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Leeds University Business School
Lecture 1:
Strategic Marketing and the Marketing
Strategy Making Process
Marketing Strategy: LUBS 5409M/5465M
Dr Simos Chari
Leeds University Business School
Marketing Strategy Team
Dr Simos Chari
Assistant Professor in Marketing
Module leader for: LUBS 5409M/5465M
Email: s.chari@leeds.ac.uk
Office: G.10, Maurice Keyworth (LUBS)
Office hours: Tuesdays 13:00 17:00
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Leeds University Business School
Marketing Strategy Team
Dr Matthew Robson
Professor in Marketing
Email: mjro@lubs.leeds.ac.
Office: 1.03, 18 Lyddon Terrace
Dr Magnus Hultman
Assosiate Professor in Marketing
Email: mah@lubs.leeds.ac.uk
Office: G.11, Maurice Keyworth (LUBS)
Leeds University Business School
Module Overview
Lectures (2hrs) + Seminars (1hrs)
Research-led and seminar-oriented lectures
Seminars = boardrooms
Objective of the module
Expectations
Ground rules
Exams (January) Mid term test (W5)
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Do the reading
Takesome time to participate in the competition
Be a critical thinker, prepared for the reading and make your voice heard
Attend seminars practical, fun, extremely useful
Prepare for seminars, otherwise youre almost wasting your time here
Try to always contribute in lectures and seminars to get most out of your
learning
Study well for the examon week 5as it will really be helpful to get an insight
of the final exam
Try to take part in the competition actively
Prepare for seminar discussions
What advice would you give
to next year students?
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STRATEGIC THINKER
COMPETITION
2013-2014
Are you one?
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Strategic Thinkers 2010-2013
Strategic Thinkers 2010-2013
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Learning Objectives
PART I
Conceptualise marketing strategy and strategic marketing.
Market orientation (external)
Resourced based view (internal)
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What is Strategy?
THE ART OF WAR
Origin:
Greek: stratga generalship,
equivalent to stratgs military commander - general
Chandler (1962): strategy determines the long-term
goals of an organisation, the adoption of courses of
actions and the allocation of resources necessary for
carrying out these goals.
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Levels of Strategy
Corporate Strategy
Highest levels
Entrepreneurial problem
Business Strategy
Scope
Competitive advantage
Functional Strategy
Complement the other two levels of strategy
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What is Marketing?
MAIN PREMISE OF MARKETING
The marketing concept holds that achieving
organizational goals depends on determining the needs
and wants of target markets and delivering the desired
satisfactions more effectively and efficiently than
competitors.
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Marketing Defined
LATEST AMA DEFINTION:
marketing is the activity, set of institutions, and processes
for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients,
partners, and society at large (AMA 2008).
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Strategic Marketing Mgmt
(continue)
C. C. D. V. T. P
Create
Communicate
Deliver
VALUE
TARGET MARKET PROFIT
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Michael Porters VALUE CHAIN
PROFIT MARGINS
VALUE CREATION
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STRATEGY MARKETING
STRATEGIC
MARKETING
MANAGEMENT
Exercise: Considering the premise of marketing, the
definitions of strategy and marketing, CCDVTP and the
model of value chain, try to identify the key principles of
strategic marketing management.
Varadarajan R. (2010)
Strategic Marketing Mgmt
C.C.D.V.T.P VALUE CHAIN
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Developing Marketing Strategies / Plans
Implementation:
o Shaping market offerings
o Delivering & Communicating value
o R&C - Organization Structure - Control
Capturing market insights STP
Building successful brands
Connecting with customers CRM
Strategic Marketing Mgmt:
TASKS - PRINCIPLES
Competitors
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Market Orientation (MO)
MO = PHILOSOPHY INTO PRACTICE
MO is an organization wide generation, dissemination, and
responsiveness to market intelligence (Kohli and Jaworski
1990).
MO is the organizational culture that most effectively and
efficiently creates the necessary behaviors for the creation of
superior value for buyers and thus, continuous superior
performance for the business (Narver and Slater 1990).
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MO: Components & Context
Market-led
Organisational
Culture
Customer
Orientation
Competitor
Orientation
Inter-functional
Co-ordination
Long Term
Focus
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Michael Renz (Head of Marketing):
MO is crucial to the success of the
company along with the classic
methods of marketing research we rely
on complex analyses of buying
behavior and product clinics
MO: continue
Exercise: What about Apple? Is Apple a MO
organization?
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RBV: Resource Based View
Deployment of available resources and capabilities in
organizational strategy to achieve competitive
advantage and superior performance.
Source of superior performance: possession and
deployment of distinctive, hard to imitate, rare or
protected resources.
