen as 1. Strategic (long-term) and 2. Tactical (short-term). - Provide you with an understanding of the role of marketing within the context of the broader discipline of strategic planning or, as it is often referred to, strategic management - Provide you with a model of the strategic management process. This model forms the framework that underpins the structure of the remaining chapters of this book. Strategy Planning and Strategic Management: An Overview • In 1957, Philip Selznick introduced the notion of distinctive competence and the need for organisations to match their internal states with external expectations. • Later in the 1960s, the SWOT model came into effect and evolved strategic planning practices. • Strategic planning became a centralised head office function along with SBU’s (Box 2.1). • Strategy planners in the 1960s and 1970s developed tools to assist them in strategy recommendations such as: product life cycle theory, product portfolio models, setting objectives and monitoring organisational performance from top to bottom. 4 problems with strategic planning: o Rational process of strategy formation o The organisational structure (top-down planning) o Conceptual foundations (experience curve) o Creative thinking From doom and gloom to renewal 1970s = economic downturn. 1982 saw emphasis on creativity, developing a competitive advantage and intuitive understanding of their markets.
Chapter 5: Segmentation, Targeting and Positioning (STP) Strategies Focus of this chapter: - an understanding of the steps involved in market segmentation and targeting process - an understanding of the steps involved in brand positioning.
High-level Marketing Strategies
STP focuses on the identification of submarkets of organisation’s product offering from that of its competitors through the process of position; that is ‘selecting avenues for delivering superior value to customers and positioning the organisation and its brands in the marketplace using distinctive competencies’. First phase = strategic positioning, shown below. Strategic positioning Segmentation Targeting Positioning Customer value creating mix
Evaluation and control of performance
Task here is to determine what is to be evaluated, how it is to be evaluated (internal/external/primary/secondary data), who is to supply the data and when it is to be evaluated. • In determining what is to be measured, must differentiate between metrics that can be classified as either a leading or lagging indicator. o Leading indicators: provide clues as to future market performance, measure effectiveness, ROI etc. Leading indicators are the inputs to the CLV return in the model above. o Lagging indicators: measurements of pas performance, measure efficiency. • Consideration of how each metric is to be measured: involves decisions concerning methodology. o Quantitative vs. qualitative data
o Internal vs. external o Primary vs. secondary o Dashboard by internal/external providers with summarised view of info used to plan, budget and monitor purposes
A marketing control system à • Benchmarking - identification of an appropriate standard: Two types of standards: o Comparative: compare with comp, industry average, world’s best and historical perf o Ideal: what is thought to be perfection • Corrective action: Performance measurement reveals
Benchmarking – identification of an appropriate standard
Measurement of performance
Evaluation of performance
Corrective action
PART 1: INTRODUCTION Part 1 discusses the changes that have occurred in the way marketing is practiced and conceptualised (Chapter 1) and the role of marketing within the broader organisational context of strategic planning (Chapter 2).
Chapter 1: The Changing World of Marketing Focus of this chapter: - the changes that have occurred over the years in the way marketing is conceptualised and practices - the forces that have driven these changes - the new value creation paradigm - the impact of the digital revolution on marketing thought and practice The Evolution of Marketing Thought and Practice: 1. The formative years of marketing thought and practice (late 18th century to 1950s): - Heart of philosophy of marketing is the notion of money exchange - Exchange theory: role of exchange in the creation of power relationships Rational choice theory: - Individuals are rational profit-maximisers. - The more of something an individual has, the less interested he will be to buy more of it. - The price g/s sold in free market are determined directly by the tastes of prospective buyers/sellers. - Goods more expensive from monopolist. The early practice of marketing: - Market segmentation, product differentiation, prestige pricing, style obsolescence, saturation advertising, direct mail, reference group appeals and testimonials. - Trademarks as a means of branding evolved in the 1860s e.g. Ivory Soap. - Early 1900s: market research studies, package design and personal selling became more popular (and database marketing in Germany).
Chapter 2: Strategic Thinking and Strategic Decision Making Focus of this chapter: During the 1980’s, marketing’s role was seen as 1. Strategic (long-term) and 2. Tactical (short-term). - Provide you with an understanding of the role of marketing within the context of the broader discipline of strategic planning or, as it is often referred to, strategic management - Provide you with a model of the strategic management process. This model forms the framework that underpins the structure of the remaining chapters of this book. Strategy Planning and Strategic Management: An Overview • In 1957, Philip Selznick introduced the notion of distinctive competence and the need for organisations to match their internal states with external expectations. • Later in the 1960s, the SWOT model came into effect and evolved strategic planning practices. • Strategic planning became a centralised head office function along with SBU’s (Box 2.1). • Strategy planners in the 1960s and 1970s developed tools to assist them in strategy recommendations such as: product life cycle theory, product portfolio models, setting objectives and monitoring organisational performance from top to bottom. 4 problems with strategic planning: o Rational process of strategy formation o The organisational structure (top-down planning) o Conceptual foundations (experience curve) o Creative thinking From doom and gloom to renewal 1970s = economic downturn. 1982 saw emphasis on creativity, developing a competitive advantage and intuitive understanding of their markets.
Chapter 5: Segmentation, Targeting and Positioning (STP) Strategies Focus of this chapter: - an understanding of the steps involved in market segmentation and targeting process - an understanding of the steps involved in brand positioning.
High-level Marketing Strategies
STP focuses on the identification of submarkets of organisation’s product offering from that of its competitors through the process of position; that is ‘selecting avenues for delivering superior value to customers and positioning the organisation and its brands in the marketplace using distinctive competencies’. First phase = strategic positioning, shown below. Strategic positioning Segmentation Targeting Positioning Customer value creating mix
Evaluation and control of performance
Task here is to determine what is to be evaluated, how it is to be evaluated (internal/external/primary/secondary data), who is to supply the data and when it is to be evaluated. • In determining what is to be measured, must differentiate between metrics that can be classified as either a leading or lagging indicator. o Leading indicators: provide clues as to future market performance, measure effectiveness, ROI etc. Leading indicators are the inputs to the CLV return in the model above. o Lagging indicators: measurements of pas performance, measure efficiency. • Consideration of how each metric is to be measured: involves decisions concerning methodology. o Quantitative vs. qualitative data
o Internal vs. external o Primary vs. secondary o Dashboard by internal/external providers with summarised view of info used to plan, budget and monitor purposes
A marketing control system à • Benchmarking - identification of an appropriate standard: Two types of standards: o Comparative: compare with comp, industry average, world’s best and historical perf o Ideal: what is thought to be perfection • Corrective action: Performance measurement reveals
Benchmarking – identification of an appropriate standard
Measurement of performance
Evaluation of performance
Corrective action
