Wollega University College of Business

& Economics, Department of Commerce

MA In Marketing Management

Course: Strategic Marketing Management

By: Dula Kumera (MA, PhD Candidate, WU).

 Course Chapters
Chapter one:Overview of Strategic Marketing
management & Basic components of
strategy design
Chapter two:Internal Marketing Environment
Analysis
Chapter three:External Marketing Environment
Analysis
Chapter four:Analyzing industry & competitors
Chapter five:Analyzing corporate, business unit &
functional level business strategy
 CHAPTER ONE
Overview of Strategic Marketing management & Basic
components of strategy design
Contents of the chapter
Strategy & Strategic Marketing
Creating a Vision
Outlining the Mission
Values, and strategic issues
Setting Goals and Objectives
Values and Policies
Strategic plan 3
 What is strategy
 It is a plan, a direction, a guide or course of
action into the future, a path to get from here
to there, etc
 It is the art of war, especially the planning of
movements of troops and ships etc., into
favorable positions; plan of action or policy in
business or politics etc.
 In business context competitive/winning
strategy highly affects competitiveness
 cont...
 It is concerned with making major decisions that
focus on:
– scope (range) of the organization's activities
and the markets in which the organization will
compete.
– the basis of sustainable competitive
advantage(s). i.e., the integration skills and
resources needed in order to prosper within the
defined markets.
• It should provide a consistency of approach, and
offer a focus to the organization.
 Strategic marketing
Strategic marketing as seen as a process consisting
of:
 analyzing environmental,
 analyzing competitive market and
 identifying market opportunities and threats of
business,
 forecasting future trends the corporation and its
business units
In very general terms of it is how the marketing
objective is to be achieved, e.g. acquiring a
competitive company, by price reductions, by
product improvement, or by intensive advertising.
Marketing strategy addresses three elements
1. Customer focused
How is the market defined, what segments exist
and who should we target?
 In this dynamic business environment,
customers may have many options to satisfy
their needs & wants
Thus, it needs to understand your customer
base and be responsive to their needs.
Treat loyal customers as assets and strive to
build on-going and long-term relationships)
Regularly monitor levels of customer
satisfaction (retain the existing & attract new custmers).
 Cont...
Note, to achieve this we must:
(i) listen to customers.
(ii) define your markets,
(iii) effectively segment/target customers and
2 Competitor focused
Understanding of our competitors within targeted
market segments.
Be watchful and assess competitors' objectives,
strategies and capabilities.
• Benchmark competitors’ products, processes and
operations against your own
• Focus on strong & weak-sides of competitors
3. Integrate marketing into the business
Internal corporate issues-need to match internal
corporate capabilities with customer need.
Marketing should not be confined to the only
marketing department.
Every function and person within the
organization has a role to play in creating value
and achieving the goal of being a market-led
organization.
It must be on the agenda of senior management,
who should develop and implement market-led
strategy and define the future in terms of
 Characteristics of Strategic Marketing
 Emphasis on long-term implications
• The long-term orientation of strategic marketing
requires greater concern for the environment.
• Environmental changes are more probable in the
long run than in the short run.
 Strategic marketing decisions require corporate
inputs from
• Corporate publics: are the various stakeholders
with an interest in the organization. Customers,
employees, vendors, governments, and society
typically constitute an organization’s stakeholders.
 Cont...
• Corporate resources: includethe human,
financial, physical, and technological
assets/experience of the company.
 Varying roles for different products/markets
• Strategic marketing starts from the premise that
different products have varying roles in the
company.
• Forexample, products may be in the introduction,
growth, maturity stage of the product life cycle
Products in the growth stage may need extra
investment; those in the maturity stage should
generate a cash surplus.
 Cont...
 External Market Orientation
• organizations need to be oriented externally
toward customers, competitors, the market, and
the market’s environment.
 Proactive Strategies
A proactive strategy attempts to predict &
influence events in the environment rather than
simply react to environmental changes is to
participate in their creation.
 Cont…
 Importance of the Information System
The determination of what information is needed,
how it can be obtained efficiently and effectively,
and how it should best be analyzed, processed, and
stored can be a key to an effective strategy
development process
 Knowledge Management
It is becoming critical as the key asset of companies
increasingly is knowledge, whether it is knowledge
of technology, marketing, processes, or other
ingredient of success. It is source of competitive
advantage when it retained and nurtured over time
 Cont…
 Online Analysis and Decision Making
Organizations are moving away from relying only
on the annual manual planning cycle and toward a
more continuous, on-line system of information
gathering, analysis, and strategic decision
making.
 Global Realities
Global markets are extremely relevant to many businesses,
from Boeing to McDonald’s, and it is a rare firm that is not
affected competitors either directly or with operations in
other countries.
The global element represents both direct and indirect
opportunities and threats.
 Vision Vs Mission of the organization

