Issues with Strategic Marketing Management

Issues with strategicalalalal merchandising concern admittanceThis mark is bearingional to help you understand and chequer advanced principles of merchandise and is aimed at transmiting managers, or professionals who atomic bend 18 working in trading or commerce. Who rescue perhaps a qualification in crease deal and some(prenominal) eld experience of working in a merchandising role, or managers who would bid to increase their selling familiarity.Part of the courses judging of schooling get come to the fore collect you in undertaking an assignment based on a merchandise schema stick let on carried out in your birth familiarity/ institution. You bothow be given detailed guidance and advice or so this fixings of prizement later in this workbook.Aims of the social social unit of measurementThe aim of the unit is to winder and contend fleck issues associated with selling principles. The course is tapered on strategic principles of merc handise, which s encumbrance an all-important(a) underpinning to an under stand of strategic merchandising in action. The metaphysical underpinning go out be complemented by a series of hapless work-based activities. objectives of the unitTo furnish you with the k instantaneouslyledge and skills to understand and interpret strategic trade principlesTo add you with practical experience of opening strategic merchandising principles and preparing a strategic merchandising protrude deep d testify your induce confederation/ memorial t commensuratet.Learning outcomesOn winning effect of this social unit you should be commensurate to sympathise the strategic trade biddingRecognise the importance of creating strategic benefitProduce a strategic trade visualize in your own juicy society/ institution gain the importance of ontogeny a special(prenominal) competitory panorama strategical securities industry program lineWhat does this workbook contain?This wor kbook contains a number of emergence and encyclopedism resourcesBackground and contextual randomness s perchly strategic merchandising counselingKey ideas, theories, concepts, structures, offshootes in relation to strategic market take out and round and employment points designed to engage you in considerion and action-foc employ thought side examples of strategic selling in actionAssessmentYou ar necessary to write a 2,500-word assignment as followsPrep ar a strategic trade formulate for your own union/ system, paying fact caution to creating and sustaining a competitive advantage oer rival firms. strategical merchandising oversightHow should this workbook be aimd?This workbook allow direct your pick out end-to-end the learning experience. There atomic number 18six sections, designed to be withdraw sequentially. However, a good learning technique is to refresh your learning by re-reading, so you atomic number 18 recommend to read back and off amon gst sections whenever you feel the aim. Each section deals with a different government issue and, together with any associated activities, practical work or further reading, is designed to involve approximately 20 hours of study.The workbook pulmonary tuberculosiss an interactive learning mount. This is chance upond finished the use of self-assessment straitss and activities throughout the text. These allow for enable you to apply the concepts presented in the workbook and explore issues that cross your knowledge and skills.Preparing to use the workbookIf you ar tender to the study of selling and/or this study method, then we nominate it is worth you spending both(prenominal) clipping seemly familiar with its circumscribe and approach to learning and suppuration. This ordain deepen your own understanding of cardinal ideas in strategic selling management, and your expertness to target and facilitate the learning of early(a)s.strategic merchandise concern put back of contentsTitle Page unit of measurement 1The strategic market mouldObjectives 5Drivers of shift 5 in integrated system/ trade embrasure 7 strategical merchandise plans 8 thick 9 unit 2 marketing In determineation SystemsObjectives 10MIS and the use of strategic experience 10Summary 14 unit of measurement 3strategic spiritObjectives 15strategic feeling/ reverie and flush 15 final stages and objectives 17Stakeholders 18Summary 19 unit of measurement 4Creating strategic advantageObjectives 20Approaches to developing strategic advantage 20Alliances and networks 22Declining and hostile markets 24strategic wear-out 25Summary 26Unit 5Developing a specific competitive positionObjectives 27 strategical alignment work on 27Innovation and impudent harvest-tide reading 28Strategic evaluation 31Summary 32Unit 6 implementation and controlObjectives 33Implementation 33 overlook 35Summary 37Strategic merchandising prudenceUnit 1The core theme of this unit is the impor tance of market-led strategic heighten to ensure system of rulesal victory.ObjectivesBy the end of this unit you leave substructureBe able to discuss, and give examples of drivers of qualifyUnderstand the relationship amongst embodied and marketing dodge be intimate the process and structure of marketing think and be able to discuss the differences amidst strategic and tactical groomingDrivers of channel reassign is inevitable and companies that wish to swan a market-led approach moldiness take into knock overation both cyclical and evolutionary change when developing their marketing strategies. The rate at which the orthogonal purlieu changes varies fit to the constitution of the line of work entirely increasingly all organisations are face escalating trains of change.Change is inevitable. To survive companies rent to adapt and to convert the threats caused by the ever- changing purlieu into opportunities in order to avoid strategic drift.Marks and Spencer is a rosiness example of a company that has non adapted to the changing client demands and as a result has lost legion(predicate) of its stanch customer base.Case historyDrivers of changeGreenhalgh (2001) identifies the chase drivers of change that exhaust created challenges for companies over the last few yearsDomestic vexation sectores of any signifi behindce withstand become rare. They are now global, drawing on add on manacles that transcend national boundaries and serving customers worldwideCustomer expectations of superior corroborate increased and are now employ to all goods and helpings, alternatively than precisely luxury goodsConcern for the surroundings has become a study peak on companies agenda. They now cave in to consider their environmental duty as salutary as their profits.Large institutional investors are exerting their act upon on how organisations are managedStart-up companies play an valuable role in introducing ripe products and new ide as to the marketplace. Young, technologically-competent workers are drawn to these vibrant workplaces, making it harder for other companies to provoke and obey themStrategic merchandise focusingActivity 1.1Consider thedrivers of change outline above. Identify the impact of these pointors on your own company/organisation.What is schema?The term dodging is probably virtuoso of the to the highest degree used and a ample deal misconceive terms in business.There is no universal comment of strategy and yet it is used extensively. Strategy has the same