Section One

Task 1

a. Using examples as appropriate, explain both the relationship between and the differences
between strategic marketing and tactical marketing. [AC1.1]
marketing is a human activity directed at satisfying needs and wants through exchange
processes-kotler
Role of marketing:
Strategies were evidently well defined, decisive and aggressive. Not losing any sight of new
opportunities, they time their chances in the market. Role of marketing deals with two types
namely marketing management and strategy marketing. Strategy marketing is concerned with
extensive strategic decisions made at corporate and business levels, whereas marketing
management deals with specific strategy decisions for products and activities needed for day to
day life to develop the strategy efficiently.
Marketing plays a chief part in strategic planning for most organizations. In spite of the fact
that some marketing positions are positioned at the corporate level, the majority are
functioned in business level. Following four are considered to be the most important factors of
marketing.
Marketing mix
Value chain
Segmentation
Positioning
Differences and links between strategy and tactical marketing:

Strategy marketing Tactical marketing
Future (long term)
Preparing and planning
A journey
Broad perspective
A purpose
Anticipation ( proactive)
Risk

Now (according to the situation )
Doing activities
A trip
Narrow perspective
A task
Reaction
Caution

Strategy is the long term and mission of the organization but whereas the tactical marketing is a
situational oriented marketing. The major link between strategy and tactical marketing are,
tactical marketing gives a little push for the long term strategy to standardize the product or to
compete with global competitors. For an example during the time of akshayathridhi people wont
prefer to buy gold or any jewels, understanding the situation marketers advertise those by giving
an offer up to certain extent moreover they advertise with the help of astrologers saying that if
you buy a jewel in this akshayathridi it will get double in forthcoming year . This was the tactics
they used to attract customers and to run the business smoothly even in the crisis phase. Tactics
is the gentle push for the long term strategy marketing.
b. Explain the main activities involved in strategic marketing. In answering this question you
may want to give examples from one or more organisations with which you are familiar.
[AC1.2]
Marketing planning processes
Strategic marketing analysis:
The terms used to define the processes of setting organizational goals and accomplishing them
have significantly in recent years, with the unavoidable difference in terms used in older texts.
Strategy launches the long term objective whereas planning is a short term action program.
Mission policy should mention clear cut objective about the organization. It should mention
where we are now and to where we are going to be at this financial year. For that collective
information should be carried out. The tool used to measure is SWOT analysis. The SWOT
analysis measures the strength, weakness, opportunity and threats. In that strength and
weaknesses are internal. Opportunity and threats are external factors that deals with
competitors, market range , sustainability etc,.
The long term objective also determines financial, customer, operations and peoples required.
For an effective organization the horizon was set at high level view.
There are few variables influence the decision taken on marketing planning. They are
Product strategy and planning
Market strategy and planning
Pricing strategy and planning
Promotional strategy and planning
Physical distribution safety and planning
Short term goals:
For achieving long term objective it should cut halves/pieces into short term goals.
These short term goals must be SMART
S -specific
M measurable
A actionable/achievable
R responsible/realistic
T time bound
Perceptual mapping:
Perceptual mapping is a commonly used tool that provides a technique of explaining the
complex relationship between competitors in market place and the measures used by
customers when they are making purchase decisions and sanctions.
Perceptual mapping may be used for market segmentation, idea development and assessment.
c. Define corporate strategy and evaluate the contribution which strategic marketing can
make to corporate strategy. [AC1.3]

The overall scope and direction of a corporation and the way in which its various operations
work together to achieve particular goals
Corporate strategy focuses mainly on profitability and it includes creating an organizational
structure, reducing debt and to improve the balance sheet of the company. They focus on
external factor.
Corporate strategy and strategy marketing often coincide and sometimes overlap from one
another. Major focus of marketing includes planning activities like developing and pricing a
product. But corporate strategy doesnt deal with internal development of the organization. Its
focuses more on profitability and getting market shares.

Task 2
a. Present and assess a range of models for use in strategic marketing planning [AC2.1]


MODELS:
The primary goals, or objectives, of the organization are the starting point of promotion
planning. These goals act as signposts from which marketing strategies are established. Goals
will differ amongst the organizations, but usually focuses on market share, profitability, sales
and investor value. In most cases objectives are measurable.
Types of models:
Porters five force model
PEST or STEEPLE analysis
BCG matrix
The Ansoff matrix
BCG matrix: BOSTON CONSULTING GROUP
The BCG matrix was created by the Harvard business school, is a easy model that studies the
joint criteria of market growth and market share.