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RBV & Model
Competitive Advantage
Resources
Capabilities
Distinctive / Core
Competencies
Competitive
Advantage
Value
Creation
Superior
Performance
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Marketing Strategy Approaches
(ProPUSH, CusLED or FIT?)
Market Needs (MO)
Organisational Resources & Capabilities (RBV)
Resourced-based
marketing
Product Push
Marketing
Customer-led
Marketing
STRATEGIC FIT:
Market
Requirements
&
Organizational
Capabilities
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Strategic Fit
Misfit = Failure
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Learning Objectives
PART II
Nature and processes of strategic marketing planning
MSMP: marketing strategy making process
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Marketing Planning
Define the mission of the organization:
What business are we in?
What business do we want to be in?
Who is our major competitor?
Mission Statement:
A statement of the organizations purpose and what it
wants to accomplish in the wider environment
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Marketing Strategy Making Process
Business
Purpose
CORE
STRATEGY
COMPETITIVE
POSITIONING
IMPLEMENTATION
Marketing Mix
Company
Analysis
Competitive
Advantage
Organization
Environment
Analysis
Market
Target
Control
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SWOT Analysis
Internal External
Strengths
What are we
good at relative
to competitors?
Opportunities
What changes are
creating new
options for us?
Weaknesses
What are we bad
at relative to
competitors?
Threats
What emerging
dangers must we
avoid or counter?
Good Points
Danger Points
COMPANY
ANALYSIS
INDUSTRY/
MARKET
ANALYSIS
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SWOT Analysis (continue)
Opportunities Threats
Strengths/
Opportunities
Exploit existing
strengths in areas
of opportunities
Strengths/ Threats
Use existing
strengths to counter
threats
Weaknesses/
Opportunities
Build new strengths
to take advantage of
opportunities
Weaknesses/
Threats
Build new strengths
to counter threats
Strengths
Weaknesses
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Business
Purpose
CORE
STRATEGY
COMPETITIVE
POSITIONING
IMPLEMENTATION
Marketing Mix
Company
Analysis
Competitive
Advantage
Organization
Environment
Analysis
Market
Target
Control
Marketing Strategy Making Process
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Competitive Positioning
Market targets
Size
Rate of growth
Competitive intensity
Entry and exit barriers etc.
Differential advantage:
Cost leadership (e.g., budget airlines)
Differentiation (e.g., Apple)
Focus (e.g., niche)
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Business
Purpose
CORE
STRATEGY
COMPETITIVE
POSITIONING
IMPLEMENTATION
Marketing Mix
Company
Analysis
Competitive
Advantage
Organization
Environment
Analysis
Market
Target
Control
Marketing Strategy Making Process
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Is Strategic Planning Obsolete?
Deliberate Strategies
Unrealised Strategies
Emergent Strategies
REALISED
STRATEGY
INTENDED
STRATEGY
Mintzberg &Waters (1985)
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Emergent Marketing Strategies
Chari et al. (2012)
FEEDBACK
SYSTEMS
MARKET UNCERTAINTY
EMERGENT
MARKETING
STRATEGY
Product
Price
Distribution
Promotion
MARKET
PERFORMANCE
FINANCIAL
PERFORMANCE
MARKET
COMPLEXITY
MARKET
DYNAMISM
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Strategic Thinker Competition
marketing is responsible for crafting the overall
strategic direction of an organization
What do you
think?
does marketing creates or satisfies needs?
market orientation gets the RIGHT product, product
orientation gets the product RIGHT
Leeds University Business School
Reading - References
Kotler and Keller (2012) - Chapters1 and 2.
Chandler, A.D. Jr. (1962), Strategy and Structure. Cambridge, MA: MIT Press
Chari, S., Katsikeas, C.S., Balabanis, G., and Robson, M.J. (2012). Emergent Marketing
Strategies and Performance: The Effects of Market Uncertainty and Strategic Feedback
Systems, British Journal of Management, (forthcoming)
Kohli, A.K.; and Jaworski, B.J. (1990), Market Orientation: The Construct, Research
Propositions and Managerial Implications, Journal of Marketing, 54 (2), 1-18.
Mintzberg, H.; Waters, J.A. (1985), Of Strategies, Deliberate and Emergent, Strategic
Management Journal, 6 (3) 257-72.
Piercy and Morgan (1994), The Marketing Planning Process: Behavioral Problems
Compared to Analytical Techniques in Explaining Marketing Plan Credibility Journal of
Business Research, 3, pp.167-178.
Varadarajan, R.; (2010), Strategic Marketing and Marketing Strategy: Domain,
Definition, Fundamental Issues and Fundamental Premises, Journal of the Academy of
Marketing Science, 38 (2), 119-40.