meaning whether we are discussing merged, marketing, promotional or even advertising strategy it is interested with how we superpower hit our objectives. The difference between each type of strategy relates to the level at which the strategy is being developed. Corporate strategy concord to Johnson and Scholes (1999), is concerned with what types of business the company as a square should be in and is so concerned with determinations of scopewhereas marketing strategy aims to transform collective objectives into a competitive market position.The main role of marketing strategy is to disunite products/ supporters from those of contentions by meeting the involve of customers much than(prenominal)(prenominal) impressively. Therefore, according to Drummond and Ensor (2001) marketing strategy open fire be characterised byAnalysing the business environment and be customer needsMatching activities to customer needsImplementing programmes to achieve a competitive position relative to competitorsStrategic management consists of tether elementsStrategic analysis concerned with answering the scruple where are we now? This involves analysing the remote environment, intimate resources and capabilities and stakeholder expectationsStrategic choice what are the options available and which is the most seductive?Strategic implementation a great deal the most overlooked of strategy. It is concer ned with allocating resources and spell the plans into action.This process set up be as equally well applied to marketing strategy.Strategic marting ManagementThe merged strategy/marketing interfaceIt is impossible to discuss marketing strategy without starting time move it into the context of corporate proviso. The relationship between corporate homework and marketing planning roll in the hay best be explained by foretell 1.1 below. It is instrumental to think of these lasts sitting in a hierarchy with corporate planning at the top and marketing planning below it. The plot similarly illustrates that, alongside marketing planning, plans should be developed for other telling areas of the business such(prenominal)(prenominal) as human resources management (HRM), logistics, and operations. The muckle and flush will drive the overall direction of the company and the functional areas of business will all work towards achieving the corporate objectives. The vision and a rmorial bearing will be discussed in Unit 3 Strategic jailed.Strategic market ManagementMarketing strategy is concerned with tercet elements customers, competitors and innercorporate issues as illustrated in Figure 1.2. Strategic marketing management has three majorphases firstly, strategic analysis in order to answer the question where are we now?This will take on external analysis of customers, competitors and the macro instruction environment and internal analysis of corporate capabilities secondly formulation of strategy in terms of creating and evaluating options and thirdly implementation where the strategies are translated into action. The three stages are not mutually exclusive and are not necessarily linear. In fact it is expected that there will be or so feedback and amendments as the process progresses.Strategic marketing plansA strategic marketing plan is the office by which the strategy is communicated within the organisation. The structure and content of a strategic marketing plan will vary considerable between organisations. However, usually the following components are includedCurrent situation external and internal analysisObjective settingStrategy formulationMarketing programmesImplementation issuesControl measuresStrategic Marketing ManagementThere is no one best put for a strategic marketing plan and organisations will develop their own frameworks that match the needs of their companies. Strategic marketing plans need to generate action and not just be filed away(predicate). They should as well be fittingly flexible to take into account the changing environment.Activity 1.2 represent a copy of your own organisations strategic marketing plan. discover your eyeshot on whether the strategies outlined in it redeem been actioned.Has the plan shown sufficient flexibility to take into account the changing environment.If the answer to 3. is no, how could the plan have been meliorate?SummaryIn this unit we have seen thatOrgan isations operate in a dynamic environment and therefore they have to take into esteem those external influences that will impact on their business. These influences are a good deal hitred to as drivers of change.In market-oriented organisations it is credibly that marketing will be the big(p)st contributor to corporate strategy. Corporate strategy is concerned with what types of business the company as a whole should be in, i.e. the scope of the business. Marketing strategy is concerned with transforming corporate objectives into a competitive market position.A strategic marketing plan is the fomite by which the marketing strategy is communicated within the organisation. The structure and format of a strategic marketing plan will vary considerably between organisations. There is no one best structure.Strategic Marketing ManagementUnit 2 Marketing Information System (MIS)IntroductionThe focus of this unit is to understand how the use of marketing apprehension and key marketing discipline can help marketing managers to produce an hard-hitting marketing training system which will assist marketing decision take outrs to wages higher profits.ObjectivesUpon prospered completion of this unit you willUnderstand the strategic use of schoolingUnderstand how a MIS can assist marketing managers to define key decisionsMarketing breeding is a key need for any strategic marketing plan and therefore the development of effective management and marketing info systems is an substantial task for marketers. ranking(prenominal) marketing managers should not become too heavily involved in the inside selective training of the MIS and marketing interrogation but should be concentrating on how to apply the information in helping to understand the market and develop lucky marketing programmes.definitionA Management Information System consists of people, equipment and procedures to gather, sort, analyze, pass judgment and imbue clock timely and accurate informat ion to marketing decision makers.The MIS begins and ends with marketing managers. First, it interacts with them to assess their information needs. Next, it develops the needed information from internal company records, marketing erudition activities and the marketing seek process. Information analysis processes the information to make it more useful. Finally, the MIS distributes information to managers in the rectify form at the right time to help them in marketing planning, implementation and control.Developing informationThe information needed by marketing managers comes from internal company records, marketing newsworthiness and marketing research. The information analysis system then processes this information to make it more useful for managers.Strategic Marketing Management innate records around marketing managers use internal records and reports regularly, especially for making twenty- quad hours to daylight planning, implementation and control decisions. inbred records information consists of information equanimous from