Strategic

Marketing
Decisions

Introduction to Strategic
Marketing Decisions

Strategy Defined
Plan of action to accomplish goals and objectives, leading to attainment of
mission and vision

Action plan to develop advantages, core competitive edges (to outsmart rivals and strengthen competitive position), and ensure
success
Organizational strategy is a plan of action for investing resources
to develop core competencies in the value chain to achieve an
organizations long-term goals and objectives. For example, a
strategy to invest in R&D to develop superior or differentiated
products to meet customer needs and gain market share.

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Strategic Marketing Decisions

Strategic Marketing Decisions is about marketing
decisions and actions that determines the longrun performance of an organization, and they
are made keeping in view the ever-changing,
turbulent, and unpredictable environment. The
ultimate objective of such decisions is to attain
sustainable competitive advantage and resolve
complex problems that require consideration of
strategic means, choices, implementation, and
controlling mechanism.

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Strategic Decisions
Q. Why are strategic decisions different from other types of
decisions?
Ans. Strategic decisions deal with the long-run future of the
entire organization and have three characteristics which
differentiate them from other types of decisions.
(1) They are rare. Strategic decisions are unusual and typically
have no precedent to follow.
(2) They are consequential. Strategic decisions commit
substantial resources and demand a great deal of
commitment.
(3) They are directive. Strategic decisions set precedents for
lesser decisions and future actions throughout the
organization.
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Levels of Strategic
Decisions

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Strategy Development
Framework
It is composed of:

1. Environmental Scanning
2. Setting Mission, Vision, & Goals
3. Strategy Formulation
4. Strategy Implementation
5. Evaluation and Control

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Organizational Environment

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Strategy Development Process

of Entrepreneurship

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The Strategy-Making, Strategy-Executing

Process

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Challenges to Strategic Marketing

(& Changing Dimensions of
Competitive Advantage)
Some Examples from Impact of Electronic Commerce:

1. Internet is forcing companies to transform

themselves.
The concept of electronically
networking customers, suppliers, and partners is
now a reality.
2. New channels are changing market access and
branding, causing the disintermediation of traditional
distribution channels (Ex. Online retailing/etailing).
3. The balance of power is shifting to the consumer.
Now having unlimited access to information on the
internet, customers are much more demanding.
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Challenges to Strategic Marketing

(& Changing Dimensions of
Competitive Advantage) contd.
4.

Competition is changing. New technology

driven firms as well as the traditional firms are
exploiting internet to become more innovative
and efficient.

5. The internet is pushing corporations out of their

traditional boundaries. Many rapidly growing
companies are going global.
6.

Knowledge is becoming a key asset and

source of competitive advantage (Ex.
Knowledge of technology, competition,
changing customer trends, environment, etc.).
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Why Do Strategies
Evolve?
Changes may be necessary to react to
Shifting market conditions
Technological breakthroughs
Fresh moves of competitors
Evolving customer preferences
Emerging market opportunities
New ideas to improve strategy
Crisis situations, etc.

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Globalization
Globalization;
open
world
economy;
privatization;
liberalization;
free
trade;
emergence of global online community; global
consumerism; global marketing & companies

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Globalization

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Globalization
Globalization is the integration of worldwide
economies for socio-economic development.
Regional & Global Trade Agreements
European Union (EU)
North American Free Trade Agreement
(NAFTA)
South Asian Association for Regional
Cooperation (SAARC)
World Trade Organization (WTO)
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Mainstream Globalization
(Acceptable, Glamorous & Fashionable Globalization)

Integrated global economy, interdependence of

countries for trade, investment, finance, human
resources, & technology, global prosperity, peace,
and friendship among global community, & drive
to end wars (Qureshi, 2013)
Globalization of: markets, financial systems,
technologies,
industries/sectors,
companies,
[production, marketing, supply chains, value
chains, & brands], customers, culture, &
community (i.e. global community), (Op cite,
2013)
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Deviant Globalization
(Unacceptable, Illusive, & Regressive Globalization)

Global dominance by largest intercontinental companies, elites, &

developed countries (Qureshi, 2013)

Weakening and liquidating industries in poor countries due to flooding

cheap products imports & global competition, increasing cost &
investment in technology due to compliance on global standards, layoffs & job losses, decreasing incomes & savings, increasing debts,
brain drain, sick socio-economic units, bio-degradation due to
incremental pollution, social inequality (widening gap among social
classes), surge in crimes, loss of culture & religions values, debt
cancer, surge in global crimes, counterfeit products, infringement of
intellectual property rights, sub-standard products, misleading
advertisements & claims, violation of consumer rights, infiltration of
products, selling them into grey markets, dumping, cyber crimes,
corporate espionage, tax evasions, corporate malpractices,
smuggling, trade of contraband items, etc. posing drastic challenges
to marketing strategists (Ibid, 2013)

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Corporate Governance: Strategic

Role of a Board of Directors
Exercise strong oversight to ensure five
tasks of strategic management are
executed to benefit
Shareholders or
Stakeholders
and serve their interests.