Market share
High low


High

Market growth
rate

low


star

Question mark


Cash cow


dog



Stars are strategic business units (SBU) with a market share of a high growth industry.
They have right earning potential. It is likely that the product is pricey to maintain
initially in its life cycle. This may mean that an aggressive marketing effort is required,
with the associated high advertising cost.
CASH COWS have a big market share from a slow, or zero, growth market. Generally
they will have loyal customers, with the consequence that product development costs
are quite low. They are profitable and trust worthy products, which will let a company
to develop a strong portfolio
STARS often move into this place when the overall market has become established
QUESTION MARKS arise when the potential for market growth is decent, but they have
a relatively low market share. The market is likely to be very competitive with SBU
taking only limited impact. Considerable amounts of cash may need to be spent on
advertising or research. These are also known as PROBLEM CHILD
DOGS are defined by low market share and low growth , these are SBUs facing possible
liquidation. Usually they will continue to happen because of nostalgic reasons on the
part of administration. They are likely to be one to be liquidated in the event of financial
problems. However, they may survive as part of a marketing product mix



THE ANSOFF MATRIX:
This well known model is a classic in strategy building. Its basic purpose is to analyze the
companys approaches to its products and to its markets to guarantee that an effective
marketing plan is being pursued and possibly to reveal opportunities.










Current products new products

Current
Markets


New markets





MARKET PENETRATION:
Current products in current markets the plan here will be to rise the share of the market which
the product or service at present enjoys. The risk factor is relatively low for the business
because it knows the markets and the products.

PRODUCT DEVELOPMENT:
New products in current markets this could mean absolutely new products or iterations of
other products to make them more appropriate to the known market. The advantage to the
business is that if the new products are successful, the cost of marketing a wider range of
products to the market is less in relation to the larger profits generated. The risk involved here
is that new products can have a high failure percentage.


MARKET DEVELOPMENT:

Market penetration



Product development

Market development




Diversification
Current products to new markets here the approach is to expand the markets beyond those
in which current products are sold. The major advantage is longer product runs, hence probably
lesser products. The main determinant of risk here is the cost of market entry. It is also likely
that the business knows about the behavior in the new market and perhaps less about the
competitor behavior in that market.

DIVERSIFICATION:
New products to new markets this is the maximum risk strategy of everything and is usually
only pursued after a great amount of market research. From time to time it becomes the
reason behind an acquisition where expertise is being bought to lessen the strategic risk.

b. Explain what is meant by strategic positioning. With reference to the particular strategic
positions discuss what marketing tactics might be used to help achieve that strategic
position. [AC2.2]

Strategic positioning begins with a detailed declaration of what the organization wants its
customers to think and feel about its customers to think and feel about its products or services.
The customers do essential to see the plan, but everybody in the organization involved should
have a sound understanding of the strategys purpose and goals.

Strategic positioning must consider these three golden rule of positioning they are PROJECTION,
PREDICTION & FORECAST
Projection is the outcome of simple techniques to recognize the market trends and season.
Prediction is the effect of using more powerful analytical techniques to recognize factors linked
with past sales, and developing estimates.
Forecast is the outcome of merging the statistical projections or predictions with market
information for the best outcome result
There are few marketing tactics that are used to achieve the strategic positioning of the
product.

PRODUCT TACTICS:
The key product tactics are selection, ranging, quality and branding
In selection process, the vital decision is to select the correct product or service for the
situation. This will help us to gain more profit.
Range: broadening the product portfolio is frequently seen as a successful parameter so as long
as it doesnt stretch the organizational resources. If the product was not in the particular range
then there is a danger of shifting of customers to another dealer
Quality: nowadays quality remains the substantial tool and customers heavily relying on the
quality of the product. Striving for the highest probable quality will take pressure off the
marketing strategy and attract more customers in the long term.
Branding: it is an essential tool to attract customers. Branding aims include distributing the
message evidently, motivating buyers and loyalty

PRICE TACTICS:
There are number of diverse tactics that can be adopted that involve price.
Penetration pricing: the price ste for products is set pleasingly low in order to gain market
share. Once achieved, the price will return to predictable level.
Psychological pricing: prices are set to appeal to customers, usually just under a significant cost
level example $35.99, 999 rupees.
Promotional pricing: promoting a product through the use of buy one get one free type
proposals

PROMOTION TACTICS:
Typical promotional tactics include the use of
Marketing: print advertisement, direct mail, outdoor advertisement, etc,
Promotional activities: sponsorship events, involvement in projects, free coupons, gifts etc.
Media relations campaign: planned to target members of the media for the advantage of the
organization, public service statements and editorial in magazines.

