The document discusses several key aspects of strategic marketing: 1. It outlines the origins and development of strategic marketing from the 1900s focusing initially on sales and practical outcomes to more recent decades where marketing is appreciated at both tactical and strategic levels of management. 2. Important elements of a marketing strategy are identified as competitive strategy, segmentation strategy, positioning, and the marketing mix. 3. The role of marketing is examined at different levels of management from corporate philosophy to business unit strategy to functional tactics.

1. 1. What is essential in strategic marketing?

2.  Strategy and marketing by Altschuler I.
 Market-Driven Management: Strategic and Operational Marketing by
Lamben J-J.
 Strategic Marketing Management by Philip Kotler and Alexander Chernev
 Marketing As Strategy: Understanding the CEO's Agenda for Driving
Growth and Innovation by Nirmalya Kumar
 Marketing Plans: How to Prepare Them, How to Use Them by Malcolm
McDonal and Hugh Wilson
 Blue Ocean Strategy: How to Create Uncontested Market Space and Make
the Competition Irrelevant by W. Chan Kim and Renée Mauborgne
 On Competition by Michael E. Porter
 Bottom-Up Marketing/ Marketing Warfare by Al Ries and Jack Trout
 Inside the Tornado: Strategies for Developing, Leveraging, and Surviving
Hypergrowth Markets by Geoffrey Moore
 Business Model Generation by Alex Osterwalder
 The Long Tail by Chris Anderson

3. 1. The Concept of Strategic Marketing and Its
Development
2. The Present-Day Understanding of Strategic
Marketing. Important Marketing Trends
3. Elements Composing Marketing Strategy
4. The Place and Role of Marketing in the
System of Company Management

4. The Origin and Development of
Strategic Marketing
 Stages
 Origin
 1900s-1950s.
 Marketing is practically-oriented on the outcome sales. (At this stage the
following tools are being employed: advertising, sales stimulation)
 Establishment
 1960s.
 The growth of market competition requires establishing what to produce
 1970s.
 Marketing as a major tactic function of management. Its tasks are
successful trade, customer’s behaviour and environment research which
allows to design more effective short-term plans
 1980s.
 Marketing is becoming the basis of strategic analyses
 Active Development
 Since 1990s till now.
 Marketing is appreciated at both tactic and strategic levels of management.
The concept of corporate marketing appears. Business, and therefore,
marketing should be socially oriented

5. The Present-Day Strategic Marketing
Role
 marketing is an important part of the corporation
strategy, defines its long-term competitive
advantages
 marketing supports the organization structure
changes and is based on democratic way of
decision-making
 marketing requires both the corporate culture
development and personal motivation
 marketing leads to long-term customer relationships
 marketing changes thinking and priorities of the
whole company team, not only of top managers

6. 1. Don’t compete to be the best, compete to be unique – avoid
competing with rivals in the same niche
2. Your main goal is to achieve high investment efficiency (high
investment capital profitability) while the company’s growth
is a secondary goal
3. Strategy analysis is based on the overall industry situation
4. Don’t be afraid to compromise. The essential part of the
strategy is to make the right decision (nowadays it is
important to know how and what to refuse)
5. The strategy should be successful in each link of the value
creation chain
6. The strategy should be constant – stability of the main value
offer (it’s often an overattention to customers’ requirements
and complaints that turns to be a serious threat)
7. Choose your segment
8. The strategy should touch upon not only top-management
but also the whole company’s team

7. Strategic Marketing Objectives
 Strategic marketing is the process of
marketing decisions search concerning the
formation and holding the company’s
competitive advantages
 Tasks
◦ Environmental and competitive analysis (macro- and
microenvironment, market evolution and growth)
◦ Estimation of company’s competitive position, its
competitive advantages and key performance indicators
◦ Setting product, market and brand objectives
◦ Market segmentation and market targeting
◦ Positioning decisions
◦ Strategic decisions in marketing mix

8. Operational vs Strategic Marketing
 Operational approach
 Decision making
sequence: do – check
 Opportunities, markets –
understandable
 Business environment –
stable, understandable,
predictable
 Management style –
short-term
 Marketing – management
function
 Results – in the short term
(financial)
 Strategic approach
 Decision making
sequence: check – choose
– do - check
 Opportunities, markets –
created
 Business environment -
highly-competitive,
dynamic
 Management style – long-
term
 Marketing – business base
 Results – in the long term
(market position)