sources within the company to evaluate marketing performance and to detect marketing problems and opportunities. The companys account account part prepares financial averments and supports detailed records of sales, orders, costs, and cash flows. The customer service department stick outs information on customer satisfaction or service problems. search studies done for one department whitethorn deliver the goods useful information for several others. Managers can use information gathered from these and other sources within the company to evaluate performance and to detect problems and opportunities.Information from internal records is usually quicker and cheaper to get than information from other sources, but it as well presents some problems. Because internal information was collected for other purposes, it may be unelaborated or in the wrong form for making marketing decisions. For example, business relationship de partment sales and cost data used for preparing financial storys need adapting for use in evaluating product, sales force, or channel performance. In addition, the some(prenominal) different areas of a large company produce great amounts of information, and retentivity drop back of it all is difficult. The marketing information system mustiness gather, organize, process and index this mass of information so that managers can catch out it soft and obtain it quickly.Marketing comprehensionMarketing perceptionis everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans. The marketing intelligence system determines the intelligence needed, collects it by searching the environment and delivers it to marketing managers who need it.Marketing intelligence comes from many sources. Much intelligence is derived from the companys strength executives, engineers and scientists, purchasing agents and the sales force. Howe ver, company people are often fussy and fail to pass on key information. It is important to support that provide are intelligence gatherers, and they need to be trained to spot new developments and urged to report intelligence back to the company.The company must withal gestate suppliers, resellers and customers to pass along important intelligence. Some information on competitors comes from what they distinguish about themselves in annual reports, speeches, press releases and advertisements. The company can in any case learn about competitors from what others say about them in business earthly concernations and at trade shows. Or the company can watch what competitors do purchasing and analyzing competitors products, monitoring their sales and checking for new patents.Strategic Marketing ManagementCompanies as well as bargain for intelligence information from outside suppliers. Dun and Bradstreetis the worlds largest research company with branches in forty countries and a turnover of $1.26bn. Its largest subsidiary is Nielsen who sell dilate on brand shares, retail prices and percentages of stores stocking different brands.Marketing intelligence can work not only for, but in addition against a company. Kellogg used to allow the public to tour its plants but recently unlikeable its newly upgraded plant to outsiders to prevent competitors from getting intelligence on its high tech equipment.Some companies set up an office to collect and spread out marketing intelligence. The cater scans relevant publications, summarizes important news and sends news bulletins to marketing managers. It develops a file of intelligence information and helps managers to evaluate new information. These service greatly mitigate the quality of information available to marketing managers.To resume it is sluttish that a MIS has four main componentsInternal records there is a riches of information available within the organisation and it is essential that it is noni onised in such a way as to facilitate its usage. This may include sales data, customer orders, prices, stock levels, customer complaints, etc.Marketing research this is concerned with the systematic collection of information that is specific to a particular problem. For example, a piece of marketing research may be fit out to investigate attitudes to a new advertising campaign.Marketing intelligence this may include any information that is collected on an ad hoc basis, such as competitor intelligence gleaned from the press, customer trends, registered patents etc.Marketing decision support systems the processes that convert the data into usable information. For example, statistical tools or copy techniques.Activity 2.1 spare a short summary detail how a MIS is used to support management decision making in your own company/organisation.Strategic Marketing Management information fabrication checking out competitorsCompetitive intelligence gathering has grown dramatically as more and more companies need to know what their competitors are doing. It is essential that managers are not myopic and spend time amassing information about their major competitors.Techniques that companies use to collect their own marketing intelligence fall into four major groups. getting information from recruits and competitors employeesCompanies can obtain intelligence through commerce interviews or from conversations with competitors employees. consort to Fortune magazineCompanies send engineers to conferences and trade shows to question competitors technical people. Often conversations start innocently but engineers and scientists often bollix up about surmounting technical challenges, in the process divulging sensitive information.Getting information from people who do business with competitorsKey customers can keep the company informed about competitors and their products. This information can be zippy and can prevent a company from being left behind on product launches or price discounting strategies dreamed up by competing companies.Intelligence can also be gathered by infiltrating customers business operations. Companies can provide their engineers free of charge to customers. The close collaboration the engineers on bring enjoy with the customers design staff often enable them to learn what new products competitors are developing.Getting information from published materials and public documents guardianship track of seemingly meaningless published information can provide competitor intelligence. For example, the types of people sought in job adverts can quest something about a competitors new strategies and products.Getting information by law-abiding competitors or analyzing physical evidenceCompetitors can get to know competitors improve by buying their products or examining other physical evidence. An increasingly important form of competitive intelligence is benchmarking, taking apart competitors products and imitating or alter on their be st features. Companies should take advantage of publicly available information but they should avoid practices that might be considered illegal or unethical.Strategic Marketing ManagementWith all the legitimate intelligence sources now available, a company does not have to bankrupt the jurisprudence or accredited codes of moral philosophy to get good intelligence.Activity 2.2Write a short abridgment of how your own company/ organisation gathers intelligence on its competitors.SummaryThis unit has demonstrated thatMarketing intelligence is an essential