Understanding

Strategic Marketing
Role
in an Organization and
Process

Strategy - meaning
A method or plan to bring about a
desired achievement of goals or
objectives which specifies
What
Where
How

Components of Strategy
Scope

Breadth of strategic domain

Industry type
Product lines
Market segments

Goals and objectives

Resource deployments

Identification of a sustainable competitive

advantage

How the organization will complete within domain

How it will develop a differential advantage

Synergy

Hierarchy of strategies
Corporate strategy
Business Strategy
Functional Strategy

Corpora
te
strateg
y

Busine
ss
strate
gy

Functio
nal
Strateg
y

Strategy Components
Corporate
Strategy
Corporate
domain
-Which business
should we be in
Corporate
development
strategy
-Conglomerate
diversification
-Vertical
integration
-Acquisition &

Business
Strategy
Business
domain
-Which product
markets should
we be in within
this business or
industry
Business
development
strategy
-Concentric
diversification

Marketing
Strategy
- Target market
definition
-Product line
depth & breadth
-Branding
policies
-Product market
development
plan
-Line extensions
and product
elimination plans

Goals and objectives

Corporate
Strategy

Business
Strategy

Marketing
Strategy

Overall corporate
objectives
aggregated across
businesses
-Revenue growth
-Profitability
-ROI
-EPS
-Contributions to
other stake holders

* Constrained by
corporate goals
* Objectives
aggregated across
product market
entries in SBU
-Sales growth
-New product or
market growth
-Profitability/ROI
-Cash flow
-Strengthening
bases of
competitive

* Constrained by
corporate &
business goals
* Objectives for a
specific product
market entry
-Sales
-Market share
-Contribution
margin
-Customer
satisfaction

Allocation of resources
Corporate
Strategy
- Allocation
among
businesses in
corporate
portfolio
- Allocation
across functions
shared by
multiple
businesses
(corporate R&D,
MIS)

Business
Strategy
Allocation
among
product-market
entries in the
business unit
- Allocation
across
functional
departments
within the
business unit

Marketing
Strategy
- Allocation
across
components of
the marketing
plan (elements of
marketing mix)

Role of marketing in
formulating and
implementing strategies

Strategy Planning Activities

Determination of SBUs objective

Environment assessment
Competitive assessment
Situation assessment (input to portfolio analysis,
industry & market attractiveness, firm and product
position)
Objectives and goals

Key programme elements

Product-market development
Product quality
Distribution
Human resources
Business Development
Manufacturing facilities

Marketing Strategy Formulation

Process
Corporate objectives &
External
Environm
ent

strategy
Business level objectives &
strategy
Market opportunity analysis
Environmental & competitor analysis
Marketing information
Industry dynamics
Customer analysis, segmentation &
targeting decisions
Positioning decisions
Formulating strategies for specific
market situations
Strategies for new market entries
Strategies for growth markets
Strategies for mature & declining markets
Implementation & control
Implementing business & marketing
strategies
Controlling marketing strategies and

Influence of different stages of

development across industries &
global markets
Strategic inertia
Recent developments affecting
strategic role of marketing
Globalization
Increased importance of service
Information technology
Relationships across functions and firms