Marketing strategy
SESSION 1
WHAT IS MARKETING STRATEGY?
“Marketing strategy refers to 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 (or co-create
value with customers) in exchange with the organization and thereby enables the organization to achieve
specific objectives.”
THE SCOPE OF MARKETING STRATEGY
Just a small overview of what we will see this course, with broader explanation underneath
1. MARKETING STRATEGY SCOPE
Organizational scope – market scope (defining the market)
1
, Marketing strategy
2.MARKETING STRATEGY PROCESS
Strategy formulation process → strategy content → strategy implementation
3. MARKETING STRATEGY BEHAVIORS
Competitive behaviour – cooperative behaviour – collusive behaviour
The model shows how
firms analyze rivals,
decide when to
attack/respond and how
this affects long-term
competitive outcomes.
4. MARKETING STRATEGY CONTEXT (INTERNAL AND EXTERNAL ORGANIZATIONAL
ENVIRONMENT)
Market organization – organizational culture and climate – organizational learning – market and marketing
knowledge management – web 1.0 , web 2.0 , technologies – sustainable business practices – corporate
social responsibility – social media
MARKET ORIENTATION
Gathering market intelligence Understanding the target
(current/future customer market’s entire value
needs, environmental chain
factors).
Understanding the short-
Sharing this intelligence term and long-term
across different departments capabilities of current and
potential competitors
Taking action based on the Using company resources
intelligence in a coordinated way to
create customer value
2
, Marketing strategy
5. MARKETING STRATEGY RELATIONSHIPS
Antecedents (Drivers) – consequences (outcomes) – moderators – mediators
KMV = Key mediating variables
9. INTRA -ORGANIZATIONAL HORIZONTAL INTERFACES
Marketing strategy <-> R&D strategy – market scope <-> manufacturing strategy
Classic Sales vs. Marketing conflict, a key example of intra-organizational horizontal interfaces.
Without coordination between departments on the same level, efficiency and results suffer.
8. INTRA -ORGANIZATIONAL VERTICAL INTERFACES
Distinctive and overlapping domains of marketing strategy, business strategy and corporate strategy –
influence of business and corporate strategy on marketing strategy – influence of marketing strategy on
business and corporate strategy – locus of decision making for marketing strategy
The balance between planning
influence and control influence
Strategic Planning: High planning,
flexible control → focus on long-term
direction and vision.
Strategic Control: Medium level of
both → balance between setting
strategy and monitoring progress.
Financial Control: Strong control, low
planning → emphasis on tight financial
monitoring and short-term results.
It illustrates how organizations can manage differently, from flexible and forward-looking to strict and
financially driven.
3
, Marketing strategy
7. INTER-ORGANIZATIONAL HORIZONTAL INTERFACES
Strategic marketing alliances - multipoint (multi-market and multi-product) competition
As the arrangement moves toward greater
cooperation, both the transaction costs (costs of
searching and contracting) and governance costs
(costs of managing the relationship) generally
increase. For example, a simple cooperation
agreement is low in interaction, while a joint
venture is high.
MULTIPOINT COMPETITION
A situation where multibusiness firms compete against each other
simultaneously in several markets.
6. INTER-ORGANIZATIONAL VERTICAL INTERFACES
Marketing strategy <-> cooperation and coordination with suppliers – Marketing strategy <-> cooperation
and coordination with intermediate customers.
SUPPLIER AND CHANNEL EVALUATION
The central circle contains main categories for evaluation (e.g.
quality).
The outer circle provides the specific criteria or factors that fall
under each category (e.g. service/supply and human
resources)
This wheel-like structure helps an organization systematically
assess the capabilities and reliability of potential or existing
partners across multiple critical dimensions.
4
SESSION 1
WHAT IS MARKETING STRATEGY?
“Marketing strategy refers to 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 (or co-create
value with customers) in exchange with the organization and thereby enables the organization to achieve
specific objectives.”
THE SCOPE OF MARKETING STRATEGY
Just a small overview of what we will see this course, with broader explanation underneath
1. MARKETING STRATEGY SCOPE
Organizational scope – market scope (defining the market)
1
, Marketing strategy
2.MARKETING STRATEGY PROCESS
Strategy formulation process → strategy content → strategy implementation
3. MARKETING STRATEGY BEHAVIORS
Competitive behaviour – cooperative behaviour – collusive behaviour
The model shows how
firms analyze rivals,
decide when to
attack/respond and how
this affects long-term
competitive outcomes.
4. MARKETING STRATEGY CONTEXT (INTERNAL AND EXTERNAL ORGANIZATIONAL
ENVIRONMENT)
Market organization – organizational culture and climate – organizational learning – market and marketing
knowledge management – web 1.0 , web 2.0 , technologies – sustainable business practices – corporate
social responsibility – social media
MARKET ORIENTATION
Gathering market intelligence Understanding the target
(current/future customer market’s entire value
needs, environmental chain
factors).
Understanding the short-
Sharing this intelligence term and long-term
across different departments capabilities of current and
potential competitors
Taking action based on the Using company resources
intelligence in a coordinated way to
create customer value
2
, Marketing strategy
5. MARKETING STRATEGY RELATIONSHIPS
Antecedents (Drivers) – consequences (outcomes) – moderators – mediators
KMV = Key mediating variables
9. INTRA -ORGANIZATIONAL HORIZONTAL INTERFACES
Marketing strategy <-> R&D strategy – market scope <-> manufacturing strategy
Classic Sales vs. Marketing conflict, a key example of intra-organizational horizontal interfaces.
Without coordination between departments on the same level, efficiency and results suffer.
8. INTRA -ORGANIZATIONAL VERTICAL INTERFACES
Distinctive and overlapping domains of marketing strategy, business strategy and corporate strategy –
influence of business and corporate strategy on marketing strategy – influence of marketing strategy on
business and corporate strategy – locus of decision making for marketing strategy
The balance between planning
influence and control influence
Strategic Planning: High planning,
flexible control → focus on long-term
direction and vision.
Strategic Control: Medium level of
both → balance between setting
strategy and monitoring progress.
Financial Control: Strong control, low
planning → emphasis on tight financial
monitoring and short-term results.
It illustrates how organizations can manage differently, from flexible and forward-looking to strict and
financially driven.
3
, Marketing strategy
7. INTER-ORGANIZATIONAL HORIZONTAL INTERFACES
Strategic marketing alliances - multipoint (multi-market and multi-product) competition
As the arrangement moves toward greater
cooperation, both the transaction costs (costs of
searching and contracting) and governance costs
(costs of managing the relationship) generally
increase. For example, a simple cooperation
agreement is low in interaction, while a joint
venture is high.
MULTIPOINT COMPETITION
A situation where multibusiness firms compete against each other
simultaneously in several markets.
6. INTER-ORGANIZATIONAL VERTICAL INTERFACES
Marketing strategy <-> cooperation and coordination with suppliers – Marketing strategy <-> cooperation
and coordination with intermediate customers.
SUPPLIER AND CHANNEL EVALUATION
The central circle contains main categories for evaluation (e.g.
quality).
The outer circle provides the specific criteria or factors that fall
under each category (e.g. service/supply and human
resources)
This wheel-like structure helps an organization systematically
assess the capabilities and reliability of potential or existing
partners across multiple critical dimensions.
4
