tmgt131/ngcorales-vsu Unit I. Introduction to Strategic Marketing tmgt131/ngcorales-vsu Marketing The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. tmgt131/ngcorales-vsu The Marketing Process https://quizlet.com/319241991/marketing-exam-1-diagram/ tmgt131/ngcorales-vsu Strategic Marketing tmgt131/ngcorales-vsu Strategic Marketing It is an 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 products that offer value to customers in exchanges with the organization and thereby enables the organization to achieve specific objectives. tmgt131/ngcorales-vsu Strategic Marketing Process Planning – Implementation Control tmgt131/ngcorales-vsu Strategic Marketing Process for Tourism Services tmgt131/ngcorales-vsu What is strategy? a strategy is an integrated and externally oriented concept of how a firm will achieve its objectives—how it will compete against its rivals. tmgt131/ngcorales-vsu What is a marketing strategy? ➡ varies in scope ➡ integrated pattern of decision ➡ development and decisions on relationships tmgt131/ngcorales-vsu What is strategy? ▧ Overused/misused Strategy is concerned with making major decisions that affects the long-term direction of the business firm or organization. tmgt131/ngcorales-vsu What is Marketing Strategy? ▧Analyses of the business environment ▧Defining and understand the customer’s needs and wants ▧Match the activities, products and services to the customer segments ▧Implement programs to gain competitive advantage tmgt131/ngcorales-vsu Elements addressed by Marketing Strategy https://www.zabanga.us/marketingplanning/exhibit-22.html tmgt131/ngcorales-vsu Tactic vs Strategy Strategy – direction to achieve the goal - plan to achieve the goal Tactic – actions taken to support the strategy - how to execute the plan tmgt131/ngcorales-vsu Good strategy formulation Refining the elements of strategy Part of a Strategy ≠ Strategy itself Vision and mission ≠ strategy tmgt131/ngcorales-vsu Strategy Diamond ▧ Created by Donald Hambrick and James Fredrickson ▧ Integrates important choices into a bigger picture https://sourcesofinsight.com/strategy-diamond/ tmgt131/ngcorales-vsu Elements of Strategy ▧Arenas. Where will we be active? ▧Differentiators. How will we get there? ▧Vehicles. How will we win in the marketplace? ▧Staging. What will be our speed and sequence of moves? ▧Economic logic. How will we obtain our returns? tmgt131/ngcorales-vsu Arenas ▧Arenas are areas in which a firm will be active. ▧Decisions about a firm’s arenas may encompass its products, services, distribution channels, market segments, geographic areas, technologies, and even stages of the value-creation process. tmgt131/ngcorales-vsu Differentiators ▧Differentiators are features and attributes of a company’s product or service that help it beat its competitors in the marketplace. tmgt131/ngcorales-vsu Differentiators ▧Differentiators are what drive potential customers to choose one firm’s offerings over those of competitors. tmgt131/ngcorales-vsu Vehicles ▧Vehicles are the means for participating in targeted arenas. tmgt131/ngcorales-vsu Staging and Pacing ▧Staging and pacing refer to the timing and speed, or pace, of strategic moves. ▧Staging choices typically reflect available resources, including cash, human capital, and knowledge. tmgt131/ngcorales-vsu Economic Logic ▧Economic logic refers to how the firm will earn a profit—that is, how the firm will generate positive returns over and above its cost of capital. ▧Economic logic is the “fulcrum” for profit creation. tmgt131/ngcorales-vsu https://www.executestrategy.net/blog/strategy-levels tmgt131/ngcorales-vsu Corporate Level Strategy ▧are the ‘top’ level of strategy in an organization. ▧will define the overall direction the organization will move in and the highlevel plans of how. tmgt131/ngcorales-vsu Business Strategy Level ▧ is a means to achieve the goals of a specific business unit in the organization tmgt131/ngcorales-vsu Functional Strategy Level ▧This is the level at the operating end of an organization ▧decisions made by employees are often described as tactical decisions ▧concerned with how the various functions of an organization contribute to the other strategy levels. tmgt131/ngcorales-vsu Challenges in Strategic Marketing ▧Global competition ▧Turbulent markets ▧Recession ▧Wars ▧Diseases ▧Technological advances ▧Demanding customers tmgt131/ngcorales-vsu Necessity of Employing Strategic Marketing in Tourism ▧ Tourism is competitive and financially difficult global environment ▧ Ability to strategically respond to current challenges. tmgt131/ngcorales-vsu Applying Strategic Marketing in Tourism ▧should make the most of a company’s strengths (capabilities) and matches them to the customer value requirements. ▧should be flexible tmgt131/ngcorales-vsu Developing a Global Strategy in Tourism Nowadays, markets are becoming increasingly integrated and, therefore, globalization is seen as an imperative business strategy (Ghemawat, 2010). tmgt131/ngcorales-vsu References Kotler, P., & Armstrong, G. (2012). Principles of Marketing. One Lake Street, Upper Saddle River, New Jersey, USA: Pearson Education, Inc., publishing as Prentice Hall. Tsiotsou, R. H., & Goldsmith, R. E. (2012). Strategic Marketing in Tourism Services. United Kingdom: Emerald Group Publishing Limited. Wilson, R. M., & Gilligan, C. (2005). Strategic Marketing Management. Oxford, Burlington, MA: Richard M.S. Wilson and Colin Gilligan. https://saylordotorg.github.io/text_international-business/s14-04-the-five-elements-ofstrategy.html https://www.executestrategy.net/blog/strategy-levels
