1

Strategic Marketing

Stanley Orong Jr
ATHE Level 6
Radcliffe College (London)
Strategic marketing

Stanley Orong Jr.: ATHE, Level 6

Strategic Marketing

Contents Page:

1: Strategic marketing principles4

1.1 Strategic marketing in an organization4
1.2 Corporate strategy and marketing strategy relation.4
1.3 Strategic marketing development.5
2: Process of the analysis of strategic marketing...6
2.1 Approaches to internal environmental analysis...6
2.2 Approaches to external environmental analysis...7
2.3 Integration of internal and external environment analysis..7
3: Decision and choices in strategic management..8
3.1 Decisions and choices made at a corporate level..8
3.2
Corporate level decisions and their influence on the marketing at business
unit and functional level..9
3.3 Ways for competitive positioning of organizations..9
4: Implementation of marketing strategy to gain competitive advantage..10
4.1 Strategies that contribute to competitive advantage..10
4.2 Marketing communications strategic analysis11
4.3 Marketing strategy analysis and their application and implementation
an organization11
Bibliography.14

Stanley Orong Jr.: ATHE, Level 6

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Strategic Marketing

Introduction

This is a report about strategic marketing; this is a process that every company follows to advertise
their product, attract customers and satisfy their current customers. This report is divided into 4 major
learning outcomes which talk about importance of strategic marketing, its planning, implementation
and how can it help a company gain competitive advantage. There are also tools that a company can
use to deliver their marketing plan and what are the ways a copany can analyse their market. This
report also talks explains about how a strategic marketing plan is developed and how communications
can help marketing the product and company. Communication is important for any objectives or goals
to be driven in the company and to deliver the message to the customer about the product and services
a company provides. As a part of strategic marketing there are many decisions that a company makes
at different levels, that has been discussed in this report.`

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Strategic Marketing

1 Strategic marketing principle

Strategic marketing looks at the big picture of the marketing process and looks at how they
can best satisfy the customer requirements. It has to have a clear objective and a plan of
action. This all starts after they understand the customer.

1.1 Strategic marketing in an organisation

A long term plan to achieve goals and objectives is called a strategy. To define a marketing
strategy therefore would mean a marketing plan which is designed in order to meet the
objectives of the marketing team. It is important for every company to have marketing
objective. The main way to achieve the company's goals is through the strategy
(Businesscasestudies, 2012).
'Marketing is the management process responsible for identifying, anticipating and satisfying
consumer requirements profitably.' The role of marketing therefore are to indentify customer
needs, anticipate future requirements, satisfy customer needs and make profit
(Businesscasestuies, 2013). A company that is market oriented always works and organises
according to the needs of the customer. This is different for product oriented companies who
focus on their product and how to make the best of their product. Good companies use both
approaches to using their marketing strategy. Different organisations use different methods
and different resources. Marketing strategy implementation and managing the control of this
is done by designated professionals in the marketing team. It very important to have a correct
market orientation for the product the image below can be used as a guide for product
orientation (Businesscasestudies, 2014).

1.2 Corporate strategy and marketing strategy relation

Investor words (2014) define corporate strategy as the overall strategy of an organisation
that is created by its leaders. This strategy displays the objects and goals of the company.
This gives a direction to all the units of business that are working to meet the expectations
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Strategic Marketing

of the customers and shareholders. This all is done while giving value to the employees
and the customers of the company.
Marketing strategy generally relates to the complete operations of the business, this also
influences the 4 main components of the marketing program. These 4 main components
are the 4 P's of marketing Product, price, place and promotion (Roger, 2001). Marketing
strategy takes its direction from the main mission and vision of the business and its the
work of the marketing team to meet the goals and objectives of the business. The
marketing strategy is drawn to achieve the goals that is placed through the mission and
vision of the company. Corporate strategy can be simply said as what the company wants
to gain or achieve. This cannot be done by the higher level management. The corporate
leaders draw the objectives of the business but there need to be strategies for different
functions of the business. Marketing is to indentify, anticipate and satisfy the needs to a
customer while making profit for the company. This can be achieved through proper
marketing strategy. This is why corporate strategy of making sales can be achieved
through making more customers which a strategy of marketing team
(Businesscasestudies, 2012).