Vision:
An image of the future we seek to create
A vision statement describes where an organization
wants to see itself in the future; in the next 10, 20, 30,
50 or more years if everything goes as planned.
A vision statement should answer the basic question,
“What do we want to become?”
A clear vision provides the foundation for developing
a comprehensive mission statement.

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 Sample Vision Statements - Good
 Tyson Foods:- to be the world’s first choice for
protein solutions while maximizing shareholder value.
(David comment:- Good statement, unless Tyson provides
non-protein products)
 General Motor: to be the world leader in
transportation products and related services
 (David comment: Good statement)

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 Sample Vision Statements - Poor
 PepsiCo’s:- to continually improve all aspects of the
world in which we operate: environment, social,
economic creating a better tomorrow than today.
(David comment: Statement is too vague; it should
reveal beverage and food business)
Dell: to create a company culture where environmental
excellence is second nature .
 (David comment: Statement is too vague; it should reveal

computer business in some manner; the word

environmental is generally used to refer to natural
environment so is unclear in its use here)
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 Mission
 Notable Quotes
 "That business mission is so rarely given adequate
thought is perhaps the most important single cause of
business frustration.“ — Peter Drucker
 Declares the firm's purpose, firm's reason for being, the
role of the organization in the industry and/or society.
 Enduring statement of purpose
 Distinguishes one firm from another
 A clear mission statement is essential for effectively
establishing objectives and formulating strategies.
Importance of Mission

Benefits from a strong mission

Ensures Unanimity of Purpose

Standard Resource Allocation

Mission
Organizational Climate/tone

Focal point for work

structure

Shared stated direction

Ch 2 -19
 Products/
Services Markets
Customers

Technology

Employees
Mission
Elements

Survival
Growth
Profit
Public
Image Self-Concept
-competence Philosophy
or CA
 Mission - Examples

Dell: - To be the most successful computer company in the

world at delivering the best customer experience in markets
we serve.
L’ Oreal: - We believe that lasting business success is
built upon ethical standards which guide growth and on a
genuine sense of responsibility to our employee, our
customers, our environment, and to the communities in
which we operate.
 Mission Statement Evaluation Matrix

COMPONENTS          

Concern for
Survival,
Products Growth,
Organization Customers Services Markets Profitability Technology

           

Dell Yes yes yes yes yes

L’Oreal No no no no No

           
 Mission Statement Evaluation Matrix
 

COMPONENTS        

Self- Concern for Concern for

Organization Philosophy Concept Public Image Employees

         

Dell Yes yes yes No

L’Oreal yes no Yes Yes

         
Strategic Goals
• The strategic goals, as part of the strategic
planning process MUST reflect the analyses
made
• The strategic goals should:
• reflect the general themes of the vision and mission
• reflect the business realities outside of the company
(as identified in the environmental scan)

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 Cont’d…

• Reflect the business and capabilities internal to the

organization (also as identified in the environmental scan)
• Reflect the strengths, weaknesses, and opportunities and
strengths identified in your SWOT analysis.

• It needs the entire organization to be aligned, or aimed

at the achievement of the strategic mission,

• They need to be aligned/consistent with all the other parts

of the strategic plan. 25
 Goals Litmus Test
Test Question #1 #2 #3 #4 #5

Does the goal support the mission?

Is it consistent with your legislative authority?
Does the goal deal with just one issue?

Does the goal represent a desired result that can

be achievable?
Does the goal reflect a primary activity, a
strategic direction, a strategic issue or a gap in
service?
Is the goal challenging, but still realistic and
achievable?
Does the goal encompass a relatively long
period, i.e., three years or longer?
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 Objectives
• Objectives are usually specific/particular
statements of goal that contribute to the
achievement of "bigger" goals.
• Objectives within a strategic planning framework
are "enabling goals“
• Their success contribute to the achievement of
the larger strategic goal(s)

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 Objective Setting
• Allow review and appraisal of achievement
• SMART (specific, measurable, achievable,
relevant, time-bounded
• Make clear:
– What is to be accomplished
– How much is to be accomplished
– By when it is to be accomplished
– By whom it is to be accomplished
– Where to be accoplished 28
Goals vs. Objectives Summary
GOALS OBJECTIVES

Very short statement, few words Longer statement, more descriptive

Broad in scope Narrow in scope

Directly relates to the Mission Indirectly relates to the Mission

Statement Statement

Covers long time period (such as Covers short time period (such 1 year
10 years) budget cycle)

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 Objectives Litmus Test
Test Question #1 #2 #3 #4 #5

Does the objective reflect specific, desired

accomplishments?
Can progress toward completion of an objective be
measured?
Is the objective aggressive and challenging, yet
realistic and attainable within available resources?