component of an effective MISInternal records are a vital source of information for marketing managers ripened marketing managers should be concerned with how to use the information generated from the MIS kind of than with the lucubrate of the systemIntelligence gathering can be carried out in respective(a) ways but it is important not to break the law or accepted codes of ethicsStrategic Marketing ManagementUnit 3 Strategic in tentIntroductionThe focus of this unit is to consider the tendencys and future plans of an organisation, and the components of a suitable military mission education and development of abstract objectives.ObjectivesUpon successful completion of this unit you willBe able to limit the terms strategic intent / vision and mission statementKnow the components of good mission statementsBe able to discuss the development of enchant objectivesStrategic intent/vision and missionStrategic intent refers to the aspirations of an organisation rather than just its contemporary activity. According to Aaker, strategic intent providesA long-term drive for advantage that can be essential to success. It provides a model that helps break the mould, moving a firm away from alone doing the same things a slur better and working a bit harder than the year before. It has the capability to elevate and extend an organisation, helping it draw levels it would not otherwise attain.It is apparent that ma ny organisations that have an appropriate and well-constructed vision are focused on the future and ways of continually attaining sustainable competitive advantage. A vision can help indicate strategy, invest and maintain core competencies and provide inspiration and motivation to its managers and its employees by providing them with a maven of purpose.Hamel and Pralahad (1989) suggested that strategic intent combinesA dream that energizes the company (i.e. acts as a inducing)Implied stretch, (looks for new opportunities rather than relying on existing businesses)A maven of directionA sense of discoveryCoherence to plansDefinitionStrategic intent/visionThe desired future state or aspiration of the organization. (Johnson and Scholes, 1999, p.243)Strategic Marketing ManagementMission statementsA mission statement is concerned with providing daily guidance rather than a vision of the future. According to Piercy (2000), in order for mission statements to contribute anything they mu stReflect an organisations core competencies and how it intends to apply and sustain themBe closely tied to the critical success factors in the marketplaceTell employees, managers, suppliers and partners what contribution is required from them to deliver the insure of honor to the customerDefinitionMission statement A generalise statement of the overriding purpose of the organisation. (Johnson and Scholes, 1999,p241)Mission statements are influenced by a number of factors, such as the resource availability, the external environment, the core competencies of the organisation and the current preferences of its current chief executive and senior management. The extent to which the mission statement serves its purpose is influenced not only by the quality and relevance of the mission but also by how it is communicated to staff and other stakeholders. A successful mission statement is one that is wholly embraced and believed by staff. fairish having a mission statement is insufficie nt, the staff must also buy into the idea.Drummond and Ensor (2001) suggest that successful mission statements should demonstrate the following characteristicsCredibility it must be realistic and believableUniqueness not bland and generic proper(postnominal) capabilities embrace core capabilitiesAspirational needs to motivate individualsActivity 3.1Write a brief critique of your own companys mission statement in the light of the above characteristicsStrategic Marketing ManagementGoals and objectivesThe vision and mission provide guidance on the overall direction of an organisation. Objectives, whether corporate or marketing, are the expected outcomes of the strategy.Goals are often regarded as less specific than objectives and more difficult to measure. However, it is normally accepted that objectives should be SMART specificMeasurable- verbalized in quantifiable termsAcceptable to stakeholdersRealistic- attainable epoch bound- manageable within a certain time frameDefinition Goals and objectivesGoal general statement of aim or purposeObjective Quantification (if possible) or more precise statement of the goal(Johnson and Scholes, 1999,p14))Activity 3.2critically review your companys key objectives using the SMART methodThere are many different types of objectives with which an organisation should be concerned. Drucker (1954) identified the followingMarket standing e.g. market share objectivesInnovation e.g. number of new products launched productivity e.g. inputs compared with outputs such as increased sales whilst maintaining the same number of sales staffPhysical and financial resources relating to the use of resourcesProfitability e.g. return on coronationManager performance and development performance criteriaEmployee performance and attitude fealtyPublic responsibility e.g. reduce dependency on fogey fuelsIt is likely that many organisations will place greater weighting on some areas than others. For example, the Co-operative bank place s great emphasis on their responsibility to the public in the form of their ethical banking policy. There may be a hazard that some companies are preoccupied with productivity objectives and trying to improve the qualification of existing activities without actually questioning whether they are doing the right things.StakeholdersA key consideration when developing strategic direction relates to an organisations various stakeholder groups. Stakeholders refer to all the different groups of individuals that are influenced and/or have influence on the activities of an organisation. Stakeholders have different expectations and can exert varying levels of influence over the organisation. It is important that organisations have a good understanding of the varying needs of their various stakeholder groups. There are three main groups of stakeholdersInternal stakeholders (employees, management) machine-accessible stakeholders (suppliers, distributors, shareholders, customers) orthogonal s takeholders (community, government, pressure groups)DefinitionStakeholdersThose individuals or groups who depend on the organisation to effect their own goals and on whom, in turn the organisation depends. (Johnson and Scholes, 1999, p213).The following get into illustrates an outline stakeholder map.CustomersBanks/sources of finance SuppliersThe local community DistributorsSociety at large ManagersEmployeesActivity 3.3Stakeholder mapDraw a stakeholder map for your own organisation and consider the varying needs of each group and the implications on the organisations strategic direction.How does your organisation manage the differing expectations of each group?Strategic Marketing ManagementSummaryThis unit has shown thatStrategic intent relates to the aspirations of an organisation and is sometimes referred to as the organisations vision. An appropriate and well constructed vision can help guide strategy, station and maintain core competencies and can act as a