1.3 Strategic marketing development

It is very important for any business to develop their marketing strategy. Without no
marketing strategy a business cannot attract new customer. The main goal of the marketing
strategy needs to be to meet the needs of the customers and this can be long term plan or a
short term plan. The strategy should be able to make profit and maintain good relations with
the customers. This strategy should be able to anticipate any changes in the business. Once
the strategy is made it has to be monitored for its effectiveness and if any changes are
required they should be made too. The key points to make a marketing strategy is to pay
attention to existing customer needs and segment potential customers in target groups
according to their needs. It is an advantage when a strategy is made according to the customer
needs with the business objectives in mind. It also is important to look at the strengths and
weaknesses of your own business and your competitors and work on them (Business studies,
2012) . Info entrepreneurs (2014) says to develop a marketing strategy its first job is to
analyse the environment in and around the business. There are two environments which are
internal and external environment. To develop successful strategies a business should not
only understand the current factors but also anticipate the changes that can occur in the
market. This helps in developing a strategy that can help get competitive advantage. To
analyse an environment there are many ways and one such powerful way is to use the PEST
analysis which stands for political, economical, social and technological. Everything can turn
to worse is there is no continuous monitoring of the progress of the marketing strategy.

2 Process of the analysis of strategic marketing

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Lorette (2013) says the foundation of a marketing plan is the situational analysis. This
includes an analysis of the factors that affect the business which are internal and external
factors. This analysis happens of the internal environment which is called micro environment
and external environment which is also called macro environment. This gives the overview of
the business and this leads a good understanding of aspects that can affect the future of the
business. Market research is used to get results of this analysis. There are assessments which
are called SWOT (strengths, weakness, opportunities and threats) that is carried out to
analyse the internal and some external factors. This research helps to create a marketing plan
or strategy.

2.1 Approaches to internal environmental analysis

"Factors or elements in an organization's immediate area of operations that affect its
performance and decision-making freedom are called internal factors. These factors include
competitors, customers, distribution channels, suppliers, and the general public."(Business
dictionary, 2014)
Sahaf (2008) says there are changes in the market and to cope with it there needs to be
analysis of the environment. Internal analysis helps to know about the internal positives and
negatives of the business this helps to make changes within the business is required. To
malaise the internal environment of the business there are is many assessments tools. One
such assessment tool is the SWOT analysis which is strengths, weaknesses, opportunities and
threats. Strengths and weakness are about the business internally, the strengths of the business
help to overcome the weakness and also work on the threats. Weakness is the issues in the
internal environment and shows the obstacles that do not allow the company to meet its goals.
Opportunities are an external factor this shows the ways in which the company can improve
its image and progress. Threats are also an external factor it can be a situation that does not
allow the company to get its goals.
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2.2 Approaches to external environmental analysis

Macro environment is the external (environment) factors that affect the decision making
process of the business. These are factors that are uncontrollable and it affects the
performance of the business and its strategies. These factors are demographics, political,
economical, legal and social. They may also include technological and natural forces.
Examples of these are governments policies and competitors (Business dictionary, 2014).
PEST (political, economical, social and technological)is a tool that is used by organisations to
identify present external factors that affect the business, identify the possible external factors
that could be changed in the near future and make use of the changes or opportunities and
fight against the possible threats that would make your company better than their competitors.
The outcome of this approach is that the overall outcome of the company is clear. For PEST
to work it is the job of the managers to gather the right and relevant information of the
company's external factors. Political factors can be government changes and regulation, laws
and controls. Economical factors are the costs and rates of inflation or interest and exchange,
availability of credit and labour costs. Social factors like lifestyle of customers, habits of
buying, social classes, beliefs, education level and disposable income. Technological factors
would be access to latest technology, infrastructure and communication infrastructure
(Strategic management insight, 2014).
While analysing the environment it is also important to look at the competitors that the
company has. The technique that is used strategically to assess competitors is called
competitors analysis. The purpose of this is to identify the weakness and the strengths of the
competitors that the company has and use this information to improvise the company's
efforts. The good strategy would get this information and will anticipate the actions of the
competitors in any changing environment and have a game plan ready for their company
(Business dictionary, 2014).