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Obligations of a Board of Directors

Involve people in decision-making.
Enable and empower them.
Communicate, coordinate, and cooperate.
Be inquiring critics and overseers.
Evaluate caliber of senior
executives strategy-making and
strategy-executing skills.
Institute a compensation plan for
top executives.
Oversee a companys financial
accounting and reporting practices.

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The
The Basis
Basis for
for Good
Good
Strategic
Strategic Decisions
Decisions
Intuition + Analysis

Effective Strategic Decisions

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Actual Vs Planned Strategy

Company
Experience
know-how,
strengths,
weaknesses,
and
Competitive
position

Planned Strategy
Actual
company
strategy
Adaptive reactions
to challenging
circumstances
Reactive strategy
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Advancements in the
Domain of Marketing
- Distinction between sales & marketing; focus on
needs & wants satisfaction; STP; marketing
research; marketing mix; extending marketing
concepts to public sector & non-profit sectors;
advertising & IMCs; consumer behavior;
customer centric marketing; branding; services
marketing; global marketing; online marketing;
social media marketing; new forms of marketing
(green/ethical marketing; target marketing;
relationship marketing; experiential marketing;
viral marketing; affinity marketing, guerilla
marketing; etc.)
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Advancements in the Domain

of Marketing (4Ps)

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Advancements in the Domain

of Marketing (7Ps)

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Becoming a Market-Oriented
Organization
Information
Acquisition
Cross-Functional
Analysis of Information
Shared Diagnosis
and Coordinated
Action
Delivery of
Superior Customer
Value
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DISTINCTIVE CAPABILITIES
Capabilities are complex bundles of
skills and accumulated knowledge,
exercised
through
organizational
processes (i.e. in functional areas),
that enable firms to coordinate
activities and make use of their
assets.

George S. Day, Journal of Marketing, October 1994, p.38.

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Capabilities
Desirable
Desirable
Capabilities
Capabilities

Applicable to
Multiple
Competition
Situations

Superior to the
Competition

Difficult to
Duplicate

Source: George S. Day, Journal of Marketing, October 1994, 49.

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Case Study on Marketing

Strategy
Winning Strategy of Vizio TV in US Market
Designed & developed the best quality flat LCD &
plasma TVs (of 20-55 size) with great features
Outsourced their TV brands from Taiwan
Priced its brands half than the lowest brand in the
market
Selected the best retail chains to distribute its TVs
Won the market share and became the market leader
in its category in US within 2 years (during 2007-2009);
(Thomson & Strickland)

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Southwest Airlines
Distinctive Capabilities
Organizational Processes
Southwest uses a point-to-point route system rather than the hub-and-spoke design used by
many airlines. The airline offers services to 57 cities in 29 states, with an average trip about
500 miles. The carriers value proposition consists of low fares and limited services (no
meals). Nonetheless, major emphasis throughout the organization is placed on building a
loyal customer base. Operating costs are kept low by using only Boeing 737 aircraft,
minimizing the time span from landing to departure, and developing strong customer loyalty.
The company continues to grow by expanding its point-to-point route network.
Skills and Accumulated Knowledge
The airline has developed impressive skills in operating its business model at very low cost
levels. Accumulated knowledge has guided management in improving the business design
over time.
Coordination of Activities
Coordination of activities across business functions is facilitated by the point-to-point
business model. The high aircraft utilization, simplification of functions, and limited
passenger services enable the airline to manage the activities very efficiently and to provide
on-time point-to-point services offered on a frequent basis.
Assets
Southwests key assets are very low operating costs, loyal customer base, and high
employee esprit de corps

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Issues of Strategic Marketing Decisionmaking in M-SMEs

Limitations of finance, resources, & technology (including ICT

and digitization)

Limitation of skills, expertise, & capabilities

Limitations of formalization & functionalization (have fewer

departments)

Plausibility of using entrepreneurial skills, innovation, cutting edge

technologies, and free technologies cum software to tap unending
opportunities under globalization regime to unlock their potential (& taking
full advantage of global online community)

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