2nd Lecture

05-06-2006

STRATEGIC MARKETING MANAGEMENT

Characteristics & trends.

• Long term horizon :

• Empirical Research: as opposed to conceptual contribution stress
has shifted to empirical evidence.
• Interdisciplinary developments:
o Marketing – emphasis on customer need, PLC, Global brand
management, category management etc.
o Organizational behavior: fit between

WHY STRATEGIC MARKET MANAGEMENT?

• Precipitates the consideration of strategic choices: Nothing is more

tragic than an organisation failing due to delayed strategic
decisions.
• Forces a long range view of business
• Helps to allocate resources in a better manner
• It aids strategic analysis and decision making
• Provides strategic management and control
• Leads to a better coordination between planning and
implementation.
• Helps business cope with change

STRATEGIC PLANNING AND THE MARKETING PROCESS.

Strategic Planning.

• It is the process of developing and maintaining a strategic fit

between the organization’s goals and capabilities and its changing
marketing opportunities.
• It involves four steps:
o Defining a clear mission statement
o Setting supporting objectives.
o Designing a sound business portfolio &
 o Coordinating functional strategies.

STEPS IN STRATEGIC PLANNING

Defining Setting Designing the

Planning, marketing,
company’s objectives business
and other strategy.
mission and goals portfolio

Corporate level Management level

Mission statements:
• A statement of the organisation’s purpose what it want to
accomplish in the larger environment
• Mission statement should be
o Realistic
o Specific
o Shout fit the market environment
o Based on the organisation’s distinctive competencies
o Motivating

Market oriented business definitions

Company Product oriented definition Market oriented

definition
Revlon We make cosmetic products We sell lifestyle and sell
expression; success,
memories, hope, dreams.
Disney Theme parks We create fantasies
Wall mart We run discount stores We deliver value through
low prices.
Xerox We make copying, fax machines We make business more
productive by helping
them scan, store, retrieve,
revise, distribute, print
and publish documents.
Titan Watches and fashion accessories
SETTING COMPANY OBJECTIVES & GOALS:

• Company’s mission to be converted into detailed supporting

objectives for each level pf management.
• The objectives should
o Clearly spell out each department’s objective
o Should be specific and measurable.

DESIGNING THE BUSINESS PORTFOLIO

• Business portfolio
o The collection of business and product that make up the
company.
• Best portfolio
o That best fits the company’s strength and weakness to
opportunities.

ANALYSING CURRENT BUSINESS PORTFOLIO.

The company must

• analyze its current business portfolio
o Decide which businesses should receive more or less or no
investment.
• Develop growth strategies.
o For adding new products or businesses to the portfolio.

Strategic Business Unit

• A unit of the company that has a separate mission and objectives

and hat can be planned independently from other company
business
• An SBU can be division, or sometimes a single product or brand.