2.3

Integration

of

internal

and

external

environment

analysis

Rothaermel (2012) says there can be fit among the internal and the external environment
when managers match the company's internals strength and with the external opportunities,
this happens reducing the internal weakness of the company and the external threats that the
environment poses. This helps them to make a strategy that is specifically for Theory
Company making a unique fit between its internal and external environment. When a
company achieves this fit it helps to gain competitive advantage in the future. This strategy
uses the SWOT (strengths weakness opportunities and threats) analysis that the company
does foer analysing its internal and external environment.

3: Decision and choices in strategic management

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Strategic Marketing

When marketing strategy is being developed there are many decisions that are required to be
made these decisions are about activities that will be used to achieve marketing objectives.
These decisions are, the target market, the developing of a marketing mix and the place that
will be used to support the position that they want in the market for their product. These
decisions are also based on how they want the customers to think of them as a company and
product provider. These strategic decisions help them to understand if the customer will be
able to buy their product and if not what could be the reasons. Ddecisions made during the
developing of the strategy decide if they will have a competitive advantage over their
competition in the market or if there are any changes that they need to make (Solomon et al,
2003).

3.1 Decisions and choices made at a corporate level

There is are decisions made through the company at all levels. The top management and
board members make decisions for the complete business and these decisions are followed at
every level. Decisions made at corporate level are them then made into smaller decision at
business level and different department level so together they achieve the business goal. The
corporate level management make the mission of the business; this mission gives the reason
why the business is in place. They then make the companies goals and values from this
mission statement. The management level then translate these missions and visions into goals
that departments will achieve. Corporate level decisions are objectives and goals and what the
business wants to sell and to whom. The different departments in the organisation then work
strategies to achieve these goals (Johnson, 2014).
The vision of a business is the main goal or idea of the business. This is the future image the
business would look like; this is the core idea and the main purpose of the business that
guides the direction in which it is to go. Vision is created by a leader or a person in authority
to make the business develop (Sabrautzki, 2009). Mission of a business is the overall concept
of the way its people should behave and are to be managed while working in the direction of
the vision of the business is the subject of the business' mission statement. Its main point is
mission statement is the central purpose of the business which "sets the firm apart from other
firms in its industry" and which "is idealistic reason for being." Mission statement showcases
the way the business as a whole must be working to accomplish bigger milestones while
working to achieve its vision (Sabrautzki, 2009). Mission is the main goal and objective of
the company and vision gives employees functions identify and the reason that functions is
present. It draws a picture of the future for its people to let them know where their business
would be. Employees are convinced of the importance of their jobs and work when they have
a clear vision in front of them (Sabrautzki, 2009).

3.2 Corporate level decisions and their influence on the marketing at

business unit and functional level.
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Strategic Marketing

Corporate level strategy is the top level decision-making; this covers the main objectives of
the business and resource allocation. They also decide on how strategies in a business with
coordinate within business units to get performance. This is decisions that corporate levels
make business level strategy works at the achieving. There are different strategies required
for different products and customer; and so business level strategies has the corporate level
strategy as the basis and there after build strategies from there (Marketing 91, 2014).
Rao (2011) states to have a successful business planning at all levels, are important there has
to be alignment in all departments that is this is not present the main corporate strategy is not
effective. The success of these corporate level strategies is are dependent on functional level,
this is where we know if the strategy is realistic and will work or not. Functional level gives a
reality check of the corporate level and the business level strategy. It is the functional level
strategy that brings the results that are required to turn the planned strategies into reality.
Functional level is the operational level and it is different departments of the business. The
people who make the strategies at corporate level are responsible to give direction to the
people who execute the plan who are the functional managers. They implement the strategies
and execute them. This implementation of strategies also needs monitoring at regular times to
keep a check of the progress of the company.

