1. Marketing’s Role in the Organization (TM 2-1)
2. Definition of Marketing Strategy (TM 2-2)
3. Characteristics of Strategic Marketing (TM 2-3)
B. Marketing Strategy Formulation
1. Three Strategic Cs (TM 2-4)
2. Key Elements of Marketing Strategy Formulation (TM 2-5)
3. Strategic Marketing Decisions (TM 2-6)
4. Test of a Good Marketing Strategy (TM 2-7)
5. Future of Strategic Marketing (TM 2-8)
C. Strategic Marketing and Marketing Management
1. Major Differences Between Strategic Marketing and Marketing Management (TM 2-9)
D. Organizational Context of Strategic Marketing
1. Profess of Strategic Marketing (TM 2-10)
E. Strategic Marketing Implementation
1. Failings in Strategic Marketing (TM 2-11)
2. Addressing the Failings (TM 2-12)
170 CHAPTER 2: Strategic Marketing
IN THE ORGANIZATION
Provide customer and
competitive perspective for
corporate strategic planning
Assist in the development of
strategic perspective of the
business unit to direct its future
Formulate and implement
CHAPTER 2: Strategic Marketing 171
Marketing strategy is an endeavor by a business
unit to differentiate itself positively from its
competitors, using its relative corporate strengths
to better satisfy customer needs, in a given
172 CHAPTER 2: Strategic Marketing
• Emphasis on long-term implications.
• Corporate inputs.
• Varying roles for different products/markets.
• Organizational level.
• Relationship to finance.
CHAPTER 2: Strategic Marketing 173
3 STRATEGIC Cs
174 CHAPTER 2: Strategic Marketing
KEY ELEMENTS OF MARKETING
CHAPTER 2: Strategic Marketing 175
STRATEGIC MARKETING DECISIONS
• Where to compete—i.e., definition of the market.
• How to compete—i.e., means for competing.
• When to compete—i.e., timing of market entry.
176 CHAPTER 2: Strategic Marketing
TEST OF A GOOD
• A clear market definition.
• A good match between corporate strengths and the
needs of the market.
• Superior performance, relative to competition, in the
key success factors of the business.
CHAPTER 2: Strategic Marketing 177
FUTURE OF STRATEGIC MARKETING
Strategic marketing is increasingly becoming
important because of:
• Battle for market share.
• Deregulation in many industries.
• Packaged-goods companies entering nonmarketingoriented industries.
• Shifts in channel structure.
• Competition from overseas.
• Fragmentation of markets.
• Getting to the market quickly.
• Conceive and create new and uncontested market
• Demographic shift in American society.
178 CHAPTER 2: Strategic Marketing
MAJOR DIFFERENCES BETWEEN
STRATEGIC MARKETING AND MARKETING
Long-range; i.e., decisions
have long-term implications
Day-to-day, i.e., decisions
have relevance in a given
Inductive and intuitive
Deductive and analytical
Environment considered ever- Environment considered
changing and dynamic
constant with occasional
Ongoing to seek new
Ad hoc search for a new
Achieves synergy between
different components of the
horizontally and vertically
Pursues interests of the
Nature of job
Requires high degree of
creativity and originality
experience, and control
Deals with what business to
Deals with running a
CHAPTER 2: Strategic Marketing 179
180 CHAPTER 2: Strategic Marketing
FAILINGS IN STRATEGIC MARKETING
• Too much emphasis on “where” to compete
and not enough on “how” to compete.
• Too little focus on uniqueness and adaptability
• Inadequate emphasis on “when” to compete.
CHAPTER 2: Strategic Marketing 181
ADDRESSING THE FAILINGS
• Develop attainable goals and objectives.
• Involve key operating personnel.
• Avoid becoming engrossed in current problems that
may affect strategic planning.
• Don’t keep marketing strategy separate from the rest
of management process.
• Avoid formality in strategy formulation.
• Create climate conducive to strategic planning.
• Avoid delegating strategy development to a planner.
• Avoid intuitive and conflicting decisions.