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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#