PLACE TACTICS:
This comprises of distribution networks, transport management, stock and handling and terms
of delivery.

c. Explain what is meant by relationship marketing. Using examples as appropriate assess
how effective relationship marketing can help achieve a given marketing strategy. (in
answering last part of this question you should identify one or more strategic marketing
objectives and evaluate how you would aspects of relationship marketing to help achieve
your chosen objectives(s).


Relationship marketing :
The idea of relationship marketing involves the use of lasting relationships with customers in
order to retain them. Businesses needed to fulfill the customers expectations for satisfaction so
that they are able to develop a strong relationship with their customers.
Transactional marketing usually involved a focus on all of the promotional efforts aimed at
drawing the customer for single sales. However, customers who remain loyal normally spend in
long term, therefore it makes total sense to keep existing customers satisfied.
Examples of how effective relationship marketing is achieved:
In common the marketers uses suggestion box, focus groups, general comments, personal
interviews, customer complaint handling and online surveys are used as a tool.
Suggestion box are used to achieve good relationship with the customers. It is also like a
written feedback form where it includes how the quality of the product, service, behavior of the
sales person etc. most of the organization following this suggestion box idea for their
betterment of having good relationship with the customers.
For an example: if we buy any product from the well esteemed sports shop they will ask us to
fulfill the feedback which includes name, DOB, E-mail, contact no, personal feedback. It may
sounds little but they will send free birthday vouchers, offers etc. it will encourage the
customer to stay loyal for the respective brand and to create some good relationship. This is a
two way win-win strategy. Marketers believe in word by mouth as a verdict for the business.
Section two:
For this particular section of the assignment you need to select a market or industry and also
if ideally an organization within that industry/market. You need to undertake substantial
research on that industry or market and also if possible upon the organization within it. This
research needs to be based upon real statistical, economic, market and/or organizational
data. This data should be significant.

Task 1

a. Select a specific industry or market and, based upon the research, discuss growth
opportunities in that market or industry. You should demonstrate how the growth
opportunities you select can be justified in terms of the research you have carried out
(AC3.1)


For this particular task we have selected automobile sector in specific Volvo group of
companies. Volvos parental company was Geely was founded in 1927 headquarters at
Gothenburg, Sweden. It has served more than 120 countries worldwide.
Mission of Volvo is to create the safest, most exciting car experience for modern families
Vision of Volvo to be the Worlds most desired and successful premium brand

A VIEW ON VOLVO CARS SALES

By Market 2009 By Model 2010
Country Sales 2010 (2009) Model Prices from Sales
United States 53,952 (61,426) XC60 30,280 80,723
Sweden 52,894 (41,826) V50 15,000 56,098
United Kingdom 37,940 (34,371) V70 24,995 48,877
China 30,522 (22,405) XC90 33,000 37,597
Germany 25,207 (25,221) C30 17,545 35,981
Belgium 17,969 (13,223) S40 15,700 31,688
Italy 17,509 (15,896) XC70 32,390 22,068
Netherlands 14,308 (14,035) S80 29,270 19,162
France 12,211 (11,596) S60 19,995 14,786
Russia 10,650 (6,894) S80L 29,270 11,778
Others:

100,363 (87,915) V40 19,995 Unknown
with the above mentioned details it seeks that more profit awaits for Volvo in the business year
2014 especially in china

b. Based upon your research, establish a set of strategic marketing objectives for an
organizations future activity concerning that market. Ideally this should be a real world
organization which you can also obtain at least some research data on, which would be
useful for future questions (ac3.3)

Strategy marketing objective:
In order to attain any strategic marketing goals, the individual marketing activity strategies for
products or services should be based upon the marketing mix. This is categorized of the 7ps
product, price, place, promotion, people, process and physical evidence. In particular we will
discuss the promotional mix strategy opted by volvo
Volvo has done a promotional mix to empower their product. They have followed many ways to
attract the customer, they are
Mobile apps: Volvo has their own patent mobile apps and are divided into product apps,
owners app, campaign app
Videos: they have commercials on TV and also found in youtube
Billboards: are being used as a way of advertising almost in every country where they are
selling products
Volvo spirit magazine: it is a Volvo construction equipments company magazine, full of Volvo
news and updates. Its intended among Volvo enthuse
Volvo driver magazine: its intended for Volvo members, which include information and club
meetings and events, technical information and advice, all the latest Volvo news etc. its
delivered once in an every year and only for Volvo car holders and members
Volvo is also advertising in variety of different magazines, especially in the automobile
specialized magazines

c. Based upon appropriate theory and models, recommend a series of marketing strategy
options for your organization to seek to achieve the objectives identified in b. above
(ac3.2)