3.3 Ways for competitive positioning of organizations

"Marketing objectives define what you want to accomplish through your marketing activities.
There are several important factors to consider when establishing effective marketing
objectives." (Toolkit, 2013)
Marketing strategies are laid to achieve organizational goals and aims; also to have a competitive
position in the market. Competitive positioning of a business is about the way the business will
differentiate their product by creating value for the customer. Positioning strategy should include the
analysis of market, target customers, SWOT (Strengths weakness opportunities and threats) analysis
and how does the business deliver value to the customers. With competitive positioning its important
to look at the value you provide to your customers and this is often overlooked. There are three
important methods which are "operational excellence, product leadership and customer intimacy". In
operational excellence business continuously provide low cost products on a long term basis. Product
leadership means creativity where innovation is a topic every time; improvements and new product
are a highlight of this strategy. Customer intimacy is when business personalizes the product for the
customer and not gives a generic product which customer like (Marketingmo, 2014).
After you establish your competitive position in the market your will determine the type of business
you are. There are four main types of market dominance strategies these are; market leader, market
challenger, market follower and niche market. A market leader is the dominant force in its own
market. This business has a big share and a large distribution channel. It makes new products and
methods of business. Market challenger is a strong business but is not in a dominant position. This
business targets the market leader and they do have an aggressive strategy. They only choose one
market segment and check their own strengths through their competitors. Market follower is s strong
business but again is not in a strong position. This one develops its strategies and products parallel to
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the market leader and also gain share as is not exposed to heavy risks. Niche markets are a business
that deals with specific market and few target groups. This can also be called focus marketing and
they focus on marketing to smaller narrow markets (Smarta marketing, 2011.)

4: Implementation of marketing strategy to gain competitive advantage

Ferrell and Hartline (2012) say implementation of strategies requires the actual execution at
functional level and a strategy for that. At functional level at strategies that are to be executed
has have two markets which are their targets these are external market (suppliers, investors,
customers, potential employees and the society) and internal market ( executive, managers
and employees). This happens because when the functional plans when are executed it has
implications both internally and externally for the business. Even other operations like human
resources which are not connected to implementation can affect on the customers of the
business. To have the functional strategy implemented successfully, the business should rely
on its employees knowledge and commitment which is its internal market. It is the employees
that are responsible to perform the operations that will implement the strategy. This is why
internal marketing should be used to increase commitment and motivation among the
employees. When businesses design and implement strategies it is also important to evaluate
and control the strategic planning so the activates that are planned are on the target of the
company's goals and objectives. The incorrect or insufficient co ordination among different
functional areas creates a problem here. The marketing manager needs to be in contact with
the production manager so they are both in sync with product availability and then give good
customer satisfaction. The key to a successful implementation, execution and monitoring of
strategy is communication.

4.1 Strategies that contribute to competitive advantage

The very first thing to do to gain competitive advantage is know your market, customers and
competitors. This once has been achieved through analysis like SWOT and PEST; it is
important to look at your target market. This is when segmentation comes to action. Market
segmentation means a business groups the potential customer into segments according to
their needs; the business will have a different plan of action of each segment. Segmentation
uses a marketing mix, the main 4 P's of marketing are Price, place, product and promotion.
Different segments will respond to different marketing mix that the company has. Each of the
marketing mix will give different profits and growth opportunities. There are different ways a
market can be segmented these are through geographical location, Psychoigraphics,
demographics and behaviour. Now once the segmentation is done its important to pick the
target markets for your company. One strategy cannot suit all target markets and so there
would be individual strategies for target markets. This segmentation and target market helps
to gain competitive position (Toolkit, 2014)

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Corporate decision is made to make profits and also get competitive advantage on the
competitors. To get this competitive advantage there are strategies required and Michael
porter gives the best strategy which is called porters generic strategy. There are three basic
strategies a business can adopt any one of the strategies. These strategies are cost leadership,
differentiation strategy and focus strategy. It depends on the business what strategy they want
to adopt as this strategy also depends on what kind if market are they targeting. In cost
leadership the business looks to reduce costs and benefit from "economies of scale". A cost
leadership give competitive advantage by making a profit but reducing costs. Differentiation
strategy is where the business is looking to be different from other most of all the competitors
and this can done having a different game plan that the competitors. This business should
appeal to customer in ways that are different to their competitors. Focus strategy is when the
business is looking to put their efforts on just one part of the market and provide products and
service only to this market segment (Learn marketing, 2014).
One part of the marketing plan needs to decide how the company will distribute its products
to the customer. The distributions channels are different in their costs, complexity, resources
and customer relationship that is necessary for the operation of the channels. The business
needs to make sure that the channels of distribution that the company uses are a match to the
goals and aims of the marketing strategy of your business. Distribution channels can be direct
selling, whole sale, mail order or online (Markgraf, 2014).

