marketing

1. STRATEGIC MARKETING By
Maxwell Ranasinghe

2. METHODOLOGY
Short lectures
Case studies
Strategic game
Discussion and sharing experience
Classroom freedom
Anyone can come and go at anytime ( no excuses needed)
Ringing or vibration of mobile phones distracts ( girls- phones in handbag – boys- phone
in pockets)
Respect each other in discussions and making comments
Have Fun
Crack a joke, Sing a song
Organise refreshments to have them at the break

3. IMPORTANCE OF MARKETING
Successfully competing in the ever changing business environment
requires market driven strategies that respond to customers needs
and wants
Any organization to survive in the market place has to understand
buyers needs and wants, effectively combines and directs the skills
and resources of entire organization to high level of satisfaction to its
customers
Rather than a specialized function within the organization, the
marketing is the way the company does business
It includes all of the various actions of the organization that are
aimed at achieving customer satisfaction ( R&D, technology,
innovation, production, finance, administration, HR)

4. WHAT IS STRATEGIC
This is an over used word in management and business circles
There is lot of talk about strategic stuff.
Everyone talks about strategy. Every subject has a prefix … strategy
now
Strategy is a word borrowed from military
( It has something to do with winning plan of a General in the army in
the war)
Strategy in business means “ making major decisions affecting the
long term direction of the business” ( as against tactical which is
short term)
Strategy involves Analysis, formulation and implementation

5. STRATEGY IN PRACTICE
Business organizations need to anticipate and adapt to change in the
external environment
Business organisations to be competitive now and in future.
Therefore, they need to develop a sustainable competitive
advantage/s
Business oragnisations need to integrate different functions of the
business achieve a common goal
Business organizations should maintain a consistency in approach in
strategy ( tactical activities may change to respond to the market but
strategic direction should be firm)

6. NATURE AND SCOPE OF STRATEGY
A strategy is a plan that integrates an
organization’s major goals, policies, decisions
and sequences of action into a cohesive whole.
Strategy is concerned with the process of
analyzing the environment and designing the fit
between the organization, its resources and
objectives and the environment.

7. Strategy can apply at all levels in an organization and pertain to any
of the functional areas of management
Thus there may be production, financial, marketing, personnel and
corporate strategies, just to name a few
If we look specifically at marketing, it addresses three elements :
customers, competitors and internal corporate issues in achieving
superior competitive position within a given market.

8. HISTORICAL EVOLUTION OF
STRATEGIC MANAGEMENT
Over a period of some thirty years, we have seen the concept of
strategy evolve. Aaker (1995) provides a historical perspective
showing how this evolution has progressed over the years as:
Budgeting.
Early strategic activity was concerned with budgetary and control
mechanisms. Structured methods of allocating, monitoring and
investigating variances from budget provided a means of managing
complex processes. The process was often based on past
trends and assumed incremental development

9. Long-range planning
Here greater emphasis was placed on forecasting.
Planning systems and processes tended to extrapolate current trends
(with varying degrees of sophistication) and predict factors such as
sales, profits and cost.
Management could use such forecasts as a basis for decision
making.

10. STRATEGIC PLANNING
The 1970s and 1980s were the era of strategic planning, with emphasis placed
on:
 specifying the overall direction, and
 centralized control of planning activities.
While still based around forecasting and extrapolation
of past trends, far greater attention was paid to
understanding the business environment.

11. STRATEGIC MANAGEMENT.
We are currently in the age of strategic management.
Strategic management concerns both the formulation of strategy and
how such strategy is put into practice.
While still undertaking analysis and forecasting, far greater
prominence is placed on implementation.
The concern is with managing change and transforming the
organization within an increasingly turbulent business environment

12. PRINCIPAL AREAS OF STRATEGIC
DECISIONS
Strategic decisions are concerned with
seven principal areas
1. They are concerned with the scope of an organization’s activities,
and hence with the definition of an organization’s boundaries.
2. They relate to the matching of the organization’s activities with
the opportunities of its substantive environment. Since the
environment is continually changing, it is necessary for this to
be accommodated via adaptive decision-making that
anticipates outcomes – as in playing a game of chess.

13. 3. They require the matching of an organization’s activities with
its resources. In order to take advantage of strategic
opportunities it will be necessary to have funds, capacity,
personnel, etc., available when required
4. They have major resource implications for organizations –
such as acquiring additional capacity, disposing of capacity, or
reallocating resources in a fundamental way.

14. 5. They are influenced by the values and expectations of those who
determine the organization’s strategy.
6. They will affect the organization’s long-term direction.
7. They are complex in nature, since they tend to be
non-routine and involve a large number of variables.
As a result, their implications will typically extend throughout the
organization.

15. CHANGE – SHAPING STRATEGY
Change is an accepted consequence of modern life. Indeed,
the phrase ‘change is the only certainty’ has become
something of a business mantra.
All organizations are subject to increasing levels of change.
We can view change in terms of cyclical change and
evolutionary change.

16. Cyclical change involves variation that is repetitive and
often predictable (e.g. seasonal variation in demand or
fluctuation in economic circumstances).
Evolutionary change involves a more fundamental shift. It
may mean sudden innovation or a gradual ‘creeping’
process.
Either way, the result can have drastic consequences for strategic
development.

17. Given that strategic management is concerned with moving the
organization to some future desired state, which has been defined in
terms of a corporate vision and corporate-wide issues, it is important
to see the concept of change’ as an integral part of strategy.
We can examine this in terms of the following questions:
What drives change?
How does change impact on our markets/business environment?
What is the result of change on the organization’s strategy?
Lets see how element of buyer behavior has changed as an example
of change in the environment in the slide 19 to 21

18. CHANGE AS TO BUYER BEHAVIOR

22. CHANGES ARE CHALLENGING
Time to respond to change, limitations in systems, resistance to
change, resource constraints, pressure to be socially responsible,
increasing globalization and speed of change, difficulty in adopting to
change

23. PHASES OF STRATEGIC
MARKETINGStrategic marketing has three distinct phases:
1. Strategic Analysis
To move forward we must first answer the question:
where are we? This stage entails a detailed examination of the business
environment, customers and an internal review of the organization itself.
Equally, it is important to develop some view regarding
future trends. This is achieved via forecasting and defining assumptions
about the future market trends.

24. 2. Formulating Strategy
Having analyzed our situation, then determine a way forward.
Formulation involves defining strategic intention
Managers need to formulate a marketing strategy that generates
competitive advantage and positions the organization’s products
effectively
To be successful, this must be based on core competencies
During this stage, product development and innovation are strategic
activities, offering the potential to enhance competitive position and
further develop products and brands.

25. Implementation
Importance to be given to implementing the strategy
Marketing managers will undertake programs and actions that
deliver strategic objectives
Such actions will often focus on individual elements of the marketing
mix.
Additionally, a process of monitoring and control needs to be put in
place
This ensures compliance and aids decision making