STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Chaudhry Muhammad Nadeem Faisal
Cell: 0305-7761061
Email: faisal.uk@live.co.uk
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Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Designing and Managing Marketing Strategy
Market Situation analysis
Implementing and
Designing
Managing Marketing
Marketing
Strategies
Strategies
Blekinge Institute of Technology
SE-371 79 Karlskrona
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Marketing Program Development
Source: Victoria L. Crittenden, “ Strategic Marketing management ” , McGraw-Hill, NY,2002,
p,7.
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Market Driven Strategy:
Market-Driven Strategy is very essential in formulating business
strategy. Here, the approach used is always market-oriented and
customer-oriented. In short Guided by market trends and
customer need instead of firms productive capacity or current
product. The underlying logic is the market and the customer
that form the market should be the starting point in business
strategy formulation.
“Considerable Progress has been made in identifying market-driven
business, understanding what they do, and measuring the
bottom-line subsequences of their orientation to the market”
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Market Driven Strategy
Becoming
Market
Oriented
Achieving
Superior
Value
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
Determining
Distinctive
Capabilities
Marketing
Customer
Value
Requirement
To capabilities
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D Cravens, N Piercy, “Strategic Marketing”, 8th edition, McGraw Hill, 2005, p,2.
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Becoming Market Oriented:
The focus on customer need and wants through own product.
“A business is market-oriented when its culture is systematically
and entirely committed to the continuous creation of superior
customer value.”
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Specifically, this entails collecting and coordinating information on
customers, competitors, and other significant market
influencers
(Stakeholders,
suppliers)
and
superior
organizational skills. It demand the ethical behavior within the
organization and with customer, supplier and stakeholders. It
also require the involvement of entire framework by monitoring
the rapidly changes in customer need an wants with (by
improving the product ) innovation to satisfy the customer in a
efficient way.
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Market Orientation
Customer
Information
Competitor
Information
Shared
Diagnosis
and
Coordinated
Action
Superior
Customer
Value
Other Market
Information
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Source: Stanley F. Stater, “Market Orientation, customer value and superior performance”,
Business Horizons, March/April 1994, p,22-27, at P,23.
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Characteristics of Market Oriented:
A market-oriented organization continuously gathers information
about the customers, competitor and market; view the
information form total business prospective decide who to
deliver superior customer value and take action to provide
value to customer. It requires
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng

customer focus.

competitor intelligence.

cross functional corporation and involvement.
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
1 Customer Focus
an organizational orientation toward satisfying the needs of
potential and actual customers. Customer focus is considered
to be one of the keys to business success. Achieving customer
focus involves ensuring that the whole organization, and not
just frontline service staff, puts its customers first. All activities,
from the planning of a new product to its production,
marketing, and after-sales care, should be built around the
customer. Every department and every employee should share
the same customer-focused vision. This can be aided by
practicing good customer relationship management and
maintaining a customer relations program.
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
2 Competitor Intelligence:
Which competitor, and what technology and wither target customer
perceive the them as alternative satisfier.
In short, CI is the purposeful and coordinated monitoring of your
competitor(s), wherever and whoever they may be, within a
specific marketplace... Your "competitors" are those firms
which you consider rivals in business, and with whom you
compete for market share
3 Cross Functional Coordination:
Market-oriented companies are effective in getting all business
function working together to provide superior customer values.
Blekinge Institute of Technology
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Marketing, R&D, Finance all department in team work guide the
organization to provide the superior customer values.
4 Performance Implication:
Companies that are market-oriented begin strategic analysis with
penetrating view of market and competition.
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Becoming Market-Oriented Organization:

Superior Customer Values
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
Information Acquisition
the evaluation of market and customer wither to buy its product
and services, It requires the proactive information gathering
and analysis, with an effective & systematic approach to gather
the relevant information.

Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
Cross-Functional Assessment
Getting the Peoples form different function
to share the
information about the market & work together to develop an
innovative product.

Shared Diagnosis & Action

Moving beyond the information gethering & analysis to decide
what action take to provide the superior customer value
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Distinctive Capabilities:
D-capabilities are the vital part of market-Driven Strategy,
Capabilities (competencies), complex bundle of skills,
accumulated knowledge exercised though organizational
processes, that enable the firm
Coordinate the activities
activities and make use of their assists.
Competencies: means competitive advantage that enable the firm
to introduce an array of new product and services
Identify the Distinctive Capabilities.
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
During Marketing strategies design the organizational distinctive
capabilities are very important, these enable the organization
in the new market, provide significant value to customer and
create market entry barriers to the potential competitor. As HP
is leader in in-jet printer, but with providing ink-jet fax through
strategic alliance with Japanese partner, which contributed a
distinctive capabilities in the fax technology.
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Distinctive Capabilities
Offer high contribution to superior customer value with cost
effective
Desirable
Capabilities
Applicable to
Multiple
Competitive
Situation
Superior to
the
competition
Difficult to
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Desirable Capabilities
D Cravens, N Piercy, “Strategic Marketing”, 8th edition, McGraw Hill, 2005, p,8.
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Type of Distinctive Capabilities
Classifying the organizational capabilities is a useful distinctive
capabilities. The outside-in connect to the external environment
provide the feedback and relationship while the inside-out are
the activities to satisfy the customer value requirements.
This processes view of capabilities highlight the interrelated nature
of organization processes and points to several important
issues
Blekinge Institute of Technology
SE-371 79 Karlskrona

The market driven organization have clear external focus

Capabilities typically span several business function, involving
terms of peoples

Processes need to be clearly defined

Information should be share with all processes participants

Processes are interconnected to other and management need
to coordinate the linkage.
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STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Type of Distinctive Capabilities
External
Emphasis
Internal
Emphasis
Outside-in
Processes
Inside-Out
Processes
Spanning Processes
Marketing Sensing
Customer Linkage
Channel Bonding
Technology Monitoring
Blekinge Institute of Technology
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www.bth.se/eng
Types of Capabilities
Customer Order fulfillment
Pricing
Purchasing
Customer Service Delivery
New Product/Service development
Strategy development
Financial Management
Cost Control
Technology Development
Integrated Logistics
Manufacturing / Transformation
Processes
Human Resources
Management
Environmental Health and Safety
D Cravens, N Piercy, “Strategic Marketing”, 8th edition, McGraw Hill, 2005, p,9.
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Value & capabilities
Value for buyer consists benefits and costs resulting from the
purchase and sue of products. A company use its market
sensing processes, shared diagnosis
and cross functional
decision making to identify and take advantages of superior
value opportunities. Management must determine where and
how it can offer superior value, directing these capabilities to a
customer group
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Boundaries of Strategic Marketing :
The word strategy is ubiquitous in common language. It is use not
only in conjunction with business as general and marketing as
particular. It is associated with politics, military action and
sports as well.
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
•Market Driven Strategy
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
The core Marketing Concepts:

Need, wants and demand

Target markets, positioning and segmentation

Offering and brands

Value and satisfaction

Marketing channels

Supply chain

Competition

Marketing Environment
Blekinge Institute of Technology
SE-371 79 Karlskrona
+46 455 38 50 00
www.bth.se/eng
STRATEGIC MARKETING
MANAGEMENT CHAPTER -1
Segmentation, Targeting and Positioning
Product
Market
Market
Segments
Market
Targets
A
B
D
A
C
D
Positioning Strategy
for Each Targets
Blekinge Institute of Technology
SE-371 79 Karlskrona
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Marketing Program
For Each Target
Source: Victoria L. Crittenden, “ Strategic Marketing management ” , McGraw-Hill, NY,2002,
p,10.