Strategic Marketing Notes

Strategic Marketing Overview

• Definition of Strategic Marketing:

  • Process of identifying and selecting target markets.
  • Designing a suitable marketing mix.
  • Implementing strategies to achieve business goals.
  • Focuses on long-term success and competitiveness.

• Differences from Tactical Marketing:

  • Tactical marketing focuses on short-term activities.
  • Strategic marketing aligns efforts with long-term vision and objectives.

• Benefits of Strategic Marketing:

  • Differentiates products/services, leading to competitive advantage.
  • Efficient resource allocation (time, budget, talent).
  • Proactive response to market shifts and consumer behavior changes.

Role of Marketing in Business Strategy

• Aligns product offerings with customer needs.
• Contribution to Business Strategy:
  • Identifying customer needs.
  • Building relationships and increasing customer lifetime value.
  • Providing insights through market research.
  • Building brand equity, enhancing reputation and loyalty.

The Strategic Marketing Planning Process

1. Situation Analysis:

   • Analyze market, competitors, internal capabilities.
   • Common tools include SWOT and PESTEL analysis.

2. Setting Marketing Objectives:

   • Objectives should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound).

3. Market Segmentation and Targeting:

   • Segmentation based on demographics, psychographics, behavior.
   • Target the most promising segments based on fit with offerings.

4. Developing Marketing Strategies:

   • Crafting product, price, place, and promotion strategies (4Ps).

5. Implementation:

   • Launch strategies across channels, coordinate teams for effective execution.

6. Monitoring and Control:

   • Track performance against objectives using KPIs (e.g. sales, market share).

STP Model (Segmentation, Targeting, Positioning)

• Segmentation:

  • Divide the market based on common characteristics.

• Targeting:

  • Select the most attractive market segments to focus on.

• Positioning:

  • Create a distinct image in consumers' minds; emphasize unique benefits.

Key Factors in Competitive Strategy

1. Porter's Five Forces Framework:

   • Threat of new entrants.
   • Bargaining power of suppliers and buyers.
   • Threat of substitute products.
   • Industry rivalry.

2. Kotler’s Focus on Consumer Behavior:

   • Understand consumer preferences and position strategy accordingly.

3. Competitive Advantage Achieved Through:

   • Cost Leadership: Low-cost producer.
   • Differentiation: Unique products/services.
   • Focus: Specific targeted market segment.

The Marketing Mix (4Ps and 7Ps)

• 4Ps of the Marketing Mix:

  1. Product: Core offering satisfying consumer needs.
  2. Price: Amount customers pay; influences demand.
  3. Place: Distribution channels and accessibility.
  4. Promotion: Communication strategies to inform and persuade.

• 7Ps (Extended Marketing Mix for Services):

  5. People: Individuals involved in providing the service.
  6. Process: Flow of activities in service delivery.
  7. Physical Evidence: Tangible aspects that support service quality.

Branding and Brand Management

• Importance of Branding:

  • Creates identity and differentiation.
  • Builds trust and loyalty.
  • Acts as a strategic asset.

• Kotler’s Brand Equity Model:

  1. Brand Awareness
  2. Brand Associations
  3. Perceived Quality
  4. Brand Loyalty
  5. Brand Assets (Names, Logos, Slogans)

• Brand Positioning and Resonance:

  • Positioning ensures distinct perception.
  • Resonance reflects emotional connection with customers.

Conclusion

• Effective strategic marketing integrates various elements of market research, competitive analysis, branding, and a well-structured marketing mix to achieve long-term business success. Understanding and applying these principles allows companies to remain competitive and responsive to market demands.