9.  Success factors
◦ Each year – 11-12 thousand of new
clothing models
◦ Placing stores in most crowded areas
◦ Positioning – fashion clothing for
reasonable prices
◦ Limited designs output
◦ Promotion costs – only for the internal
and external store design
 Business model
◦ 400 designers
◦ Each designer is given the sales data of each
item
◦ Undemanded items are replaced in a week
◦ Undemanded items – less than 10%
◦ Sold on sales – less than 15%
◦ All the models are sold within 4 weeks
◦ Renewal of product range – twice a week (200
new designs)
◦ Production concentrating in the EU – 80%
◦ Perfect logistics (40 thousand departures per
hour)
V=MS,
V - Value
M - Model
S – Strategy
Business Model Canvas
Explained.mp4
Osterwalder explaining the Business
Model Canvas.mp4
book businessmodelgeneration-
120710211020-phpapp01.pdf

10. Strategic Marketing as a Process
Market understanding -
evaluation of inner and
outer situations,
Defining the key success factors
Defining
actions –
Agreement and realization of
tactics with in accordance with
the chosen strategy
Strategy choice -
Resources distribution among
different segments and the choice of
the way to differentiate the product

11.  Horizon planning – forget trying to plan incrementally in fast and volatile
markets. Start with a vision, then work backwards thinking about what you
want to achieve with more flexibility within a set of principles and directions
 Participation platforms – campaigns are out, platforms are in. Campaigns
push short-term messages, quickly forgotten, platforms build enduring ideas
built on ongoing participation (Coke’s “Live Positively”)
 Solomo consumers – the biggest shift in consumer behaviour is guided by
their smartphone, and everything it enables – to be social, and local, and
mobile
 Zero moment of truth – in a search-driven, digitally enabled engagement
process – there is a clear moment when potential customers will choose to
love or hate you
 Upward innovation – the best ideas come the bottom upwards, not the top
down
 Multiple Strategy of Branding is more common
 Subscription pricing – the biggest trend in pricing is not to sell products
around transactions but to sell a subscription, like a magazine, cloud
computing

12.  Emerging markets – the commonest market growth drivers are
psychological and demographic aspects
 Borderless segments – forget nationalism, think niches and motivation
 New social communities – community building is not simple, it’s not
just creating a Facebook page but need to being able to unite them
under one cause
 Crowd creativity – the best ideas are out there, not in your business.
So build a crowdsourcing platform and let customers build the best
new ideas
 Concept innovation – brands are not about products, not about
companies, but about bigger ambitions to make life better
 New business models – like Apple and Google, rethink how you create
value for customers through your partnerships with distribution and
supply
 Social innovation – ultimately we are all here not just to make money,
but to make the world a slightly better place. It is all about social
corporate responsibility of business

13. What Elements Form Marketing
Strategy
Marketing goals
 Marketing strategy – a set of marketing
decisions for long-term perspective regarding
target markets and segments
 Key elements of MS
 How to compete (competitive strategy)
 Who to orient your business on (segmentation strategy)
 How to be different (positioning concept- unique sale
proposition)
 How to use marketing mix for that differentiation
 How to prove the significance of those decisions (the planned
results and analytical proofs of the taken decisions)

14. Components of a Strong Marketing
Strategy
Market demands
and conditions
The company’s
resources
Marketing
strategy
Company’s resources
essential for strategy implementation
Company’s resources
appropriate for the
operating markets
Strategy adapted to
market needs

15. Models of Marketing Strategies
Development
 Planning model
 Company value model
 Consensus model
 Down-up building model
 Environment adaptation model
 Manager’s intuition (vision) model

16. Marketing Role in the Management
System
 Management comprises the following levels:
 Corporate – marketing as philosophy (company’s
values, principles, goals and objectives), the basis
for business-model construction
 Business (SBU) – marketing as a strategy
(segmentation and positioning)
 Functional – marketing as a function (marketing
department)
 Operational – marketing as tactics (4P
implementation during a year)

17. Key Strategy Elements
Objectives regarding
• the particular product-
market position
• sales volume
• market share
• customer satisfaction
• profit from the product
or the product group
SBU objectives
• sales volume growth
• cash flow
• gaining and holding
competitive advantages
General corporate objectives
• profit growth
• company’s profitability
• return-on-investments
• earnings per share
Objectives
Target markets/ segments
Decision-taking
concerning depth and
width of the product
range, branding,
commodity markets
development
Commodity markets for
SBU
Decision-taking
concerning intensive
growth and related
diversification
Types of activity
Decision-taking concerning
diversification, vertical
integration, acquisitions and
divisions
Scale
Marketing strategyBusiness strategyCorporate strategy
Element