motivator for staff by providing them with a sense of purpose.Mission statements are more concerned with providing daily guidance rather than a vision of the future. They should reflect an organisations core competencies, relate to the critical success factors in the market and also inform employees and other stakeholders what contribution is required from them to deliver nourish to the customer.Issues with Strategic Marketing ManagementIssues with Strategic Marketing ManagementIntroductionThis course is designed to help you understand and learn advanced principles of marketing and is aimed at marketing managers, or professionals who are working in business or commerce. Who have perhaps a qualification in marketing and several years experience of working in a marketing role, or managers who would like to increase their marketing knowledge.Part of the courses assessment of learning will involve you in undertaking an assignment based on a marketing strategy plan carried out in your own company/organisa tion. You will be given detailed guidance and advice about this element of assessment later in this workbook.Aims of the unitThe aim of the unit is to identify and discuss key issues associated with marketing principles. The course is focused on strategic principles of marketing, which form an essential underpinning to an understanding of strategic marketing in action. The theoretical underpinning will be complemented by a series of short work-based activities.Objectives of the unitTo equip you with the knowledge and skills to understand and interpret strategic marketing principlesTo provide you with practical experience of applying strategic marketing principles and preparing a strategic marketing plan within your own company/organisation.Learning outcomesOn successful completion of this Unit you should be able toUnderstand the strategic marketing processRecognise the importance of creating strategic advantageProduce a strategic marketing plan in your own company/organisationUnders tand the importance of developing a specific competitive positionStrategic Marketing ManagementWhat does this workbook contain?This workbook contains a number of information and learning resourcesBackground and contextual information about strategic marketing managementKey ideas, theories, concepts, structures, processes in relation to strategic marketingRecall and review and Activity points designed to engage you in reflection and action-focused thinkingCase examples of strategic marketing in actionAssessmentYou are required to write a 2,500-word assignment as followsPrepare a strategic marketing plan for your own company/organisation, paying particular attention to creating and sustaining a competitive advantage over rival firms.Strategic Marketing ManagementHow should this workbook be used?This workbook will direct your study throughout the learning experience. There aresix sections, designed to be studied sequentially. However, a good learning technique is to refresh your learni ng by re-reading, so you are recommend to read back and forth between sections whenever you feel the need. Each section deals with a different topic and, together with any associated activities, practical work or further reading, is designed to require approximately 20 hours of study.The workbook uses an interactive learning approach. This is achieved through the use of self-assessment questions and activities throughout the text. These will enable you to apply the concepts presented in the workbook and explore issues that extend your knowledge and skills.Preparing to use the workbookIf you are new to the study of marketing and/or this study method, then we suggest it is worth you spending some time becoming familiar with its contents and approach to learning and development. This will enhance your own understanding of key ideas in strategic marketing management, and your ability to lead and facilitate the learning of others.Strategic Marketing ManagementTable of contentsTitle PageU nit 1The strategic marketing processObjectives 5Drivers of change 5Corporate strategy/ Marketing interface 7Strategic marketing plans 8Summary 9Unit 2Marketing Information SystemsObjectives 10MIS and the use of strategic intelligence 10Summary 14Unit 3Strategic intentObjectives 15Strategic intent/vision and mission 15Goals and objectives 17Stakeholders 18Summary 19Unit 4Creating strategic advantageObjectives 20Approaches to developing strategic advantage 20Alliances and networks 22Declining and hostile markets 24Strategic wear-out 25Summary 26Unit 5Developing a specific competitive positionObjectives 27Strategic alignment process 27Innovation and new product development 28Strategic evaluation 31Summary 32Unit 6Implementation and controlObjectives 33Implementation 33Control 35Summary 37Strategic Marketing ManagementUnit 1The core theme of this unit is the importance of market-led strategic change to ensure organisational success.ObjectivesBy the end of this unit you willBe able to di scuss, and give examples of drivers of changeUnderstand the relationship between corporate and marketing strategyKnow the process and structure of marketing planning and be able to discuss the differences between strategic and tactical planningDrivers of changeChange is inevitable and companies that wish to maintain a market-led approach must take into consideration both cyclical and evolutionary change when developing their marketing strategies. The rate at which the external environment changes varies according to the nature of the business but increasingly all organisations are facing escalating levels of change.Change is inevitable. To survive companies need to adapt and to convert the threats caused by the changing environment into opportunities in order to avoid strategic drift.Marks and Spencer is a prime example of a company that has not adapted to the changing customer demands and as a result has lost many of its loyal customer base.Case historyDrivers of changeGreenhalgh ( 2001) identifies the following drivers of change that have created challenges for companies over the last few yearsDomestic businesses of any import have become rare. They are now global, drawing on supply chains that transcend national boundaries and serving customers worldwideCustomer expectations of quality have increased and are now applied to all goods and services, rather than just luxury goodsConcern for the environment has become a major item on companies agenda. They now have to consider their environmental responsibility as well as their profits.Large institutional investors are exerting their influence on how organisations are managedStart-up companies play an important role in introducing innovative products and new ideas to the marketplace. Young, technologically-competent workers are drawn to these vibrant workplaces, making it harder for other companies to recruit and retain themStrategic Marketing ManagementActivity 1.1Consider thedrivers of change outlined above. I dentify the impact of these factors on your own company/organisation.What is strategy?The term strategy is probably one of the most used and often misunderstood terms in business.There is no universal definition of strategy and yet it is used extensively. Strategy has the same meaning whether we are discussing corporate, marketing, promotional or even advertising