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Strategic

MarketingDecisions

Introduction to Strategic

Marketing Decisions

1


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Strategy Defined

Plan of action to accomplish goals and objectives leading to attainment of

mission and vision

!ction plan to develop advantages, core competitive edges "to out-

smart rivals and strengthen competitive position# and ensure

success

Organizational strategy is a plan of action for investing resources

to develop core competencies in the value chain to achieve an

organi$ation%s long-term goals and objectives& 'or e(ample astrategy to invest in )*D to develop superior or differentiated

products to meet customer needs and gain market share&


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Strategic Marketing Decisions

Strategic Marketing Decisions is about marketing

decisions and actions that determines the long-

run performance of an organi$ation and they

are made keeping in vie, the ever-changing

turbulent and unpredictable environment& heultimate objective of such decisions is to attain

sustainable competitive advantage and resolve

comple( problems that re.uire consideration of

strategic means choices implementation andcontrolling mechanism&


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Strategic Decisions

0& Why are strategic decisions different from other types ofdecisions?

!ns& Strategic decisions deal ,ith the long-run future of theentire organi$ation and have three characteristics ,hich

differentiate them from other types of decisions&

"1# hey are rare& Strategic decisions are unusual and typicallyhave no precedent to follo,&

"2# hey are conse.uential& Strategic decisions commit

substantial resources and demand a great deal ofcommitment&

"+# hey are directive& Strategic decisions set precedents forlesser decisions and future actions throughout theorgani$ation&


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evels of Strategic

Decisions


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Strategy Development

'rame,ork

It is composed of4

1& 5nvironmental Scanning

2& Setting Mission 6ision * 7oals+& Strategy 'ormulation

/& Strategy Implementation

& 5valuation and 8ontrol


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:rgani$ational 5nvironment


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Strategy Development Process

of 5ntrepreneurship


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he Strategy-Making Strategy-5(ecuting

Process


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8hallenges to Strategic Marketing

"* 8hanging Dimensions of

8ompetitive !dvantage#

> Some Examples from Impact of Electronic Commerce:

1& Internet is forcing companies to transformthemselves& he concept of electronicallynet,orking customers suppliers and partners is

no, a reality&

2& ?e, channels are changing market access andbranding causing the disintermediation of traditionaldistribution channels "5(& :nline retailing@etailing#&

+& he balance of po,er is shifting to the consumer&?o, having unlimited access to information on theinternet customers are much more demanding&


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8hallenges to Strategic Marketing

"* 8hanging Dimensions of

8ompetitive !dvantage# contd&

/& 8ompetition is changing& ?e, technologydriven firms as ,ell as the traditional firms aree(ploiting internet to become more innovativeand efficient&

& he internet is pushing corporations out of theirtraditional boundaries& Many rapidly gro,ingcompanies are going global&

3& Ano,ledge is becoming a key asset andsource of competitive advantage "5(&Ano,ledge of technology competitionchanging customer trends environment etc&


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Bhy Do Strategies

5volveC

> 8hanges may be necessary to react to

> Shifting market conditions

> echnological breakthroughs

> 'resh moves of competitors

> 5volving customer preferences

> 5merging market opportunities

> ?e, ideas to improve strategy> 8risis situations etc&


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Globalization

> 7lobali$ation open ,orld economyprivati$ation liberali$ation free trade

emergence of global online community global

consumerism global marketing * companies


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Globalization


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Globalization

> 7lobali$ation is the integration of ,orld,ideeconomies for socio-economic development&

> )egional * 7lobal rade !greements

> 5uropean Enion "5E#

> ?orth !merican 'ree rade !greement

"?!'!#

> South !sian !ssociation for )egional8ooperation "S!!)8#

> Borld rade :rgani$ation "B:#


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Mainstream Globalization"!cceptable Glamorous & Fashionable Globalization#

> Integrated global economy interdependence of

countries for trade investment finance human

resources * technology global prosperity peace

and friendship among global community * drive

to end ,ars "0ureshi 2=1+#

> 7lobali$ation of4 markets financial systems

technologies industries@sectors companies

Fproduction marketing supply chains valuechains * brandsG customers culture *

community "i&e& global community# ":p cite

2=1+#


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e!iant Globalization"Enacceptable Illusive, & Regressive Globalization#

> 7lobal dominance by largest intercontinental companies elites *developed countries "0ureshi 2=1+#

> Beakening and li.uidating industries in poor countries due to flooding

cheap products% imports * global competition increasing cost *

investment in technology due to compliance on global standards lay-

offs * job losses decreasing incomes * savings increasing debtsbrain drain sick socio-economic units bio-degradation due to

incremental pollution social ine.uality ",idening gap among social

classes# surge in crimes loss of culture * religions values debt

cancer surge in global crimes counterfeit products infringement of

intellectual property rights sub-standard products misleading

advertisements * claims violation of consumer rights infiltration ofproducts selling them into grey markets dumping cyber crimes

corporate espionage ta( evasions corporate malpractices

smuggling trade of contraband items etc& posing drastic challenges

to marketing strategists "Ibid 2=1+#


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> 5(ercise strong oversight to ensure five

tasks of strategic management are

e(ecuted to benefit > Shareholders or

> Stakeholders

and serve their interests&

8orporate 7overnance4 Strategic)ole of a Hoard of Directors


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:bligations of a Hoard of Directors

> Involve people in decision-making.> Enable and empower them&

> Communicate, coordinate, and cooperate.

