Strategic Marketing
Contents
Chapter 1 – Introduction ......................................................................................................................... 2
1.1 Strategic Marketing ....................................................................................................................... 2
1.2 Strategic Marketing Planning ........................................................................................................ 2
Chapter 2 – Mission, Vision & Market Definition .................................................................................... 3
2.1 Mission & Vision ............................................................................................................................ 3
2.2 Market Definition .......................................................................................................................... 3
Chapter 3 - Internal Analysis ................................................................................................................... 4
3.1 Value Strategy ............................................................................................................................... 4
3.2 Functional Analysis ........................................................................................................................ 6
3.3 Marketing Analysis ........................................................................................................................ 6
Chapter 4 - External Analysis ................................................................................................................... 6
4.1 Buyers Analysis .............................................................................................................................. 6
4.1.1 Buyers’ goals analysis ............................................................................................................. 6
4.1.2 Segmentation ......................................................................................................................... 6
4.1.3 Customer needs & perceptions .............................................................................................. 7
4.1.4 Brand equity ........................................................................................................................... 7
4.2 Industry Analysis............................................................................................................................ 8
4.2.1 Macro-economic factors ........................................................................................................ 8
4.2.2 Aggregate market factors ....................................................................................................... 8
4.2.3 Industry factors ...................................................................................................................... 9
4.2.4 Market attractiveness .......................................................................................................... 10
4.3 Competitor Analysis .................................................................................................................... 10
4.4 Distribution Analysis .................................................................................................................... 12
4.4.1 Macro level ........................................................................................................................... 12
4.4.2 Meso level ............................................................................................................................ 12
4.4.3 Micro level ............................................................................................................................ 12
4.5 Supplier Analysis.......................................................................................................................... 12
Chapter 5 – SWOT ................................................................................................................................. 13
Chapter 6 – Goals & Strategies.............................................................................................................. 13
6.1 Organisational Goals & Strategies ............................................................................................... 13
6.2 Marketing Goals & Strategies ...................................................................................................... 14
6.3 Market Strategies ........................................................................................................................ 14
Chapter 1 – Introduction
1.1 Strategic Marketing



Key questions in strategic marketing:
o Where are we now? (= analysis)
o Where do we want to go? (= ambition or BHAG = Big Hairy Audacious Goal)
o How do we get there? (= strategy)
 Goal = create return on business
Key components:
o Vision & mission: who are we and what do we do?
o Goals/objectives: what do we want to achieve on the long term?
o Strategies: how can we achieve these goals/objectives?
o Policies: in which way do we want to realise these strategies?
Strategic processes:
Long term
Strategic
Market
Positioning
Strategic
Effectiveness
External
Internal
Tactical
Marketing
Efforts
Tactical
Resource
Management
Short term
1.2 Strategic Marketing Planning

Marketing planning process:

Organisational planning levels:
1. Corporate level
2. Strategic Business Unit (SBU)/Market level
3. Product level
4. Marketing mix level (product, place, price, promotion)
Chapter 2 – Mission, Vision & Market Definition
= indicates the organisation’s position in its working field & its directions for the future
2.1 Mission & Vision


Mission statement: your reason for existence; what you do (= products & services), how you
do it (= differentiation) and for whom (= target markets)
o E.g. Harley Davidson: We fulfil dreams through the experience of motorcycling, by
providing to motorcyclists and to the general public an expanding line of motorcycles
and branded products and services in selected market segments.
o Social mission: shows the organisation’s values & relationship with all stakeholders
Vision: what the organisation wants to be on the long term (= source of inspiration)
o E.g. Avon cosmetics: To be the company that best understands and satisfies the
product, service and self-fulfilment needs of women – globally.
2.2 Market Definition

Abell diagram: which markets are we in?
o Customer needs: WHAT customers need it for (e.g. people transport)
o Technologies: HOW those needs can be fulfilled; products & services (e.g. sedan car)
o Customer segment: WHO uses the technologies to fulfil the needs (e.g. youngsters)

Ansoff matrix (with links to the Abell diagram above):
Current products
New products
Current markets Market penetration strategy
Product development strategy
(link customer needs)
(link technologies)
New markets
Market development strategy Diversification strategy
(link customer segments)
Market definition:
o Analyse existing market (internal & external analysis)
o Analyse desired market

o
Define competitive set of the company (different levels of competition):
 Product type competition (e.g. Pepsi Max vs. Coke Zero)
 Product category competition (e.g. soft drinks)
 Generic competition (e.g. drinks)
 Budget competition (e.g. food, drinks, amusement…)
Chapter 3 - Internal Analysis
3.1 Value Strategy

Value strategy:
o Porter’s generic strategies:
 Overall cost leadership strategy: lower price than competitors, high market
share, economies of scale, cheap infrastructure, efficiency (outsourcing, justin-time management…) (e.g. IKEA)
 Differentiation strategy: differentiated product with superior performance,
quality leadership, customer perceptions are important, innovation, brand
management, high service levels (e.g. Apple)
 Focus strategy: specialise in one or more market segments (geographical,
technological, demographical…), differentiation (e.g. Rolex, Amazon)
Competitive advantage
Competitive
scope
o

Differentiation
Low cost
Broad
(Industry)
Differentiation
strategy
Overall cost
leadership strategy
Narrow
(Segments)
Focused
differentiation
Focused
cost leadership
Treacy & Wiersema:
 Operational excellence (link to overall cost leadership strategy)
 Product leadership (link to differentiation strategy)
 Customer intimacy (link to focus strategy)
Balanced scorecard (BSC): to evaluate the implementation of strategies
1. Define critical success factors to follow up the strategies in 4 fields:
 Financial perspective (link operational excellence)
 Customer perspective (link customer intimacy & product leadership)
 Internal processes (link operational excellence)
 Innovation & learning (link product leadership)
2. Choose measurements for these success factors
3. Evaluate the scores & take conclusions
 Example:
Critical success factors
Measurements
Financial perspective
Market leadership
Market share
Shareholders Value Creation EVA
Attracting new customers
Turnover new customers
Customer loyalty
Turnover existing customers
Customer perspective
Customer satisfaction
Number of complaints
One step solutions
% turnover one-step solutions
Quality of service
% orders delivered on time
Internal processes
Account management
% turnover from account management
Efficiency of production
Variable costs/fixed costs
Commercial power
Number of new prospects
Number of offers made
Success ratio offers
Innovation and learning
Knowledge and experience
Employee seniority
Employee satisfaction
Staff turnover
Product innovation
% turnover of products younger than 3 years
R&D investments
Budget R&D/total budget
o Evaluation of the scores of different aspects can show which levels the company has
for the different value strategies (0 = no effect; + = some effect; ++ = high effect
Value strategy
Financial
perspective
Customer
perspective
Internal
processes
Innovation and
learning
Product
+
++
0
++
leadership
Operational
++
+
++
0
excellence
Customer
+
++
0
+
intimacy
 Value strategy model: 3 arrows indicate on which level a company is for the 3 different
strategies (Leadership level = best in the industry; threshold level = average):

Elevator pitch/speech/statement = summary to quickly define a product/organisation/… and
its value proposition (should be possible to say during an elevator ride)