4.2 Marketing communications strategic analysisstrategies

West (2010) says when a marketing communication strategy that is integrated is implemented
the business can gain a competitive advantage. The buying behavior of the customer now is
different from before; today smart advertising works. Technology helps customer know the
products and other products through the use of mobile phones, TV, search engines and
Internet. This has made the traditional marketing communications process redundant. A new
marketing communications strategy which is consumer controlled has come which has a
quicker customer learning process. This has made life of marketing strategic difficult as there
is not efficiency. This is the reason why it is important to have a integrated marketing model.
There are four aspects to a marketing communications strategy these are audience, brand,
content and delivery. Audience are the main part of the strategy as it is important to
understand your target market and this mean to know their demographics and lifestyle to get
best out of your target market. Brand of the product means the product your business is
selling has to be unique so it can get competitive advantage; it has to deliver a value that is
superior for the customer and has clear feature and price that are different from others.
Content is point of difference as all competitors are using the same methods of marketing;
this is why customer will want content that is value added. Delivery of marketing
communications has to engage the customers and this has to be linked to the positioning of
your brand or the communication delivery will fail.

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E marketing is the use of digital media and the internet to help in the sales of your
products and communicate with customer. These are modern technology that helps to
sell your products and can be used all business sizes even if it is small scale business.
E marketing can be also called internet marketing, web marketing or online marketing
of the products and services. E marketing does not only deal with marketing and
giving promotions to customers on the internet but also does marketing through the
email. It helps manage customer data and use for future purposes. Emarketing uses
social media and other online ads which can be interactive to capture customer (Tool
kit, 2014).
Public relations is opposite of advertising; where advertising you pay for the advert in
public relations the business itself sells themselves. Publicity is cost effective and
more effective. Publicity has more scope to be lasting and reaches to a bigger
audience. Public relations therefore are the ways to provide information to the
customer of the company. The main goal of public realtions is the persuade the
customers, stakeholders, employees, investors and partners to have a particular idea
about the company's products and political standing. Public relations are involved in
communications with employees, press conferences and award functions of the
industry of the company. In marketing public relations helps to make the final
marketing material after designing it for the customers. It also provides guidance to
the marketing team of what the public wants and what are the reviews of the public
(Entrepreneur, 2014).

4.3 Marketing strategy analysis and their application and implementation

in an organization
To measure the performance of the marketing strategies applied there are certain criterias
like number of product registrations, sales and survey of brand to check the brand awareness
of the company. The analysis and the monitoring of marketing strategies performances help
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company to gain a higher degree of "competitive intelligence". This also helps them to know
the strengths and weakness of the market they are targeting and have cost decisions that are
well calculated. Analysing the performance of the marketing strategy helps also look at the
competitors future reactions and create new marketing strategies (Boundless, 2014). The
implementation of a marketing strategy means there has a to be an alignment between the
strategy and the core strategies of the company's growth. Implementation of the marketing
strategy is carried out by the department head and the manager below them. This has to be
monitored and controlled to gain any competitive advantage, make profit and create value for
the customers and other stake holders of the company. The implementation has to be a result
of the analysis that has been taken place about the internal and external analysis; and have
accurate information of the customers needs and market research. If this is not controlled and
monitored by experienced and dedicated staff the marketing strategy or any strategy can fail
(Boundless, 2014).
Duggan (2014) says once the marketing plan is created it has to be monitored by marketing
managers. This is done through surveys and feedback from he customers. Consumer focus is
also an important part of monitoring the application of the marketing strategy. Through
customer focus company maintains the current customers and take their feedback into
account to make any changes. Monitoring the performance of marketing strategies uses
softwares that do analysis of companys website traffic, feedback on review websites. This
helps marketing team to concentrate on adverts that create more sales and remove the ones
that dont. This helps them to link the company's main objectives to the marketing strategy.

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