> He inquiring critics and overseers.

> Evaluate caliber of senior

executives’ strategy-making and

strategy-e(ecuting skills.

> Institute a compensation plan for

top e(ecutives&

> versee a company%s financial

accounting and reporting practices.


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The Basis for Good

Strategic Decisions

The Basis for Good

Strategic Decisions

Intuition + Analysis

Effective Strategic Decisions


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!ctual 6s Planned Strategy

Company

Experience

"no#$ho#%strengths%

#ea"nesses%

and

Competiti!eposition

&ct'al

company

strategy

(lanned Strategy

&dapti!e reactionsto challenging

circ'mstances

)eacti!e strategy


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!dvancements in the

Domain of Marketing

- Distinction bet,een sales * marketing focus on

needs * ,ants satisfaction SP marketing

research marketing mi( e(tending marketing

concepts to public sector * non-profit sectors

advertising * IM8s consumer behaviorcustomer centric marketing branding services

marketing global marketing online marketing

social media marketing ne, forms of marketing

"green@ethical marketing target marketingrelationship marketing e(periential marketing

viral marketing affinity marketing guerilla

marketing etc


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!dvancements in the Domain

of Marketing "/Ps#


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!dvancements in the Domain

of Marketing "9Ps#


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Information

&c*'isition

Cross$+'nctional

&nalysis of Information

Shared iagnosis

and Coordinated &ction

eli!ery of

S'perior C'stomer

,al'e

Becoming a Market-OrientedOrganization


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DISI?8I65 8!P!HIII5S

8apabilities are comple( bundles of

skills and accumulated kno,ledge

e(ercised through organi$ational

processes "i&e& in functional areas#

that enable firms to coordinate

activities and make use of their

assets&J

George S. Day, Journal of Marketing, October 1994, p.38.


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8apabilities

DesirableCapabilities

DesirableCapabilities

&pplicable to

M'ltiple

CompetitionSit'ations

iffic'lt to

'plicate

S'perior to the

Competition

Source4 7eorge S& Day Kournal of Marketing :ctober 1


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8ase Study on Marketing

Strategy> Winning Strategy of Vizio V in !S "ar#et

> Designed * developed the best .uality flat 8D *

plasma 6s "of 2=%-% si$e# ,ith great features

> :utsourced their 6 brands from ai,an> Priced its brands half than the lo,est brand in the

market

> Selected the best retail chains to distribute its 6s

> Bon the market share and became the market leader

in its category in ES ,ithin 2 years "during 2==9-2==


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South,est !irline%s

Distinctive 8apabilities

:rgani$ational ProcessesSouth,est uses a point-to-point route system rather than the hub-and-spoke design used bymany airlines& he airline offers services to 9 cities in 2< states ,ith an average trip about== miles& he carrier%s value proposition consists of lo, fares and limited services "nomeals#& ?onetheless major emphasis throughout the organi$ation is placed on building aloyal customer base& :perating costs are kept lo, by using only Hoeing 9+9 aircraftminimi$ing the time span from landing to departure and developing strong customer loyalty&

he company continues to gro, by e(panding its point-to-point route net,ork&Skills and !ccumulated Ano,ledge

he airline has developed impressive skills in operating its business model at very lo, costlevels& !ccumulated kno,ledge has guided management in improving the business designover time&

8oordination of !ctivities

8oordination of activities across business functions is facilitated by the point-to-pointbusiness model& he high aircraft utili$ation simplification of functions and limitedpassenger services enable the airline to manage the activities very efficiently and to provideon-time point-to-point services offered on a fre.uent basis&

!ssets

South,est%s key assets are very lo, operating costs loyal customer base and highemployee esprit de corps


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Issues of Strategic Marketing Decision-

making in M-SM5s

imitations of finance resources * technology "including I8and digiti$ation#

imitation of skills e(pertise * capabilities

imitations of formali$ation * functionali$ation "have fe,er

departments#

Plausibility of using entrepreneurial skills innovation cutting edge

technologies and free technologies cum soft,are to tap unending

opportunities under globali$ation regime to unlock their potential "* taking

full advantage of global online community#

Documents

JavedAhmed_1964_12616_1-SMD ch01