The Volvo Car Corporation is one of the car industrys strong brands. The company is
committed to :

Support Business Areas and maximize Customer satisfaction through superior product
performance and excellent service
Offering customers the best value in selected segments
Sound portfolio structure/renewing of the groups product portfolio
Supporting safety of the community and the protection of environment
Stability in earnings over a business cycle
Developing the talents of its people through employee empowerment, working with
energy and respect for the individual
Profitability in all business segments

ANSOFF MATRIX
DIVERSIFICATION
Opportunity in Asia (growing economy)
Increase in environmental concern (new products)
Social changes especially in Asia, less kids (new products)
Flat growth/ recession in Western countries (Market dev)


PRODUCT DEVELOPMENT
Environmental concern
Social changes
Rising prices of petrol (new energy needed)
Tax inventive for ecological car purchase
Promote safety through road car accident concern


Task 2

a. Identify key changes or trends in your selected industry/market in addition to the
growth opportunities identified in 1 a above and assess how far they might affect the
marketing strategy you developed in task 1b and c above. [AC4.1]


Political
Growing environmental concerns are forcing governments around the world to
introduce harsher regulations for the automotive industry. These include strict
regulations on carbon emissions, increased taxes for cars with higher carbon dioxide
emissions, rise in insurance prices and new safety regulations. Volvo's main markets (US
and Europe) are affected by the above the strongest.
Government foreign policies are important to the industry. There are extreme tax
policies adopted by developing countries for local automotive industry protection.
Low - emission cars benefit from tax incentives, such as free road tax, lower insurance
prices, free parking and so on.
BRIC economies are gaining substantial power against of those of the Western World.

Economic
2008 economic recession has hit the automotive industry immensely. Many companies
field bankruptcy and many auto brands have disappeared.
Fuel prices are on the rise.
Commodity prices are on the rise.
China is on the rise to become world's largest economy. Other BRIC economies are also
experiencing high growth rates.
As the recession is over, we can expect world-wide economic recovery. However the
uncertainty remains high.
Flat growth rates in developed markets, but good prospects in emerging markets such
as Asia.

Socio - cultural
Declining birth rates are seen within Europe and USA.
Smaller families and childless couples are becoming more and more common.
"Many cars on the road today are used by singe occupants, commuting to work" ('Volvo
Case Study, n.d.)
People are becoming more conscious of their environmental impact and they are
becoming more eco- friendly.
Technological
More eco friendly technologies are introduced at an increasing rate.
Shared technologies can provide substantial benefits.
Focus is placed on improving energy efficiency and health- related technologies.
Availability of new materials and recycled materials for production can provide many
possibilities.
Self- driving vehicles are on the way as such technologies are being developed by major
corporations.


b. Based upon an internal analysis and/or your own perceptions identify key strengths and
weaknesses in your organization and assess how far they might affect the marketing strategy
you developed in task 1 above. [AC4.1]

as far as perception and the study of Volvo projects few strengths and weaknesses. They are

STRENGTH:
Established brand trust
Good heritage
High safety standards
Highly involved in research
High quality customization
Interactive brand
Excellent service

Weakness:
Identity crisis
High price
Economy state
Strict and definite position
Small share

C. Propose some strategic marketing responses to the key emerging themes and issues you have
identified in sections a. and b. above. [AC4.3]
Industry Challenges: Adaptation Strategy

In todays economy, the car industry faces some challenges and difficulties that will need to be
overcome by Volvo if the company wants to survive in the long run.
Use the impact of Globalization at our advantage (negative and positive)
Increasing regulation on (environmental taxes and government initiative)
Growing environmental issue (Offering alternative to limit negative impact on the
environment)
Rising fuel prices (Offering other energy alternatives. Ex: electricity)
Rising commodity prices (Offering and using cheaper alternatives)
Increasing accident rate (Marketing strength to shock people and use it as a tool of
persuasion)

References:

Reference for strategy marketing:
Text books
Kotler P and Armstrong G Principles of Marketing, 13th Edition (Prentice Hall,
2008) ISBN 0136079415
Kotler P and Keller K L A Framework for Marketing Management (Pearson
Education, 2008) ISBN 0137131844
Websites
www.businessballs.com
http://www.slideshare.net






















MODULE 4: STRATEGIC MARKETING MANAGEMENT
SUBMITTED BY: VANCHINATHAN. J
DATE : 28/05/2014