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Strategic marketing summary all lctures
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Strategic Marketing summaryLecture 1: The Primer
OPEN BOOK, PRINT THIS + ARTICLES ETC, READ THE CASE UP
FRONT
In firms mostly more select and then build.
What is Strategic Marketing & How is it different from Marketing Strategy?
Strategic marketing is a domain about understanding
behavior in market place. What firms do and interact
with ecosystem (customers, suppliers, partners,
investors etc). ecosystem that lies on firm operating in
market place.
Understand how the interactions and firm behaviors
help in creating, communicating and delivering value.
Value for business as well, not only customers. Who
benefits? stakeholders. Before, it was more customer centered, now realize that we also need to take
bigger perspective. More in terms of societal wellbeing.
Marketing association marketing definition: more than customer.
Amazon: we place orders. Customers we are. Amazon isn’t paid from us, they are paid indirectly. In
marketplace other sellers receiving money from us and takes cut. Rely on sellers more with
associations/agreements. We aren’t necessarily the customers, but they also cant ignore us. We are
important, but same time money from the sellers. And advertisers. Ecosystem gone beyond direct
customer in firm interactions and more broad now.
Also like a mall: owner promotes the mall, but they earn via the seller, rental agreement for instance.
Also commission based, not only direct from the customer.
Ecosystem orchestrators, the central one like Amazon.
‘’General management responsibilities associated with the boundary spanning role of the marketing
function in organizations.’’ Means that its not enough that marketing operates on its own, needs to
talk to other departments. Also to external stakeholders like partners, collaborators/customers.
understand the customer needs/pain points, inform R&D team about this for example so the product
improves. Boundary spanning, beyond the boundary its within. More a utopian wishful thinking,
happens less frequent than we want. Products fail because people don’t talk to each other. Marketing
is knowledge integrator, within firm and marketplace knowledge.
Issues: where to compete, which segments available, which to target,
how compete (4P’s).
Marketing responsible for the 4 P’s. place, distribution, where available.
Promotion, how inform the consumers. Product is the offering itself.
Price, the price we sell, random or thought behind it. these all managed
by marketing departments. Research showed that when spread into
these 4 P’s then do better than other companies. Split in to these 4
within the company.
,When entering the market. first this and then second. Or do we
wait for others to enter. Wait for others technologies.
Sequential vs simultaneous. Netflix international, simultaneous
approach, more than 160 countries at once. Other companies
might be more conservative and go sequential, first USA, then
equally country Canada, then more close Mexico and then to more
different countries.
How to enter/exit. Make or acquire and integrate. Or collaborate
and codevelop. Acquire is external. Someone else did it. Google
more internal, make self. Exit: phase out: cut support for the
iPhone 8 for example, phase it out, no longer relevant in current market situation. Spin off: google
introduced the ChatGPT rival, also maybe cannibalizes own google search product, then maybe spin it
off. Google search product still enough money in it then the other away, cost may not justify the
benefit and spin it off. Sell off: sell.
Overarching marketing strategy: what is it? overarching
stratehies have been spoken a lot about. Market driven vs
market driving. Responsive to the market or are you
changing the market. firms respond to changes from
customers, responsive. When creating new its market
driving.
Primary demand stimulation: increase size of market. like Tesla example. strategically making sure the
size of the market grows and not the share. Because market grows, when share doesn’t increase a lot,
still making more, piece of bigger pie. Selective demand stimulation: increasing market share. In this
course more this: superior value company (differentiated, how similar competitors to you) or cost
leadership based (doing more efficient than others). Or Dual focus, have all the branded products for
example for lower prices (TJ max?). Off price retailing there, selling other brand consumers really
want and have process to have a discounted price for consumers. Kind of treasure haunt, wide but
not deep assortment (only some sizes/colors), when finding one excitement.
‘’organization’s integrated pattern of decisions that specify its crucial choices concerning products,
markets, marketing activities and marketing resources in the creation, communication and/or
delivery of value to customers in exchanges with the organization and thereby enables the
organization to achieve specific objectives…’’ (understanding market strategy itself, information from
us, within the firms etc, then come up with strategy that best fits this information sources. Have to
have the SMART goals.)
‘’Strategic marketing: how firms come up with marketing strategy
about making strategic choices about … ‘’
Building marketing strategies:
Firms have overarching strategy: one big goal. Then target market
et. How do we do this?
All doing at bottom is to achieve top. When you have direction then
more likely to have plans to achieve the goals. Sometimes things
not in control, sometimes also bottom up. Both okay. Experience
and science tells top down, from strategy to top, is better.
,Firms have resources (access), these can be tangible and
intangible. These resources enable the firm to produce more
effective. Tangible assets like buildings, land. Or intangible
like human, intellectual or relational.
Intellectual is maybe patents. Competences, bundling the
other three together. Because of people, end u having good
competences based on the other three.
Inside out view: from resources to environment.
Dynamic: create fir with the environment. Don’t assume this
stays constant. Know resources have access.
What do you need to build? Marketing sensing, scanning and
sense making (what does it mean for my business, will it
help/prevent). Prevent, how use resources to combat. Or
benefit.
Another new thing is adaptive marketing capability.
First understand there are three key firm capabilities: R&D/tech,
marketing and operations. We need touch with these other two as
marketing.
Overall we have three strategic key capabilities.
Marketing has biggest effect on performance. Meta analytical
finding.
Also other domains into consideration. Takes a meta view, all the
findings together. Overall we find that R&D vs marketing is
negative. Marketing is one of the strongest predictors of firm
performance.
Marketing capabilities do effect performance, and significantly more than others. When u are CEO,
where to invest the most? Make people aware you exist, and better than others.
, Types of marketing capabilities:
More specific to certain area. Customer relation, brand
management, product management advertising, pricing
management and distributions management.
Do these improve firm profitability? Overall performance up by
marketing. What type of capabilities increases profitability then?
Marketing doesn’t lead to direct financial outcome? several
studies found: 2 ways to talk about, increase revenue (more profit)
or more improving the profit margin (more efficiency focused).
Both ways to make money. In both marketing helps. But different
types for them. CRM, when focusing there, it hurts the revenue
grow (focus on existing the best they can to increase margin). Or
brand management, more revenue, more people aware/advocate
and but the products (also bringing down the margin). Choose the
right for increasing revenue or margin. Which to choose depend
son where you are in the marketplace and where you want to be
(look in to this for simulation!).
Both investment in CRM and brand management have increased
over time. Over time brand management overtaken and around
COVID the opposite happened.
A lot of unexpected changes happening on all fronts. Rate of
changes fast and nature is complex.
External forces which are driving firms to change and be relevant.
Environmental resources, customer preferences, emerging
technologies, competitive forces, economic forces and government
regulations. More and more consumers demand that firms are
remindful about their own resource consumption so we have
longer to enjoy the earth.
PESTEL: says the external forces, need to analyze and understand.
Then adjust strategies to it.
External forces force to do it in a certain way. Outside in
perspective. Firms with outside in perspective do better? New
literature. Personal think, both necessary. Outside in in marketing
is the adaptive capabilities.
Adaptive marketing capabilities: od new things, adjust. Lear,
experiment, see results and implement some of it. Collaborative
network learning, if you think you survive by using only firm
resources then you are mistaken. Together as ecosystem you can
survive, not alone. Different partners.
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