Does the objective specify a result

rather than an activity?

Is there a specific time frame for completion of the

objective?

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 Strategies and Tactics
• Strategies are courses of action taken to achieve the
stated objectives thus are means of achieving objectives
• Tactics are the detailed programs laid to operationalize
strategies.
• They answer the question of “What”, “Who”, “When”,
“How”, “Whom” and the resources associated with the
implementation

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 Values
• Values are beliefs which the organization's members
hold in common and endeavor to put into practice.
• The values guide the organization's members in
performing the work.
• Organizations should ask, "What are the basic beliefs
that they share as an organization?“
• Values are often rooted in ethical themes, such as
honesty, trust, integrity, respect, fairness, etc.
• Values should be applicable across the entire
organization

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 Values (Cont’d…)
• Examples of values include: a commitment to excellent
services, innovation, diversity, creativity, honesty,
integrity, and so on.
• By developing a written statement of the values of the
organization, group members have a chance to contribute
to the articulation of these values,

• Do really, organizations follow thier values?

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 Policies
• a broad guideline for decision making that links the
formulation of a strategy with its implementation
• Corporate policy is the guide post decision making.
• It helps in the managerial thinking process and thus leads
to the efficient and effective attainment of the objectives
of any organization
• Companies use policies to make sure that employees
throughout the firm make decisions and take actions that
support the corporation’s mission, objectives, and
strategies.
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 Cont’d …
• It is a standard or a norm to be followed in the conduct
of a business in a particular situation.
• It gives the managers a transparent guideline to take
their decisions thus clarifies the intention of management
• include guidelines, rules, and procedures established to
support efforts to achieve stated objectives.
• Thus, it tries to create a unified whole as organization

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As a process, strategic marketing has three distinct
phases

• 1 Strategic analysis
– To move forward, we must first answer the
question; where are we?
– Examination of the business environment,
customers and an internal review of the
organization itself.
– Portfolio analysis & industry structure
models help management to objectively
assess the organization's current position.
 Cont..
• 2 Formulating strategy
– Defining strategic intent – what are our overall
goals and objectives?
– Managers need to formulate a marketing strategy
that generates competitive advantage and positions
the organization's products effectively.
– Product development and innovation are strategic
activities, offering the potential to enhance
competitive position and further develop products
and brands.
 Cont..
– Formulation emphasizes the need to form
relationships with customers and other
businesses.
– It culminates with the development of a strategic
marketing plan.
3 Implementation- Putting strategy into action.
• Marketing managers will undertake programmes
and action that deliver strategic objectives.
• Actions focus on individual elements of the
marketing mix.
• Monitoring and control needs to be put in place in
order to ensure compliance and aids decision making.
 STRATEGIC PLAN
• The strategic plan refers to the arrangement and
ordering of the activities and tasks that will be
necessary to carry out the goals.
• Thus, this step focuses on defining and acquiring the
necessary resources as well as establishing the
timetable for the completion of the tasks.

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 STRATEGIC PLAN cont’d …

The development of a strategic plan involves in answering the

following five questions:
1. What are the practical alternatives that might be pursued to
achieve the goal?
2. What are the barriers to the realization of these alternatives?
3. What major proposals might be pursued to achieve these
alternatives or to overcome the barriers to their realization?
4. What major actions with existing staff must be taken within the
next year to implement the major proposals?
5. What specific steps must be taken within the next six months to
implement the major proposals and who is responsible?

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 STRATEGIC PLAN cont’d …

Rucheman (1985) points out that the realization of the

plan can be affected by the following six factors:
• Scope – where are the clients?
• Size – who are the potential clients?
• Complexity – how are specific are the objectives?
• Duration – how long it will take to implement the
objectives?
• Components – how many discrete activities?
• Innovativeness – how much of a break from the past?
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THANK YOU!

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