Scope of Strategic Marketing

Only available on StudyMode
  • Download(s) : 336
  • Published : July 21, 2010
Open Document
Text Preview
Chapter 1

Scope of strategic marketing
Marketing is a philosophy that leads to the process by which organizations, groups and individuals obtain what they need and want by identifying value, providing it, communicating it and delivering it to others. The core concepts of marketing are customers’ needs, wants and values; products, exchange, communications and relationships. Marketing is strategically concerned with the direction and scope of the long-term activities performed by the organization to obtain a competitive advantage. The organization applies its resources within a changing environment to satisfy customer needs while meeting stakeholder expectations. Implied in this view of strategic marketing is the requirement to develop a strategy to cope with competitors, identify market opportunities, develop and commercialize new products and services, allocate resources among marketing activities and design an appropriate organizational structure to ensure the performance desired is achieved. There is no unique strategy that succeeds for all organizations in all situations. In thinking strategically about marketing many factors must be considered: the extent of product diversity and geographic coverage in the organization; the number of market segments served, marketing channels used, the role of branding, the level of marketing effort, and the role of quality. It is also necessary to consider the organization’s approach to new product development, in particular, its position as a technology leader or follower, the extent of innovation, the organization’s cost position and pricing policy, and its relationship to customers, competitors, suppliers and partners. The challenge of strategic marketing is, therefore, to manage marketing complexity, customer and stakeholder expectations and to reconcile the influences of a changing environment in the context of a set of resource capabilities. It is also necessary to create strategic opportunities and to manage the concomitant changes required within the organization. In this world of marketing, organizations seek to maximize returns to shareholders by creating a competitive advantage in identifying, providing, communicating and delivering value to customers, broadly defined, and in the process developing long-term mutually satisfying relationships with those customers.

[2] Strategic Marketing

Understanding marketing – antecedents
The fundamental management issue in marketing is to determine a superior value position from the customer’s perspective and to ensure that, by developing a consensus throughout the organization, value is provided, communicated and delivered to the customer group. The core concepts of marketing are needs, wants and demands which directly affect the identification and selection of relevant customer values reflected in products, services and ideas that the organization provides, communicates and delivers in the form of exchanges to build long-term satisfactory relationships with customers (Figure 1.1). Needs are the internal influences which prompt behaviour, e.g. biological needs refer to a person’s requirements for food, air and shelter while social needs refer to issues such as security, personal gratification and prestige. Wants are culture bound and may be satisfied using a number of technologies, e.g. a teenager may listen to music on one of the rock radio stations or on DVDs played on a computer. Demand refers to the ability and willingness of a customer to buy a particular product or service which satisfies the want and the more latent need. A student may want a BMW but can afford only a bicycle. The organization may set out from the start or be established with those objectives or, more likely, as a result of trial and error and experience, the organization evolves into a position over time of being the desired source of value. The core concepts of marketing may be decomposed into a number of basic components:

Identify and select the customer...
tracking img