strategy it is concerned with how we might achieve our objectives. The difference between each type of strategy relates to the level at which the strategy is being developed. Corporate strategy according to Johnson and Scholes (1999), isconcerned with what types of business the company as a whole should be in and is therefore concerned with decisions of scopewhereas marketing strategy aims to transform corporate objectives into a competitive market position.The main role of marketing strategy is to differentiate products/services from those of competitors by meeting the needs of customers more effectively. Therefore, accord ing to Drummond and Ensor (2001) marketing strategy can be characterised byAnalysing the business environment and defining customer needsMatching activities to customer needsImplementing programmes to achieve a competitive position relative to competitorsStrategic management consists of three elementsStrategic analysis concerned with answering the question where are we now? This involves analysing the external environment, internal resources and capabilities and stakeholder expectationsStrategic choice what are the options available and which is the most attractive?Strategic implementation often the most overlooked of strategy. It is concerned with allocating resources and turning the plans into action.This process can be as equally well applied to marketing strategy.Strategic Marketing ManagementThe corporate strategy/marketing interfaceIt is impossible to discuss marketing strategy without first putting it into the context of corporate planning. The relationship between corpora te planning and marketing planning can best be explained by figure 1.1 below. It is helpful to think of these decisions sitting in a hierarchy with corporate planning at the top and marketing planning below it. The diagram also illustrates that, alongside marketing planning, plans should be developed for other functional areas of the business such as human resources management (HRM), logistics, and operations. The vision and mission will drive the overall direction of the company and the functional areas of business will all work towards achieving the corporate objectives. The vision and mission will be discussed in Unit 3 Strategic intent.Strategic Marketing ManagementMarketing strategy is concerned with three elements customers, competitors and internalcorporate issues as illustrated in Figure 1.2. Strategic marketing management has three majorphases firstly, strategic analysis in order to answer the question where are we now?This will include external analysis of customers, com petitors and the macro environment and internal analysis of corporate capabilities secondly formulation of strategy in terms of creating and evaluating options and thirdly implementation where the strategies are translated into action. The three stages are not mutually exclusive and are not necessarily linear. In fact it is expected that there will be some feedback and amendments as the process progresses.Strategic marketing plansA strategic marketing plan is the means by which the strategy is communicated within the organisation. The structure and content of a strategic marketing plan will vary considerable between organisations. However, normally the following components are includedCurrent situation external and internal analysisObjective settingStrategy formulationMarketing programmesImplementation issuesControl measuresStrategic Marketing ManagementThere is no one best format for a strategic marketing plan and organisations will develop their own frameworks that match the need s of their companies. Strategic marketing plans need to generate action and not just be filed away. They should also be sufficiently flexible to take into account the changing environment.Activity 1.2Read a copy of your own organisations strategic marketing plan.Give your opinion on whether the strategies outlined in it have been actioned.Has the plan shown sufficient flexibility to take into account the changing environment.If the answer to 3. is no, how could the plan have been improved?SummaryIn this unit we have seen thatOrganisations operate in a dynamic environment and therefore they have to take into consideration those external influences that will impact on their business. These influences are often referred to as drivers of change.In market-oriented organisations it is likely that marketing will be the largest contributor to corporate strategy. Corporate strategy is concerned with what types of business the company as a whole should be in, i.e. the scope of the business. M arketing strategy is concerned with transforming corporate objectives into a competitive market position.A strategic marketing plan is the vehicle by which the marketing strategy is communicated within the organisation. The structure and format of a strategic marketing plan will vary considerably between organisations. There is no one best structure.Strategic Marketing ManagementUnit 2 Marketing Information System (MIS)IntroductionThe focus of this unit is to understand how the use of marketing intelligence and key marketing information can assist marketing managers to produce an effective marketing information system which will assist marketing decision makers to return higher profits.ObjectivesUpon successful completion of this unit you willUnderstand the strategic use of informationUnderstand how a MIS can assist marketing managers to make key decisionsMarketing information is a key requirement for any strategic marketing plan and therefore the development of effective management and marketing information systems is an important task for marketers.Senior marketing managers should not become too heavily involved in the details of the MIS and marketing research but should be concentrating on how to utilize the information in helping to understand the market and develop successful marketing programmes.DefinitionA Management Information System consists of people, equipment and procedures to gather, sort, analyze, evaluate and distribute timely and accurate information to marketing decision makers.The MIS begins and ends with marketing managers. First, it interacts with them to assess their information needs. Next, it develops the needed information from internal company records, marketing intelligence activities and the marketing research process. Information analysis processes the information to make it more useful. Finally, the MIS distributes information to managers in the right form at the right time to help them in marketing planning, implementation and co ntrol.Developing informationThe information needed by marketing managers comes from internal company records, marketing intelligence and marketing research. The information analysis system then processes this information to make it more useful for managers.Strategic Marketing ManagementInternal recordsMost marketing managers use internal records and reports regularly, especially for making day to day planning, implementation and control decisions.Internal records information consists of information gathered from sources within the company to evaluate marketing performance and to detect marketing problems and opportunities. The companys accounting department prepares financial statements and keeps detailed records of sales, orders, costs, and