1. Strategic Role of Marketing
Session 3
Jan 21, 2010 Salma Rahman

2. Role of Marketing
Strategic
marketing
Marketing
management
Marketing
philosophy
execution
Analysis &
information
Corporate,
Business &
marketing
strategy
decisions
Develop
product
Marketing
plans
Execute
product
Marketing
plans

3. The Primary Purpose of Marketing
To create long-term and mutually
beneficial exchange relationships
between an entity and the publics
(individuals and organizations)
with which it interacts.

4. Expanding Responsibilities of Marketing
Managers
Expanded responsibilities include:
Charting the direction of the
organization
Contributing to decisions that will create and
sustain a competitive advantage and affect long-
term organizational performance
They no longer function solely to direct
day-to-day operations. They must
make strategic decisions as well.

5. “The Marketing Manager Is the most significant
Functional contributor to the strategic planning
process, with leadership roles in defining the
business mission analysis of the environmental,
competitive, and business situations; developing
objectives, goals, and strategies; and defining
product, market distribution, and quality plans
to implement the business’s strategies. This
involvement extends to the development of
programs and operational plans that are fully
linked with strategic plan.”

6. Corporate
Planning
Strategic Planning
Operational Planning
Marketing Planning
Short Range or
Tactical Planning
Long Range Planning
Marketing
Strategy
Adapted from Greenley (1989)

7. Processes in Strategic Marketing
Management
1. Defining the organization’s
business, mission, and goals
2. Identifying and framing
organizational growth
opportunities
3. Formulating product-market
strategies
4. Budgeting marketing, financial,
and production resources
5. Developing reformulation and
recovery strategies

8. Tasks of Corporate Strategic
Management
Strategic vision and mission
Establishing SBUs
Setting Objectives
Resource allocation

9. Business Definition
By defining a business from a customer or market
perspective ………… an organization is appropriately
viewed as:
a customer - satisfying endeavor
a product-producing or service delivery
enterprise.
not
Products and services are transient, as is often the
technologies or means used to produce and deliver them.
Basic customer needs are more enduring.

10. An organization should define a business
by: (Product Market Scope)
The type of customers it wishes to serve
The particular needs of those customer
groups it wishes to satisfy
The means or technology by which the
organization will satisfy the customer needs
“What business are we in?”

11. Tasks of Corporate Strategic
Management
Mission
Industry scope
Products and application scope
Competence scope
Market scope
Vertical scope
Geographical scope

12. Most statements describe:
the organization’s purpose
customers, products/services, markets,
philosophy, and technology
Business Mission
Underscores the scope of an organization’s operations
apparent in its business definition
Reflects management’s vision of what the organization
seeks to do

13. Generally Stated Mission Statement
Saturn Corporation, a division of general Motors “Markets vehicles
developed and manufactured in United States that are world leaders
in quality, cost, and customer satisfaction through the integration of
people, technology, and business systems and to transfer knowledge,
technology, and experience through out General Motors.”
Specifically Stated Mission Statement
“ Henderson Electronic Corporation aspires to serve the discriminating
purchasers of home entertainment products who approach their
purchase in a deliberate manner with heavy consideration of long
term benefits. We will emphasize home entertainment products with
superior performance, style, reliability, and value that require
representative display, professional selling, trained service, and brand
acceptance – retailed through reputable electronic specialists to those
consumers whom the company can most effectively service.”

14. Benefits of Mission Statements
1. Crystallizes management’s vision of the organization’s
long-term direction and character
2. Provides guidance in identifying, pursuing, and
evaluating market and product opportunities
3. Inspires and challenges employees to do those things
that are valued by the organization and its customers
4. Provides direction for setting business goals or
objectives

15. Marketing Myopia
 Taken up by Theodore Levitt
 Is defined as: “Management’s failure to recognize the
scope of its business”.
• Should focus on customer rather than the product.
• Organizational goals should be oriented toward
customer needs.
• Example, Revlon – “In our factory we make
perfume; in our advertising we sell hope”.

16. Marketing Myopia - Examples
Company Myopic Description Marketing -oriented
description
Cingular “We are a telephone
company.”
“We are a communications
company.”
JetBlue Airways “ We are in the airline
business.”
“We are in the transportation
business.”
Morgan Stanley “We are in the stock
brokerage business.”
“We are in the financial
services business.”
Sony “ We are in the video game
business.”
“We are in the entertainment
business.”

17. From transaction-based Marketing
to Relationship Marketing
 One-to-One Marketing
 Developing Partnerships and Strategic Alliances