cash flows. The customer service department provides information on customer satisfaction or service problems. Research studies done for one department may provide useful information for several others. Managers can use information gathered from these and other sources within the company to evaluate performance and to detect problems and opportunities.Information from internal records is usually quicker and cheaper to get than information from other sources, but it also presents some problems. Because internal information was collected for other purposes, it may be incomplete or in the wrong form for making marketing decisions. For example, accounting department sales and cost data used for preparing financial statements need adapting for use in evaluating product, sales force, or channel performance. In addition, the many different areas of a large company produce great amounts of information, and keeping track of it all is difficult. The marketing information system must gather, organize, process and index this mass of information so that managers can find it easily and obtain it quickly.Marketing intelligenceMarketing intelligenceis everyday information about developments in the marketing environment that helps managers prepare and adjust marketing plans. The marketing intelligence system determines the intelligence needed, collects it by searching the environment and delivers it to marketing managers who need it.Marketing intelligence comes from many sources. Much intelligence is derived from the companys personnel executives, engineers and scientists, purchasing agents and the sales force. However, company people are often busy and fail to pass on key information. It is important to realise that staff are intelligence gatherers, and they need to be trained to spot new developments and urged to report intelligence back to the company.The company must also persuade suppliers, resellers and customers to pass along important intelligence. Some information on competitors comes from what they say about themselves in annual reports, speeches, press releases and advertisements. The company can also learn about competitors from what others say about them in business publications and at trade shows. Or t he company can watch what competitors do buying and analyzing competitors products, monitoring their sales and checking for new patents.Strategic Marketing ManagementCompanies also buy intelligence information from outside suppliers. Dun and Bradstreetis the worlds largest research company with branches in forty countries and a turnover of $1.26bn. Its largest subsidiary is Nielsen who sell details on brand shares, retail prices and percentages of stores stocking different brands.Marketing intelligence can work not only for, but also against a company. Kellogg used to allow the public to tour its plants but recently closed its newly upgraded plant to outsiders to prevent competitors from getting intelligence on its high tech equipment.Some companies set up an office to collect and circulate marketing intelligence. The staff scans relevant publications, summarizes important news and sends news bulletins to marketing managers. It develops a file of intelligence information and helps managers to evaluate new information. These services greatly improve the quality of information available to marketing managers.To summarise it is clear that a MIS has four main componentsInternal records there is a wealth of information available within the organisation and it is essential that it is organised in such a way as to facilitate its usage. This may include sales data, customer orders, prices, stock levels, customer complaints, etc.Marketing research this is concerned with the systematic collection of information that is specific to a particular problem. For example, a piece of marketing research may be commissioned to investigate attitudes to a new advertising campaign.Marketing intelligence this may include any information that is collected on an ad hoc basis, such as competitor intelligence gleaned from the press, customer trends, registered patents etc.Marketing decision support systems the processes that convert the data into usable information. For example, statist ical tools or modeling techniques.Activity 2.1Write a short summary detailing how a MIS is used to support management decision making in your own company/organisation.Strategic Marketing ManagementIntelligence gathering checking out competitorsCompetitive intelligence gathering has grown dramatically as more and more companies need to know what their competitors are doing. It is essential that managers are not myopic and spend time amassing information about their major competitors.Techniques that companies use to collect their own marketing intelligence fall into four major groups.Getting information from recruits and competitors employeesCompanies can obtain intelligence through job interviews or from conversations with competitors employees. According to Fortune magazineCompanies send engineers to conferences and trade shows to question competitors technical people. Often conversations start innocently but engineers and scientists often brag about surmounting technical challenges , in the process divulging sensitive information.Getting information from people who do business with competitorsKey customers can keep the company informed about competitors and their products. This information can be vital and can prevent a company from being left behind on product launches or price discounting strategies dreamed up by competing companies.Intelligence can also be gathered by infiltrating customers business operations. Companies can provide their engineers free of charge to customers. The close collaboration the engineers on loan enjoy with the customers design staff often enable them to learn what new products competitors are developing.Getting information from published materials and public documentsKeeping track of seemingly meaningless published information can provide competitor intelligence. For example, the types of people sought in job adverts can indicate something about a competitors new strategies and products.Getting information by observing competitors or analyzing physical evidenceCompetitors can get to know competitors better by buying their products or examining other physical evidence. An increasingly important form of competitive intelligence is benchmarking, taking apart competitors products and imitating or improving on their best features. Companies should take advantage of publicly available information but they should avoid practices that might be considered illegal or unethical.Strategic Marketing ManagementWith all the legitimate intelligence sources now available, a company does not have to break the law or accepted codes of ethics to get good intelligence.Activity 2.2Write a short synopsis of how your own company/ organisation gathers intelligence on its competitors.SummaryThis unit has demonstrated thatMarketing intelligence is an essential component of an effective MISInternal records are a vital source of information for marketing managersSenior marketing managers should be concerned with how to use the informati on generated from the MIS rather than with the details of the systemIntelligence gathering can be carried out in various ways but it is important not to break the law or accepted codes of ethicsStrategic Marketing ManagementUnit 3 Strategic intentIntroductionThe focus of this unit is to consider the aspirations and future plans of an organisation, and the components of a suitable mission statement and development of appropriate objectives.ObjectivesUpon successful completion of this unit you willBe able to define the terms strategic intent / vision and mission statementKnow the components of good mission statementsBe able to discuss the development of appropriate objectivesStrategic intent/vision and missionStrategic intent refers to the aspirations of an organisation rather than just its current activity. According to Aaker, strategic intent providesA long-term drive for advantage that can be essential to success. It provides a model that helps break the mould, moving a firm away f rom simply doing the same things a bit better and working a bit harder than the year before. It has the capability to elevate and extend an organisation, helping it reach levels it would not otherwise attain.It is apparent that many organisations that have an appropriate and well-constructed vision are focused on the future and ways of continually attaining sustainable competitive advantage. A vision can help guide strategy, identify and maintain core competencies and provide inspiration and motivation to its managers and its employees by providing them with a sense of purpose.Hamel and Pralahad (1989) suggested that strategic intent combinesA dream that energizes the company (i.e. acts as a motivator)Implied stretch, (looks for new opportunities rather than relying on existing businesses)A sense of directionA sense of discoveryCoherence to plansDefinitionStrategic intent/visionThe desired future state or aspiration of the organization. (Johnson and Scholes, 1999, p.243)Strategic Ma rketing ManagementMission statementsA mission statement is concerned with providing daily guidance rather than a vision of the future. According to Piercy (2000), in order for mission statements to contribute anything they mustReflect an organisations core competencies and how it intends to apply and sustain themBe closely tied to the critical success factors in the marketplaceTell employees, managers, suppliers and partners what contribution is required from them to deliver the promise of value to the customerDefinitionMission statement A generalised statement of the overriding purpose of the organisation. (Johnson and Scholes, 1999,p241)Mission statements are influenced by a number of factors, such as the resource availability, the external environment, the core competencies of the organisation and the current preferences of its current chief executive and senior management. The extent to which the mission statement serves its purpose is influenced not only by the quality and rele vance of the mission but also by how it is communicated to staff and other stakeholders. A successful mission statement is one that is wholly embraced and believed by staff. Just having a mission statement is insufficient, the staff must also buy into the idea.Drummond and Ensor (2001) suggest that successful mission statements should demonstrate the following characteristicsCredibility it must be realistic and believableUniqueness not bland and genericSpecific capabilities embrace core capabilitiesAspirational needs to motivate individualsActivity 3.1Write a brief critique of your own companys mission statement in the light of the above characteristicsStrategic Marketing ManagementGoals and objectivesThe vision and mission provide guidance on the overall direction of an organisation. Objectives, whether corporate or marketing, are the expected outcomes of the strategy.Goals are often regarded as less specific than objectives and more difficult to measure. However, it is normall y accepted that objectives should be SMARTSpecificMeasurable- expressed in quantifiable termsAcceptable to stakeholdersRealistic- attainableTime bound- achievable within a certain time frameDefinitionGoals and objectivesGoal general statement of aim or purposeObjective Quantification (if possible) or more precise statement of the goal(Johnson and Scholes, 1999,p14))Activity 3.2Critically review your companys key objectives using the SMART methodThere are many different types of objectives with which an organisation should be concerned. Drucker (1954) identified the followingMarket standing e.g. market share objectivesInnovation e.g. number of new products launchedProductivity e.g. inputs compared with outputs such as increased sales whilst maintaining the same number of sales staffPhysical and financial resources relating to the use of resourcesProfitability e.g. return on investmentManager performance and development performance criteriaEmployee performance and attitude loy altyPublic responsibility e.g. reduce dependency on fossil fuelsIt is likely that many organisations will place greater weighting on some areas than others. For example, the Co-operative bank places great emphasis on their responsibility to the public in the form of their ethical banking policy. There may be a danger that some companies are preoccupied with productivity objectives and trying to improve the efficiency of existing activities without actually questioning whether they are doing the right things.StakeholdersA key consideration when developing strategic direction relates to an organisations various stakeholder groups. Stakeholders refer to all the different groups of individuals that are influenced and/or have influence on the activities of an organisation. Stakeholders have different expectations and can exert varying levels of influence over the organisation. It is important that organisations have a good understanding of the varying needs of their various stakeholder groups. There are three main groups of stakeholdersInternal stakeholders (employees, management)Connected stakeholders (suppliers, distributors, shareholders, customers) External stakeholders (community, government, pressure groups)DefinitionStakeholdersThose individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn the organisation depends. (Johnson and Scholes, 1999, p213).The following figure illustrates an outline stakeholder map.CustomersBanks/sources of finance SuppliersThe local community DistributorsSociety at large ManagersEmployeesActivity 3.3Stakeholder mapDraw a stakeholder map for your own organisation and consider the varying needs of each group and the implications on the organisations strategic direction.How does your organisation manage the differing expectations of each group?Strategic Marketing ManagementSummaryThis unit has shown thatStrategic intent relates to the aspirations of an organisation and is sometimes referred to as the organisations vision. An appropriate and well constructed vision can help guide strategy, identify and maintain core competencies and can act as a motivator for staff by providing them with a sense of purpose.Mission statements are more concerned with providing daily guidance rather than a vision of the future. They should reflect an organisations core competencies, relate to the critical success factors in the market and also inform employees and other stakeholders what contribution is required from them to deliver value to the customer.